Komatsu ESG Databook

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialcontribution
activities

Data

Index

ESG Databook 2022
Sustainability policy

003

Management of sustainability
Materiality analysis

005

Amount of CO2 emissions by scope 3

144

Development of our “Reman” remanufacturing business

146

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

147
149

Our system to promote sustainability

008

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

Dialogue with our stakeholders

009

Environmental initiatives at sales and service companies

151

Major achievements

013

Promoting legal compliance, and pollution mitigationand prevention

153

Comparison with global principles

022

External evaluations

024

Green bond

029

With people
Occupational safety and health032

Personnel policy and performance appraisal system

043

Promoting diversity and inclusion

049

Support for work-life balance

056

Human resource development: structure061

Human resource development: The Komatsu Way

064

Human resource development: enhancing skills

066

Management of chemical substances andpollution prevention

154

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

156

Komatsu's eﬀorts regarding water

158

Prevention of environmental risks (CR audits)

160

Biodiversity

162

Data
Major environmental achievements in the previous year.

166

Environmental education

170

Environmental accounting

172

Environmental data

174

Brand management initiatives

069

Human rights policy

071

Amount of CO2 emissions by scope3

180

073

SBT (Science-Based Targets) approved

181

Scope of environmental data/calculation standards

182

Independent practitioner's assurance

185
186

Business and human rights

With business
Improving product safety and solutions

078

Other CSR Data

Quality and reliability- responsible commitment to customers -082

Social Contribution Activities

Outline of procurement policy and supply chain

086

188

CSR procurement guidelines

090

Accomplishments and approaches for social contribution
activities
Komatsu's initiatives for the social issues

191

Komatsu group's supply chain management andpromotion of CSR procurement093

Developing people needed by the community

193

Support for member companies of the Komatsu Midori-kai(management and society)099

Disaster relief

197

Clearing anti-personnel landmines andcommunity development support

200

Promoting sports̶the Komatsu women's judo club206

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

208

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

107

Corporate governance112

Corporate governance indicators

114

Compliance

117

Risk management

121

Information security

127

Index
GRI STANDARDS INDEX211

SASB Content Index

223

With the planet
Our concept of environmental activities andpromotion system

Editorial Policy
This publication is the compiled PDF version of Komatsu's webpage "ESG
Databook", as of July 20, 2022.

130

The reports principally cover all our domestic and overseas consolidated

Organizational chart of the environmental
management structure

132

Setting mid- and long-term targets and progress

133

The date of the previous report is July 2021. We publish these reports every

Acquiring ISO14001

134

July, and the next issue will be published in July 2023.

Relationship between business activities and the environment

135

The reports contain Standard Disclosures from the GRI Sustainability

Mitigating climate change through products and service

137

Reporting Standards. You can see a list of the Standard Disclosures and their

Reducing CO2 emissions in manufacturing operations

140

Komatsu has received an independent practitioner's assurance on important

Reduction CO2 emissions in logistics

142

quantitative data in environmental reporting, which can be viewed here.

Group companies and if the scope is diﬀerent from the above, we stated thescope of report in each page.

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

location in our report here.

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ESG Databook 2022

Sustainability policy

Management ofsustainability

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Sustainability policy

Sustainability policy003

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ESG Databook 2022

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Sustainability policy
Since Komatsu's founding, we have always pursued "Quality and Reliability", and have made efforts to build strong
relationships of trust with our stakeholders based on our "Management Principle" of maximizing the total sum of trustfrom 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, and our planet thrive together".
We will continue to address issues that are important to both a sustainable society and our business, grow as a corporategroup that can flexibly 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 ourplanet thrive together
With people

With businessWith the planet

We provide an environment
where diverse and global
employees can work safely andhealthily as one team, withrespect for each individual, andwith satisfaction and pride.
We nurture employees who cantake on challenges in various
jobsites and regions, create
new value together withcustomers, and contribute to
the realization of a sustainable
society.
As Komatsu Group, we shallrespect human rights related toall of our business activities.

We contribute to society
through our business activities
by providing our customers
with safe and highly productive
products, services andsolutions that realize
sustainable infrastructuredevelopment, resource
development and a recyclingoriented society.
We build relationships with ourbusiness partners and local
communities that enablemutual trust, fairness, coexistence and co-prosperity.
We comply with the rules ofsociety, including laws andregulations, and strive to
respond sincerely to therequests and expectations of
all stakeholders, including
society.

Through all of our businessactivities, we strive to reduce
our environmental impact andpreserve the global
environment through the useof advanced technologies.
We strive to increase bothglobal environmental
conservation and businessgrowth through manufacturing
and technological innovation.
We pursue collaboration andvalue creation with our
stakeholders towards asustainable planet and future.

Komatsu Ltd.
President and Chief Executive Officer
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ESG Databook 2022

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015

Management of sustainability

Materiality analysis005

Our system to promote sustainability

008

Dialogue with our stakeholders009

Major achievements

013

Comparison with global principles

022

External evaluations

024

Green bond

029

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Materiality analysis
In recent years, our external environment is undergoing intense change and there is more and more uncertainty.
We need to enhance our foundation for sustainable growth taking trends like digital transformation, carbon
neutrality as well as diversity and inclusion as business opportunities.
In recognition of these issues, we reviewed the materiality from November 2020 to February 2021, before thedevelopment of a new mid-term management plan, to strengthen our ability to respond to changes in theexternal 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 these areas and issues into our growthstrategies.

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 26 internal and external stakeholders regarding the sustainability issues identified andevaluated and mapped them from two perspectives: business importance and impact onsustainability (importance to stakeholders + environmental, social, and economic impact).
* External interviews (11 people in total) : institutional investors, WBCSD, environmental organization (WWF), human rights NPO(BHRRC), customers, and suppliers.
* Internal interviews (15 people in total) : worldwide executives (directors, executive officers including global officers).

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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].
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 new threeyear (FY 2022-FY 2024) mid-term management plan, “DANTOTSU Value - Together, to “The Next” forsustainable growth.”6

ESG Databook 2022

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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 the new mid-term management plan, we have selected ten new goals from 17 SDGs (Sustainable
Development Goals), which are particularly relevant to Komatsu-group’s materiality.
Sustainability
policyRelationship with SDGs

Materiality[Employees] [Human rights]
With people

Gender equality Decent work andeconomic growthDiversity and Inclusion
Skills development and workplaceretention
Employee engagement and job
satisfaction
Occupational safety and health andwellbeing
Respect for human rights

Reducedinequalities

Partnerships for the
goalsWith business[Customers][Ethics / Governance][Communities]

Industry, innovation Sustainable cities Responsible
and infrastructure and communities consumption andproduction

Provision of solutions
Product safety and quality
GovernanceComplianceContributions to local communities

Partnerships for thegoals[Environment]
With the Planet

Development of low-carbon/lowemissions products, solutions andbusiness models
Resource recycling andremanufacturing
Forest conservation through businessactivities
Reduction of energy usage and GHG
emissions

Affordable and Industry, innovation Responsible
clean energy and infrastructure consumption andproduction

Climate action

Life on land

Partnerships for thegoals

The new mid-term management plan incorporates the above materiality and the relationship between oursustainability policy and the SDGs. It aims to accelerate the virtuous cycle of resolving ESG issues andimproving profitability by addressing materiality, thereby achieving sustainable growth. The plan has been
passed by a resolution of the Board.
In order to ensure to resolve ESG issues steadily through our growth strategies, we are going to set KPIs for
key initiative activities and monitor their achievement. The progresses of these activities will be 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 to understand and manage the business risks and opportunities
related to sustainability issues.
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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.

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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

PurposesFrequency

Collaborate to realize
Brand Management
customers' goals and fulfill
Daily
Activities
corporate responsibility
Customers
Collaborate to resolve issues
in society and in the regions
Daily
where we operate, andparticipate in local activities
President explains business
Various meetings withperformances, policies and2 times a year
Midori-kai
strategies
Business partners Conduct safety patrols andprovide opportunities such as
As needed
for support of efforts for
obtaining certification
Explanation by the President
Distributor meetings in each Annually
Distributors
on business performance,
regionpolicies and strategies
Meetings with the President 2 times a year
Explanation by the President
Sharing Q&A session
business performance,
content with global
As needed
policies and strategies
employees via the intranet
Employees
Dialogue with the labor union
Regular Meetings between
and employee
As needed
representatives to improve Management and Labor
the workplace environment Union
Local community Explanation of initiatives
Meetings with residents of the As needed
related to operations, thelocal community near theenvironment and safetyplant
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Examples of meetings andactivities

Purposes

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

Data

Index

Frequency

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
FY 2020)
About twice a year
in Japan
Plant tours for shareholders (suspended toprevent the spreadof COVID-19)

CEO and CFO explanation ofbusiness performance,
policies and strategies
Plant tours and explanationof operations

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Communication with shareholders
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
To continually communicate with individual shareholders, Komatsu
convenes shareholders' meetings every year and our senior management
explains the company's performance statistics and management
strategies and holds Q&A sessions. Usually, the meetings are held inmajor cities in Japan. To prevent the spread of COVID-19, however, themeeting was held online since FY 2020. In FY 2021, shareholders fromaround the country participated in the event. Many questions were raised FY 2020 Online shareholder meeting
during the Q&A session, which covered a wide range of topics such as
how to respond to external risks in the supply chain, the impact of increasing global environmental
awareness (de-coalification) on our business, and the balance to be struck between investing in growthstrategies and generating profits for shareholders. A streaming video and documents of the meeting areavailable for viewing on our website.
Since the first one in 1997, we have convened 51 shareholder meetings attended by about 17,000
shareholders in total.

3. Plant tours for individual shareholders
Komatsu holds plant tours for individual shareholders to further deepen their understanding of thecompany. In FY 2021, plant tours were cancelled due to the spread of COVID-19. Komatsu’s official YouTube
channel shows videos delivering our corporate messages and explaining our brands, products andtechnologies and also features VR (virtual reality) content of plant tours.
Videos of plant tours can be viewed on the following site.
Komatsu’s official YouTube channel

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4. Meetings for individual investors
Komatsu holds meetings for individual investors to explain our businessand management strategies as well as to cultivate a deeper
understanding of our company. In FY 2021, we had five online meetings
for individual investors. Streaming videos and documents of themeetings are available for viewing on our website.

A shot from an online meeting forindividual investors

DATA

Facts about our events for individual shareholders and investors held in FY 2020 (domestic):
Online meeting for shareholders:
Online meeting for individual
investors:

Number of events held

Approximate number of viewers
1 Viewed live by a total of 181 people
by a total
5 Viewed live or on demandof 9,429 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.
IR site on the events for shareholders and individual investors

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 each week with new questions, and as of March 31, 2022, a
cumulative total of 359 questions on specific topics, along with the president's answers, explanations andmessages to employees, have been published in Japanese and English.

Employee meeting held at the head office“Virtual office of President” on the intranet
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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 healthand well-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

FY2024 Targets

1

Frequency rate of lost work time
accidents（per 1 million hours）

Ongoing decrease from three-year
average frequency rate of 0.65 fromperiod of previous mid-term
management plan (Performance
disclosed)

Employees
Occupational safety and health and well-being
Build workplaces that aresafe and secure

Employee engagement and job satisfaction
Increase employee
engagement

2

Diversity and Inclusion
Promote diversity andinclusion

SDGs

3
4

Engagement survey scores

Indicators related to female employees
1. Ratio of full-time female employees(consolidated)
2. Ratio of female managers(consolidated)
Ratio of employees with disabilities(surpassing legally mandated rate)
13

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).

1. 17.0% or more
(13.9% on March 31, 2022)
2. 13.0% or more
(10.0% on March 31, 2022)
Domestic: 2.5% or more each year
(legally mandated level of 2.3%)
ESG Databook 2022

Sustainability policy

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Materiality

With people

Key activity themes

Employees
Skills development

With businessNo.
5

Develop individuals' skills
and achieve businessgrowth6
7

Human Rights
Respect for human rights

ssenisub htiW

Promote human rights due
diligenceWith the planet

8

Data

KPI

Socialcontribution
activities

Index

FY2024 Targets

Increased succession planning forsenior management positions atoverseas Group companies
Three-year aggregate numbers ofrecipients
Development of human resources with training
1. Digital transformation :digital transformation and Al skills
180 for practical, 900 for entry level
2. Al :30 for practical, 90 for entry level
Cultivation of Smart Construction
1,000 (aggregate)consultants
Succession plans

Human rights due diligence activities

Due diligence activities conducted forfollowing three areas
1.lnternal 2.Procurement supply chain
3.Sales

Sustainability Policy
Materiality
We contribute to society through our business activities
safety and quality
by providing our customers with safe and highly
Customers Product
Provision of solutions
productive products, services, and solutions that realize
sustainable infrastructure development, resource
development, and a recycling-oriented society.
We build relationships with our business partners andEthics /local 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 themesNo.

Enhancement of productsafety9

Customers
Product safety and quality
Provision of solutions

10
11

Improve productivity of
construction workplaces bypromoting Smart
Construction
12
13
Provision of products andsolutions that enable
sustainable resource
development (mining
equipment)

14
15
16

KPI
Development of safety devices andexpansion of range of marketed models
equipped with safety devices(KomVision, etc.)
Overseas sales of ICT-intensive models
Number of workplaces using Smart
Construction (global total)

SDGs

FY2024 Targets

Expansion of range of marketed models
equipped with safety devices

2,700 units (single year)
13,000 workplaces (single year)
Ratio of workplaces using Smart
Construction that employ
Enhancement and optimization of
Solution Level 3 or higher: 15%(single
processes
year)
Aggregate number of AHS units
740 units (aggregate)
deployed
Introduction and promotion of open
Optimization of mining operations
technology platforms
Expansion of product lineup andAugmentation of hard rock mining
execution of trials including those for
product lineup
new methods (mechanical cutting)sales: US$ 300 million (threefold
Expansion of hard rock mining business Net
increase)
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Materiality

With people

Key activity themes
Solutions for improving
safety and productivity at
customer workplaces(automation, autonomous
operation, remote
operation)
Building of value chain
adaptable to environmental
and demand changes

With business

No.
17
18
19

Ethics / Governance
Governance / Compliance
Strengthen governance andensure thorough20
compliance
Communities
Contributions to local communities
Contributions tocommunities throughbusiness and disaster relief 21
supportWith the planetSocialcontribution
activities

Data

KPI

Index

FY2024 Targets

Development of automated construction Expansion of number of marketed
and mining equipment
models (including new developments)
Expansion of aftermarket business(pursuit of business growth andresponse to volatility)
Multi-sourcing ratio (Implementation ofbusiness continuity measures across
supply chain)

Sales growth rate: 15%(compared with FY2021, foreignexchange rates fixed)

Enhancement of governance andentrenchment of compliance

Disclosure of initiative results

Ongoing social contribution activities

Disclosure of activity results

Sustainability Policy

92% (82% in FY2021)

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 /our environmental impact and preserve the global
low-emissions products,
environment through the use of advanced technologies.
solutions, 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

Environment
Reduction of energy usage and GHG emissions
22 CO2 emissions from production
45% reduction (compared with FY2010)
Plants with zero
23 Water consumption
70% reduction (compared with FY2010)environmental impacts
24 Rate of renewable energy use
20%
Development of low-carbon / low-emissions products, solutions, and business models
25 CO2 emissions from product use
24% reduction (compared with FY2010)
Reduction of CO2 emissionsof construction andExpansion of models in development
at customer workplaces
26 Electrification
mining equipment
phase and on market

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No.

KPI

FY2024 Targets

27

Growth of forestry machine business(process mechanization)

28

Promotion of forest management
solutions (Development of businessmodel combining forestry anddecarbonization)

1. Sales growth rate : 50%(compared with FY2021, foreignexchange rates fixed)
2. Number of tree planting machinesintroduced : 30 (single year)

Environment
Forest conservation through business activities
Provision of solutions that
support sustainable, cyclic
forestry businesses

With the planet

Resource recycling and remanufacturing
Promotion of recycling29
oriented business

Expansion of Reman business

Forest area : 60,000ha
Sales growth rate: 25%(compared with FY2021, foreignexchange rates fixed)

Performances of FY 2019 to 2021 against KPIs in the med-term management plan for FY 2019 to
2021 are as follows:
CSR themes

ESG solutions through three pillars of growth strategies

Enhancing quality of life
—Providing products
required by society—

Provide products, service and solutions contributing to sustainable development of
infrastructure, natural resources and circular environmental protection(remanufacturing and forestry).
Improve productivity, efficiency, safety and environmental impact (lower CO2
emissions and higher ratio of renewable energy use) through innovations, such as
automation in the entire value chain.
Make commitment to DANTOTSU Value which will realize a better Earth and future bymeans of technology and reliability (creation and maximization of customer value).

Key initiatives under new
FY2019 KPI
CSR themes Mid-term
management plan FY2021 KPIs
performance
Reduction of CO2 emissions (in comparison with FY2010)● Reduction of CO2
emissions from product use(fuel-efficiency equipment,
Enhancing hybrid hydraulic excavator, 16% reduction (inquality of rate of Smart Construction comparison with 14% reduction
life —
use, enhancement of ICT- FY2010)
Providing intensive construction,
products mine automation, andrequired by underground mining
society— equipment)● Reduction of CO2
reduction (inemissions from production 40%
comparison(plants with zero impact on FY2010) with 30% reduction
environment and workers)

16

Relevant SDGs

FY2020 KPI
performance

FY2021 KPI
performance

14% reduction

19% reduction

30% reduction

37% reduction

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With businessWith the planet

Data

Socialcontribution
activities

Key initiatives under new
FY2019 KPI
FY2020 KPICSR themes Mid-term
management plan FY2021 KPIs
performance
performance
Plants with zero impact on environment and workers● Rate of renewableenergy use (including
15％
11%
13%
purchase of renewableenergy)● Work environment
30% reduction (in24% reduction
burden coefficient (particle comparison with 10.7% reduction
matter density)
FY2018)55% reduction (in● Water consumption
52% reduction
comparison with 49.4% reduction
FY2010)
Value chain reforms and redefinition of the aftermarket business● Spare parts sales
11% increase
3% increase
8% decrease● Reman component
lifespan (compared to new 20,000 workhours 26,866 workhours 19,106 workhours
components)(100% of new(134% of new(95% of new
Actual value: Averagecomponents)
components)
components)
operating time from the nth
to the n+1st overhaul order
Assurance of mine operation safety and productivity● AHS unit population
380 units (aggregate) 221 units
352 units(promotion of mining
Enhancing platform business)quality of DANTOTSU Products, DANTOTSU Services, and DANTOTSU Solutions
life —
Providing ● ICT-intensive equipment
products introduced (United States, 1,590 units (per year) 1,361 units
1,288 units
required by Europe, and Australia)
society—● Sites adopting Smart
4,850 (per year)
2,440
3,348
Construction
Automation, automamous operation, electrification, and remote-controlling of equipmenttion

Index

FY2021 KPI
performance14%
9％ reduction
64% reduction
14% increase
18,523 workhours(93% of newcomponents)

510 units (aggregate)
2,019 units (per year)
5,902 (per year)

Hydraulicexcavators:
1. Automation of
In-house verification Preparation for test
construction equipment
tests
introduction of
excavator with level
4 automation
bulldozers:
Domestic pretest of Mining
Preparation
level
bulldozer with level 3 automationforproof
2. Automation,
Entry into mining Preparations
advanced to launch 3
autonomous operation,
bulldozer
concept,
mining bulldozer automation, prepara ofexamination
and remote operation of market (level 4ofwith level 2
tion for proof ofmining equipment
automation)
possibility of
automation
concept test inadvanced level 4
Australia
automation research
lifts:
Entry into retrofit Fork
Development ofCompletionofmarket for installing function verification
Developmentof
peripheral
safety3. Automation of utility
peripherallevel 2 and above
technology fortechnologies forsafety functions in forequipment
automation
automated forklifts supporting
preparationforautomation
technologies (drive
automation
support function)
Advancement of
Expansion of
Trial use of new● Enhancement of mining
development
Expansionofproduct
seriesmechanical cutters
equipment and hard rock product series
projects for(drills,LHD)
Four
at customer
expanding product models
mining businesses
workplaces
seriesTest introduction of Verification tests
hydraulic excavators conducted on user
for automatedsites
loading

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Key initiatives under new
CSR themes Mid-term
management plan FY2021 KPIs
Agricultural solutions and smart forestry

Data

FY2019 KPI
performance

Socialcontribution
activities

FY2020 KPI
performance

Index

FY2021 KPI
performance• Japan:Introduction of one
D21 unit; ongoing
joint industryJapan:
Japan:
Japan:
CommencementofDevelopment
andacademic research
Expand lineup of
verification
tests
atmarketevaluationofproject at large-scale
agricultural loaders five agriculture
agricultural
ATT
agricultural site
Indonesia:
business
operators
Indonesia:● Creation of construction• Indonesia:
Enhancing equipment demand in
Increase number of Indonesia:
ConfirmationofIntroduction of four
quality of agricultural fieldusers of agricultural Started mass
feasibilityof
D21
D21 unit; redoubled
life —
techniques
production
andagricultural
bulldozeexamination ofProvidingemployingsalesof
D31PLLrfor
directrice
agricultural
products
agricultural
agricultural
planting
applications forrequired bybulldozers
bulldozer
applications
constructionsociety—equipment in other
Southeast Asian
countries● Smart forestry projects
50
10
19
29
IoT and ICT work reforms● Sales in Kom-mics
1,900 units
1,521 units(including
platform businessfor
865 units
1,418 units
for internal use)
(visualization of production (includinginternal use)equipment operation)

CSR themes
Developing people

ESG solutions through three pillars of growth strategies
Develop a diverse workforce with a high level of productivity and technical skills.
Strengthen and develop diverse talent with a global perspective to help achievesustainable workplaces.
Develop talent with cross-value chain capabilities.

Key initiatives under new
FY2019 KPI
FY2020 KPICSR themes Mid-term
management plan FY2021 KPIs
performance
performance
Development of a diverse workforce with a high level of productivity and technical skills
Enhancing employee
engagement●

Developing ● Work process reforms
peoplethrough expansion ofdiverse and flexible
workstyles● Promotion of The
KOMATSU Way (global
dissemination of The
KOMATSU Way)

Relevant SDGs

FY2021 KPI
performance• Global base survey
Preparation for
conducted in April
Improvement of
Scheduled forsurvey in FY2020, 2021
scores
FY2020global survey in April • Employee
2021
engagement score:79(1) 2,018 hours perpersonOngoing use of• Total workhours of (1) 1,950 workhours (1) 1,920 workhours (2)teleworking
less than 2,100
per person/year
per person/year
primarily for• Introduction of(2) Commencement (2) Revision ofoftelework systemof trial in Augusttelework system in purpose
improving(Japan)2019
August 2020
productivity throughdiversification ofworkstyles• Training hours:• Training hours:
Training hours and 31,625 hours
33,188 hours• Training hours:
number of(aggregate hours for (aggregate hours for 28,603 hours
participants
all participants)
all participants)• Number of(Disclosure of• Number of• Number ofparticipants: 1,461 inparticipants: 1,461 in participants: 1,527 in Japan, 71 overseas
results)
Japan, 307 overseas Japan, 0 overseas
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Key initiatives under new
FY2019 KPI
FY2020 KPIFY2021 KPI
CSR themes Mid-term
management plan FY2021 KPIs
performance
performance
performanceStrengthening and development of diverse talent with a global perspective to help achieve sustainable workplaces• Revision ofdomestic
Shifting of human
Shift of humanretirement, wage, •resources
resources to projects
to priority
and retirement
andimprovement
Human
resource
andgrowth● Revision of role of Japanbenefit systems in • Promotionfields
activities;
systemrevisionsofin global management
April 2021
globalization ofstarted in Japan
globalhuman• Introduction oforganizations on byexchanges
elective retirement resource
function basis
andprojects
and R&D staff
systems• Introduction of
global human● Foundations for global
Commencement of resource
Preparations
information systems
Introduction
measures (systems,
advanced fordomestic data
• Development offrameworks)
introduction
linkageglobal data
coordination
automation systems● Empowerment of female
employees ((1) nonconsolidated ratio ofDeveloping female employees, (2) non- (1) 12.5%, (2) 10.0%, (1) 12.3%, (2) 7.2%, (1) 12.3%, (2) 7.7%, （1）12.4%,（2）8.2%,
and (3) 5.0%
and (3) 4.9%
consolidated ratio ofpeopleand(3)
4.5%（3）5.3%female managers, (3)consolidated ratio of
female managers (Japan))● Rate of employment ofAbove 2.3% (legally 2.58% (non2.82% (non2.84% (nonpeople with disabilities
consolidated)consolidated)consolidated)(comply with requirements mandated rate)in Japan)• Human resource
development• Ongoing support inprogramlaunchedinChile, South Africa,● Support for regional
Chile
and Australia
human resource
Ongoing support in•
Ongoing
support• Establishment of •Peru,
Chile, Australia,
development for job
Chile,
in Peru, scholarship program Australia,
creation (regional human South Africa, others provided
South Africa, and for students in Chile Africa and South
resource development with
Australia
and Peru as part ofCummins Inc.)• Participants’
COVID-19 relief
success in finding program
employment tracked
Development of talent with cross-value chain capabilities● Cultivation of Smart
Construction consultants(capable of proposing
430 (aggregate)
396
626
807
solutions using ICT to
improve productivity andsafety throughout
construction workplaces)

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Growing with societyWith people

With businessWith the planet

Data

Socialcontribution
activities

ESG solutions through three pillars of growth strategies

Index

Relevant SDGs

Offer resolutions for social issues through collaboration with stakeholders.
Act as a responsible corporate citizen ensuring corporate governance, compliance,and human rights.

