Global Teamwork

CSR & Environmental
Report 2011

Message from Top Management

People and Technology –Building a Bridge to the Future
Pursuing sustainable growth through the CSR activities of our core business.
First, I would like to express my heartfelt sympathy to all
who have suffered in the Tohoku earthquake and tsunamithat struck in March 2011. Immediately following the quake,
Komatsu made construction equipment available under freeof charge lending, to assist with restoration and reconstruction. And our commitment to supporting the reconstructionof the devastated areas through our business activities isongoing.

Komatsu’s Management and CSR(Corporate Social Responsibility)
K o m a t s u ’s c u r re n t b u s i n e s s e n v i ro n m e n t c a n b e
represented by the status of our strategic markets – China
in the forefront, followed by the rest of Asia and the CIS,
Latin America, the Middle East, and Africa. These markets
are growing at a satisfactory rate, and we anticipate that thegrowth of these countries and regions will continue to be a
driving force in the future.
In step with our mid-range management plan and its
March 2013 targets, our initiatives are focused on incorporating Information and Communication Technology (ICT)
into products and components, making further progress inensuring safe and environmentally friendly performance, andexpanding and improving our sales and after-sales service
organization in our strategic markets. Through these activities, we will develop not only business for Komatsu, but also
the products and services that we supply to our customers
will contribute to economic development and a better
standard of living, and to reduced environmental impact andimproved safety.
The world faces a host of challenges and expectation fromsociety towards responsible corporate behavior is growing.
Komatsu is conscious of this responsibility and believes that
our core business which embody our strength are in fact
CSR activities that respond to society’s demands.
In the years to come, we will be constantly vigilant inensuring that the actions of our management are in line withthe expectations and demands of society. As we carry out
our CSR activities, we will engage with our stakeholders
through two way dialogue in order to better understand what
our top priority issues should be. By doing so, we hope toenhance the trust placed in us by society and to contributeto sustainable growth.

Environmental Activities
K o m a t s u c o nsiders environmental activit i e s a t o p
management priority. To meet the mid-range managementtargets set last year, we are actively pursuing initiatives using
measures that are both “proactive” and “protective.”On the “proactive” side, we are emphasizing reductionof CO2 emissions throughout product use, to help mitigate

01◆ CSR and Management Cycle

Management
PolicyEnhancing thetrust placed in us
by society➡ Further growthBusiness
DomainImplementation ofmanagement➡ Contributing tosociety

Management
Strategy

Is management
in line withsocietal demands?
➡ Always monitor

The KOMATSU Way
Corporate
Citizenship
Demands of Society
climate change through a variety of measures. For example,
we are reducing the environmental impact of products
throughout their life cycle and expanding the market for lowfuel consumption hybrid hydraulic excavators. In addition,
our biodiesel fuel project is working on the local productionof carbon-neutral biodiesel fuel. Last year we also enacted
a “Declaration of Biodiversity.” One of our first initiatives was
to dedicate a space in the place Komatsu was founded asa rural natural recreation area for children to enjoy natureand get hands-on experience with growing plants. We also
stepped up activities to increase the green coverage ratio in
all our plants.
On the “protective” side, we have started sales of construction equipment that meets the Tier4-interim emission
standards taking effect in 2011, and are actively reducing
the use of chemical substances that are of environmental
concern.
We will continue to maintain strong cooperation with
our overseas affiliates, distributors, and business partners
around the world to bolster our environmental activities, witheven higher objectives in sight.

Sharing our Values within the Group
Serving as cornerstones of our actions are The KOMATSU
Way and Komatsu’s Worldwide Code of Business Conduct.
The KOMATSU Way comprises a set of values, basic attitudes and patterns of behavior to be passed on to the futuregeneration which ensure that our strong corporate structure
prevails, even if the management environment changes.
The KOMATSU Way was revised in FY2011 to incorporate,
among other features, our attitude in pursuing relationships
with customers which we call “Brand Management”. We also
revised Komatsu’s Worldwide Code of Business Conduct,
which was formulated in 1998, for the first time in four years
in view of the ever increasing importance of CSR.
Group employees around the world share these values
and rules, and through this we strive to reinforce a system bywhich we seek to increase the trust given to us from society.