Key initiatives under new
CSR themes mid-term
management plan FY2021 KPIs FY2019 performance FY2020 performance FY2021 performance
Resolutions to social issues through collaboration with stakeholders• Posting of past
• Ongoing initiatives
activity documents for accomplishingon Group portal
the goals of three•
Sharedinformation
customers selected
Examination ofonactivitiesin14
for brand● Promotion of industrytools regions on
Promotion of Brand cutting-edge
management
government-academia
through
activities
activities
Management
androtational
basis
collaboration as well as of activities creating with domestic•
Continuationof• Global sharing ofcollaboration withcustomers and
value
for
customers
activities
byinformation on
regionalcustomers
headquarters
team
brand management
dissemination
targeting three
activities around thecustomers (two civil world throughengineering, one Komatsu Global
aggregate)
Portal• Shareholder• Shareholder
meetings: 1 time
• Shareholder
meetings: 1 time
(held online)
meetings: 2 times (held online)• Shareholder• Shareholder• Shareholder
factory tours: 0● Shareholders andfactory tours: 10(canceled due tofactory tours: 0
individual investors
times(canceledduetopandemic,
Number of meetings • Individual investor COVID-19 pandemic, COVID-19(shareholder meetings,
videos(Disclosure of meetings: 7 times factory tour videos commemorating
shareholder factory tours, held
results)• Certain factory
investor
shared on official 100th anniversary,
Growing individual
meetings)
tours and meetings Komatsu YouTube etc., shared on
withcanceled due toaccount)
official Komatsu
society
impacts of global • Individual investor YouTube account)
COVID-19 pandemic meetings: 4 times • Individual investor(held online)
meetings: 5 times(held online)• ESG-related• ESG-related
meetings:
4
meetings: 9
Number of meetings 11 (ESG-related● Institutional investors• Participation in• ESG-related
held(Disclosureof(ESG meetings)
meetings)
conferences:1
briefings: Conductedresults)(meetings held with in conjunction with
18 investors)
business briefings
Business fairs at ninefactories (Awazu,
Osaka,
Kanazawa, All factory fairs
One fair held at each Ibaraki,
All factory fairs● Communities (businessTochigi,of nine factories per Koriyama,Oyama,canceled due tocanceled due tosite fairs)
Shonan,year
COVID-19
pandemic
COVID-19 pandemicand Himi); canceled
only at Shonan Plant
due to impactsof Typhoon Hagibisin
29 in
Number of meetings 34 (30 in Japan, 4 29
Japan(canceledJapan (canceled● Employees (meetings)
held (Disclosure of overseas)
overseasduetooverseas due toresults)
COVID-19 pandemic) COVID-19 pandemic)

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Key initiatives under new
CSR themes mid-term
management plan FY2021 KPIs FY2019 performance FY2020 performance FY2021 performance
Action as a responsible corporate citizen addressing corporate governance, compliance, and human rights● Occupational health andsafety, support for• Translation of
establishing environmental
Komatsu Code ofandsafetysystemsat
Ongoing•
RevisedKomatsu
Business
Growing suppliers, response toimprovements made Establishment of Code of Worldwide Worldwide
Conduct
into
EnglishwithJapan’s Corporate
in reflection of
Human Rights
Business Conduct and other languages
societyrelevant laws and Policy, disclosure • Human rights e- • Approval of plans
Governance Coderegulations andin integrated report learning programs, to ramp up human(corporate governancereports), evaluations ofsocial expectationsetc.
rights due diligenceeffectiveness of Board ofactivities
Directors, internal control,and internal audits

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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
subjects/issues

UNGC 10principles

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

Labourpractices[Environment]
Development of lowcarbon/low-emissions
products, solutions andEnvironment business models
The
Principle 7
Resource recycling andenvironment Principle 8
remanufacturing
Principle 9
Forest conservation throughbusiness activities
Reduction of energy usage
and GHG emissions
22

Incorporation into Komatsu's internal
guidelines■: Items of Komatsu's worldwide code ofbusiness 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-life balance■●

Conversations or discussions with
employees or their representatives■●Zero tolerance for child laborand forced labor■●Promotion of equal opportunities for
employment, with zero tolerance fordiscrimination and any kind ofharassment■●Ensuring a safe and comfortable
work environment■●Human resources management infair and impartial manner■Providing products, services andsystems that are environmentallyconscious■Environmental protection■Komatsu Earth Environmental Charter■Declaration of Conservation of
Biodiversity●Reducing environmental impact,
managing chemical substances andbuilding up environmental
management systems■

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ISO26000 core
subjects/issuesWith people

UNGC 10principles

With businessWith the planet

Komatsu's materiality

Fair operating AntiCorruption
practices
Principle 10[Ethics / Governance]
GovernanceCompliance

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

Community
involvement
anddevelopment[Communities]
Contributions to local
communities

23

Data

Socialcontribution
activities

Index

Incorporation into Komatsu's internal
guidelines■: Items of Komatsu's worldwide code ofbusiness conduct●: Items of Komatsu group CSR
procurement guidelines■●Fair and appropriate business
operations●Fair and proper relationship withgovernmental bodies and agencies■●Never providing, offering or
promising inappropriate money,
goods or favors

Providing customers with suitable
solutions and striving to deliverproducts, services and systems thatare safe, environmentally-conscious
and innovative■Environmental protection■●Reducing environmental impact,
managing chemical substances andbuilding up environmental
management systems■

To fully understand its social
responsibilities as a corporate citizen■Groupwide social contribution (5 Basic
Principles for Social Contribution)■●Good harmony with local
communities■

ESG Databook 2022

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External evaluations

With the planet

Data

Socialcontribution
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Index(as of July, 2022)(1) External evaluations for CSR activities (Evaluation 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 and evaluating thesurveyed details. In 2016, it started to run a system aimed at selecting A-list companies,
or companies recognized by the organization as global leaders in terms of theimplementation 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]
2019
2020
2021
CDP Climate Change
A
AA
CDP Water Security
AA
A[Dow Jones Sustainability Indices (DJSI)]
The sustainability indices were provided by U.S.-based S&P Global Inc. They analyze andevaluate corporate sustainability from the three perspectives of the governance &economic, the environment and the society to select high-ranking companies in eachindustrial 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” for consecutive years
since 2006.
2019
2020
2021
DJSI
DJSI WorldDJSI WorldDJSI World[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.

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Index[ISS-Oekom]
The corporate sustainability rating indexes were developed by German-based ISSOekom.
[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 andanalytics.
[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 at selecting 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.
[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 formember companies in the Tokyo Stock Price Index (TOPIX). It decides on the investment
weights to be applied to such member companies with a focus on the disclosure ofenvironmental 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.
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Index[Certifications][Digital transformation (DX) stock selection]
The Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange (TSE) selectcertain companies listed on TSE as “Digital Transformation (DX) Stocks Selection” fortheir accomplishments achieved by creating internal systems for promoting digitaltransformation (DX)* and excellent use of digital technologies leading to theenhancement of corporate value.
This is the third time Komatsu has been selected, following 2021, and the sixth time
including the “Competitive IT Strategy Company”. (In 2020, we were selected for the “DX
Grand Prix 2020”)* Digital transformation: A company establishing a competitive advantage by utilizing data and digital technology inresponse to intense changes in the business environment to transform products services and business models based on
the needs of customers and society, and transform operations themselves, organizations, processes and corporate
culture.

[SBT]
SBT (Science based targets, namely, science-based emission reduction targets) is an
initiative advocated by the CDP, the United Nations Global Compact, the World Wildlife
Fund and the World Resources Institute. It certifies companies that have establishedreduction 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.

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Index(2) Evaluations of IR activities[Award for excellence in corporate disclosure from the securities analysts
association of Japan]
Securities analysts developed objective evaluation criteria to decide on the ranking ofcompanies in terms of its quality, quantity, timing and other factors of corporate
disclosures, and based on which established the Award for Excellence in Corporate
Disclosure from the Securities Analysts program. The program has been implemented
since 1955.
Komatsu received the 2018 Award for Excellence in Corporate Disclosure (first place inthe machinery section). This is awarded every two years and Komatsu has received it
eight consecutive times-12 times in total.
[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 the Best IR Award forthe 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 the companies
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).

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Index(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 tohuman rights, labor, the environment and anti-corruption. Komatsu expressed its
support for the United Nations Global Compact in November 2008.
[WBCSD]
The World Business Council for Sustainable Development (WBCSD), whose members
include more than 200 companies worldwide, is an organization that creates 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 that companies
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.

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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

Lead manager
Green bond structuring
agent*
Rating[Reference]Press release

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 from2010 (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 ICT-intensive
construction equipment and providing applications which support optimization of
construction as a whole.
Project B: Responses to environmental problems resulting from manufacturing.
Efforts designed to help reduce CO2 emissions in manufacturing to 50% and increase theratio of using renewal energy to 50% of total energy use, both by 2030 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 of renewableenergies.
Nomura Securities Co.,Ltd.
Nomura Securities Co.,Ltd.
"AA-" from Rating and Investment Information, Inc.
(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）
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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.

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）
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With people

Occupational safety and health032

Personnel policy and performance appraisal system

043

Promoting diversity and inclusion

049

Support for work-life balance

056

Human resource development: structure061

Human resource development: The Komatsu Way

064

Human resource development: enhancing skills

066

Brand management initiatives

069

Human rights policy

071

Business and human rights

073

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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.

Our approach to safety and health at the workplace
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.

Message from the President Concerning Occupational Safety and Health
1. The Komatsu Group shall, first of all, strive to ensure a safe and comfortable work environment,
and maintain and promote employee health.
2. The Komatsu Group shall promote proactive occupational safety and health activities in order for
all employees to achieve the above conditions by working together as one team.
3. The Komatsu Group shall proactively expand the safety and health activities of not only our groupcompanies but also our partners (such as our customers, distributors and business partners).
4. Each and every person in a senior management position of the Komatsu Group shall acknowledge
the above two matters as top priority tasks and shall take the initiative in demonstrating theexecution of daily duties accordingly.
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 occupational
Safety and Health activities so that everyone can work in a safe and comfortable work environment inaccordance with the policies described below.

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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, andparticularly items agreed as a result of labor-management consultations in each workplace.
2. Set up targets for activities based on occupational safety and health policies, review theirprogress, and endeavor to continuously improve and enhance occupational safety and healthactivities.
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 occupationalsafety and health.
4. Identify and evaluate the risk for occupational safety and health of a workplace and takeappropriate actions accordingly.
5. Actively promote employees' healthcare management and support the maintenance andpromotion of employees' health.
6. Actively promote education, training and qualification acquisition necessary for employees'
occupational safety 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 andinformation about occupational safety and health activities obtained through the businessactivities in order to secure safety and health in society.

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 FY 2014 and the Second Health Development Plan which wasestablished in FY 2019. 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 effectively promote this goal. The declaration
was revised in April 2019.

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Overview of safety and health system
The Komatsu Group enforces strict compliance with Safety and Health management through the following
system structure.

Organization

Meeting committee structureGroup Safety and Health Conference
Confe (Safety conferences
confe
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
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Confe for safety and health in the community
Conference
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 FY 2021, we held the conferences in
Latin America, Europe, Oceania 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.

Safety and health initiatives

Safety and health key initiatives of Komatsu group in FY 2021

We established key activity items and our target values in FY 2021 and have been promoting thefollowing activities throughout the Komatsu Group:[Safety and health management]
1. Major disaster elimination activities.
2. Enhancement of compliance risk management.
3. Activities to maintain and improve occupational health and safety management systems.
[Health management]
1. Tobacco-related diseases
2. Mental health
3. First aid and infectious diseases
4. Lifestyle improvement

Working to achieve a mid-term health development plan
The Komatsu Group has promoted activities under the Five-Year Health Development Plan (FY 2014) and theSecond Health Development Plan (FY 2019) to “implement outstanding health management” 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.
* The ability to acquire, understand, select, and use accurate health information necessary for individuals to take proactive healthactions.
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Major accomplishments in FY 2021 are listed below:
Item

Cancer andlifestylediseases

Tobaccorelateddiseases
Lifestyle
improvement

Mental health

Initiative

KPI

FY2020 FY2021
Goals
result result (FY2019-FY2021)

Regular check-up
100%
Increase the percentage of percentage
employees using the(Reference) Secondary
various health checkup
check-up
98.5%
consultations for the early healthpercentage
detection and treatment ofcancer and lifestyle
Milestone checkup
diseases and theconsultation
percentage 89.7%
prevention of severe
diseases
Female cancer checkup
consultation percentage 59.4%
Reduce secondary
Percent of the Komatsu
exposure to cigaretteGroup in Japan that
29.8％
smoke and smoking
smokespercentage
Establish a system or
environment that leads tothe improvement ofPercent of employees withmotivation to improve or Healthy Action
49.8%
promote the healthy
Competency*
lifestyles of employees (e.g.
diet and exercise)
Percentage responding toour recommendation to 100％
Reduce the number ofinterview employees underindividuals with mental
high stressdisorders, provide earlycare, appropriately support (Reference) Stress checktheir return to workplaces, implementation100%
and create a happy andpercentage
vigorous workplace
Percentage responding to 100％high-stress workplaces

100%

100%

98.2% 85.4％ 95%
61.1％ 80%
Not more than the
28.3% national average ofsmokers (16.7%)

51.4％ 50%

99.9％ 100%
99.8% 97.6％ 100%

(Scope of FY 2020 results 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.
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Komatsu receives the Minister of Health, Labour and Welfare award for excellence (Corporate
category) at the 10th extend your healthy life expectancy! awards
Komatsu received the Minister of Health, Labour and Welfare Award for
Excellence (Corporate Category) for the “Development and Improvementof an Action Checklist for Cafeteria to Improve Employees’ Lifestyles” inthe lifestyle diseases prevention category of the 10th Extend Your
Healthy Life Expectancy! Awards sponsored by the Ministry of Health,Labour and Welfare (MHLW) and the Japan Sports Agency.
The award is part of the Smart Life Project, a MHLW project to promotebetter health. The awards are given to companies, organizations andlocal governments that make outstanding efforts to raise awareness ofthe prevention of lifestyle-related diseases, support the healthy lifestylesof the elderly, and promote better health among mothers and children tobuild a comprehensive community care system.
The award received for the “Development and Improvement of an Action
Checklist for Cafeteria to Improve Employees’ Lifestyles” is part of the“Lifestyle Improvement Promotion Efforts” of the Second Health
Promotion Plan, a health management measure. The program won highpraise for being implemented in cafeterias heavily utilized by employees
and is expected to impact their awareness and behavior. It is also across-sectional effort that reaches across all business sites.

Named one of the “White 500” in the large enterprise category under the 2022 Certified health& productivity management outstanding organizations recognition program
Komatsu was recognized for the first time as one of the “White 500” inthe large enterprise category under the 2022 Certified Health &Productivity Management Outstanding Organizations Recognition
Program. The program was established by the Ministry of Economy,
Trade and Industry and is recognized by the Nippon Kenko Kaigi.
The Certified Health & Productivity Management Outstanding
Organizations Recognition Program recognizes large enterprises and
SMEs that implement outstanding health and productivity management
measures to address health-related challenges on the regional scale andthe health promotion initiatives of the Nippon Kenko Kaigi.
We were recognized as a company that considers employees’ health andproductivity from a business management perspective and strategically
implements initiatives that lead to the maintenance and promotion ofhealth.
We will continue to maintain and promote employees’ health throughhealth and productivity management practices that aim to maximize
business performance and corporate value.

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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 FY 2021

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

FY2021 PracticeStress tests/awareness training
implemented in 15 companies, with approximately
22,035 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 FY 2006, and stress awarenesstraining were started in FY 2007 and is being held for theemployees of all Group companies in Japan.

Education based on job levels
Contents

FY2021 Practice
New Employees (1 time, 314 people)*
3rd year of employment with the company (12 times, 338
people)Safety and Health education and mental health education 7th year of employment with the company (2 times, 54
is provided to each level of Komatsu Group companies in people)
Japan including new employees.
Mid-career recruitment (as necessary, 18 people)
New Assistant Managers (12 times, 380 people)
Foremen/Senior Foremen (6 times, 140 people)
New Managers (6 times, 185 people)* Total for head office employees

Education based on Function
Contents

FY2021 Practice
Safety and health practical training for production
managers (1 time, 17 trainees)
Education for production engineers (2 time, 31 trainees)
ISO 45001 standards understanding training (27 trainees)
ISO 45001 internal auditor development training (97trainees)

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.

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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

Number of major work-related accidents (fatal)
Subtotal
Komatsu
group
consolidated Japan
companies Overseas
Subtotal
Nonconsolidated Japan
sales
companies Overseas
Subtotal
Contractors Japan
Overseas
Total

FY2017
1
0
1
0
0
0
0
0
0
1

FY2018
3
0
3
0
0
0
0
0
0
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.

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.
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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)
Since FY 2007, 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
FY 2018. 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 FY 2019.
ISO 45001 certification requires the following activities to be properly managed by the company's
occupational health and safety management system:
Occupational health and safety risks and hazards assessments to identify potential hazards in theworkplace.
Prioritization and integration of action plans with quantitative targets to address occupational health andsafety 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 health and safety activities for employees and other stakeholders to raise awareness andreduce occupational health and safety accidents.
Introduction of occupational health and safety standards in procurement and contractual requirements.

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OSHMS (Occupational Safety and Health Management System) certi cation and renewal ofcertification in Japan(The legends: ◇JISHA OSHMS ●ISO 45001 OSHMS Certification and Renewal)

FY~2018 2019 2020 2021

Osaka Plant
Head Office
Awazu Plant
Kanazawa Plant
Ibaraki Plant
Oyama Plant
Komatsu
Tochigi Plant
Koriyama Plant
Shonan Plant
Himi Plant
Advanced and Fundamental Technology Center
Field Testing Department
Komatsu Cabtec
GIGAPHOTON
Group Company
KELK
Komatsu NTC

◇

●

●

●

●

●

◇

●

●

◇

●

●

◇

●

●

◇

●

●

○

●

●

◇

●

●

◇

●

●

◇

●

●

●

●

●

●

◇

●

●

◇

●

●

◇

●

●

◇

●

●

* Integrated international standards certification acquired for FY 2020 onward.

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Overseas OSHMS (Occupational Safety and Health Management System) certi cation and renewal ofcertification8.2（The legends □：OHSAS18001 ●：ISO45001）
FY~2018 2019 2020 2021□●●●
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 UK□●●
Komatsu Germany (Construction Division)□●●
Komatsu Germany (Mining Division)●●●
Komatsu Italia Manufacturing□●●●
Bangkok Komatsu□●●
PT Komatsu Indonesia□●●
PT Komatsu Undercarriage Indonesia●
Komatsu Changzhou Construction Machinery Corp.
●
Komatsu Changzhou Foundry Corporation●●
Komatsu Shantui Construction Machinery Co., Ltd.
●
Komatsu Shandong Construction Machinery Corp.
* OHSMS: Occupational health and safety management systems* OHSAS 18001: Occupational health and safety assessment series

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Personnel policy and performance appraisal system
Here at Komatsu, we consider many aspects of our business to be valuable assets. Goods, money,
information, and time are all irreplaceable facets of our day-to-day operations. However, the one resourcethat stands above all others in terms of value would be our employees. We are proud to maintain a culturethat places our people at the forefront of our priorities, recognizing the importance of their roles inmaintaining the quality of our products and the reputation of our company. Komatsu is thus dedicated to thedevelopment of our workforce, striving to foster an engaging work environment that provides opportunities
for creativity and challenges to stimulate growth, all the while building on a relationship of mutual trust with
our employees.

Global personnel policy
Komatsu is acutely aware of the differences pertaining to history and culture for each of the regions within
which it operates. We are thus engaged in the creation of a personnel management system that tailors to theunique needs and circumstances of each region, whilst maintaining compliance with a set of basic policies as
outlined below:
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*;
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.
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Personnel system that accurately recognizes employee abilities andachievements
Komatsu recognizes the importance of providing an engaging workplace environment that recognizes andaccurately rewards the achievements of its employees. This allows our people to take pride in the work thatthey do, motivating them to strive for greater heights within and without the workplace. To that end, we haveincorporated an advanced system of evaluation that disregards age, gender, or nationality while assessing
individual performance and abilities in order to provide a framework for fair recompense.

Fair and appropriate evaluation
The most important aspect in the creation of a workplace that promotes wellbeing and effective working is
the fair treatment of employees. As mentioned above, Komatsu's personnel management system accurately
evaluates our employees, granting recompense based solely on merit. This system of assessment is enforced
through multiple 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.

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 11,000 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 77.6%.
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. 12 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 6,800 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.

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Harassment prevention initiative
Komatsu Group is committed to eliminating and preventing every type of harassment. Each of our offices has
a consultation desk to handle harassment-related issues and we are developing our readiness to promptly
react to problems whenever they occur. Regularly providing harassment prevention training to all employees
deepens each employee’s understanding of harassment and helps to build workplaces that enable
employees to work safely and healthily and to stay considerate of each other’s perspectives.

Facts about the initiative in FY 2021
Number of harassment-related reports received (in Japan) 36
Basic education
Stratified training
Managerial-level refresher training
Harassment prevention training (in Japan)
New managerial-level employee training(e-learning and group learning)
Assistant manager training
Third- and seventh-year employee training
New employee training

Creating a vibrant workplace with rewarding jobs
Improving employee engagement is essential for the company's sustainable growth. In 2021, we conducted a
global engagement survey of domestic and overseas group companies. We analyzed the results by regionand organization and identified the strengths of and challenges faced by each organization. These arereflected in various personnel policies and measures. We will continue to conduct the survey regularly tounderstand and analyze employee engagement and respond to ever-changing challenges. In this way, we
aim to create an environment in which each and every one of our diverse employees can work with morevitality and enthusiasm.