People and Technology –Building a Bridge to the Future
Komatsu celebrated its 90th anniversary in May. The
people and technology that have preserved the company’s
corporate tradition since its founding are Komatsu’s mostimportant management resources.
To extend these resources for another ten years to our100th anniversary and further into the future, we havechosen the slogan “People and Technology – Building a
Bridge to the Future” in an effort to accelerate global humanresource development and enhance the technological skillsof our company. This is an effort which we wish to align with
our CSR activities.
At Komatsu, all of our employees share the belief that“our corporate value is the total sum of trust given to us bysociety and all stake holders.” We are determined to continue to build on our CSR activities through dialogue with our
stakeholders and society – listening to their expectations andrequirements and discovering the most effective measures
which tie to our core business.

The Ten Principles of the Global Compact[Human Rights]
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: Businesses should make sure that they are not complicit inhuman rights abuses.
[Labour Standards]
Principle 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment andoccupation.
[Environment]
Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.
[Anti-Corruption]
Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.
* The United Nations Global Compact is a voluntary code of conduct in
the four areas of human rights, labor, environment, and anti-corruption
promoted by the United Nations for adoption by companies.

Kunio Noji

President and CEO

02

OUR APPROACH TO CSR
We define our CSR priorities by understanding where our business activities
intersect with our contributions to society.
From how we deliver our products to our customers to how we develop fruitful relationships with our people
and the communities where we do business, our CSR priorities provide us with the foundation to create lasting
business and social value.
In 2009, Komatsu reflected on our company history and recognized that many of our activities over the past 20
years met the needs of both our business and society, staying true to our core belief that “Our corporate value ismeasured by the degree of trust placed in us by society and our stakeholders.” We also recognized that to meetthe sustainability challenges of the future, we needed to define our CSR priorities based on their relevance to ourbusiness and their importance to our stakeholders.

FOCUSING ON MATERIAL ISSUES -Define a set of global CSR themesThis year, with the support of Business for Social Responsibility (BSR), a nonprofit organization, Komatsu undertook a materiality assessment to accomplish the following objectives:
1. Identify a set of CSR issues and prioritize these CSR issues by their relevance to our business and their importance to ourstakeholders
2. Define a set of global CSR themes and activities

1. Identifying a set of CSR Priorities Relevant to our Core Business
From a list of many CSR issues, we selected those relevant to Komatsu as a construction/mining and industrial equipment
manufacturer. We then evaluated CSR issues on their importance to our business. To understand the relevance of CSR issues toour business, we interviewed senior executives across our company, including leaders of regions outside Japan. These interviews
helped us to understand the degree to which CSR issues interact with our business priorities and operations. We then evaluated
CSR issues on their importance to our stakeholders. To understand the relevance of CSR issues to our stakeholders, we
reviewed external reports, viewpoints, and public statements published by governments and policy makers, issue experts andadvocates, media, suppliers, and customers. We also took into consideration BSR’s view of stakeholder importance.
◆ Evaluating CSR Issues
We evaluated CSR issues based on the degree of importance to our business shown on the horizontal axis, and the degree ofimportance to our stakeholders shown on the vertical axis. The CSR issues important to both businesses and stakeholders cameto the top right quadrant.
⬅ Importance to our Stakeholders● Issue A● Issue C

CSR Issues of Importance to both
our Business and Stakeholders● Issue D= Our CSR Priorities● Issue F● Issue E● Issue B
Importance to our Business ➡

We narrowed our focus to sixteen material issues across six categories. By focusing on the material issues that are mostimportant to our business and our stakeholders, we believe we are in a strong position to leverage our core strengths as an
equipment manufacturer and create lasting social impact going forward.

03

◆ OUR CSR Priorities
Products, Services, and Customers

Environment

Products that enhance safety

Environmentally-friendly products

Responsible marketing and customer care

Environmental efficiency (facilities, such as plants, and operation sites)