Overview of global engagement survey in FY 2021
Number of
respondent
Objectives
Survey overview
Methodology
Results

72% of the Employees (about 63,000 employees) of Komatsu and its Group companies inJapan 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 and deciding
plans for the future
Sixty questions about employee engagement and subjects that may influence it, such as
vision, strategic and competitive advantages, leadership and corporate climate and work
environment
Anonymous online survey
Engagement Score Overseas: 79, Japan: 69 (Score is the percentage of positive responses)
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DATA

* 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)
FY2019FY202011,692
10,305
1,387

Total
Male
FemaleFY2021
11,795
10,404
1,391

11,927
10,5171,410(2) Number of employees (Consolidated basis)
FY2019FY202062,82342,948Total
Non-Japanese

FY2021
61,564
41,57362,77442,502(3) Average age
FY2019FY2020
39.5
39.6
39.3

Total
Male
FemaleFY2021
39.8
39.8
39.2

40.4
40.5
39.7

(4) Years of continuous employment
FY2019FY2020
15.1
15.4
12.8

Total
Male
FemaleFY2021
15.3
15.6
12.8

15.9
16.3
13.5

(5) Annual total remuneration (average)
FY2019Total(Yen)FY20207,467,775

FY2021
7,186,395

7,471,391* Minimum wages set by age
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Index(6) Number of employees by age
Total
Total
Over 60
50-59
40-49
30-39
Under 30

Male

Female11,927
222
2,556
3,247
3,790
2,112

10,517
204
2,178
2,916
3,488
1,731

1,410
18
378
331
302
381

College graduate

Junior college
graduate

High-school graduate(7) New graduates employment
Total
Total
2020
2021
2022

362
254
254

Excludingblue-collar Total Male Female Total Male Female Total Male Femalework
263 221 194
27 27 18
9 114 8628
180 157 135
22 16 14
2 81 6219
169 155 104
51 11 92 88 7315(8) Mid-career employment (As of July 20th, 2022)
Mid-career
College graduate
Othersemployment ratio
ExcludingExcludingblue-collar Total blue-collar Total Male Female Total Male Female
work
work
79 36%
26％ 90 74
16 110 97
13
31 14%
11％ 19 14
5 38 308
23 8%
11％ 17 12
5
7 6
1

Total
Total
2019
2020
2021

200
57
24

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(9) Employee turnover
Total

Number of employee
turnover in FY2021(Total turnoverrate/Voluntary turnover
rate)

Male

200
(1.54％/1.31％)

Female160

40* The voluntary turnover rate does not include those who retire at retirement age.

(10) Retention of new employees
Total

New employees (FY2019)
Enrollment (FY2022)
Employee turnover［for 3
years］(Turnover rate)

Male

Female

352
341

290
282

62
59

11
(3.1%)

8(2.8％)

3(5.1％)* Enrollment for FY2022 is as of April 1, 2022(11) Diversity of management
Femaleemployees(Femaleemployees
percentage)

Total

Directors and Global officers

61

Executive officers(Domestic)

27

Management position
General managers

Foreign
employees(Foreign
employees
percentage)2(3.3%)
2(7.4%)
133(7.8%)
14(3.6%)

1,702
389

19
(31.1%)
0人(0.0%)
12(0.7%)
0(0.0%)

Mid-career
employees(Mid-career
employees
percentage)
13(21.3%)
1(3.7%)
324(19.0%)
39(10.0%)* Directors, Officers and Global Officers exclude Outside Directors and Outside Corporate Auditors.

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Promoting diversity and inclusion
Komatsu believes that diversity and inclusion are sources of innovation. We continuously promote diversity
and inclusion (D&I) to create an environment where diverse employees can identify and maximize eachother’s individuality and abilities. We believe that the promotion of D&I not only creates a workplace where
diverse employees can feel secure, be themselves, and innovate, but also improves individual motivationand promotes changes in corporate culture, leading to the growth of the company.
In the new mid-term management plan, we have positioned the enhancement of a diverse human resourcebase as one of the priority activities of our growth strategy. Therefore, we will accelerate various initiatives topromote D&I (such as global human resource development, promotion of gender diversity, and D&I
promotion activities for employees), development of digital and open innovation-driven human resources,
improvement of employee engagement, and other activities.

D&I promotional activities for employees
The following are excerpts from PR video.

Global human resource development
With foreign employees accounting for approximately 70% of our workforce, Komatsu has been promoting
the localization of management, and national employees (local employees) have already assumed the senior
management of major overseas subsidiaries. Komatsu has created approximately 750 "Global Key Positions"in Japan and overseas and developed a succession plan for these positions. We are also aiming to foster
the systematic cultivation of next-generation leaders who will be responsible for global management
through programs such as the “Global Management Seminar” for management-level employees andcandidates, 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 190
engineers. Graduates of the training program, which lasts about six years, are subsequently employed as“global engineers” and work around the world.

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Status in FY 2021
In order to effectively promote global management, Komatsu runs various global
meetings, including the Komatsu Global Executive Meeting convened for the top
management of all Komatsu Group companies in Japan and overseas, management
committees for each region and business area, and other global meetings for specificManagement
purposes, such as the Quality Meeting, Occupational Safety Meeting, Health Meeting,
SystemLegal Meeting and Human Resources Meeting.
Since the senior management of our main overseas subsidiaries were assigned to
the Global Officer System established in 2016, they play a significant role not only as
the senior management in each region, but also as executive officers in the KomatsuGroup through involvement in these important meetings.
The Komatsu Human Resources Development Center was set up in the Philippines in
November 2008 to be an educational institution specialized in the development ofengineers capable of globally providing product support. It became a local affiliate
Global Engineer and was renamed Komatsu Philippines Corporation in November 2019 to expand theTraining Program engineer development system. The affiliate has trained more than 190 engineers. A
nearly six-year training program is provided around the world and the graduates
who complete the program become Global Engineers employed by the company
that are active around the world.

DATA
Number of Directors, Officers and Global
Officers
Foreign Nationals

FY2019FY2020

FY2021

66

63

61

18

19

19

* Komatsu’s non-consolidated data as of the end of each fiscal year.
* Directors, Officers and Global Officers exclude Outside Directors and Outside Corporate Auditors.

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Promoting gender diversity
Komatsu actively promotes gender diversity throughout the Komatsu Group, and the percentage of female
employees and managers is steadily increasing on a global consolidated basis. In Japan, Komatsu is
promoting various measures including stimulating employment and developing the capabilities of female
employees, and the development of favorable environments for continuous career development aftermaternity leave. Speaking only of Komatsu on the non-consolidated basis, a female executive officer was
assigned for the first time in April 2011 and a female director was appointed for the first time in June 2018.
However, we are aware that the relatively small number of female managers, compared with male managers,
is an issue that we particularly need to improve and we should actively promote female employees to more
responsible positions of higher authority, including promotion to managers, and not just supporting worklife balancing events such as giving birth, childcare and nursing care with work.

Status in FY 2021
We have held the Diversity & Inclusion Development Seminar for female
managers at Komatsu and its overseas subsidiaries since FY 2018.
Attendees of this seminar, gain the perspective required by senior
management and an understanding of leadership as per the KOMATSU
Way, thereby supporting gender diversity among senior management. In
FY 2021, 13 participants from 10 countries took part in this seminar
online. We plan to continue this training program into the future.
Also in Japan, as a measure to nurture female employees, we have helda career plan training in which participants think about their future andtheir work styles. The CDP (Career Development Program), in whichfemale employees formulate their mid to long-term career plans
discussing with their supervisors has also been implemented since2015. Starting from 2016 onward, networking/training workshops forfemale employees have been held jointly with other companies in the Scene of DIDS training
same manufacturing industry. Furthermore, we have provided female
managers with external training regularly since FY 2015 for thecultivation of senior management.
Since FY 2020, career plan training has also been held online. In prioryears it was difficult for some colleagues to attend training programs
that required spending many days away from home because of reasons
such as raising children. Moving career plan training online has made it
possible for these colleagues to participate at their workplace or athome and makes it possible for more employees to receive training. The
training program is currently designed to be a half day x three days
program in an effort to help the employees balance work and training.
We believe that measures to promote the active participation of female
employees will lead to the development of a system and the creation ofan environment in which every employee can work comfortably andrealize their full potential, so we continue promoting these measuresacross the Komatsu Group.

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DATA
FY2019Ratio of women employed
Global(Consolidated) Ratio of women in
management positions
Number (ratio) of women
employed
Number (ratio) of women in
management positions
Number (ratio) of
Komatsu Ltd.
women in executive(Nonpositions
consolidated)
Number (ratio) of
women managers
Number (ratio) of
women juniormanagers―

FY202013.6%

FY2021
13.9%

―

9.5%

10.0%

1,438
(12.3%)
292(8.9%)

1,443(12.3%)
300(9.3%)

1,451(12.4％)
312(9.2%)

2(6.1％)

2(7.1％)

2(7.4%)

122(6.9％)

126(7.5％)

133(7.8％)

168(11.4％)

172(11.2％)

177(10.8%)* Data as of the end of each fiscal year.

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
initiatives, such as setting up an in-house counseling desk for LGBTQ
individuals, the certification of same-sex partnership and expansion ofscope of welfare benefits, we also worked to promote understanding of
LGBTQ to all employees through a number of approaches like e-learningand lecture by Certified NPO Nijiiro Diversity.

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Lecture by Certified NPO Nijiiro
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Employing persons with disabilities
Komatsu actively seeks to employ persons with disabilities across the Group. Our goal is to achieve theemployment ratio of 2.5% on a consolidated basis by 2022 for the Group in Japan (the current statutory
employment ratio is 2.3%).
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. 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 adelimited set of tasks. Linking salary to individual performance assessments, we encourage employees withdisabilities to work on their goals toward achieving independence and self-reliance. Through these efforts
Komatsu is not merely focused on achieving a targeted employment ratio. Rather, it is seeking to create aworkplace that provides a sense of fulfillment for all individuals, where employees with disabilities work
alongside other staff members.

Status in FY2021
As of June 2021, the employment ratio of persons with disabilities is 2.84% (non-consolidated basis). With
regards to BCC, there are 156 people working at 11 business units. With the expansion of its organization, BCC
has taken on matters that had previously been outsourced, as well as tasks that had been taking up time andeffort internally, thereby contributing to efficiency and cost cutting for the company as a whole.

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

FY2019FY2020

FY2021

2.58％

2.82％

2.84%

11

11

11

125

144

156

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

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Promoting hiring of retired employees
As Japan’s birthrate declines and its population ages, we believe that efforts toimprove 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 in2006 and the reemployment 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, whichallows 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.

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
and working 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
prospets, 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.

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

FY2019206

FY2020201

FY2021

252

167

174

216

－

－

202

167

174

14

39
(19.0％)

27(13.4％)

36(14.3％)* 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.

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Support for work-life balance
It is essential for employees to achieve a good work-life balance to maximize their potential. Komatsu has
established support systems to create an environment in which employees can feel secure and work withenthusiasm.
Komatsu also supports employees to pursue diverse work styles and autonomous career development,
thereby accelerating efforts to enable employees to engage in rewarding work based on their values and tofurther enhance their abilities.

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.

Main systems and programs
Systems and ProgramsChild-caresystemChild-care leave

Part-time work

Content
Available for a maximum of three years from the birth of the child tothe time the child enters nursery school (the statutory leave period is
up to 18 months without pay). Also available for a maximum of three
years for children up to the third grade of elementary school in cases
where a spouse is transferred, etc. Paid leave is available for 104 weeks(i.e. up to 2 years old).
Shortening of working hours by a maximum of three hours per day toallow for the care of children until the child graduates from elementary
school (statute allows this only for children under three years old).
Split-time acquisition is possible.

Allowance toward Allowance toward the cost of childcare for infants up to age two before
the cost of using
child-care services entering nursery school (10,000 yen/month).
Five days for the nursing care of one child up to the third grade ofelementary school and ten days for the second child onward (paidChild-care leave
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Systems and ProgramsContent
A nursery school fee subsidy system, childcare services, and on-siteChildcare facilities day-care facilities are available. Additionally, health management
and allowancerooms located at each site offer private rooms for childcare andmultipurpose use such as freezing breast milk.
A maximum of three years is available for employees taking care of
Family-care leave family members, which can be taken in installments. Paid leave is
programavailable 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 day,systemPart-time work
which can be taken for up to three years in total and can be taken in
installments.
Five days per year for attending to one family member in need of
Family-care leave nursing care, and ten days for the second family member onward (paidleave).
Statutory annual paid leave is granted for 10 days per year if theattendance rate is 80% or more at the end of the first 6 months ofPaid vacation
employment Komatsu grants 20 days per year from the time of joining
the company (in principle). Leave can be taken in half-day increments.
Can be used as sick leave, pregnancy leave, child-care leave or for careof family members. An employee may add five new days ofLife support leave accumulated leave per year. A maximum of 40 days of unused 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 offor mental and physical refreshment.
Flexible leave for leave
Employees
receive an additional five days of annual leave and a travel
Other types of refreshment
voucher upon completion of their 15th, 25th and 35th year ofleave system
continued service.
To provide rest time after the end of the workday to ensure that
Interval system
employees can sleep and enjoy personal time. Provisions to ensure atleast 10 hours between shifts (interval).
Volunteer incentive Long-term paid leave of up to two years, or short-term paid leave of 12
programdays per year.
Spousal transfer Acquisition for up to three years per spousal transfer (Acquisition up tooccupational leave one per employee).
systemLeave for infertility Each employee is permitted leave of up to a whole year for infertility
treatment
treatment.

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Main support and measures
Support and Measures

Child-care
supportFamily-care
supportTreatment
supportContent
Provision of childcare services during in-house training at the KomatsuChildcare service
Way Training Center (Komatsu City, Ishikawa Prefecture), a training facility
during in-housethat serves as a human resources development facility for Komatsu Group
training
employees globally.
Hosting of a social event on the 19th of each month known as “Childcare“Childcare Day”
Day” to provide a forum for communication among employees raisingsocial eventchildren.
support seminars for men, to foster awareness of the need forChildcare support Childcare
activeparticipationin childcare among male employees with children andseminar for men
to change the perceptions of their bosses and co-workers.
Seminar held by experts to provide opportunities for employees to think
how to prepare for family-care and how to balance their work andFamily-care seminar about
personal lives. From FY 2020, the seminar has been held online to increaseawareness of family-care among a wide range of employees across Japan.
Since FY 2018, individual consultations with external experts have been
Individual
consultation
held monthly to provide tailored for employees.
To support employees’ health and safety, a consultation desk has been set
Consultation service up at each site for those wanting to discuss balancing their medical
treatment and work. We have also introduced various systems including
for balancing
treatment and work fertility treatment leave to create a safe and secure working environment
for those needing medical treatment.

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Support of diverse work styles and autonomous career development
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.
In FY2021, we also introduced a personnel system to develop personnel capable of taking on challenges
autonomously and proactively in a changing internal and external environment. This system is a part of ourefforts to achieve sustainable growth and development for both employees and the company.

Main system and measures
Main System and Measures

Content
Flexible work hours (5:00~22:00) with flexible start and end times (no core
Flextime systemtime).
Creation ofwork system for employees who engage in highly discretionary work,
work Asuch
diverse work Discretionary
as R&D. Under this system, employees can execute their work at theirsystemstylesdiscretion.
Work from home as often as desired to support career continuity and
Telework systemincreased productivity. Telework allowance paid.
Subsidizing
Employees who pass technical skills tests (national certifications) receive
certifications
partial or full subsidies for the examination cost.
Posts of the "Challenge Support Type" for taking on challenges in new
business areas and "Hometown Personnel Type" for pursuing a new careerJob posting system due to family circumstances. If the employee meets the application andpersonnel specifications set by the relevant department, they can apply totransfer to other departments.
Support for Studying in domestic Designed to help employees acquire skills and knowledge beneficial tocareertheir work in an intensive, formal setting. If the employee meets theor study
development collegesapplication requirements, they can apply to study at universities andabroad programs
research institutes in Japan and abroad.
Employee award
Various award programs, including performance improvement award,
programs for
project award, individual merit award, health and safety award, technicaldistinguished
merit award, and volunteer award.
achievement
Career development In-house language classes and subsidized correspondence courses andexaminations as determined by the company.
training courses

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Data

Parental leave
Pregnancy leaves
Child-care leaves (total)
Child-care leaves(paternal leave)
Child-care leaves(within one week
leave)
Return rate of employees from Childcare
leave

FY2019FY2020

59
161

57
163

FY2021

60
190

43

51

66

3

1

4

99.4％

98.8%

98.4%

Family-care leave
Family-care leaves

FY2019FY20205

FY2021

7

3

Paid vacation
Average days granted
Average days taken
Average ratio

FY2019FY2020

20.0
19.9
99.3%

FY2021

20.0
19.8
98.8％

20.0
19.9
99.5%

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

FY201960

58
0

FY202014
0FY2021

27
0

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Human resource development: structure
Approach and goals
Komatsu strives for the sustainable growth of both the company and employees through human resource
development. We believe that each employee is responsible for the setting of high individual goals, and thesubsequent fulfillment of these goals. Each employee should thus be self-reliant and highly motivated inseeking the knowledge and skills necessary for the fulfillment of personal objectives, while relying on
company support through our educational programs. Komatsu supports the career development of each
employee focusing on the education required to company management and employees.
While we promote the education of professionals in a wide variety of proficiencies, Komatsu is aware of theimportance for the dissemination of knowledge and skills at every level within the company. Regularexplanatory sessions and discussions are convened at Group companies to propagate the KOMATSU way,
ensuring that it is incorporated as an integral component of our human resource development on a groupwide scale.

System and status in FY 2021
Due to the COVID-19 pandemic, all training was conducted online in FY 2021. The training curriculum wasdivided into lecture-based and group work-based content, and the lecture-based content was distributed asvideos.
In FY 2022, we will introduce a learning management system (LMS) to create a framework to consolidate
information, develop an e-learning infrastructure, and reduce the work hours required for educational
operations.
This will create a learning environment that is both more convenient for participants and more effective fortraining.

Employee training structure

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 throughcompulsory “training by job rank” and is implemented across functions and departments.
Leadership programs for the next generation are conducted across job functions and departments forselected employees. These are represented in the structure below.

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A case of employee training: manager refreshment training
Since 2017, Komatsu has been conducting a specific training program for manager-level personnel,
activating a 360 degree feedback system which requires evaluations from each participant's supervisors,colleagues and other team members. Through the system, we aim to promote improvement ofcommunication at the workplace, encouraging all the participants in the training to recognize the gaps inperceptions with others.
All manager-level personnel in Japan are eligible to attend the program. A total of 3,872 managers attended
the training program so far with an attendance rate of over 90%.
The program contributes to preventing abuse of authority and sexual harassment at work from happening by
having senior employees realize that they are apt to have an inter-generational perception gap with
employees, especially the younger generations. Managers who attended the program commented like, “It
was a good chance for me to realize how I am perceived by others,” “The program helped me to understandthe gap in generational thinking,” and “The program provided a heads-up, and it helped us to address theissues that we face in the office.” We aim to achieve a 100% attendance rate for the program as soon as
possible. Since FY 2021, we have also conducted follow-up training.
Since FY 2021, we have also conducted follow-up training for those who had taken the course to further
entrench the benefits of the training.
FY2019FY2020985

FY2021
778

Total
231

3,872
(Attendance rate:90%)

Please refer to the following websites for the contents of programs that were held in 2020
Educational training pertaining to
the Komatsu Way

Technical capability of the
manufacturing workplace
62

Service personnel HR
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DATA

Employee training
Average hours per FTE
Average spent per FTE

Non-consolidated
Consolidated
Non-consolidated
Consolidated

FY2018FY2019FY2020

FY2021

58
53
55
60
45
43
JPY245,000 JPY244,000 JPY195,000 JPY205,000- JPY72,000 JPY71,000* Calculation of consolidated data started from the FY2020 survey.

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Human resource development: The Komatsu Way
Approach of The KOMATSU Way
The KOMATSU Way is a statement of values and standards that all workers at every level of the KomatsuGroup are 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 ofaction (style), which our predecessors created based on the founder’s spirit, throughout the history of our
growth and development. We aim to spread this knowledge to all employees and maintain it into the future.

System and Status in FY 2021
The KOMATSU Way finds its roots in the corporate strengths that Komatsu has cultivated over time,
culminating in a system of integrity and strength that is disseminated to group companies on a global scale.
This propagation is achieved through the KOMATSU Way Global Institute, which conducts various publicationand human resource development activities.
Employee understanding of the KOMATSU Way is deepened via training sessions and the creation ofopportunities 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 thisknowledge. We have also considered the intrinsic differences of foreign cultures, and have worked to craftthe KOMATSU Way in a manner that is both easy to understand and relevant for the international community
at large. This allows us to promote the KOMATSU Way in domestic and foreign settings, allowing foruniformity across the group.
In FY 2021, our overseas affiliates translated the third revision of the KOMATSU Way so that it would bepossible for employees to read and understand it in their native languages. Now it is available in 13 different
languages.
The KOMATSU Way and Total Quality Management (TQM) training for FY 2021 took place during the COVID-19
pandemic. Online training was also delivered for Asian and European regions in consideration of timedifferences.
In the training program, which is divided according to job level in Japan, we provided an e-learning programand online training to enhance understanding.
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.

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DATA

Educational Training that pertains to KOMATSU WayName of Training
CourseEducation for female
management
candidates ofoverseas subsidiaries(Diversity andInclusionDevelopment
Seminar)
Education for midlevel managers ofoverseas subsidiaries(KOMATSU Way
Leadership
Development
Program)Course participants

Targets

Training dates

To train global female
Femalemanagement-level management
candidates who have March 2022 (heldpersonnel ora comprehensive
online)candidates ofunderstandingoftheoverseas subsidiaries KOMATSU Way

Number ofparticipants/cases
13

Mid-level managers To train up localof overseas
who
October andsubsidiaries expected leaders
understandandDecember 2021 (held 63
to be responsible for practice theonline)the core
KOMATSUWay
business/functions
To train up
Mid-level
managers'evangelists'
KOMATSU Way Expert of overseas
October andresponsible forDevelopment
December 2021 (held 63
subsidiaries withspreading theProgramaptitude
KOMATSU Way in our online)
overseas subsidiaries
New employees,
To promote theassistantmanagers,
understanding and Year roundTraining by Job Level newly appointed
973 people
practice of the
managers, etc.
KOMATSU Way
To present
improvement
Selectedfromtheactivities as OJT and November 2021 (held Approximately 7,000
All Komatsu QC
KomatsuGroupinstrengthen
Convention
online)accessJapan and overseas awareness of the
KOMATSU Way
practices

The KOMATSU Way-History of Dissemination Activities

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Human resource development: enhancing skills
Komatsu employees are our most valuable assets because they support sustainable corporate growth.
Developing every employees all over the world through a variety of our human resource development
programs enhances Gemba capability (employee-driven continuous improvement capability).

Enhancing the technical capabilities of our manufacturing operations
Systems and status in FY 2021

With major advancements in technologies and globalization within our production operations, the need for ahigh level of technical capability has become all the more relevant. As such, 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 business associates, who come together
to maintain and improve the overall technical capabilities of the Komatsu Group through mutual dedication
to studying.
In FY 2006, Komatsu established the Meister system that focuses on the passing down of technical know-how
from production sites. Techniques and skills that we have judged to be worth passing on are divided into 9fields that each comprise of 15 specific competencies, with a "First Meister" certified for each competency.
Under Komatsu's Mother Plant System, production plants with product development capabilities are
specified as "Mother Plants". These plants are responsible for the purveyance of product safety, quality, cost,and delivery of their "Child Plants" (plants that produce the same product). Meisters who have been certified
in accordance to their high proficiency in specific technical areas are tasked with guiding and nurturing
engineers at both domestic plants and overseas "Child Plants".
Komatsu also conducts vigorous improvement activities by holding all-Komatsu quality control competitions
on the third Saturday of every November. Much like our technical competitions, employees from ouroverseas subsidiaries and business partners across our value chain are welcome to participate.

DATA
Status of human resource development at the manufacturing gemba
FY2019FY2020
Number of200
195
participants
All-Komatsu technology
olympics
Fromoverseas 38(10 countries) 55(2 countries)
All-Komatsu QC competition

Number ofparticipants
Fromoverseas96

FY2021
360
199(4 countries)

94

95

36(14 countries) 35(11 countries)

36(13 countries)

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Countries of Dispatch in FY 2021 to All-Komatsu Technology Olympics and All-Komatsu QC
Competition
All-Komatsu Technology Olympics
No contestants were sent to Japan due to COVID-19 pandemic. China, India, Thailand and Indonesia were theonly countries where contestants gathered in person.
All-Komatsu QC Competition
Because of the COVID-19 pandemic, no contestants were sent to Japan and the competition wasprerecorded. Brazil participated live online, and other countries participated through pre-recording.
Participated countries: The United States, Brazil, Chile, the United Kingdom, Germany, Italy, Sweden,
Australia, Thailand, Indonesia, India, China and Russia (13 countries)

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.
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 FY 2021, we further strengthened our online training program, conducting more than 200 training sessions
worldwide, with more than 5,000 service staffs in attendance.

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TOPICSStrengthen online education
To comply with the COVID-19 infection control measures in FY 2020 and further expand the number ofparticipants who receive training, we actively promote the enhancement of digital learning throughonline lectures and video distribution, among other methods.
When training sessions were held involving the gathering of people from different places, it wasnecessary to limit the number of trainees. The use of digital learning has made the training programavailable anytime and anywhere to more people.
As we head toward a post-COVID era, the training centers will be able to combine socially distanced
group sessions with digital learning to improve the training they provide.
Training activities at the Dubai Training & Demonstration Center in Dubai, UAE“Dubai Training & Demonstration Center” established in Dubai, UAE, aiming at enhancing training
functions for distributors in the Middle East and Africa regions, has provided the training necessary forconstruction equipment distributors, including training in sales promotion, parts, services, andmachine operations since April 2019.
At the center, Komatsu certified instructors work, and conduct (1) practical training to develop
understanding by seeing and experiencing real machines and equipment, and (2) systematic training
globally equivalent in quality. The center not only provides product and technical training for
distributors, but also accommodates a wide range of services such as product demonstrations andtest operations for customers as sales promotion activities, as well as training for operators.

During training activities

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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 conclusionthat 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 the use 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 ourcustomers", into a commitment to "increase the trust placed in us to a degree at which our company is
indispensable to our customers, 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.

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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.

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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. Respect for human rights
The Komatsu Way describes the values that all officers and employees in the Komatsu Group,
including those at top management level, should inherit in a lasting way. To implement the
Komatsu Way, it is necessary that we act responsibly in accordance with the expectations ofsociety. Komatsu believes 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 business activities in line with this philosophy, Komatsu promotes activities that
respect human rights such as the prevention of child labor and forced labor and the elimination ofexcessive working hours, the prevention of discrimination and harassment, the right to freedomof association, the right to collective bargaining, minimum wage, health & safety, etc., in
accordance 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.
2. 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.
3. Local communities
Companies cannot continue to exist without maintaining good harmony with the local
community. Komatsu wishes to be the most transparent company which actively seeks
harmonious balance of interests with the local communities through close communication andcontributes to the local communities as a valued corporate citizen.
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4. Human rights issues (assessment and due diligence)
In our effort to apply the major principles for protecting human rights, we conduct human rights
risk assessments for our existing and new construction/mining equipment and forestry machinery
businesses worldwide with the help of external experts. In addition to risk assessments, we willconduct CSR procurement assessments for suppliers and promote CSR procurement throughimprovement activities based on the results of the assessments.
5. Guidance for employees, distributors and suppliers
In order to ensure the effectiveness of this policy, we will conduct appropriate training andactivities to raise awareness in employees throughout the Group. We will also expect andencourage our distributors and suppliers to comply with this policy in their own operations.
6. 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 he or she works,
or who has questions about this policy or would like to confidentially report a potential violationof this 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 or applicable 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.

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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 processes for corrective action
when it becomes clear that we have caused or been involved in such impacts.

【Komatsu Group Human Rights Management System】

1. Formulation of 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.
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.

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2. 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.

(1) Human rights risk assessment and impact assessment
Risk assessment is a step in assessing and identifying human rights risks that may be affected by businessactivities and has been conducted as follows.
2014
2017

2020

2021

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.
With the support of CSR Europe, an external expert, we conducted a systematic global humanrights risk assessment of our downstream business (sales of equipment and spare parts) inconstruction, mining, and forestry equipment business. Based on the characteristics of ourbusiness, we assessed and prioritized risks from multiple perspectives, including discrimination
based on race, ethnicity, and country of origin, and forced labor, freedom of association, andfair labor conditions to identify and prioritised potential issues for each business sector andregion.
Prioritized how Komatsu’s human rights issues should be addressed and decided to conduct awritten survey of suppliers and Komatsu Group companies, as well as an on-site survey (impact
assessment) in downstream businesses.

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

(2) Integration into internal departments and procedures, and appropriate actions
Educational activities for employees and agentsTo inseminate our human rights policies within our employees and to raise awareness of preventive andmitigation measures against negative impacts, we have launched an e-learning program in July 2020 andstarting with employees in Japan and the United States.
We do not have ownership in many of our distributors that sell and service our products worldwide, but we
added the clause in our distributorship agreements in which our partners will "respect human rights in thebusiness." We are also engaged in dialogue with these business partners on the formulation of human rights
policies and the implementation of voluntary due diligence in line with the realities of their respective
regions and businesses.

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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.
Deployment to the supply chain
As part of its efforts to ensure that its suppliers respect human rights, we endeavour our CSR Procurement
Guidelines to penetrate into our daily procurement operations. Since fiscal year 2020, we have also started toadminister an SAQ (Self-Assessment Questionnaire) on CSR activities, including human rights, among ourprimary suppliers in Japan and overseas in order to further promote CSR in our supply chain and reconfirm
that all parties remain fully aware of the guidelines. From fiscal year 2020 to fiscal year 2021, we surveyed 156“Midori Kai” supplier companies in Japan and confirmed their recognition of the CSR Procurement
Guidelines and the status of their CSR activities. We will continue to follow up on the survey results on an
individual basis.
For more information, please refer to the link below.
Komatsu Group's Supply Chain Management and Promotion of CSR Procurement
Screening
In our global operations, we have established a screening system to check and regulate transactions withpartners designated specified in our sanction lists and other documents. We are ensuring compliance withinternational laws and regulations (such as embargoes).
Responsible sales approach
We will consider our responsible sales approach based on the results of the impact assessment in thedownstream.
Response to conflict minerals
In line with our corporate social responsibilities, Komatsu does not condone the use of conflict materials
produced by the Democratic Republic of Congo (DRC), or its neighbors (Angola, Republic of Burundi, Central
African Republic, Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia). We haveinformed 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 to determine the location of origin of
our materials and to ensure that none of them are sourced from areas of conflict.
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 Trafficking 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
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We have repeatedly conducted risk assessments and followed up all identified risks. We plan to follow up on
issues in our upcoming survey in fiscal year 2022.

(4) 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 confidential information. We will also proactively disclose relevant information on humanrights issues to improve transparency and fairness.

３．Correction and grievance mechanisms
Komatsu has established a "Global Compliance Hotline" at its head office, 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.

Examples of specific 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 effective measures to strengthen respect for human rights in ouroperations.

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With business

Improving product safety and solutions

078

Quality and reliability - responsible commitment to customers -082

Outline of procurement policy and supply chain

086

CSR procurement guidelines

090

Komatsu group's supply chain management and promotion of CSR procurement

093

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

099

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

107

Corporate governance112

Corporate governance indicators

114

Compliance

117

Risk management

121

Information security

127

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Improving product safety 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
The provision of profoundly safe products is the mostimportant responsibility of any manufacturer. With
that in mind, we strive to exceed what is expected of
us by going above and beyond the call of duty. On topof meeting all international standards andregulations, we supplement our products withadditional safety features that remain unsurpassedby our competitors.
This commitment, compounded with our innovative
drive for safety improvement, also allows ourcustomers to achieve the consummate climate ofsafety within their operations.
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.
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.

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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 recognizes
humans around the excavator and prevents the
motion of the excavator when the system 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& Collision Warning System (since 2022)
humans while the excavator is traveling at slow
speeds. With these functions, the system helps curb the possibility of collisions between the excavator andpeople.
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.
In 2022, 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-tonclass hydraulic excavators. In order to allow customers to use the system flexibly on a wider range of sites,
the KomVision Human Detection & Collision Warning System, which provides warning only, without
automatic stop control, is available for 40-ton class standard models and specific 7-ton, 12-ton, and 20–40ton class models. Moreover, we have expanded the number of standard equipment features, such as the
addition of a buzzer outside the cab, to improve comfort and workability.

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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.
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.
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Value creation by means of innovation
Value creation by means of innovation is one of three pillars of growth strategy in the mid-term management
plan. As one of our focus efforts in this area, we engaged in automation, autonomous operation,
electrification, and remote controlling of construction, mining and utility equipment (small machinery),while also working to realize digital transformation of construction through both physical aspects (increased
automation and sophistication of construction machinery) and non-physical aspects (optimization ofcustomers’ construction operations), thereby realizing safe, highly productive, smart and clean workplaces ofthe future with customers. The Autonomous Haulage System (AHS) for unmanned dump truck operation has
already launched in the market, and a cumulative total of 510 units of the AHS are in operation as of March
31, 2022. In addition, having made progress in achieving remote control operation of the PC7000-11
hydraulic excavator for mining sites and semiautonomous operation in conjunction with an Innovative
Autonomous Haulage Vehicle (IAHV), we demonstrated those capabilities at the MINExpo INTERNATIONAL
2021 mining equipment trade show held in Las Vegas, United States in September 2021.

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

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Quality and reliability - responsible commitment tocustomers 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.

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Structure for quality assurance
The majority of Komatsu's product portfolio is made up of manufacturing equipment (construction andmining equipment, presses, and forklifts) that lend value to customer enterprises through enhanced rates ofoperation and productivity. In order to ensure optimal user experience, Komatsu sales agents engage withcustomers on both a pre-sale and post-sale basis to provide advice, conduct maintenance, and collectfeedback. This collated information is then related back to the relevant Komatsu divisions for evaluation and,
if it should be needed, subsequent follow-ups or remedial actions.
Komatsu also maintains comprehensive databases on market information regarding product quality.
Company sales staff are able to utilize this wealth of information to ensure the rapid resolution of qualityrelated issues, should they be raised.

Using ICT to support customers throughout the product life cycle
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(KOMTRAX) 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.
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.
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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.

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

System for dealing with recalls
We have noticed a paradigm shift in customer concerns in recent years, with a greater focus on product safety
and recalls. To meet these new expectations and ensure product safety in our markets, Komatsu isreinforcing its recall-related organizational strength, comprehensive response capabilities, procedures forprompt corrective measures, and proactive information disclosure whilst conducting increasingly rigorous
monitoring activities.

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

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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 (Safety, compliance with the Law,
Quality, Delivery and Cost) perspective.
In addition, 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 theUnited Nations Global Compact, the guidelines specify the items we would like our business partners toaddress, while reflecting the concepts of our code of conduct and the KOMATSU Way. We have released theguidelines on our website so that they are known and we also work to ensure the guidelines penetrate into
our daily procurement operations.
In order to decide whether or not to begin transactions with a new business partner, we use a check sheet toevaluate the company not only in terms of basic SLQDC items but also from the viewpoints of environmental
protection, employee training and others. In the basic transaction agreement that we conclude before
beginning transactions, we include articles on compliance, environmental protection activities, eliminationof anti-corruption and anti-social forces and other elements, thereby encouraging the business partner topromote CSR activities. In addition, in the annual evaluation of Midori-kai member companies to be
described later, we evaluate them in terms of the business attitudes of their top management and theirsystems for promoting activities in areas such as safety and health, environmental protection and humanresource development, in addition to their full-year QDC performance. We provide feedback on the results ofthe evaluation to business partners to help them make improvements.

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2. Component category and procurement policy
Komatsu's general production policy is to manufacture products directly within the area of demand. We have
69 of our 81 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

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

Definition

Examples of parts
Engines, transmissions,Key
components
fordifferentiation
thataxles, hydraulicComponents A determine product quality and functions
equipment, 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

The breakdown of procurement in monetary terms in the construction and mining equipment business of
the Komatsu Group in FY 2021 is shown below.
Components Types by Percentage of Procurement Origin of components by Percentage ofin Monetary Terms
Procurement in Monetary Terms

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3. 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 infive regions -- Japan, China, Thailand, North America and Europe. Procurement from members of theKomatsu Midori-kai account for approx. 77% of total procurement in monetary terms. The Komatsu Midorikai in each region collaborates with Komatsu's manufacturing plants in promoting activities that takeadvantage of characteristics of the region. It also holds regular meetings to promote understanding ofKomatsu's businesses and activate communication between Komatsu's executives and top management ofmember 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 businessbriefings, and explain 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 into some groups (subcommittees) based on the items they supply, and promotes improvement
activities in cooperation with Komatsu by selecting common themes such as safety, the environment andcutting-edge production technology. Information about actual improvements that have been made is sharedby companies 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

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Detail of critical suppliers
Number of companies

RegionJapan
China
Midori-kai member Thailand
companies
USA
Europesub total
Japan
USA
Indonesia
Non-members of India
Midori-kai
VietnamPhilippines
sub total
Total

Proprietary parts*2
Sub-contracted*1
HighlyHighlyTrading
Total Invested by depend on Invested by depend on
Big
firm,
business enterprise
Komatsu business
Komatsu
w/t
w/t
Material
Komatsu
Komatsu
156
7
86
2
7
43
11
60
2
34
1
4
14
5
18
1
10
2
31
44
1
15
1
19
8
42
2
38
2
333
10
155
4
12
124
28
1
1
2
2
2
4
1
1
12
11
1
3
2
1
1
1
23
2
14
0
1
1
5
356
12
169
4
13
125
33

*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
Categories
Tier 1
1 All
suppliers

Level
3
Critical Level
3 suppliers
2
Level
4
1
2

Number and percentage of total (The numbers of higher-level companies areincluded in those of lower-level ones.)

Percentage of procurement inmonetary terms

2,666

100%

100%

356

13%

77%

198

8%

67%

16

1%

8%

The level of critical suppliers is determined by the degree of Komatsu's involvement in each.
Level 1: Companies in which Komatsu or the Komatsu Group companies have invested
Level 2: Companies in which Komatsu or the Komatsu Group companies have not invested but which are highly dependent on business
transactions with Komatsu
Level 3: All critical suppliers

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CSR procurement guidelines
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, 2022
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.
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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.

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."91

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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,
and create 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.

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.

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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 specified 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 staff 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 significant 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 reflect them appropriately in their daily procurement activities. At Komatsu,
we strive to inform all employees of the trends by providing group training and e-learning designed for eachone of the job classes, from new employees to managers.

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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 Office, the Small and Medium Enterprise Agency anddifferent 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 efforts to enhance productivity
and streamline work with the use of ICT and by providing training programs.
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 inJapanese

3. 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 conflicts, 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 identified, and appropriate measures are implemented; for example, leveling production byreviewing production plans and supporting production at other companies.

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List of risk assessments conducted regarding suppliers
Measures of risk accessment (〇: subject of accessment)
GeneralManagement

Scope

Two-way Periodic
Monitoring ofCommunicat monitoring Evaluation
on SLQDC *2 level on
CSR SAQ
ion through on
surveyPerformance Safety
Midori-kai Management
Financial & Capability activities
activities &status*1

Frequency ofcheck

As needed

Measures to
check
1
2
3
4

All of Tier-1
suppliers
Le
vel
3
Critical Le
suppliers vel
2
Le
vel
1

Annually/
Quarterly/Monthly

Lecture &Q&A･Written･Discussion
survey･Groupactivity･

Annually

Once every 6 Once every 2 Annuallymonthsyears

Monthly & ･Written
Annualperforming survey･Managedata
ment･Management interview
interview ･Site visit
-

･

-

〇 *1

〇

〇 *1

-

〇

〇 *4

〇

〇 *5

CSR
Audit onEnvironment Compliance
Risk survey alManagement Risk (CR)on human , including Audit onrightsacquisition of important
process *3
EMS
certification

Writtensurvey･Audit/Site visit･

BCP
Check thedamage & Check risk ofability ofsupply in plant
locationcase offlood,
occurrence of against
heavy rain,
naturaldisasters & etc
pandemic
Once every 2 As needed Once every 3
years
years
check with･Written
telephone/ ･hazard
surveye-mail check issued bymap･Site visit
through･Checksupply chain MLIT
confirm the
documented management ･status
of BCPevidence systemagainst risks
〇 *8
〇 *8

Annually
Writtensurvey･Management
interview･Site visit･

Writtensurvey･Audit/Site visit
･

〇

〇

-

-

〇

〇

〇EMS

-

〇 *8

〇 *8

〇 *6

〇 *7

〇

〇

〇EMS/audit

-

〇 *8

〇 *8

〇

〇

〇

〇

〇EMS/audit

〇

〇 *8

〇 *8

*1 In case of lis
listted company on stock exchange, use published financial statement as a substitute.
*2 S(Safety), L(Compliance), Q(Quality), D(Delivery), C(Cost)*3 Accounting, Human Resource Control, Purchasing, IT Security*4 Quarterly written survey*5 monthly financial report*6 Sub-contracted suppliers only
*7 Sub-contracted suppliers+Proprietary suppliers with high dependency on Komatsu.
*8 only companies locating in Japan

Examples of hearing survey of business partners' overtime status
Company Name 36 Agreement

Compnay K

Company T

Number ofOvertime

Operation Degree (after measures)
Number of direct workers
45H/
OvertimemonthOvertime Max 80H/
month
Overlimit
6 times/
Count
year
Consecutive Up to 6 times
NumberStarting Month April
Operation Degree (after measures)
Number of direct workers
42H/
OvertimemonthOvertime Max 70H/
month
Overlimit
6 times/
Count
year
Consecutive Up to 6 times
NumberStarting Month January

Hr/day65
4
3
2
1

Result 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

1

Numberof people

11
6
16
34

Hr/day

49

4

72
2.5
65

Numberof people

3
2
1

15
13
16
95

3.6 3.8 2.5 2.4 2.3
262 (286) (286) (286) (286)
17

21

20

24
35
42
2.5
66

27
24
36
2.6
74
2

12
24
36
2.3
79
2

3

1

2

7

6

8

8

16
8
13

16
8
18

16
9
15

16
6
15

25
49
2.2
64

6
5

2.4
252

18
11
15

2.4
(81)

2.4
(81)

2.5
(81)

2.5
(81)

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To respond to natural disasters which recently haveoccurred frequently and become diversified, 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 first 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 flooding 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
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, and disruptions ininternational logistics. Moreover, the reduction in model changeover periods in automobiles and home
appliances has increased the sudden production discontinuation of construction machinery parts, especiallyelectrical and electronic parts. We have addressed these emerging risks by strengthening inventory
management including at the distribution stage, promoting replacement with available general-purpose
semiconductors and parts, expanding the scope of orders and forecasts for critical parts, andaccumulating inventory.

Disaster recovery support (lending electric generators)

Disaster recovery support(assisting the centering ofworking machines)

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4. 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 office. 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.
Starting from FY2020, to ensure the further penetration of CSR into the supply chain, we began an SAQ survey
about CSR activities for our primary suppliers in Japan and other countries. Based on the standard survey
tool released by the Global Compact Network Japan (GCNJ), in which Komatsu also participates, the survey
involves the use of a form complementing the items Komatsu considers to be important. Business partners
use the form to as a self-check of the degree to which they recognize CSR issues and the status of theiractions. From FY 2020 to FY 2021, the survey was designed to gather responses from 156 Midori-kai member
companies and 153 have submitted their responses to date. We confirmed that 95% of the companies areaware of our CSR procurement guidelines. Based on the results of this survey, we will continue to provide
individual follow-up support to business partners identified as being in need of increasing their awareness of
CSR issues. We will also assist them to address common issues such as human rights due diligence and CO₂
emissions reduction, and continue to expand the scope of the SAQ survey in Japan and overseas.
Japan midori-kai CSR SAQ self-evaluation results

Awareness of our CSR procurement guidelines

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In line with our corporate social responsibilities, Komatsu does not condone the use of conflict materials
produced by the Democratic Republic of Congo (DRC), or its neighbors (Angola, Republic of Burundi, Central
African Republic, Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia.) We haveinformed our business partners of this policy through the Komatsu Green Procurement Guidelines.
Working hand-in-hand with suppliers, we have conducted a survey on the content rate of "conflict minerals"
and country of origin (refiner) for each part using the template (JAMA sheet) of the Japan Auto Parts
Industries Association (JAPIA) from 2011 to 2014. We also continue to follow up by including a question on
CSR in the SAQ questionnaire. Moving forward, we will continue to take steps to enforce strict adherence tothis policy, which will serve to restrict funding for military groups situated in such areas. Any conflictmaterials discovered to be within our supply chain will be immediately discontinued from use.

5． 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 verifies 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

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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 FY 2017, we reviewed the check sheets and evaluation criteria sothat we would be able to use the same standards to evaluate the activities of Midori-kai members companywide 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, among many others.

(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).

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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
patrolPresentation by Sekigahara factory
at a Komatsu safety meeting

Changes in the results of safety activity evaluations from 2018 to 2021 (99 Midori-kai member
companies, 116 offices)100

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

Status of one-rank-up activities

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2. Compliance
The Komatsu Group conducts compliance and risk audits (CR audits). In 2016, we began to conduct the CR
audits even for 16 business partners in which Komatsu has made minority investments. The audit isconducted in four fields -- accounting, labor management, procurement (the Subcontract Act) andinformation security. It is aimed at identifying potential risks and taking corrective measures at an earlystage. The risks are identified mainly by checking the status of compliance with relevant laws andregulations, confirming business rules, segregation of business and decision-making authorities, inspecting
relevant business documents and conducting on-site examinations. Voluntary establishment of compliancesystems by business partners is essential for promoting CSR procurement. We believe that such a systemshould 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 a whistleblowing system, and then 4) providing employeeswith awareness training. Under this policy, we provided support to 99 companies, mainly custom goods
suppliers belonging to the Midori-kai, for their establishment of compliance systems by providing practicalexamples at Komatsu and employee training materials, etc. As of the end of FY 2021, we have completed
support activities for all of the companies. The follow-up after completion of the support activities and theinspection of the status of the activities of major business partners will involve a SAQ survey.
In FY 2021, no serious violations of Japanese labor-related laws and regulations or environmental violations
were reported by any of Japan Midori-kai's 156 companies.
Main findings through CR audits (2016 to 2021):
Field

Findings-Business flow, operating procedures and decision-making
authorities have yet to be set/ are insufficient.
-Physical inventory check is not conducted/ not regularly ortimely conducted.
Accounting-Rules on sale and disposal of stagnant assets and loss on
forced write-down of such assets are not clear.
-Management of corporate seals and password updates for theaccounting system are not done thoroughly.
Error in the service contracts for individual forepersons
Labormanagement Handling of the fraction (less than 30 min.) at working hour
management-Insufficient details provided on the order form (document set
forth in Article 3)-There is a risk of delay in payment (within 60 days after
receipt).
Procurement
There is a risk of early deduction of the price of raw materials(theSubcontract purchased by a subcontractor from the subcontract proceeds
to be paid.
Act)-Violation of the provisions prohibiting reduction of
subcontract proceeds (Reducing the amount of subcontract
proceeds by the amount equivalent to that of discountcommission where the payment is made in cash)
102

Countermeasures
Formulation/ review of businessflow/ operating procedure,
provision of instructions on
physical inventory check, andothersSwitching to direct employment,
review of timecard operations, etc.

Review of order form andsupporting documentation, review
of business flow, and others

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Support activities for the establishment of a compliance system
The number in () indicates the cumulative number of companies.

FY

2018

Achivement
2019
2020
32 (37) 32 (68)2021
30 (99)5
Number of companies we support
Number of companies which have completed support
5 32 (37) 28 (65) 34 (99)
activities
Support is provided to 99 companies, mainly custom goods suppliers belonging to the Japanese Midori-kai

Target99
99

Changes in evaluation level in CR audits (from 2016 to 2021):

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.
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 fields by disseminating our own
knowledge and skills.

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Training and Other Programs for Midori-kai Member Companies
Target job level

ProgramOutlineKomatsu accepts sons and daughters of corporate managers ofmember companies and provides them with on-the-job training for up
to five years.
training program for its executive candidates is open to
Middle management Komatsu's
candidates
for member company successor. Duration of the training istraining
seven months.
Commissioned
training

Management

Employees inmanagerial
positionsRepresentatives

Skilled workers

OthersManagement SalonsYoung corporate managers of member companies make presentations
on medium-term management visions of their respective companies,
which are discussed and shared with Komatsu.

Managerial training

For newly appointed managers and on-site job leaders (e.g. generalmanagers of centers and team leaders)

Leader training (forfield managers)

Exclusive training programs for the Midori-kai. The training is provided
two times a year.

Komatsu TechnicalInstitute

Intended for leader candidates related to production engineering andmanufacturing who are aged 30 or younger. It is a boarding school
which provides a two-year program.

is an exclusive training program for the Midori-kai on sheet metal
Production engineer Itprocessing
and mechanical engineering. Five-day training is provided
training
once a year.
Instructor training

A 30-day program for candidates for skilled instructors of eachcompany

Inspection training Inspection skills training and classroom lectures
schoolAll Komatsu QC
Participants are selected from among the Midori-kai members.
competition
All Komatsu skills
competition(Advanced Technique Participants are selected from among the Midori-kai members.
Contest)All Komatsu Safety
Competition

Instructor training

Participants are selected from among the Midori-kai members (reporton Excellent Zero Accident circles’ activities).