Employees

Remanufacturing
Human Rights

Human resource development
Safety and healthRespecting human rights

Respecting employees

Equal employment

Ethics and Governance

Local Community

Cooperation with stakeholders

Development of local communities

Corporate governance and complianceDisaster relief

Compliance with social norms including business partners

Improving local residents’ quality of life

2. Defining a set of Global CSR Themes
By developing a set of themes around our most important material issues, we implement CSR and meet the needs of ourbusiness and our stakeholders. By going through a process of engaging officers in discussions on “What we should do to pursue
CSR Priorities” as well as taking in consideration BSR’s view as a third party, we established three core CSR themes to guide ourstrategy and implementation:■ Enhancing Quality of Life -Providing products required by society■ Developing People■ Growing with Society
To support these core themes, we developed key business activities for each theme that outline specifically how we are
pursuing CSR at Komatsu. These business activities promote our CSR themes and priorities, and they also support our threeyear mid-range management plan, which we began in April 2010 under the title “Global Teamwork for Tomorrow.”◆ Komatsu’s CSR Themes and Key Business Activities■ Enhancing Quality of Life -Providing products required by societyProviding products and services that contribute to infrastructure development andimprove quality of life
● Improving productivity, safety, and efficiency and enhancing energy conservation
through the use of ICT● Improving environmental efficiency at operation sites and facilities, such as plants● Reducing our effect on the environment throughout the product life cycle● Enhancing safety among society, customers, employees, and business partners●■ Developing People
Contributing to human resource development in local communities
Enhancing our employees and suppliers through The KOMATSU Way● Enhancing our employees and distributors through “Brand Management”●●■ Growing with Society
Engaging in dialogue with our stakeholders
Providing social contributions through the use of our core technologies and resources(e.g., disaster relief or activities to remove antipersonnel land mines)● Contributing to our local communities where we do business● Strengthening our corporate governance and compliance● Promoting compliance with environmental, labor, and social norms within our group
and among business partners●●

04

INCORPORATING CSR INTO MANAGEMENT
An important aspect of implementing CSR is how we incorporate it into our overall management framework.
For this reason, we have created a cycle for implementing CSR that ensures alignment between our CSR priorities and ourcompany’s core management philosophy, strategies, and policies.

Management
PolicyCommitted to “Quality and Reliability,” Komatsu will maximize its
corporate value by providing products that customers are happy to own.

Business Domain

By focusing on construction & mining equipment, and industrial
machinery, we will work for sustainable growth.

*Corporate value is the sum of trust given to us by all our stakeholders.

Mid-Range Management Plan “Global Teamwork for Tomorrow” (FY2010-2012)
1. Activities of Importance Related to Management

Trust from society
is enhanced,
resulting in sustainable growth for
Komatsu

Management
Strategy● Promotion of Brand Management Activities● TQM Activities in Strategic Markets (especially China)

2. Activities of Importance Related to Operations● To make all products and parts traceable by means of ICT● To develop products featuring improved environmental friendliness and safety● To improve sales and service operations in strategic markets

Implementationof management
policy leads tosocial contribution● To promote continuous improvement by strengthening workplace capabilities

The
KOMATSU Way

Values, basic attitudes and patterns of behavior to be passed on to
the future generation● Strengthening corporate governance● Enhancing human resource development on a global basis● Strive for sustainable growth by enhancing workplace capability of each

Komatsu’s employee

Alignment between
business andsocietal demands
must be monitoredcontinuously

Worldwide Code of Business Conduct● Rules that Komatsu and its management and employees must abide by as amember of the business society● Statement to society as a “responsible corporate citizen”<Policies, Standards, Principles>

Corporate
Citizenship・5 Principles of Compliance・Earth Environmental Charter・Standards for Product Safety
・Global Policy of Human Resources
・Principles Governing Quality Assurance ・Basic Principles for Social Contributions
・Biodiversity Guideline
・Regional Policies, Standards by Countries, etc.

Komatsu’s CSR Themes
1. Enhancing Quality of Life -Providing products required by society2. Developing People
3. Growing with Society

Demands of Society<Global Principles>● The UN Global Compact● ISO26000● Keidanren Charter of Corporate Behavior

We believe that a corporation is a social entity with a responsibility to implement management policy which leads to social
contribution.
● We also believe that a corporation must continuously check whether its business activities are aligned with the demands ofsociety. We bolster our CSR review cycle by engaging and listening to our stakeholders, reviewing external trends in businessand sustainability, and adhering to regional, national, and international guidelines and principles, such as those provided by the
UN Global Compact, the International Organization for Standardization (ISO), and the Keidanren (Japan Federation of Economic
Organizations).
● Through responsible corporate behavior, trust from society is enhanced, resulting in sustainable growth for our corporation.
●

Editorial
PolicyThis report presents, in an easy-to-understand manner, the most important aspects of CSR, based on the
CSR Themes determined in the course of FY2010.
Furthermore, the title was changed from “Environmental & Social Report” to “CSR & Environmental Report.”

Report based on CSR Themes● The report details the contents of the three CSR themes
through interviews with the executive officers in charge.
● In selecting a “Special Story” for each theme, we tried toinclude aspects that are currently perceived by society andby Komatsu as being important.
● In each theme, we presented the main initiatives or something of a topical nature.

05

Printed report and Web posting
The written report presents information that should be reported to all
stakeholders, because it is highly important, new, or has been revised.
● The website is used to release (1) general information, such aspolicies and general rules, (2) information on ongoing activities
and initiatives, and (3) a comprehensive disclosure of detailed
and incidental information.
Websitehttp://www.komatsu.com/CompanyInfo/csr/2011/●

Independent Review
Director, Advisory Services
Business for Social Responsibility (BSR)

Contents
Message from Top Management……………………… 1
OUR APPROACH TO CSR… ………………………… 3

Mr. Raj Sapru
CSR Theme 1

Komatsu joined BSR in June 2010
and partnered with us in establishingstrategic priorities and creating anapproach to identify Komatsu’s mostimportant sustainability issues—steps
we believe are critical to CSR leadership.
To this end, BSR worked with Komatsu to undertake aseries of investigative and planning activities during 2010,
including:Engaging in a series of in-depth interviews with senior
executives within Komatsu, including Komatsu’s regionalpresidents in strategic markets around the world● Providing our view on where Komatsu’s CSR approach could
be enhanced● Undertaking a materiality exercise (described on page 3) to
identify the CSR issues of greatest significance to Komatsu
and its stakeholders● Establishing, from the materiality exercise, a set of CSR
themes for Komatsu to provide a framework for managing
CSR activities and performance●

Looking forward, we hope that Komatsu will continue tomanage its approach to CSR with an ambition that is equal to
the size and global scope of the company and the scale of thechallenges we face as a society. CSR requires commitment
and engagement, and we believe Komatsu is better positioned
today to follow through on its commitment to sustainability
and social responsibility.

Guidelines Used
● “Environmental Report Guidelines 2007”(Ministry of the Environment of Japan)● “The 2006 Sustainability Reporting Guidelines”(Global Reporting Initiative [GRI])
Period Covered
This report in principle covers the data for the period from April 1,2010 to March 31, 2011, though information for the period after April 1,
2011 is also included.
Subsequent Reporting Schedule● Japanese version: Expected July, 2012
● English version: Expected July, 2012

-Providing products required by society-7

Special Story 1

KOMTRAX for Accurate Servicing andReduced Environmental Impact… …………………… 9
Special Story 2

Development Story ofTier4-compliant Vehicles/Engines………………… 11
Pursuing Environmental Management… ………… 13
Mitigating Climate Change… ……………………… 21
Creating a Resource Recycling Society… ………… 23
Environmental Risk Management… ……………… 25
Biodiversity…………………………………………… 27
Enhanced Safety in the Workplace………………… 28
CSR Theme 2

Developing People

29

Special Story 3

Training Field Engineers in the Philippinesfor Worldwide Duty… ……………………………… 31
Developing Together with Employees……………… 33
Nurturing Leaders and Global Management… …… 34
CSR Theme 3

We’ve been impressed by Komatsu’s desire to focus on
top strategic priorities, and we commend the company forthe care it has taken to create a pathway towards making a
positive difference. We are also impressed with the integrationof The KOMATSU Way, a set of foundational values, principles,and practices, across all its business activities and operations.

Enhancing Quality of Life

Growing with Society

35

Special Story 4

Together with Business Partners… ……………… 37
Communicating with Stakeholders………………… 39
Living in Harmony with Local Communities… …… 40
Removing Anti-personnel Landmines……………… 41
Disaster Relief… …………………………………… 42
Data

Environmental Databy Manufacturing Facility in Japan… ……………… 43
Environmental Databy Manufacturing Facility outside Japan…………… 47
Environmental Management andEnvironmental Accounting… ……………………… 48
Company Profile, Environmental andSocial Activities to Date & External Commendations…… 49
Independent Review on CSR &Environmental Report 2011………………………… 50

Photo on the cover
The images in the small and medium-sized circles
show jatropha plants grown on a vacant lot of the
Adaro Mine in Indonesia, the one in the large circle
shows jatropha fruit from which biodiesel fuel isproduced. The dump truck shown is an HD785 model
running on biodiesel fuel at the Adaro Mine.
You will find the related story on page 15.