Major
achievements
56 trainees havebeen acceptedsince 1972.
29 people haveparticipatedsince 2005.
Provided to a
total of 28
companies since2014
Around 40
peopleparticipate
every year.
Around 60
peopleparticipate
every year.
30 people haveentered since
2008.
Around 40
peopleparticipate
every year.
108 people haveparticipatedsince 2015.
Held as needed
Around 20
companies
participate
every year.
Around 5companies
participate
every year.

An online meeting system is used to provide remoteeducation.
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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

Productivity improvement using K-MICS PAD

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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

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Support for member companies of the Komatsu Midori-kai（environment）
1. Green procurement guidelines
Komatsu established the Komatsu Earth Environment Charter in 1992 and declared that they would engage
in environmentally conscious business activities to realize a sustainable society. However, social demand forthe reduction of environmental burdens and responses to climate change is increasing. Considering thisbackground, Komatsu has established and released the Green Procurement Guidelines, which supplement
the environment-related issues described in the CSR Procurement Guidelines. By using these guidelines, we
preferentially promote green procurement, which is conscious about the environment, and of the raw
materials and procured components/parts, which are important elements in our production. It also prompts
business partners to develop their own environmental management activities.
Komatsu green procurement guidelines(396KB)

2. 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 97% of these suppliers (including
all manufacturers and excluding trade companies) have been certified by the end of FY 2023.
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 2 companies were audited in the first year. Through written
surveys on compliance with environment-related laws and regulations, etc. and on-site inspections at eachcompany's offices, we will inspect how EMS has taken root on site and link the results to our support for theirimprovement in the future. In FY 2022, we will expand check sheet-based voluntary verification to all
outsourcing companies of the Midori-kai in Japan and increase the number of onsite audits.

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Environmental audits

Onsite audit

Documents screening

Number of Midori-kai member companies with EMS certifications
RegionJapan
China
ThailandNorth America
EuropeTotal

Number of companies which have obtained
Percentage of companies withcertification
certification
FY2023
FY2021FY2017 FY2018 FY2019 FY2020 FY2021 FY2023
Target Target
Progress
156 156 156 156 156 156 156
100%
100%
60
53
55
57
58
60
60
100%
100%
31
16
16
28
90%
52%
44
19
19
19
19
27
40
91%
61%
42
29
29
32
34
34
39
93%
81%
333 257 259 264 283 293 323
97%
88%

Number of member
companies

3. 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 FY 2030 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 FY 2016. As a result of the expansion ofthese activities across all our suppliers, some suppliers won the ECCJ Energy Conservation Grand PrizeAward. Since 2017, we have worked to maintain and improve the level of reduction through independent
improvements at each company.
Since FY 2019, we also set a target of reducing CO₂ emissions from all kinds of energy, including heavy oil,gas, and electric power, by 15% (by FY 2030, compared to 2010). As a first step, we conducted a fact-finding
survey of ten casting and forging companies and heat treatment companies that emit large amounts ofgreenhouse gases and provided them with information about the improvements we had successfully made.
While providing concrete support to help these 10 companies to improve, we also requested that 156 Midorikai companies set mid- and long-term reduction targets and implemented tangible improvement activities toreach those goals. Progress is monitored through periodic CO₂ emissions surveys and SAQ questionnaires.
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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

Note: Partially revised as a result of revisions topast data.

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

4. 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
FY 2017. 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 FY 2021. In FY 2018, 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 also conduct environmental audits and confirm compliance with theWater Pollution Control Act and other water-related laws and regulations.
Changes in clean water consumption by the top 10
largest water users in the Midori-kai

On-site investigation of water risks
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5. 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 Installation
centralized water treatment systems for discharged water, etc. need to collector and exhaust air ducts)
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.

6. 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 also provide educational programs and encourage thecompanies to implement their own endeavors in accordance with their Cherry tree planting activity in China
unique situations and geographical locations. We request each company (Jining, Shandong Province)
to report on the details of their efforts.

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Support for construction and environmental conservation of the Yusen-ji copper mine in
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Corporate governance
Basic stance on corporate governance
Komatsu believes its corporate value is the total sum of trust given to the Company by society andall stakeholders. To become a company which enjoys more trust from shareholders and all otherstakeholders, 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, 2022)

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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.

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

Corporate GovernanceFiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2016 2017 2018 2019 2020 2021
Women
0
0
1
1
1
0
Number of Internal Men
7
5
4
4
4
5
Directors
Number of Directors
7
5
5
5
5
5
Total
*Entering the number of
0
0
0
0
0
1
people after the ordinary
Women Members
Number ofgeneral meeting of
3
3
3
3
3
3
IndependentMenshareholders
Directors
3
3
3
3
3
4
Total
10
8
8
8
8
9
Total
6
4
4
4
4
4
Number of Corporate Executive Officers on the Board
Members
60 50 50 50 50 44% of Corporate Executive Officers on the Board
30 38 38 38 38 44% of Independent Directors on the Board％0
0 13 13 13 11% of Women on the Board
0
0
0
0
0 ０
Women
Number of Internal Men
2
2
2
2
2
2
Members
2
2
2
2
2
2
Total
Number of Audit &
1
1
1
1
1
1
Supervisory Board
Women Members
Members
Number of
2
2
2
2
2
2
Independent Members Men
3
3
3
3
3
3
Total
5
5
5
5
5
5
Total
60 60 60 60 60 60% of Independent Audit & Supervisory Board Members％
20 20 20 20 20 20% of Female Audit & Supervisory Board Members
61.8 63.2 63.2 60.6 61.6 61.6
Average Age of Board Members
Age
1
1
1
1
1
1
Term Limits for Board Members
Years
17 15 15 15 15 15
Number of Board Meetings
Times
Board Meeting Attendance％
99 100 100 99 100 100
98 100 100 100 100 100
Attendance of Independent Directors at Board Meetings
％
0
0
0
0
0
0
Number of Directors Attending Less Than 75% of Board Meetings Members
15 15 15 15 15 15
Number of Audit Committee MeetingsTimes
97 100 99 100 100 100
Audit Committee Meeting Attendance％
96 100 98 100 100 100
Attendance of Independent Auditors at Board Meetings
％
0
0
0 ０
0
0
Number of Auditors Attending Less Than 75% of Board Meetings Members
Unit

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

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Compensation
Basic Remuneration
Performance-Based Bonus in
Cash
Compensation of Chief
PerformanceExecutive Officer
Based Remuneration (StockBased)
Total
Basic Remunerations
Stock Options
Compensation of Directors*Excluding External
Performance-Based Bonuses in
Cash
Directors*Including those who
Performance-Basedretired during the term
Remunerations (Stock-Based)
Total
Basic Remunerations
Compensation of Audit & Stock Options
Supervisory Board
Members*Excluding External Audit & Performance-Based Bonuses in
CashSupervisory Board
Members
Performance-Based*Including those who
Remunerations (Stock-Based)
retired during the term
Total
Basic Remunerations
Stock Options
Compensation of External
Directors and External Audit Performance-Based Bonuses in
Cash&Supervisory Board
Performance-Based
Members
Remunerations (Stock-Based)

Socialcontribution
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Data

Index

Fiscal Fiscal Fiscal Fiscal Fiscal
Unit Fiscal
2016 2017 2018 2019 2020 2021
100 100 102 103 103 103
36 73 93 41 28 65

Millions
of
Yen

Total

Shareholder Rights
Anti-Takeover Measures

19

19

99

46

35

57

155
427
0
154

192
357
0
246

294
357
0
310

190
345
0
130

166
331
0
88

224
331
0
207

83
664
86
0
0

68
671
86
0
0

300
967
87
0
0

147
622
87
0
0

108
527
87
0
0

182
720
87
0
0

0
86
85
0
9

0
86
85
0
9

0
87
103
0
0

0
87
108
0
0

0
87
109
0
0

0
87
122
0
0

4
98

5
99

0
103

0
108

0
109

0
122
None

ComplianceIn the event of a significant revision of financial statements or an event that has asignificant impact on the reputation of the Company due to the execution of businessDirectors, the performance-based renumeration paid to the Internal Directors could
Malus and clawback system Yes by
be required to be reduced, confiscated or refunded. In principle, the content of therefund request, etc. will be decided by the Board of Directors after the deliberation by
the Compensation Advisory Committee according to each event.
Political Contributions

Unit
Millions of Yen

Fiscal 2017 Fiscal 2018

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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.
“Komatsu’s Worldwide Code of Business Conduct” consists of two major parts. The first part clarifies theKomatsu Group's compliance policy and declares that executives and managers of each Komatsu Group
company comply with it. The second part specifically describes what all Komatsu employees worldwide
should and should not do in order to comply with the rules of the business industry as individuals. We
explain easy-to-understand examples of basic ethics in business operations, antitrust laws and anticorruption.
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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.
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 addition, group training on compliance is conductedin Japan and is divided into managers and general employees. In addition, we are expanding businessspecific compliance 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
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.
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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 FY 2021
No incidents of note occurred during 2021.

DATA

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

FY2019FY2020141 (0)

FY202189(0)126 (0)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

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3. Compliance education in FY 2021
Global training on the code of
conduct (e-learning and group Approx. 18,800 people
training)<Group training (mainly Japan)>・Level-based training
Approx. 1,600 people
・Individual training by
Approx. 800 people
request(offices and relatedcompanies in Japan)

4. Compliance violation in FY 2021
No compliance violation had a significant impact on the management of the company.

5. With regards to anti-corruption
Number of employees who weredismissed because of conflict Fiscal Year 2021: Zerowith Komatsu's anti-corruption
policy (global)
Fines imposed on Komatsu
related to corruption / amount of Fiscal Year 2021: Zeropenalties (global)
Fiscal year 2021: 12 times
Target audience: Approximately 110 (planned to be transferred overseas)

Number of employee training
sessions on anti-corruption
prevention (in Japan)

Establishment of internalreporting system related tocorruption (global)

Prevention of corruption is specified in "Komatsu's Worldwide Code of BusinessConduct" as a key priority issue. If there is any suspicion or concern involving
corruption or the violation of business society rules, concerned parties are invitedto use the Global Compliance Hotlines established at the Komatsu Head Office orwithin each region to report the problem.

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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. The committee regularly reports on its deliberations and activities to the board of
directors.
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.

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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, war, terrorism, accidents, infectious diseases, etc.

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.
Risks and businessBusiness impact
Risk-reduction actions
background
Risks related to We have set a mid-term
Low-carbon/lowWe have worked to improve the operating efficiency
the development management plan target ofemission products are of our machines, reduce fuel consumption, andof lowreducing CO2 emissions byexpected to be intransition from internal combustion engines such ascarbon/low50% from the 2010 level bydemand in the
diesel engines to cleaner power sources such as
emission
2030 and have declared our European, Northhybrids, electrification, and fuel cells. We
products
goal of becoming carbon
American, and Japanese introduced to the Japanese market the PC30E-5
neutral by 2050. To verify our markets in the future. electric excavator in April 2020 and the PC01E-1 inprogress, we compared the
The construction,
March 2022 (jointly developed with the Honda
product performance in the mining and utility
Motor Co., Ltd.).
base year (FY 2010) and in FY equipment segments We will further contribute to climate change
2020 and calculated theaccount for 91.3% of
mitigation and carbon neutrality by promoting theresulting reduction in CO2
Komatsu’s total sales, mechanization of all processes relating toemissions from improvements with the European,afforestation, silviculture, forest growth, andin fuel consumption and work North American, and logging, and by supporting the reforestation cycle
efficiency. We found that in FY Japanese markets
as a recycle-oriented business.
2020, products achieved a 14% accounting for 44% (in We will also strengthen our remanufacturing
reduction in CO2 emissions
FY 2021) of the totalbusiness, in which components are recycled andcompared with the base year. sales by region.
reused, by positioning it as a recycle-oriented
However, our products andAdditionally, major
business that contributes to CO2 reduction.
solutions may not be adopted resource companies that Regarding CO2 reduction in mining operations, inwithin the low-carbon/loware mine machinery
2021, Komatsu formed the Komatsu Greenhouseemission product market in the customers areGas (GHG) Alliance with four of the world’s leading
future if the development of accelerating their efforts resource companies, Rio Tinto, BHP, Codelco, andlow-carbon/low-emission
to decarbonize their
Boliden. The alliance’s initial target is the roll-out of
products and solutions does operations and take an a super-large dump truck that can run on a variety
not proceed as planned, if rival environment-conscious of power sources.
products are launched by our management stance. If
competitors, or if we do not such risks materialize inhave sufficiently established the future, our products
procurement, production, and and solutions may lose
service systems when we bring their competitiveness,EVs, hydrogen and otherwhich may have a
products to market.
significant andprolonged impact on ourbusiness plan.
Risk title

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Risks related toprovidingsolutions tocustomers

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Risks and businessbackgroundKomatsu promotes solutions
businesses in smart
construction, automation inmining (e.g., AHS), and datadriven business (e.g.,
KOMTRAX); however, Komatsu
may lose competitiveness in
new markets if it is unable todevelop solutions that meetcustomer needs by the timerequired by the market or if
technologies developed andprovided by Komatsu are notwell received by customers.

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Business impact

Risk-reduction actions

If we are unable toprovide solutions thatmaintain ourcompetitive advantage,
our businessperformance may beaffected and the impact
may be prolonged.

In April 2021, Komatsu, NTT DOCOMO, Sony
Semiconductor Solutions, and Nomura ResearchInstitute launched a new company named
EARTHBRAIN Ltd. to grow their solutions
businesses. In response to the demand forworkstyle reform at construction sites around theworld, we are working to promote DX in theconstruction industry to improve safety,
productivity, and environmental friendliness.
Regarding the promotion of automation at minesites, we have developed the PC7000-11 remotecontrol and semiautonomous ultra-large hydraulicexcavator by consolidating our technologies andknow-how. Paired with Komatsu’s Autonomous
Haulage System (AHS), cycle times are shortened;moreover, operator-assist with augmented reality(AR) technology supports productivity
improvement, displaying location information andemploying a mine management system to provide
real-time feedback on estimated arrival times andother data. We plan to trial the concept machine ata customer site in 2022.
Komatsu has also formed a partnership with Anglo
American plc, a major British resource company, todevelop and market the D375Ai-8 remote control
bulldozer, a large mining bulldozer. By combining
automatic blade control technology with themachine guidance system "ProVision," we aim toachieve accurate and productive remote blade
operation and enter mass production in FY 2022.
Furthermore, a new platform will be developed andreleased by the end of FY 2022 to promote theconnection of all mining operations through theintroduction to the market of an autonomous water
truck and other new products, the expansion of
surface drill sales, and the enhancement of thesales and support system.

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4. Specific initiatives in FY 2022
(1) Response to geopolitical risks

The situation in Ukraine has disrupted supply chains and has had a significant financial and economic
impact. In line with our crisis management policy, we have established an emergency task force headed by
the president to collect and analyze information and promptly make decisions and deploy policies.
1. Ensuring the safety of employees and their families
2. Response to export restrictions in each country
3. Response to countermeasures by Russia
4. Humanitarian assistance, etc.
We will continue to monitor the situation closely and implement appropriate measures, including ensuringsafety at customer sites.

(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 FY 2021, the Delta variant, which is considered to have a more severe form of
the disease, and the Omicron variant, which is more contagious, spread worldwide.
In addition to monitoring employees’ infection status globally, we responded to the situation by halting
production at some overseas sites during lockdowns, in accordance with government policy in each country.
In Japan, in accordance with 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.

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Index(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 FY 2021＞① Shonan plant (Hiratsuka-shi, Kanagawa)
BCP training was conducted on the theme of continuing parts supply in the event of flooding caused by
overflow from the Sagami River. Measures are being taken to rearrange production sites, provide flood-proof
equipment, and store strategic inventory.
② Head office (Minato-ku, Tokyo)
We have reviewed our systems and actions to ensure that our head office functions can be maintained in theevent of a major earthquake with few workers in the office (due to the COVID-19 infection countermeasures).

BCP training at Awazu Plant(4) Response to economic security issues
On May 11, 2022, the Act on Promotion of Economic Security was enacted. Ahead of this, as of April 1, 2022,
we appointed a new executive officer in charge of economic security.
As soon as the specific regulations of the Act become clear, we will consider the need for additional measuresand promote them through the Risk Management Committee.
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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 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.

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Information security
Cyberattacks and other threats to Information security are growing more advanced and sophisticated. They
highlight the increasing importance of information security measures. Komatsu takes measures to comply
with Komatsu’s Worldwide Code of Business Conduct, the Information Security Regulations and other rules
and regulations.
In FY 2021, no serious incidents concerning information security, such as the leakage of personal data,
occurred within the Komatsu Group.

1. Risk management and its promotion
As a part of the management system led by the risk management supervisor, the Risk Management
Committee shares and discusses company-wide information security issues. The president of theInformation Strategy Division, who is also a leader in charge of ICT, is the vice-chairperson of the Risk
Management Committee so that it is able to address more specialized areas of information security. The
Committee shares and resolves more important information security issues. Whenever a serious issue
emerges, it will be swiftly reported to officers including the president and directors, the Board of Directors
and other organizations concerned, and appropriate actions will be taken.
The Information Strategy Division formulates measures to address information security risks as necessary
and annually presents them to the Strategy Review Committee consisting of officers including the president
and directors. These measures would be included in the mid-term ICT investment plan.

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.

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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 and other companies that cooperate in our supply
chain with whom we share confidential business information to follow Komatsu’s information security
principles as we continue to effectively support them.
Komatsu and everyone involved in its businesses that handles confidential business information share anunderstanding of the importance of properly managing data. We all work to minimize risk in pursuit of stablebusiness continuity. To this end, we engage in activities such as regular interviews of cooperating companies
regarding the status of their data management, presenting, where appropriate, inspection items regarding
the business data kept in information technology equipment and recommending information security
teaching materials.

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Our concept of environmental activities and promotion system

130

Organizational chart of the environmental management structure

132

Setting mid- and long-term targets and progress

133

Acquiring ISO14001

134

Relationship between business activities and the environment

135

Mitigating climate change through products and service

137

Reducing CO2 emissions in manufacturing operations

140

Reduction CO2 emissions in logistics

142

Amount of CO2 emissions by scope 3

144

Development of our “Reman” remanufacturing business

146

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

147

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

149

Environmental initiatives at sales and service companies

151

Promoting legal compliance, and pollution mitigation and prevention

153

Management of chemical substances and pollution prevention

154

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

156

Komatsu's eﬀorts regarding water

158

Prevention of environmental risks (CR audits)

160

Biodiversity

162

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Our concept of environmental activities and promotion
system
We, at the Komatsu Group clearly defines 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 define environmental conservation efforts 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 efforts in all our business activities. We also aim to achievecarbon neutrality with net zero CO2 emissions by 2050, and contribute to sustainable development throughefforts 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 economic
efficiency. To this end, we are constantly engaged in technology innovation to provide economical products,
services and solutions through improving fuel efficiency 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 fulfill 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.

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.
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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 mosteffective 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 specific activity plans. Top management will regularly review targets, activity
plans and status, and work on continuous improvement.
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.

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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 meeting of executive officers controls progress in the achievement of the objectives.
System for reporting and reviewing environment-related issues, including climate change

Main themes regarding the environment, including climate change
Meeting title
Board of Directors

Chairperson
Chairman of the Board andRepresentative Director

Strategy Review Committee President
Meeting of executive
officers
Committee

President
Chairperson

Sustainability Promotion
Committee

President

Risk Management
Committee

Executive officer
supervising general affairs

Main themes regarding climate change
Report from the Sustainability Promotion Committee
Report on research, development, product planning,
and CTO
Production and procurement report
Mid-Term Management Plan progress report
Growth strategies at main production plants (including
climate change related strategies)
Report from the Sustainability Promotion Committee
Progress in product development and (including
climate change related KPI)
Main themes regarding climate change
ESG initiatives, priority issue and KPI-related issue
reports and deliberations
CSR activity report
Report on measures to address natural disaster risks

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Setting mid- and long-term targets and progress
Komatsu has been moving forward under the new mid-term management plan from 2019. We set new ESG
targets and expressed our commitment to sustainable growth through a positive cycle of profit improvement
through growth strategies and initiatives for ESG issues.
Our targets from fiscal 2019 are to reduce CO2 emissions from products and production by 50% by 2030. In
addition, as a new indicator, we decided to aim for a ratio of 50% of renewable energy power (RE ratio) by
2030.
The new mid-term 2030 targets, including other indicators, are as follows:
Mid- and Long-term targets
Area
Products

Application

ObjectConstruction
Equipment
MiningEquipment CO2
Forestmachines
etc.
CO2

Production

Domestic Electricity
andoverseas
production
bases
Water
Waste

Logistics

External
evaluation

Japan

CO2

Overseas

CO2

-

-

Index

Base YearFY20212030 Targets Achievements
and Progress

Fuel
Consumption 2010
Reduction50％
reduction

19%
reduction

Improvement
rate of basic 2010
unit
Ratio ofrenewableenergy in
totalelectricity
usage
Improvement
rate of basic 2010
unit
Improvement
rate of basic 2010
unit
Improvement
rate of basic 2006
unit
Improvement
rate of basic 2011
unit

50%
reduction

37%
reduction

50%

14%

60%
reduction64%
reduction

40%
reduction

39%
reduction

39%
reduction

36%
reduction

22%
reduction
CDP
A List（Climate,
Water)DJSI World

12%
reduction
CDP
Climate：A
Water：A
DJSI World:
Selected

External
evaluation

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

sites in Japan and other countries began to acquire
From 1997 Production
certifications individually.
The Komatsu Group in Japan acquires integrated certification.
2008
Main production sites* in overseas countries achieve 100% certification.
2015
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) of Komatsu
Industries Corp.
* 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）

Environmental policies of plants in Japan
Awazu Plant (84KB)

Kanazawa Plant (83KB)

Osaka Plant (83KB)

Oyama Plant (85KB)

Ibaraki Plant (106KB)

Koriyama Plant (82KB)

Himi Plant (198KB)

Hiratsuka district (401KB)

Techno Center (82KB)

Test Engineering Center (82KB)

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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 (FY 2021)
Independent Practitioner's Assurance

Environmental Impact Resulting from Business Activities of Komatsu Group
Companies, including Facilities outside Japan (FY2021)(888KB)

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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)

EnergyWater Input

Independent Practitioner's Assurance

Waste

Independent Practitioner's Assurance

Independent Practitioner's Assurance

CO2（Scope1 and Scope2)
Independent Practitioner's Assurance

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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 different
initiatives: “DANTOTSU Products”, “DANTOTSU Service”, and “DANTOTSU Solutions”.

Step1: reduction of CO2 emissions through DANTOTSU Products
We provide products which have been designed to operatewith great fuel efficiency while reducing gross CO2
emissions. Komatsu pioneered the creation andintroduction of the hybrid hydraulic excavator, marked as
the first of its kind to be introduced into the market.
These hybrid construction machines have been certified by
the Ministry of Land, Infrastructure, Transport and Tourismof Japan as a “Low Carbon Type Construction Equipment.”
As of April 2022, a total of 16 of our hybrid models havereceived such certification, such as the HB215-3, HB205-3,
HB335-3, and HB365-3.
In addition to this, another 23 of our product models(including the bulldozer D71PX-24, the hydraulic excavator HB335-3
PC78US-11, the wheel loader WA150-8) have been certified
to meet the Ministry of Land, Infrastructure, Transport andTourism's “Construction Machines Fulfilling Fuel Economy
Standards” signifying these products as construction
equipment with great fuel efficiency.

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 operational
efficiency helps to reduce fuel consumption, which results in a reduction in overall CO2 emissions.