06

CSR Theme 1

Enhancing Quality of Life
-Providing products required by societyKey Activities

HB205 Hybrid Hydraulic Excavator◆ Providing products and services that contribute to
infrastructure development and improve quality oflife◆ Improving productivity, safety, and efficiency andenhancing energy conservation through the use of
ICT◆ Improving environmental efficiency at operationsites and facilities, such as plants◆ Reducing our effect on the environment
throughout the product life cycle◆ Enhancing safety among society, customers,
employees, and business partners

Enhancing Quality ofLives Placing Safety
as Top Priority
Tetsuji Ohashi
Director and Senior Executive Officer
President, Production Division, Supervising
Information Strategy and Environment
Komatsu Ltd.

- What do you mean by “enhancing quality of life”?
Ohashi: When viewed on a global scale, there are still many
countries and regions that lack the infrastructure needed
to secure people’s livelihood. Urbanization, in the form of
housing, roads, hospitals and stores, can bring prosperity
to such areas. A necessary component for implementing
this development is construction equipment which Komatsu
manufactures. I have always felt very strongly about theneed to enhancing the lives of people living in this kind ofchallenging environment.
Indonesia, for example, is benefiting from the fruits ofindustries such as mining and forestry. Construction andmining equipment can play an important role, as a tool in theeffort to bring prosperity to the local community.

07- When one thinks of construction equipment, usuallysomething big and heavy comes to mind, which is very
different from the high-tech ICT.
Ohashi: Take KOMTRAX, for example (see pages 9 and 10).
It started out as a system for managing vehicle location andmaintenance information, and has evolved step by step.
Rather than expecting perfection from the start, it is typicalof Komatsu ICT to make steady progress forward, providing
real-world answers and solutions.
I think of ICT as being firmly based in reality, not a pipe
dream. For example, rather than immediately making
everything unmanned, I prefer an ICT that can work withpeople, where machines assist with part of the job, the kindof down-to-earth ICT that can be optimized as it evolves a
step at a time. I believe that in taking this course, Komatsu
will advance, and this in tur n will help our customers
advance. Regulations will be revised, and the level of society
as a whole will rise.

- It seems that enhancement of safety needs to beapproached from a variety of aspects.

Ohashi: We focus on two aspects.
The first aspect is our environmental response at the work
site, in other words, the development of environmentallyfriendly products. A clear example of this is when Komatsu
developed the world’s first hybrid hydraulic excavator in2008. This product, which features an average fuel efficiency
improvement of 25%, helps resolve the concerns of customers who are sensitive about the environment. Moreover, ournon-hybrid equipment meets emission standards for Japan,
the U.S.A. and Europe, and we are focusing on developing
engines that have reduced nitrogen oxide (NOx) andparticulate matter (PM) emissions.
These environmentally-friendly products do not simply
advocate a concept, they strive to increase economic
efficiency and provide customers with realistic solutions. We,
as manufacturers, must keep our feet firmly on the groundand give shape to concepts and ideas. “Giving shape tosomething” - I think that this is one of Komatsu’s strengths.
The second aspect is our work on environmental initiatives
directed at Komatsu’s own business activities. Our efforts
center on observing environmental regulations worldwide at
all our manufacturing units, including those of our business
partners.
While our targets so far have been energy conservation,
zero emissions, improving recycling rate, and green procurement, we now want to work toward reducing CO2 emissions
globally and to give due consideration to biodiversity, bystepping up activities to increase the ratio of green space on
our plant premises. Regarding ISO14001 certification, ourgoal is to have all manufacturing facilities that have not yet
obtained certification do so, worldwide.

Ohashi: For a manufacturer, safety must be the foremost
concern. While customers may say that fuel efficiency is themost important aspect, for us, as a manufacturer, “Dantotsu”(Unique and Unrivalled features) in safety performance will bemost important.
The next most important is “Dantotsu” in environmentallyfriendliness, followed by high efficiency.
When I was a plant manager, I felt that safety must always
be given top priority. This should be followed by compliance,
product quality, delivery date, and finally cost. That was myorder of precedence then, and it is the same even now.
The purpose of a company is to serve all its stakeholders.
W ith that in mind, you must ask yourself is there any
meaning to continue production while ignoring safety. This is,in fact, what CSR is all about. You should never attempt tomake a product in a workplace where safety is not assured.
Safety is a commitment to yourself, to your family andto your work colleagues.
Compliance is a commitment to the local community, and quality is a commitment to the customer.
Without these three commitments, a company cannot exist. This is what CSR
stands for.