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Step3: reduction of CO2 emissions for overall construction work through DANTOTSU Solutions(Smart Construction using ICT construction equipment)
In 2013, Komatsu introduced the world’s first 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 significant decrease in CO2 emissions.
To consolidate our efforts 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 efficiency 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 efficiency. The products of FY2021 achieved a CO2 reduction of 19%, compared to thereference year.
Independent Practitioner's Assurance
CO2 emission index for product operations

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Index- Showcasing joint-development work by Honda and Komatsu Komatsu launched the PC01E-1 in Japan, its first electric micro excavator powered by portable
and swappable mobile batteries
Komatsu launched the PC01E-1 electric micro excavator,
developed jointly with Honda Motor Co., Ltd. (hereafter“Honda”) , as a rental model, in Japan in March 2022.
Komatsu and Honda had developed the PC01E-1 bysuccessfully electrifying the PC01 conventional micro
excavator through the incorporation of the Honda Mobile
Power Pack e:*1 (hereafter “swappable mobile battery”) and
Honda eGX electrified power unit. The conventional model
is typically used very close to people, trees and flowers forpipe-laying work, gardening, agriculture, livestock and thePC01E-1 electric micro excavator launched inlike. As a result of electrification, the PC01E-1 model not
only reduces noise and exhaust heat substantially, but also Japan
enables eco-friendly, comfortable work in either indoor oroutdoor environments, thanks to no exhaust gas. As thebatteries are swappable, customers can continue work
simply by exchanging them. As its new electric motor offers
high performance even in low revolutions, the PC01E-1
model achieves more excavation than the conventionalmodel in low revolutions. As there is no engine installed,
customers will no longer need engine-related maintenanceor fueling, dynamically reducing daily inspection andmaintenance work for them.
*1 Honda Mobile Power Pack e: is a portable and swappable mobile battery
developed by Honda.
Honda Mobile Power Pack e:

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Reducing CO2 emissions in manufacturing operations
As a part of our efforts to mitigate climate change, Komatsu aims to proactively 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 FY 2021, CO2 emissions from production activities increased both in Japan and overseas due to the
expansion of the production of construction and mine machinery. However, thanks to new photovoltaic
facilities, green electricity purchases, and energy-saving activities mainly at plants with high loads, such as
those that perform casting, forging, heat treatment, and machining processes, the CO2 emissions basic unit
per internal manufacturing value was reduced by 7% from the previous year. This is the largest reduction inrecent years and a 37% reduction compared with FY 2010.
We also increased the proportion of our renewable energy use to 14%.
We will continue to actively engage in improvement activities to reduce our CO2 emissions basic unit.
Item
FY2020 FY2021
CO2 Emissions Basic Unit (compared FY2010)
70
63
The rate of renewable energy use
13％
14％

Target of FY2030

50
50％

Major Achievements in the previous fiscal year
Japan
Improved cleaning process in foundries and thermal efficiency of melting furnaces
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

The amount and ratio of renewable energy

Independent Practitioner's Assurance

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

Energy consumption Independent Practitioner's Assurance

Note: Partially revised as a result of revisions to past data.
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Reducing CO2 emissions, water consumption, and waste using waterjet technology for casting
At Komatsu Himi No. 1 Plant, a chemical solution was used
to remove internal sand from hydraulic castings withcomplex internal geometries. This process involves
removing sand by immersing the castings in a hightemperature chemical solution. It expends a large amount of
LPG to maintain the solution temperature, consumes waterfor cleaning, and generates industrial waste. Although thismethod has environmental and safety risks, it was initiallyselected as the appropriate approach because it can beapplied to clean surfaces of any shape and can be used toWaterjet cleaning systemclean small lots of many different products.
To overcome the challenges associated with using a chemical solution, we introduced a new technology,
waterjet (hereafter “WJ” ) cleaning, which removes sand using high-speed water jet and cavitation. WJeliminated the need to use LPG to maintain the temperature of the chemical cleaning solution, thereby
reducing CO2 emissions by approximately 934 tons per year. Water consumption was reduced byapproximately 12,000m3 per year by using a circulating system for cleaning water. Industrial waste after
treatment was reduced by approximately 42 tons per year. The need to use chemicals was also eliminated,
reducing environmental and safety risks. The Himi Plant will continue to promote improvements in order toreduce CO2 emissions and contribute to overcoming ESG issues.

Komatsu Forest begins production at new eco-friendly plant
Komatsu Group has completed the construction of a newplant, Komatsu Forest AB (hereafter “Komatsu Forest”),
which began production in 2021. Komatsu Forest engages in
the manufacture and sale of forest machinery in Umea,
Sweden. The new plant consolidates production plants thatwere previously scattered around the city of Umea into asingle location to optimize the production process andlogistics. In addition, new production technologies,
including the installation of Komatsu’s first automatic
towing assembly line utilizing automated guided vehicles Solar panels of the new plant(AGVs), were employed. Furthermore, the new plantinstalled renewable energy supply facilities, such as
approximately 19,000 m2 of solar panels and a geothermal
heating system.
Komatsu aims to become carbon neutral by 2050. As part ofthese efforts, we have focused on achieving sustainable
forestry in the forest industry. This involves both harvestingand planting and growing trees. We are also engaged in safe
forestry operations by mechanizing harvesting work andforest management. Komatsu Forest is the core base of ourforest machine business for machine development andproduction. By launching production at the new plant,
Komatsu will accelerate its carbon-neutral efforts as wework to strengthen and expand our forest machine
business.
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Reduction CO2 emissions in logistics

CO2 Emissions Reduction Conditions in Global Transport(Basic Unit of CO2 Emissions per Cargo Weight: kg-CO2/ton)Domestically, we have focused on reducing transportation distance by increasing the utilization rate ofKanazawa and Hitachi Naka Ports (which are located adjacent to manufacturing plants), improving long
distance and overland transportation through the use of coastal vessels and railways (modal shift), andimproving the loading ratio. Although the increase in production volume in FY 2021 led to an increase intransportation volume, the CO2 emissions basic unit index (per cargo weight) for transportation improved by
10 points compared with the previous year both in Japan and overseas.
We will continue our efforts to reduce CO2 emissions by promoting more efficient 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.
NOTE: Partially revised as a result of revisions to past data

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Improvement of CO2 emissions from domestic transportation
Using coastal vessels for transporting product vehicles (Tochigi Plant)
Komatsu promotes modal shift to reduce CO2 emissions during transportation. In FY 2021, we improved themodal shift in the transportation of product vehicles from the Tochigi Plant (manufacturing plant for forklift
trucks and mini construction machinery) to dealers in the Kinki region by combining the conventional
overland transportation by truck with marine transportation via the nearest port. Specifically, we combined
ocean transport from Chiba Port in Chiba Prefecture to Sakai-Semboku Port in Osaka Prefecture, and landtransport from the factory to the port and from the port to each dealer. As a result of this modal shift, wedecreased the number of trucks used for transportation from the factory to the port by loading multiple
products in one truck. This improvement has reduced CO2 emissions by approximately 50%.
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Amount of CO2 emissions by scope 3
In addition to CO2 emissions from production / sales / service etc., Komatsu aims to collate data regarding
CO2 emissions from our entire supply chain, and reduce CO2 emissions. For that purpose, Scope 3 CO2emissions are calculated each year.
Scope1:CO2 directly discharged from Komatsu (e.g. CO2 emissions during fuel combustion)
Scope2:Indirect emissions of CO2 due to energy use in Komatsu (e.g. CO2 emissions
produced at power generation due to use of purchased electricity)

Scope3:Other indirect CO2 emissions(Example) Upstream: CO2 etc. generated during manufacturing of purchased items
Komatsu: Transportation ・CO2 emissions occurring during commuting, business trips etc.
Downstream: CO2 emissions produced when using products, such as construction
machinery

From live data of Komtrax, Komatsu has gained perspective on the amount of CO2 emissions (Scope 3
Category 11) produced by our products manufactured in reported fiscal year in operation world-wide.
For others, including the remaining categories, general CO2 emissions was estimated. The result is shown in
the pie chart below.
(Amount of CO2 Emissions by Scope3)
Independent Practitioner's Assurance
Pie Chart of Scope3*1 Scope 1 refers to direct CO2 emissions by operators (ex: fuel consumption)*2 Scope 2 refers to indirect CO2 emissions by operators (ex: power purchase)*3 Scope 3 refers to CO2 emissions by operators from within our supply chain (ex: emissions of product during operation, emissions
from suppliers, transportation, business trips and commuting)* Calculating each category, the amount was calculated domestically and overseas. The amount of category (4): "Upstream
Transportation disposal" was total of domestic and a part of overseas. In category (3): "Fuel Procurement", a part of data in overseas
was estimated. The amount of category (13): "Downstream Leased Assets Operation" was included in category (11).
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As evident from the results above, emissions during product use make up approximately 80 to 90% of total
emissions.
From this, we can see that fuel-efficient products have a significant effect on reducing CO2 emissions.
Komatsu is committed to developing hybrid construction machinery (improving fuel efficiency byapprox. 25%) and DANTOTSU products (over 10% improvement in fuel efficiency), as well as electric
construction machinery.
In addition, the results of our assessments regarding Scope1,2,3 can be found in the pie chart below.
Independent Practitioner's Assurance«Reference» Pie Chart of Scope1, 2, 3

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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,
reassembly, and reuse of parts. 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 to sharetechnical 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 to develop
components with an optimum lifetime. With the Reman business, approximately 43,600 tons of CO2 reduction
effect in FY 2021 was estimated compared to the case of making new products.
We offer the following benefits 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)

Reman factories and centers map

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Reman process

Effective use of critical materials in products

Komatsu is working on the conservation and effective 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 effectively 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 effective use andaiming to reduce the consumption of new critical materials.

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

Komatsu promotes activities to reduce waste discharged from its production activities while also
implementing "zero emission" activities to recycle and effectively use the generated waste.
In FY 2021, foundries, which account for about 70% of our total waste emissions, significantly reduced theirwaste emissions by improving waste management through the effective use of sand. Additionally, at ourdomestic plants, we worked to convert waste plastic into valuable resources and reduce wood waste byimproving packing methods. These improvements led to a reduction of the waste emissions basic unit by
39% in FY 2021 compared with FY 2010, far exceeding our target.
We will promote the effective use of resources at our plants in Japan and overseas to reduce waste
emissions.
Item
Index of waste generated per unit
(Reference year: 2010)

FY2020

FY2021

67

61

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Target of FY2030
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Major achievements in the previous fiscal year
《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》
Reduction of sand waste by sorting waste casting sandAmount of Generated Waste

Independent Practitioner's Assurance

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

Oil purification system recycles hydraulic oil and reduces waste during mining excavator
production (at Kanazawa Plant)
Kanazawa Plant recycles hydraulic oil used in the production ofultra-large power excavators (mining excavators with a total bodyweight of about 320 tons) for use in mines. When performance
testing mining excavators at the plant, approximately 3,600 liters(equivalent to 18 drums) of hydraulic oil is filled into each unit. The
bodies are so large they cannot be transported as finishedproducts. Some units, including the hydraulic oil tank, areremoved, and the hydraulic oil is drained before shipping. The
drained oil contains impurities that could damage products if used
repeatedly; as such, it was disposed of as waste. In order to reduce
the amount of waste, an oil purification system was adopted toremove impurities. This system constantly monitors the oilcleanliness during the purification process and automatically
circulates the oil until the total amount meets the specified value.
Although various technologies for measuring oil purity are inwidespread use, there are measurement accuracy challenges, suchas the false detection of bubbles (cavitation) generated in the oilflow as impurities. In addition, since oil purification is performed Oil Purification System
between production breaks, there was a need to reduce the time taken and make the system portable to suitthe production process. The new system improves the accuracy of cleanliness measurements and enables ahigh flow rate and downsizing through the use of design and control technology that suppresses thegeneration of bubbles. This initiative has made it possible to reduce waste by approximately 80% while
ensuring the hydraulic oil quality in the production of mining excavators. We will continue our efforts to
reduce and recycle waste.
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Activities to effectively utilize resources in production (2. water resources)
Given that our plants in the Hokuriku area of Japan use a large amount of water, Komatsu optimizes water
use for snow melting purposes in winter and also reduces the amount of new water input in production
processes by recycling cooling water for facilities and the air-cooling of water-cooling facilities.
In FY 2021, we reduced the basic unit of water input by 64% compared with FY 2010, far exceeding our target.
We will promote water usage reduction activities in production and daily operations to optimize water use.
Item
Index of water input volume per unit
(Reference year: 2010)

FY2020

FY202148

Target of FY2030
36

40

Major achievements in the previous fiscal year
《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 recycled water for sprinklers

Water Input in Production Activities
Water Input Volume

Independent Practitioner's Assurance

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

Reducing well water consumption by circulating cooling water (Awazu Plant, Defense Systems
Division)
Defense Systems Division, located on the Awazu Plant site, uses well water in its manufacturing processes forcooling equipment and as supply water. Groundwater, which is about 15 degrees throughout the year, is used
for cooling presses and compressors after sedimentation in a water storage tank. After that, the water isreturned to storage tanks classified according to temperature. If the temperature is below 25 degrees, thewater is returned to the cooling water storage tanks for reuse, thereby reducing the amount of water
pumped. In addition, since cooling water for the compressor reaches a high temperature, we have installed acooling tower to enable the water to circulate for cooling purposes before it is returned to the compressor. As
a result of these activities, the amount of pumped water was reduced by around 55,000 tons in FY 2021.
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Data

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Compressor

Reduction of well water usage with water recycling system (Komatsu Italia Manufacturing)
Since 2001, the year the company obtained ISO 14001 environmental certification, Komatsu Italia
Manufacturing (KIM) has set important goals to reduce its environmental impact. One of them is to use lesswell water for industrial purposes. In the 1990s, a chemical/physical purifier was installed to clean the waterused to wash product vehicles and to use in the paint plant. Following ISO 14001 environmental certification,
KIM began to recycle the water with the purifier, and rainwater coming from the oil and waste storage area
started to be included in the purification and recycling process. Other important steps that were key to thesuccess of this effort included the subsequent installation of volumetric flow meters to analyze theconsumption of various utilities and immediately identify losses, and the replacement of the purifier in 2014.
In 2015, KIM expanded its recycling program when it began to treat yard runoff, redirecting rainwater from 2
tanks to the purification plant. In 2021, we began to collect and reuse the condensate water coming from thecooling system.
At the end of FY 2021, we’ve reduced our use of well water per production value by 61% (compared to 2010),
and nearly 100% of the water we purify is reused.

Water recycle system

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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 FY 2021, we
supported the development of environment management systems and improvements of our worksites. We
also took other steps to provide support, such as remote on-site improvement follow-up and education
which were introduced after the outbreak of COVID-19.
Item
CO2（kt-CO2）

FY20207.6

FY2021

8.1

Year-on-year
7.1％ increase

Acquisition of ISO14001 certification
Komatsu Customer Support Co., Ltd. (“KCSJ”) has implemented activities in FY 2021 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
jointly visit our sites (including on-site checks partly performed on a
Facilities Confirmation Status at Sales
remote basis), provide guidance to on-site workers and develop
Sites
proposals for improvement so that the environmental guidelines can beconsistently complied with.

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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 FY 2021 and have made proposals toenvironmentally conscious users.
Additionally, Komatsu Group sales companies are focusing on the
promotion of Smart Construction methods using ICT construction
A demonstration held at an IOT
machinery to reduce the environmental impact of construction bycenterimproving on-site work efficiency. KCSJ, in particular, has established
IoT Centers throughout Japan where users can experience the Smart
Construction method and is striving to increase awareness ofconstruction methods with a reduced environmental impact.

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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 FY 2021, there were three violations of environmental regulations in Japan, and each of them minor. No
fines are imposed and they have all been resolved.
An accident at a business site in North America (KMC) resulted in waste oil spillage outside the plantpremises. The spilled oil was cleaned up quickly, and no fines were imposed.

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".
We intend to continue our appropriate treatment of PCB waste, including low-concentration PCB waste,according to our plan.

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

In FY 2021, 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 FY 2021, 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 FY 2022, 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.

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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 FY2021 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 Assurance

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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.
There are currently 211 SVHCs registered, with the list being revised every six months. We expect this number
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

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

NumberBanned21

To be reduced(Subject tolimited use)

15

Substances ofVery High
Concern(SVHC) under
EU REACH
Regulations(223)*5

Chemical Substance
Hexavalent Chromium
Cadmium*4
PBB/PBDE/DBDE /HBCDD Tri-substituted Organostan
nic Compounds
PCB
Asbestos
Trichloroethylene
PFOS (Perfluorooctane sulf
onate)

Mercury
Sulfur Hexafluoride *4
Specified CFCs/Alternative
CFCs (HCFC)
Hexachlorobenzene
2,4,6-Tri-tert-butylphenol *4

Triethanolamine
RCF (Fire-Resistant Ceramic Fibers) (Alumina and Scili
ca Types) *4
Pentachlorothiophenol *4 Hexachlorobutadiene *4
Lead
Arsenic
Selenium
Alternative CFCs (HFC)
Specified phthalate ester Specified Chlorinated Flam
(DEHP/DBP/BBP/DIBP) *3
e Retardents (TCEP)
Polycyclic Aromatic Hydroc Methanol
DZarbons (PAH)
BNST
DOTE
UV327
Komatsu controls the use of the following substances, which might be used in Komatsu prod
ucts.
RCF
DEHP/DBP/BBP/DIBP etc (5 HBCDD/DBDE/
Trisphosphates
substances)(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, 2022 (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.

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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 80%of the construction machinery manufactured in FY2021 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:
Independent Practitioner's Assurance
Average emission value of NOx and PM
NOx(g/kWh)PM(g/kWh)FY20193.1
0.16

FY20203.1
0.16

FY2021

3.5
0.18

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.
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.
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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. Recently, 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.
The business locations whose water stress risks were rated as high or middle-to-high account for 9% of ourwater usage. While approximately 64% of the water used by Komatsu as a whole was well water, we foundthat all of the water used in the business locations with high or middle-to-high water stress risks was cleanwater and that water usage reduction and water recycling are important for securing water resources in theseareas.
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％

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.

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Domestic case studies (Oyama and Tochigi plants)
Domes
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 (KI: Komatsu Indonesia)
The following measures have been implemented to prevent the entry of river flood water into KI premises.
1. Installation of concrete wall
2. Installation of emergency door for employees
3. Installation of floodgate
4. Installation of new drainage system
5. Installation of drainage gate
6. Installation of pump for floods
We have engaged elements of our supply chain to collaborate with our water-related risk initiatives. Our“Water-Related Risk Survey” was conducted at the operations of one of our main supply chain companies(Midori-kai). Komatsu is proud to report that as of FY 2017, Midori-kai has begun collaborative efforts in our“Water-Related Risk Reduction 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 FY 2021, we conducted audits in China and Europe. As was the case in the previous fiscal year, we could
not visit the sites to conduct audits due to the COVID-19 pandemic; as such, we conducted remote audits
using a web conference system in China and outsourced audits to an external auditing organization in
Europe. The results showed that none of the companies had any major problems that could lead toenvironmental 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 the sites, as is done in a typical audit. In addition, we gathered many different
documents about the results of water tests and the administrative procedures of local affiliates before
beginning the audit. We also conducted a paper audit. We continue to carry out follow-ups checks using a
web conference system at areas where audits have already been completed, and plan to conduct further
environmental audits of our group companies in other regions.

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Socialcontribution
activities

Index

Past Environment Audits
Year
2007
2008
2009
2010
2011
2012
2013
2014

Area
China
—
Thailand and Indonesia
India
BrazilRussia and Czech Republic
United State
United States and Brazil

Year
2015
2016
2017
2018
2019
2020
2021

Area
ThailandIndia and Indonesia
Russia and China
Indonesia and Brazil
China and the United States
EuropeChina and Europe

Holding 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 FY 2019. By exchanging information of and discussing
common issues in the region, they aim to improve compliance and the level of the environmental impact
reduction activities at each business unit. Meetings in FY 2021 were held in Latin America, Europe, Southeast
Asia, Oceania and China, with the exception of North America (Cancelled due to a coronavirus
outbreak.) In these regions, meetings were held online due to COVID-19. These meetings were all attended bymany participants who reported on their companies’ environmental activities. Through activities like this, wewould like to further revitalize the environmental activities of the Komatsu Group.

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Biodiversity
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.

Declaration of Biodiversity by Komatsu
Komatsu recognizes that its business activities are dependent on and influence benefits from theecosystem through its biodiversity.
Based on this understanding, Komatsu strives to take actions in accordance with the policies
described below, as it shares a sense of responsibility regarding the biodiversity crisis, and strives toconserve diverse resources.
Ⅰ(Recognition by Management)
Komatsu recognizes that conservation and promulgation of biodiversity are important managementtasks.
Ⅱ(Initiatives)
Komatsu shall promote biodiversity through the following two perspectives.
1. Komatsu shall reduce its environmental impact, which is affecting biodiversity, through its
business activities.
(1) Reduction of environmental impact of products(2) Reduction of direct environmental impact from products throughout lifecycle.
(3) Consideration of biodiversity when using land.

2. Komatsu shall work for conservation and promulgation of biodiversity through its social
contribution activities.
Ⅲ(Operation)
Komatsu shall promote activities by means of a step-by-step approach.

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In order to protect the biodiversity rooted in regions, Komatsu will undertake activities in coalition
with administrative agency, local citizens, NGOs and other entities; by doing so we aim become acorporation 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 corporations related to the lifecycle of Komatsu products
and representative agencies as well as customers in these activities and promote our initiatives on a
global group-wide scale.
Ⅵ(Communication)
Communication: Komatsu will strive to educate and disclose related information to employees. In
addition, Komatsu will actively disclose information on activities being undertaken and work tocontribute in heightening the level of societal awareness on the importance of biodiversity.
Ⅳ

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 andoffice) 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.
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.

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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)

3．Ecosystem conservation

Oyama Plant: Around the Manabi-no Mori

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

Major environmental achievements in the previous year.

166

Environmental education

170

Environmental accounting

172

Environmental Data

175

Amount of CO2 emissions by scope3

180

SBT (Science-Based Targets) approved

181

Scope of environmental data/calculation standards

182

Independent practitioner's assurance

185

Other CSR Data

186

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Major environmental achievements in the previous year.
Environmental management
Theme
Public relations ofenvironmental activities
Public relations ofenvironmental activities

Index
CDP evaluation
Publication of ESG
Data Book

FY2021
Reference FY2021 Goal
Achivement Remarksyear: A Climate : A- Climate
Water : A Water : A- Publishing Published(July）

Research & Development
Theme
Development of lowemission construction
machinery and industrial
vehicles(Compliance withemission control
regulations)

Index

Reduction of CO2
2
emissions from products COemissions(Promotion of fuelefficiency improvement reduction
during product operation) (unit: %)Reduction of CO2
emissions fromconstruction machineryand industrial vehicles(changing to BDF biofuel)Improvement of recycling
percentage of
construction machineryand industrial vehicles

Referenceyear

FY2021 Goal

FY2021 Achievement- Development of Tier
- Continued
4 regulationcompliant vehicles development- Development of- Continued
Stage V regulation- development
compliant vehicles- Reduction of CO2
emissions from use of - Continued
products
development
2010 (construction
19%
machinery, mining Achievement:
reduction
machines)
Goal: 16% reduction

Remarks

Goal for 2030:
50% reduction- Use of B50Continued
compliant mixed light -developmentoil- Achieve 99% ormore in the next
developed vehicle

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Thorough management
and reduction of materials
with environmental
burdens in construction
machinery and industrial
vehicles

FY2021 Goal

Data

Socialcontribution
activities

FY2021 Achievement- Maintained 90%
of lead usage
・Reduction of the reduction
compared
to 1998
volume of hazardous ・Added new
SVHC,
substances in the
which
are
specifiedinnext vehicle to be
REACH
and
manageddeveloped
statuses of SVHC.
(Maintaining a 90% use
Usedto
reduction compared recordthedatasystemoftheto 1998)
for the EU and- Operating a system models
themodelsmassthat manages
producedordeveloped
hazardous
intheEU
substances per part (Investigated(REACH Compliant) substances containedin each part)

Index

Remarks

Production
Theme

Index

Referenceyear

Improvement ofbasic unit
Percentage ofRecyclable energy usage electricity
consumed
Improvement of
Water input volume
basic unit

2010

of
Discharged waste volume Improvement
basic unit

2010

Chemical release volume Improvement of(VOC emissions volume) basic unit

2005

CO2 emissions

2010

167

FY2021
FY2021 Achievement
Remarks
Goal
40％ orGoal for 2030:
37％ reduction 50%
more
reduction
reduction
15％ or
14％ Goal for 2030:
more
50%
55％ orGoal for 2030:
64％ reduction 60%
more
reduction
reduction
20％ orGoal for 2030:
39％ reduction 40%
more
reduction
reduction
53.5％ reduction
50% (deteriorated
reduction from the previous6.8pointyear）

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Logistics
Reference FY2021 FY2021
Theme
Index
Remarks
year
Goal Achievement
Shift to transportation means
The target was achieved bywith a low environmental
expanding the use of JR
Modal shiftburden55%
55%
Freight Railway from therate per 500km
Increase use of domestic
Oyama Plant to the Awazu
vessels and JR
and Kanazawa Plants.
In FY 2021, a large increase in
Decrease of transportation Kanazawa Port
production made it difficult to
distanceuse
percentage
lead times, and thePromoting use of nearby ports for exported- 50%
25% determine
index
worsened
as shipments
for exported vehicles
vehicles
from
the
Kobe
and
NagoyaIncrease use of Kanazawa Port
ports increased.
Decrease of transportation Hitachinaka
distanceuse
Export vehicles using nearby Port
percentage
for
- 99%
99%
ports
exported
Increase in use of Hitachinaka vehicles
Port
Improvement of CO2
emissions per cargo weight
The modal shift and(basic unit) fromexports of large
Improvement
2006 73%
64% increasedtransportation of products
modelsreducedthe basic
per
basic
unit
and parts
unit.
Domestic transportation
Improvement of CO2
emissions per cargo weight
Result of improvements in the(basic unit) fromshift to railroad
Improvement
2011 88%
88% modaltransportation of products
transportationin North
per
basic
unit
and parts
America.
Overseas transportation

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Procurement
Theme
Horizontal expansion of Komatsu's
activities to cut electricity
consumption by half
Implementation of environmental
regulations audit
Activities to reduce water
consumption (10 companies)

Index Referenceyear

FY2021
FY2021 Goal
Achievement Remarks
Expand to 93 Midori- Continued to expand
kai member
to all 93 member
companies
companies
Implementing at
Implemented at
two Midori-kai
2 membermember companies
companies
clean water- Reduce
17% reductionuse 15% or more-

Sales & Services
Theme
Implementatio
n of measures to prevent oilleakage

Index

Introduction ofwaste
management systems
Number of
where
Provision of bases
on-siteenvironmental instruction
education
workshops
were held-Salesexpansion
Sales
activities for
expansion of Tier4 models
environmental -Sales
products
expansion
activities forFE
Promotion of
Smart
Visitors to IoTConstruction Center
work

Referen FY2021 Goalce year

FY2021
Achievement

Remarks

Installation of sandbags, drainage- All KCSJ bases All KCSJ bases route diagrams, and emergency
contact networks
All KCSJ
companies (7companies)- Komatsu Group Implemented
at 9 companies
sales
companies (2companies)
Due to COVID-19, we could notprovide guidance at the sites, so
we conducted inspections and- 76 bases
60 bases
provided guidance remotely(Conducted on-site instruction
workshops at 21 sites.)-Sales plan
criteria for FY -101% of the2019
criteria- -Salesplan-98% of thecriteria for FY criteria
2019
to COVID-19, it was not
1,367(including Duepossibleparticipants to gather
online seminar in person.forOnline
seminars wereparticipants) held to advertise construction.

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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 FY 2021, 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 FY 2014, 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

TargetKomatsu Group newly
appointed managers
New Employees
2 Training new employees(Komatsu and affiliates)
environmental education
Environmental specialists
3 Advanced(held every two years)(Komatsu and affiliates)
Managers
4 Overview of the ISO14000 series(Komatsu, affiliates, andbusiness associates)
auditorsof internal auditors / Refresher Environmental
5 Training(Komatsu, affiliates, andcoursesbusiness associates)of environmental laws and Managers and employees
6 Explanation
risks
Development andand manufacturing
7 Development
manufacturing staff(introductory)(for second-year employees)
Assistant foremen/ foremen/
Environmental
trainingformanufacturing engineers/
8 manufacturing engineers
students of Komatsu Instituteof Technology
on the environment,
9 Lectures
Komatsu Group employees
experience-oriented education

1 Newly appointed manager training

170

Participants
FY2018 FY2019 FY2020 FY2021
171

155

207

182

369

383

318

314

-

19

-

19

36

46

98

182

336

87

80

182

250

-

-

-

187

190

208

202

227

145

80

218

627

1,267

626

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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

Target1 Education in the basics of auditing
2 Overview of the ISO14000 series
3 Training of internal auditors
4 Training new employees
education and personnel
5 Regulatoryexchange

Managers and employees
Managers and employees
Environmental auditors
New Employees
Employees (and otherparticipants)
Environmental conservation
practitioners (persons
involved in regulatory affairs,etc.)

6 Specialist training

Participants
FY2018 FY2019 FY2020 FY2021
169
196
62
57
502
565
246
338
34
26
21
13
1,759 1,205 1,084 1,351
510

15

49

123

464

429

230

435

* In addition to the education and training courses listed above, Komatsu also held courses dealing with environmental issues intended
for sales agents.

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 systemassociate auditors

Number of persons with certificate*
FY2019FY2020222（35）225（35）
38（9）
37（9）

FY2018219（35）
41（9）
5

4

5

FY2021
206（35）36（9）4* Figures in parentheses indicate the number of officers required.

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

Investment

FY2020Investment*1(millions of yen)

1,720

Investment*1(millions of yen)

FY2021

FY2020Contents

1,762

412

434

Expenses

Expenses*1(millions of yen)

2,320

Investment for
installation andconversion of pollution
mitigation / prevention
facilities
Investment for
implementing energy
conservation measures(installation of energy
saving facilities, etc.)
Investment for reducing
the volume of wastematerials
Additional investment
needed to provide ecofriendly productservices

Expenses*1(millions of yen)Contents

2,180

461

328

1,120

969

739

883

359

316

1,139

1008

169

320

2.Upstream/
downstream cost

003.Administration cost

22

58

Investment for
beautifying
manufacturing sites

1,153

1,110

4.R&D cost

318

191

Investment in researchfacilities for reductionof environmental
impact19,014

19,963

5.Social activity cost

0

0

22

9

6.Environmental remediation cost

0

0

493

366

2,060

2,011

23,362

23,944Total

FY2021

Cost of maintaining
equipment for
mitigation / preventionof air and waterpollution and for noiseand vibration
prevention(labor and depreciation
costs)
Cost of maintaining
energy conservation
facilities, such ascogeneration systems(labor and depreciation
costs)
Waste material
processing cost
Reduction of theenvironmental impact
of mass-production
units
Cost of maintaining
environmental
management systems(including labor cost)
Cost of creating green
spaces and beautifying
manufacturing sites
Cost of R&D activities toreduce theenvironmental impact
of products
Cost of R&D activities todevelopenvironmentallyfriendly construction
equipment
Cost of community
beautification activities
Membership fee for
local environmentalgroupsCost of conducting
surveys and remedial
countermeasuresrelated to soil andgroundwatercontamination*1 All figures are rounded off to the nearest million yen.
Note: Partially revised as a result of revisions to past data
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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 consumption
Waste materials generation

Change of amount (t/year)

Rate of year-on-year changes (%)

34,804-182,704
4,622

19
-8
34

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

Type
Energyconservation
Resource
conservation
Waste materials
reduction
Gain on sale ofvaluables
Other
Total

Tangible benefits
Monetaryvalue*1
Major activities

Avoidance benefits ofenvironmental risks*2

Contribution to profits*2* In FY 2021, there were no major
accidents or legal infractions thatwould contaminate theenvironment.
* No litigation costs were required inJapan during FY 2021.

Proceeds from mobile
recycling equipment
Proceeds from value added
due to reduced
environmental impact of
products(millions ofyen)of energy-saving
335 Installation
facilities
Reduce heavy oil for heating
and cooling by biomass
69 utilization
Conserve water by
rainwater utilization, etc.
Control the amount of waste
and promotion of
139 generated
recycling throughthoroughgoing sortingof scrap, used paper,
686 Salewaste oil, etc.
0
1,229

*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.

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Effects on society *1
Environmental impact reduction effects

Tangible benefits

Environmental impact reduction resulting from on-site
recycling methods
Environmental impact reduction resulting fromproduct operation
Waste components reduction resulting from "Reman"business

Reduction of expenses for processing waste materials
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 significant effects are referenced here.

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Environmental data
Manufacturing site data
Independent Practitioner's Assurance

Total of Manufacturing Sites

Energy consumption

Water consumption
Total emissions of waste

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

Independent Practitioner's Assurance

Japan
Item

Environmental impact

Actual value
795 GWh
10,682 kℓ
29,637 thousand m3
6,131 t
10 GWh7,292 t9,611 TJ
461 kt-CO2
19 GWh3,140 thousand m3
92,729 t

Total CO2 emissions
NOx total amountSOx total amount
Total emissions of waste
Amount recycled
Recycling rate
BOD emissions
COD emissions
Wastewater
Output of in-house power generation

175

Actual value
213 kt-CO249 t
3 t
18,037 t
17,973 t
99.8 %
5 t
8 t
2,006 thousand m3
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Energy consumption

Item
Purchased electricity
Heavy oil A
Kerosene
Light oil
City gas
LPG
Gasoline
Biomass, Solar
Total

Actual consumption
406 GWh
2,766 kℓ
2,491 kℓ
3,670 kℓ
4,021 thousand m3
4,924 t129 kℓ-Water consumption

GroundwaterIndustrial water
Supply water
Total

1,940 thousand m3
2 thousand m3
222 thousand m3
2,164 thousand m3

Data

Socialcontribution
activities

Index

Converted to calorie equivalents (TJ)
3,848
108
91
140
166
247
4
95
4,698

*1）Total emissions of waste are expressed as a composite of the amount recycled (excluding valuables) and the amount disposed.
*2）Recycling rate is calculated by dividing the amount recycled (including valuables) by the amount generated (including valuables).
*3）Output of in-house power generation includes electricity sold.

Independent Practitioner's Assurance

The Americas

Energy consumption

Water consumption
Total emissions of waste

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

176

Actual value
134 GWh719 kℓ13,256 thousand m3
204 t
- GWh
- t
1,852 TJ
53 kt-CO2
1 GWh
288 thousand m3
31,747 t

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Water consumption
Total emissions of waste

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

Water consumption
Total emissions of waste

Index

Actual value
32 GWh151 kℓ
4,942 thousand m3
2 t
10 GWh- GWh
524 TJ
15 kt-CO2
0 GWh
68 thousand m3
10,864 t

Independent Practitioner's Assurance

Asia

Energy consumption

Socialcontribution
activities

Independent Practitioner's Assurance

EuropeEnergy consumption

Data

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

Actual value
223 GWh756 kℓ7,418 thousand m3
1,000 t
- GWh
7,292 t2,537 TJ
180 kt-CO2
6 GWh
620 thousand m3
32,080 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.

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Independent Practitioner's Assurance

Scope-2 CO2 emissions (Total of production sites)
Standard
Location-based
Market-based

CO2(kt）

412
364

Site data（sales and after-sales divisions）
Independent Practitioner's Assurance

FY 2021 Komatsu Customer Support Japan Ltd. Environmental performance data
Company Name
Location
Activities
Number of bases
Number of employees
Data of ISO14001 certificationacquisition

Environmental impact

Komatsu Customer Support Japan Ltd.
Shirokane, Minato-ku, Tokyo
Sale, service and rental of construction equipment and forklift trucks
222
4,561
May 2018
Item
Total CO2 emissions
Total emissions ofwaste
Amount recycled
Recycling rate

12,456 t
10,411 t
83.6 %
Actualconsumption
14.9 GWh
138 kℓ442 kℓ
99 kℓ
10 kℓ
21 t
52 thousand
m3

Item

Energy consumption

Actual value
8.1 kt-CO2

Electricity
Heavy oil A
Kerosene
Light oil
Gasoline
LPG
City gas
Total
178

Converted to calorie equivalents
(TJ)
140.9
5.4
16.1
3.8
0.3
1.1
2.2
169.8
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Data

Socialcontribution
activities

Index

Independent Practitioner's Assurance

Site data of non-manufacturing divisions
Manufacturing Head Office, Advanced and Core Technology Center, Field Testing Department, Techno Center,
facility included General Education Center, Shinomiya Building T, Recreaion Facilities（5 sites）
Actual value
Environmental Item
impactTotal CO2 emissions
4.1 ktItem
Actual consumption Converted to calorie equivalents (TJ)
Purchased electricity
6.5 GWh
62.0
Heavy oil A
92 kℓ
3.6
94 kℓ
3.4
Kerosene
Energy282 kℓ10.7
consumption Light oil
8 thousand m3
City gas
0.3
60 t
3.0
LPG
2 kℓ
0.1
Gasoline
83.1
Total

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Amount of CO2 emissions by scope3
Independent Practitioner's Assurance
Category
Scope3 (11)Customer Use
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 (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 (%)
88.4
10.1
0.4
0.4
0.3
0.0
0.2
0.2
0.1
100.0

Summary Data kt-CO2
27,310
3,105
121
116
108
13
50
52
18
30,893* Note: When the figures in each category are rounded or truncated .
The amount may not coincide with the aggregate of the relevant figures.
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.

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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)

Progress of SBT
Base Year(2019)
Scope1+2
Scope3Rate of Change (from baseyear)
523 (kt-CO2）+11%27,310 (kt-CO2）+31%

FY2021470 (kt-CO2）
20,819 (kt-CO2）* Scope1+2 includes manufacturing sites and major sales sites etc.
* Scope3 indicates category-11 (customer use)181

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Scope of environmental data/calculation standards
Komatsu Group manufacturing facilities in Japan
Komatsu Group manufacturing facilities in Japan, with a focus on the following 11 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 [including KELK Ltd.], Tochigi
Plant, and Himi Plant, Komatsu Cabtec Co., Ltd., and Komatsu NTC Ltd.
Logistics offices in Japan: the following 15 plants and centers
Awazu Plant, Osaka Plant, Rokko Plant, Ibaraki Plant, Tochigi Plant, Kanazawa Plant, Shonan Plant, Oyama
Plant, Koriyama Plant, Himi 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 32 of the offices
mentioned above, including 11 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 2.4(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. 3.2 (Ministry of the Environment and Ministry of the Economy, Trade and Industry of Japan)
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GRI Standards
See the GRI content index
GRI Standards INDEXPeriod covered
Primarily, this report covers data acquired from April 2021 to the end of March 2022, with a portion of
information that involves data acquired after April 2022.

Calculation base of typical environmental data
Classification

GHG Energy

Item

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
EnergyAugust 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 FUEL COMBUSTION 2012
GHG
Fuel: Japan,Overseas;Ministry of the Environment, Ministry of Economy, Trade andIndustry, Greenhouse gas emissions calculation and report manual Ver4.7
GWP: Value of greenhouse gas emissions calculation, reporting and publication
systemunit for each plant = (energy, CO2) / (Internal manufacturing value), index is a
Energy, CO2 emission in Basicvalue with base year 100.
basic unit
Base year: 2010
CO2 emission = purchased electricity quantity x CO2 emission factor
CO2 emission factor:
Location-based Scope 2 Japan; Ministry of the Environment, Ministry of Economy, Trade and Industry
Emission Factor by Electric Utility Substitution Value
Overseas; 2010 value of IEA CO2 EMISSIONS FROM FUEL COMBUSTION 2012
CO2 emission = purchased electricity quantity x CO2 emission factor
CO2 emission factor:
Japan;Emission Factor by Electric Power Company
Market-based Scope 2
Overseas; 2010 value of IEA CO2 EMISSIONS FROM FUEL COMBUSTION 2012
However, the electricity generated from renewable energy source has zero emission
factors
Scope3 C1Purchased product service: Product weight x emission factor + 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: fuel quantity
C3purchased x emission factor on the upstream side + purchased electric energy amountx upstream side emission factor
Transportation, Delivery (upstream): Fuel consumption (amount) x Emission factor
C4(coefficient according to Komatsu actual result survey)
Waste from project: Waste volume x Emission factor (coefficient according to Komatsu
C5
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
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ExhaustDrainage
Water
Waste
PRTR materials

With business

Item
C11
C12

Sox Emissions
NOx Emissions
BOD Emissions
COD Emissions
Amount of water used
Intensity of water use
Amount of waste
Waste intensity
Amount of thesematerials emitted or
moved

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Calculation Method
Use of products sold: Σ (Production volume per product model x Fuelconsumption(L/h) x Product life(h) x Emission factor)
Disposal of products sold: Product weight x Emission factor
Emission factor
C1, C2, C3, C6, C7, C11, C12: Emission basic unit database (Ver 3.2) for calculating
greenhouse gas emissions of organizations through the 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
Total for heavy oil, kerosene, light oil and coke:Calculated from fuel quantity x sulfur content in fuelTotal for heavy oil, kerosene, light oil, city gas, and LPG:
Calculated from Exhaust gas quantity x NOx concentration
Calculated from Wastewater x BOD Average Concentration Measurement Value
Calculated from Wastewater x COD average concentration measured value
Total amount of water intake, including clean water, industrial water and groundwater
Intensity at a plant = (amount of water used) / (internal manufacturing value); thebase year of the index is 100.
Base year: 2010
Total amount of waste excluding valuables
Intensity at a plant = (amount of waste) / (internal manufacturing value); the base yearof the index is 100.
Base year: 2010
Multiply the number of secondary materials used by the content of specified chemical
substances and the rate of emissions and movement in accordance with the Act on
Confirmation, etc. of Release Amounts of Specific Chemical Substances in theEnvironment and Promotion of Improvements to the Management Thereof (PRTRAct).

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: 94% (If KMC is not included : 100%)

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Independent practitioner's assurance
Komatsu views an independent practitioner's assurance process as crucial for ensuring the integrity andobjectivity of 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：41.1KB）

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.

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Other CSR data
Political contributions
Our political contributions in FY 2021 totalled 8 million yen.** Described in the Income and Expenditure Reports on Political Funds released on November 26, 2021 (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.

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Social Contribution Activities

Accomplishments and approaches for social contribution activities

188

Komatsu's initiatives for the social issues

191

Developing people needed by the community

193

Disaster relief

197

Clearing anti-personnel landmines and community development support

200

Promoting sports̶the Komatsu women's judo club206

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

208

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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

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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.

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Social contribution expenditures of the Komatsu group in FY 2021
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

758
353
357
745
2,213

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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 September 2021, employees of Komatsu Remanufacturing Asia (KRA) in Indonesia planted 1,000 trees for
mangrove conservation in the Balikpapan area.

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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.

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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 thefull potential of our know-how.

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Support for ⅾeveloping human resources

Dispatching instructors Providing educational
materials andequipment

Providing facilities and Accepting apprentices
supporting operations

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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.
Cummins Profile
Corporate name Cummins Inc.
Established
1919
Headquarters
Columbus, Indiana, U.S.
Business segments Engine, Power systems, Components, Distribution
URL
http://www.cummins.com/

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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.

Young people receiving technical training from the
ReInventarse Foundation

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.

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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:

Forest fire relief in Australia
In Australia, large-scale forest fires occurred successively from
September 2019 to February 2020. Before heavy rains caused the fires tosubside in February, more than 100,000 km2, nearly one third of theland area of Japan, caught fire. Approximately 6,000 buildings wereaffected, and many people were injured or killed. Air pollution causedby smoke and ecosystem destruction were also significant. Statistics
indicate that more than one billion animals may have been killed.
To address the continually spreading fire, employees of Komatsu
Australia took volunteer leave to participate in volunteer fire
Field turned red by fire
extinguishing groups or support their local community. They drovetanker trucks and delivered relief aid, taking several days to reach the affected areas, built berms to prevent
fires from spreading, and participated in controlled burns of fields, also to prevent the spread of the fires.
They worked actively together with the local population.

Establishing an emergency support system in the areas affected by natural
disasters in Chile
Northern Chile, the home to many world-class mines, is frequently
affected by natural disasters. During the 10 years from 2010 to 2019, it
incurred serious damage from three earthquakes, two large fires, andtwo floods.
Komatsu Cummins Chile Ltda. (KCC), a Komatsu group company, hasconcluded a disaster control agreement with multiple freight companies Transporting vehicles to the siteand construction equipment operator staffing companies so that they instantaneously
can not only donate money to affected areas and dispatch employees asvolunteers, but also provide support instantaneously through their main business line in the event ofdisaster. If a disaster occurs, KCC will pay the rental and maintenance costs for construction equipment usedin the recovery and reconstruction. The freight companies that have entered into agreements with them willtransport vehicles to the affected areas, and the operator staffing companies will conduct on-site work.
When a heavy rain disaster occurred in northern Chile in January 2020, they lent 320 wheel loaders to theaffected area in two days for emergency relief.

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Support for reconstruction in areas affected by natural disasters in Japan
Providing relief to areas stricken by heavy rains in July 2020

In July 2020, heavy rains severely damaged the municipalities near the Kuma River running throughKumamoto prefecture.
The municipal governments requested support, and through Komatsu Customer Support Japan Ltd., we lent
three municipalities, Yatsushiro-shi, Ashikita-machi and Kuma-mura, 15 construction machines with a valueof 20 million yen which were needed in these areas from August 2020 to the end of March 2021. The rental
was free of charge.
The rented vehicles were used in recovery efforts including the clearing disaster waste from houses andstores, the moving of earth and sand displaced by the disaster and the clearing driftwood.

Clearing driftwood in Ashikita Town

Supporting Areas Stricken by Typhoon No. 19 in 2019:
Donating a used PC30MR to OPENJAPANFY2019: Cooperation with pro bono workers*helping the areas damaged by typhoon No.19* 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, whichhave increased in recent years, the damage is concentrated in limited areas or villages in many cases, andthus, we could not provide assistance in a more detailed manner in some cases.
During Typhoon Hagibis that crossed Japan in October of 2019, many rivers flooded and there weresuccessive mudslides in several places in Japan. More than 90 thousand houses were affected around thenation.
Komatsu provided 10 million yen in support, including supplying equipment and materials.

Washed-out rivers were surveyed with drones for free in cooperation with local governments
By request from the local government, we used drones to survey the washed-out areas of the Iruma River in
Saitama prefecture for free. Drone surveys enable the survey to approach dangerous affected sites tounderstand their situation quickly, which also leads to prompt restoration work.

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Support 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.
This time, by request from the Marumori-machi government in Miyagi prefecture, which was significantly
affected by Typhoon Hagibis, and after hearing from the people on-site about their needs, Komatsu donateda used PC30MR mini shovel, as well as money for the rental of heavy equipment, fuel, and materials (e.g. blue
tarps and crane tools) that were necessary for the OPENJAPAN activities in Marumori-machi so that they canbe used for not only the reconstruction support activities in Marumori-machi, but also future training.

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Clearing anti-personnel landmines andcommunity development support

In the areas afflicted by anti-personnel landmines, Komatsu engages in activities to support community
development throughout the process from demining to reconstruction. For that purpose, Komatsu partneredwith the authorized NPO Japan Mine Action Service (JMAS) in 2008 and the two parties continue to work
together in Cambodia and Laos. Komatsu’s demining machines and construction equipment, developed by
combining our technical expertise and knowledge in manufacturing, are working very well in these places.
Our target is to transform landmine infested lands to safe and secure lands, and further on to lands withvalue by constructing roads and facilities. Going forward, we will continue to provide support throughconstruction equipment, Komatsu's main line of business, in pursuit of contribution to the independent
reconstruction of the entire regions.

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UXO disposal project in Cambodia
In March 2021, we began an unexploded ordnance disposal project in Stung Treng province in northeastern
Cambodia. Air strikes in the country’s war-torn history dropped numerous large bombs and cluster munitionsin this area. A cluster munition is an explosive weapon that has smaller submunitions inside a larger
cylindrical container. These weapons continue to affect people’s daily lives even after the cessation of war,
especially due to the large number of unexploded ordnance. The threat posed by these bombs has greatly
hindered postwar reconstruction and the Convention on Cluster Munitions prohibits all use, production,transfer and stockpiling of cluster munitions.
To support the unexploded ordnance disposal project, Komatsu has exploited its experience and technology
to develop an anti-personnel demining machine for unexploded ordnance disposal using the PC130
hydraulic excavator.

UXO Disposal in Stung Treng Province【Photograph by Marina Shigihara】
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Cambodian agriculture CSR project
A new initiative began in Cambodia in 2020 to introduce agricultural construction equipment to the deminedsites with an aim to reconstruct farmland and stimulate the local industry. Agriculture is one of the mainindustries in Cambodia, accounting for approx. 25% of GDP, and rice is actively cultivated all over thecountry. The land exposed by a demining machine is fertile and suitable for growing crops. In cooperation
with JMAS and Battambang provincial government, Komatsu is helping the local farmers to improve theirwork efficiency and increase yields. We use bulldozers, wheel loaders and hydraulic excavators to verify theeffectiveness of farm operations.
In particular, bulldozers with blade movements controlled automatically by ICT technology, have leveled rice
fields, eliminating roughness and leveling the ground surface and thus improving work efficiency and rice
yield.

Farmland Reconstruction in
Battambang Province

Safe village construction project
Sralau Chrum Village is a small village in Banteay Meanchey province in northwestern Cambodia where acommunity development project is underway to improve village roads, build elementary schools, and create
reservoirs. Sralau Chrum Village is in a remote area about 7 km from the national highway. It was thus
isolated until the launch of the “Safe Village Construction Project” by JMAS. In the dry season in relatively
good conditions, it took about 30 minutes to reach the village from the national highway. In the rainy season
when the roads are muddy, it could take over an hour to reach the village. In heavy rain, it was impossible toleave the village.
Now, the roads have been improved and it takes only about 15 minutes to reach the national highway.
Additionally, the harvesting process has been speeded up dramatically as large combine harvesters can bebrought in during the rice harvesting season and the harvest can be shipped out of the village as planned.
Moreover, students who graduate from the village’s elementary school can now easily access junior highschools in the neighboring villages.

Community Development in Sralau
Chrum Village
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Unexploded ordnance disposal project in 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 riddled with unexploded ordnances, many of which are cluster submunitions. This is a problem on a massive scale, with children and farmers suffering bomb-related injuries ona yearly basis. Komatsu plays its part by offering the necessary machine to UXO-LAO (a Lao unexploded
ordnance disposal squad) and the Japan Mine Action Service (JMAS) free of charge, 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 has
been conducted continuously as planned. Komatsu supports the Project’s activities by providing remotesupport through online meetings and by supplying supplemental spare parts from Japan.

Komatsu's Demining Machine

Commemoration of the first elementary school203

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Visiting lectures
As part of the "Visiting Lecture" initiative, Komatsu employees visit schools in Japan to lecture about theactivities of the demining project. The lectures are attended by differently aged students ranging fromelementary to university levels. Up to the present, we have given a total of 87 lectures (including lectures
held online) attended by about 7,200 students.
The feedback we received from some first-year high school students included, “I was impressed to hear how
Komatsu employees work with local people and find it rewarding, even though there are many different
types of landmines and it takes a long time to dispose of them. I have no particular job in mind that I want to
do now, but after today’s lecture, I will find something meaningful and enjoyable. There are still many
landmines in the world. I look forward to your future activities in this area and to fewer people having theirlives blighted by landmines.”
Komatsu will continue its efforts to provide visiting lectures so that the younger generation will have theopportunity to think about world peace, their future, and how best to live 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:

Please note that lectures may be postponed or cancelled due to the COVID-19 or other unforeseen
circumstances.
Reservations are on a first-come-first-served basis. We advise you to apply early.
Please apply at least one month before the lecture.
In consideration of the topics discussed in the lectures, we do not approve applications from students intheir 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.

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History of demining activities (international treaties,
Japanese government and Komatsu)
Year
1998
1999
2002
2003
2004
2006
2007
2008
2009
2010
2015
2016
2017
2019
Since
2020

Activity (international treaties and activities of the Japanese government are underlined)
Komatsu develops old timber removal machine for demining in Cambodia
The Ottawa Treaty is enacted (the Mine Ban Convention)
The Japanese government states it would exclude antipersonnel demining machine from the Three
Principles on Arms Exports
A subsidized project by the Ministry of Economy, Trade and Industry and NEDO* develops demining
machine (Figure (1) below)
With support from the Ministry of Foreign Affairs of Japan, Komatsu conducts on-site testing in Afghanistan
With support from the Ministry of Foreign Affairs of Japan, Komatsu conducts on-site testing in Cambodia
The first machine is introduced in Afghanistan (Japanese government ODA)
Komatsu begins the Cambodia reconstruction project jointly with the JMAS, an incorporated NPO
Komatsu begins the Angola reconstruction project jointly with the JMAS, an incorporated NPO
The Oslo Treaty is enacted (the treaty banning Cluster Munitions)
Komatsu develops demining machine (Figure (2) below)
Komatsu begins the Laos reconstruction project jointly with the JMAS, an incorporated NPO
Komatsu completes the Angola reconstruction project
Komatsu constructs its 9th elementary school in Cambodia, and 1st in Laos.
Komatsu begins the agriculture CSR project in Cambodia
The Cambodia and Laos reconstruction projects are continuing* NEDO：New Energy and Industrial Technology Development Organization(1) Demining Machine(2) Demining Machine for processing unexploded ordnance205

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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 31st 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 2021
In 2020, the Olympics was postponed for the first time in history. The debate about whether to hold theTokyo Olympics continued until just before it was due to take place and it was ultimately postponed and thenheld with no spectators in another world-first. Tsukasa Yoshida and Miku Tashiro, representing Japan, andLien Chen-ling, representing Taiwan, stayed committed and made every effort to succeed in the Olympics.
Tsukasa Yoshida, who competed in the 57 kg class, lost the semifinal but won the bronze medal by Ippon
with her Uchi mata. Although Lien Chen-ling, in the 57 kg class, lost in the first round and Miku Tashiro, in the
63 kg class, lost in the second round, both athletes maintained their world-leading abilities to reach theirsecond consecutive Olympics. In the mixed team, a new Olympic event, both Tsukasa Yoshida and Miku
Tashiro fought alongside their team members to win silver medals.

Tsukasa Yoshida, bronze medalist of-57 kg class.

Yoshida competes in the bronze medal The Japanese team wins silver in thematch.
mixed team event.

In 2021, the World Judo Championships in Budapest were also held. Here, Yoko Ono won a silver medal in
the 70 kg class and Wakaba Tomita won a silver medal in the over 78 kg class for the first time.

Yoko Ono, silver medalist in the 70 kg class.

Wakaba Tomita, silver medalist in the over 78 kg class.

Komatsu Women’s Judo Club206

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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 2021, 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 many 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.

Judo class in Yaroslavl (2018)

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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.
The "One World One Komatsu" contest was held from June to September 2021. More than 200 employees
worldwide submitted entries about their activities; winners were selected in each of 10 categories.

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

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Komatsu earth day event on April 2022

In support of the United Nations' Earth Day, as we had done the previous year, we held a "Global Watch
Party," where employees from around the world engaged in volunteer activities that were reported in video
format and shared on our website.
This event can be seen in the video (in multiple languages).
Komatsu 2022 Earth Day global watch party - YouTube209

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Index

GRI STANDARDS INDEX211

SASB Content Index

223

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GRI standards index
The ESG Databook 2022 references "GRI Sustainability Reporting Standards".

100 series (Universal)
Aspects

Indicators
Description
Name of the
102-1
organization

Company info
Company info
Industries we support
Innovation

102-2

Activities, brands,
products, and services

102-3
102-4
102-5

Location of
headquarters
Location of operations
Ownership and legal
form

102-6

Markets served

102-7

Scale of theCompany info
organization
Information on
Databook: Personnel policy and performance appraisal
employees and other ESG
systemworkers
Supply chain
ESG Databook: Outline of procurement policy and supply chain
Significant changes tothe organization and (None for FY2021)
its supply chain
Corporate Governance Report
ESG Databook: Risk management
ESG Databook: Compliance
Precautionary
principle or approach ESG Databook: Promoting legal compliance, and pollution
mitigation and prevention
ESG Databook: Management of chemical substances andpollution prevention
ESG Databook: Comparison with global principles(UN Global
Compact)
External initiatives
Databook: External evaluations(UN Global Compact, WBCSD,
TCFD)
Komatsu Report(UN Global Compact, TCFD)
Membership ofassociations
Statement from senior Komatsu Report(Message from the President)
decision-makerInvestor Relations: President interview

102-8
Organizational
profile102-9
102-10102-11

102-12102-13Strategy

Reference

102-14Company info
Global locations
Company info
Global locations
Performance by business division / region (full year)

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Indicators
102-15

Ethics andintegrity

Description
Key impacts, risks,and opportunities

102-16

Values, principles,standards, and normsof behavior

102-17

Mechanisms foradvice and concerns
about ethics

102-18Governance structure102-19Delegating authority

102-20GovernanceWith business

102-21

Executive-level
responsibility foreconomic,
environmental, andsocial topics
Consulting
stakeholders on
economic,
environmental, andsocial topics

102-22Composition of thehighest governancebody and its
committees

102-23Chair of the highest
governance body102-24

Nominating andselecting the highest
governance body102-25

Conflicts of interest

With the planet

Data

Socialcontribution
activities

Index

Reference
ESG Databook: Risk management
Komatsu Report (Initiatives Based on TCFD Framework)
Komatsu's Worldwide Code of Business ConductPDF
ESG Databook: Compliance
ESG Databook: Human resource development: The
Komatsu WayESG Databook: Compliance
Articles of incorporationPDF
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
ESG Databook: Our system to promote sustainability
ESG Databook: Organizational chart of the environmental
management structure
ESG Databook: Our system to promote sustainability
ESG Databook: Organizational chart of the environmental
management structure
ESG Databook: Dialogue with our stakeholders
ESG Databook: Materiality analysis
Articles of incorporationPDF
Management team
Komatsu Report (Corporate governance)
Corporate Governance Report
ESG Databook: Corporate governance
ESG Databook: Corporate governance indicators
Management team
Komatsu Report (Corporate governance)
Corporate Governance Report
ESG Databook: Corporate governance
Articles of incorporationPDF
Corporate Governance ReportPDF
Notice of convocationPDF
Results of the Exercise of Voting Rights(Extraordinary Report)PDF
Komatsu's Worldwide Code of Business ConductPDF
Corporate Governance ReportPDF

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Indicators

Description

102-26

Role of highest
governance body insetting purpose,values, and strategy

102-27102-28102-29102-30102-31
102-32102-33102-34102-35102-36102-37102-38102-39

Stakeholder
engagement

With business

102-40102-41
102-42

Collective knowledgeof highest governancebody
Evaluating the highest
governance body's
performance
Identifying andmanaging economic,
environmental, andsocial impacts
Effectiveness of risk
management
processes
Review of economic,
environmental, andsocial topics
Highest governancebody’s role insustainability
reportingCommunicating
critical concerns
Nature and total
number of criticalconcerns

With the planetSocialcontribution
activities

Data

Index

Reference
Komatsu Report (Corporate governance)
ESG Databook: Our system to promote sustainability
ESG Databook: Organizational chart of the environmental
management structure
ESG Databook: Materiality analysis
Notice of convocationPDF
Komatsu Report (Corporate governance)
Komatsu Report (Corporate governance)
Corporate Governance ReportPDF
ESG Databook: Materiality analysis
Komatsu Report (TCFD)
ESG Databook: Risk management
Komatsu Report (TCFD)
ESG Databook: Risk management
Komatsu Report (TCFD)
ESG Databook: Our system to promote sustainability
ESG Databook: Risk management-

Annual Securities Report : PDFCompensation
Remuneration policies Notice of ConvocationPDF Policy, etc. regarding thedetermination remuneration, etc. for individual Directors
Annual Securities Report : PDFCompensation
Process fordetermining
Notice of ConvocationPDF Policy, etc. regarding the
remuneration
determination remuneration, etc. for individual Directors
Stakeholders’involvement inremuneration
Annual totalcompensation ratio
Percentage increase inannual totalcompensation ratio
List of stakeholder
ESG Databook: Dialogue with our stakeholders
groupsCollective bargaining ESG Databook: Personnel policy and performance appraisal
agreements
systemIdentifying andselecting stakeholders
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With people

Indicators
102-43102-44102-45

Reportingpractice

102-46

Report profile

102-53102-47102-48102-49102-50102-51
102-52102-54102-55102-56
103-1
Management
approach

103-2
103-3

With businessWith the planet

Data

Socialcontribution
activities

Index

Description
Reference
Approach to
stakeholder
ESG Databook: Dialogue with our stakeholders
engagement
Key topics and(None for FY2021)
concerns raised
Annual Securities ReportPDFOverview of Subsidiaries andEntities included in
Affiliates
the consolidated
financial statements
Global locations
Defining reportcontent and topic
ESG Databook: Materiality analysis
Boundaries
List of material topics
Restatements of
information
Changes in reporting
Reporting period
Date of most recent
ESG Databook: Editorial policy
reportReporting cycle
Contact point for
ESG Databook: Editorial policyquestions regarding
Contact for inquiries
the report
Claims of reporting inaccordance with the
GRI Standards
GRI content index
GRI standards index
External assurance
ESG Databook: Independent practitioner's assurance
Explanation of thematerial topic and its
Boundary
The management
approach and its
ESG Databook: Materiality analysis
components
Evaluation of the
management
approach214

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200 series (Economic topics)
Aspects

Indicators

201-1

Economic
performance

201-2
201-3
201-4

Marketpresence

202-1
202-2
203-1

Indirect
economic
impacts

Procurement
practices

203-2
204-1
205-1

Anti- corruption 205-2
205-3

Description

Reference
ESG Databook: Personnel policy and performance appraisal
system (remuneration data)
ESG Databook: Enhancing work-life balance (Work-Life Balance
Direct economic value Data)
generated andAnnual Securities Report: PDFIncome Taxes
distributed
ESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief
Komatsu Report (TCFD)
Financial implications ESG Databook: Mitigating climate change through products andand other risks andopportunities due to services
ESG Databook: Reducing CO2 emissions in manufacturing
climate change
operations
De ned bene t plan Annual Securities ReportPDF: Pension and Retirement
obligations and other Benefits
retirement plans
Financial assistancereceived fromgovernment
Ratios of standard
entry level wage by
gender compared to
local minimum wage
Proportion of senior
management hired
ESG Databook: Promoting diversity and inclusionfrom the local
community
Infrastructure
ESG Databook: Komatsu's initiatives for social issues
investments and
ESG Databook: Disaster relief
services supported
Smart construction(Japanese)
Investor Relations: President interview
Significant indirect
ESG Databook: Developing people needed by the community
economic impacts
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief
Proportion of
ESG Databook: Outline of procurement policy and supply chain
spending on local
suppliers
Operations assessed
for risks related tocorruption
Communication andtraining about antiESG Databook: Compliancecorruption policies
and procedures
Confirmed incidents
ESG Databook: Complianceof corruption andactions taken
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Aspects

Indicators

Anticompetitive
behavior

206-1
207-1
207-2

Tax

207-3
207-4

With businessWith the planet

Data

Socialcontribution
activities

Index

Description
Reference
Legal actions for anticompetitive behavior, (None for FY2021)
anti-trust, andmonopoly practices
Approach to tax
Annual Securities Report: PDF Financial Information
Tax governance,
control, and risk
Annual Securities Report: PDF Financial Information
management
Stakeholder
engagement andmanagement of
Annual Securities Report: PDF Financial Information
concerns related totax
Country-by-country
Annual Securities Report: PDF Financial Information
reporting216

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Data

Index

300 series (Environmental topics)
Aspects

Materials

Indicators
Description
Materials used by
301-1
weight or volume
301-2
301-3
302-1
302-2

EnergyReclaimed products
and their packaging
materials
Energy consumption
within theorganization
Energy consumption
outside of theorganization

302-3

Energy intensity

302-4

Reduction of energy
consumption
Reductions in energy
requirements ofproducts and services
Interactions withwater as a sharedresource
Management of water
discharge-related
impacts

302-5
303-1

Water andeffluents

Recycled input
materials used

303-2
303-3

Water withdrawal

303-4
303-5

Water discharge
Water consumption
Operational sites
owned, leased,managed in, or
adjacent to, protectedareas and areas ofhigh biodiversity value
outside protectedareas
Significant impacts ofactivities, products,
and services on
biodiversity
Habitats protected or
restored

304-1

Biodiviersity
304-2
304-3

Reference
ESG Databook: Relationship between business activities and theenvironment (input and output)
ESG Databook: Activities to effectively utilize resources in
production
ESG Databook: Activities to effectively utilize resources in
production
ESG Databook: Relationship between business activities and theenvironment (input and output)
Scope of environmental data/calculation standards
ESG Databook, Environmental data
ESG Databook, Input/output
ESG Databook, Environmental data
ESG Databook, Input/output
ESG Databook: Mitigating Climate Change through Products andService
ESG Databook, Komatsu's efforts regarding water
ESG Databook, Komatsu's efforts regarding water
ESG Databook, Environmental impact
ESG Databook, Komatsu's efforts regarding water
ESG Databook, komatsu's efforts regarding water
ESG Databook, Input/output
-

-

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With people

Indicators

305-2

Description
IUCN Red List species
and national
conservation list
species with habitats
in areas affected byoperations
Direct (Scope 1) GHG
emissions
Energy indirect (Scope2) GHG emissions

305-3

Other indirect (Scope
3) GHG emissions

305-4

GHG emissions
intensity
Reduction of GHG
emissions
Emissions of ozonedepleting substances(ODS)
Nitrogen oxides (NOX),
sulfur oxides (SOX),
and other significant
air emissions
Waste generation andsignificant wasterelated impacts
Management ofsignificant wasterelated impacts

304-4
305-1

Emissions

305-5
305-6
305-7
306-1
306-2
Effluents and
waste

306-3

Waste generated

306-4

Transport ofhazardous waste

306-5

Waste directed todisposal

Environmental 307-1
compliance308-1
Supplier
environmental

With business

308-2

Non-compliance withenvironmental laws
and regulations
New suppliers thatwere screened using
environmental criteria
Negativeenvironmental
impacts in the supply
chain and actions
taken

With the planetSocialcontribution
activities

Data

Index

Reference
ESG Databook, Environmental impact
ESG Databook, Calculation standards
ESG Databook, Environmental impact
ESG Databook, Calculation standards
Amount of CO2 emissions by scope 3
Amount of CO2 emissions by scope3
Scope of Environmental data
ESG Databook: Reducing CO2 emissions in manufacturing
operations
ESG Databook: Relationship between business activities and theenvironment (Input and output)
Scope of Environmental data
ESG Databook: Inputs and outputs in the product life cycle
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
ESG Databook: Activities to effectively utilize resources in
production (1. Waste)
ESG Databook: Inputs and outputs in the product life cycle
ESG Databook: Environmental risk management-

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Data

Index

400 series (Social topics)
Aspects

Indicators
401-1

Employment

401-2
401-3

Labor/
management
relations

402-1
403-1
403-2
403-3
403-4

Occupational
health andsafety

403-5
403-6
403-7
403-8
403-9
403-10404-1

Training andeducation

404-2

Description
New employee hires
and employee
turnoverBenefits provided tofull-time employeesthat are not provided
to temporary or parttime employees
Parental leave
Minimum notice
periods regarding
operational changes
Occupational healthand safety
management system
Hazard identification,risk assessment, andincident investigation
Occupational healthservices
Worker participation,
consultation, andcommunication on
occupational healthand safety
Worker training on
occupational healthand safety
Promotion of worker
healthPrevention andmitigation ofoccupational healthand safety impacts
directly linked bybusiness relationships
Workers covered by an
occupational healthand safety
management system
Work-related injuries
Work-related ill health
Average hours of
training per year per
employee
Programs for
upgrading employee
skills and transition
assistance programs

Reference
ESG Databook: Personnel policy and performance appraisal
system (Data on employment and turnover)
ESG Databook: Support for work-life balance (Data on pregnancy
and childcare leaves)
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: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Occupational safety and health
ESG Databook: Human resource development: structure (Dataon employee training)
ESG Databook: Human resource development: structure
ESG Databook: Human resource development: enhancing skills
ESG Databook: Promoting diversity and inclusion (Rehiring ofRetired Employees)
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Aspects

With people

Indicators
404-3

Diversity andequal
opportunity
Nondiscrimination

405-1
405-2
406-1

Freedom of
association and 407-1
collective
bargaining

Child labor

408-1

Forced orcompulsory
labor

409-1

Securitypractices

410-1

Rights ofindigenous
peoples411-1

Human rights
assessment

412-1
412-2

With businessWith the planet

Data

Socialcontribution
activities

Index

Description
Reference
Percentage of
employees receiving ESG Databook: Personnel policy and performance appraisal
regular performance systemand careerdevelopment reviews
Diversity of
governance bodies
ESG Databook: Promoting diversity and inclusionand employees
Ratio of basic salaryand remuneration of
women to men
Incidents of
discrimination and (None for FY2021)
corrective actions
taken
ESG Databook: Human rights policy
Operations and
ESG Databook: Business and human rights
suppliers in which the ESG Databook: CSR procurement guidelines
right to freedom of
ESG Databook: Komatsu group's supply chain management andassociation andcollective bargaining promotion of CSR procurement
may be at risk
ESG Databook: Personnel policy and performance appraisal
system (Data on employment and turnover)
ESG Databook: Human rights policy
Operations andDatabook: Business and human rights
suppliers at significant ESG
ESG Databook: CSR procurement guidelines
risk for incidents ofchild labor
ESG Databook: Komatsu group's supply chain management andpromotion of CSR procurement
ESG Databook: Human rights policy
Operations andsuppliers at significant ESG Databook: Business and human rights
risk for incidents of
ESG Databook: CSR procurement guidelines
forced or compulsory ESG Databook: Komatsu group's supply chain management andlaborpromotion of CSR procurement
Security personnel
ESG Databook: Human rights policy
trained in humanrights policies or
ESG Databook: Business and human rights
procedures
Incidents of violations
involving rights of(None for FY2021)
indigenous peoples
Operations that have ESG Databook: Business and human rights
ESG Databook: Risk management
been subject tohuman rights reviews ESG Databook: CSR procurement guidelines
or impact
ESG Databook: Komatsu group's supply chain management andassessments
promotion of CSR procurement
Employee training on ESG Databook: Business and human rights
human rights policies ESG Databook: Complianceor procedures

220

ESG Databook 2022

Sustainability policy

Management ofsustainability

Aspects

With people

Indicators
412-3

413-1

Local
communities
413-2

Customerhealth andsafetyNew suppliers thatwere screened usingsocial criteria

414-2

Negative social
impacts in the supply
chain and actions
taken

415-1
416-1
416-2
417-1

Marketing andlabeling

Description
Significant investment
agreements andcontracts that include
human rights clausesor that underwent
human rights
screening
Operations with local
community
engagement, impact
assessments, anddevelopment
programs
Operations withsignificant actual andpotential negative
impacts on local
communities

414-1

Supplier social
assessment

Public policy

With business

417-2
417-3

With the planet

Data

Socialcontribution
activities

Index

Reference
ESG Databook: Human rights policy
ESG Databook: Business and human rights
ESG Databook: CSR procurement guidelines
ESG Databook: Komatsu group's supply chain management andpromotion of CSR procurement
ESG Databook: Business and human rights
ESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief
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 andpromotion 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 andpromotion of CSR procurement
Political contributions

Political contributions
Assessment of thehealth and safety
ESG Databook: Improving product safety and solutions
impacts of productand service categories
Incidents of noncomplianceconcerning the health (None for FY2021)
and safety impacts ofproducts and services
Requirements for
product and service
information andlabeling
Incidents of noncomplianceconcerning product (None for FY2021)
and service
information andlabeling
Incidents of noncomplianceconcerning marketing (None for FY2021)
communications

221

ESG Databook 2022

Sustainability policy

Management ofsustainability

Aspects
Customer
privacyWith people

Indicators
418-1

Socioeconomic 419-1
complianceWith businessWith the planet

Description
Substantiatedcomplaints
concerning breaches (None for FY2021)
of customer privacy
and losses ofcustomer dataNon-compliance withlaws and regulations (None for FY2021)
in the social andeconomic area

222

Data

Socialcontribution
activities

Index

Reference

ESG Databook 2022

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

223

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 2022

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

224

Index

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

ESG Databook 2022