- What is meant by reducing the environmental impact
of products over their lifecycle?
Ohashi: First of all, an effort is made to create products thatare designed from the development stage to have the least
possible environmental impact. We also make the manufacturing process at the manufacturing site as environmentallyfriendly as possible, starting with green procurement. In
the logistic process to transport products, as well, we takemeasures to reduce CO2 emissions, such as building plants
adjacent to ports to implement modal shifts in shipping. We
also recommend environmentally-friendly products and useof remanufactured components to our customers in oursales and service activities and at the operating site. Finally,
we channel obsolete products for reuse, or for disposal in anenvironmentally-friendly manner.
In this way, we can ensure that business activities for every
aspect of a product’s lifecycle are earth-conscious.

Enhancing Quality of Life

- How does Komatsu respond to the global environmental challenge?

Unmanned dump trucks featuring“Dantotsu” safety performance- Finally, please describe the situation in Japan after
the recent earthquake and tsunami disaster.
Ohashi: First of all, I would like to express my heartfelt
sympathy to everyone in the disaster-hit areas.
Komatsu’s plants and sales branches and some of our business partners were hit by the disaster and we are making
a concerted effort to restore operations with the utmost
speed and precision, while also extending assistance to ourbusiness partners.
Other tasks requiring quick handling include a review ofrisk management, drawing on the lessons learned from theearthquake and tsunami disaster, and verification of our
production capabilities under the electrical power restrictions
that are a consequence of power shortages in the region.
Efforts are underway in the disaster-affected areas toachieve reconstruction at the earliest possible time, withnumerous construction machines already in operation. At
the same time, Komatsu has introduced radio-operated
construction equipment to protect operators from thedangers of nuclear radiation when working in the vicinity of
the nuclear power plant accident sites.
W h i l e w e a re p ro u d t h a t o u r p ro d u c t s c a n p l a y a nimportant role in restoring normal life to the disaster-affectedareas, our goal is to continue to supply products that meetsociety’s needs, and conduct business activities that ensure
safety and protect the environment.

08Special Story 1

KOMTRAX for Accurate Servicing
and Reduced Environmental Impact

KOMTRAX adds a GPS antenna and wireless communications technology to Komatsu construction equipment
operating anywhere in the world.
KOMTRAX is a remote management system that monitors the “health” and operational status of vehicles.
KOMTRAX Plus, designed for use in mining equipment, can collect detailed status information on vehicles anduse the data to control mining equipment under severe operating conditions. Using these ICT-assisted systems,
Komatsu is improving the quality of service it is providing to its customers and reducing environmental impact.

Supporting our Customers with Remotecontrolled Equipment using KOMTRAX
Just as automobiles require regular replacement of theengine oil and oil filter, construction equipment also requires
periodic maintenance. However, because construction
equipment operates under much harsher conditions,maintenance work must be extremely efficient, to ensure that
equipment productivity is stable. Ideally, inspections and part
replacement should occur based on the number of operating
hours that are logged on the equipment. However, with conventional equipment servicing done by distributors, service
personnel must travel to the customer’s site to determine thenumber of operating hours. This results in parts often being
replaced too early, or sometimes too late, ultimately causing
maintenance costs to rise.
KOMTRAX offers real-time access to equipment information, such as the number of operating hours, the last datea part was replaced, and the next replacement period.
This lets service personnel plan timely inspections and part
replacement, and allows preventive maintenance measures
to be implemented. The result is a steady reduction inmaintenance-related waste for the customer, together with
reduced maintenance costs associated with this waste.
KOMTRAX information can also be used to devise more
efficient ways of operating the equipment, based on thecharacteristics of the customer’s worksite. Selecting more
appropriate models and using the equipment more efficiently
leads to lower fuel consumption and less environmental
impact. Recently, our Fuel-efficient Operation Report, whichuses KOMTRAX information to reduce operating costs, hasbeen highly rated.
KOMTRAX became standard equipment on models
built for the Japanese market in 2001. As of March 2011,
200,000 vehicles have been equipped with the system world
wide.

09

◆ Machine Management System (KOMTRAX)
Customers
Construction management(operating hours)
Construction cost
(fuel consumption)● Fleet management(location information)●●

Equipment
operatinginformation

Accurate servicing

Distributor
Optimized maintenanceproposition● Service reports
for the customer●

Work site

KOMTRAX Plus for Mining Equipment Used in
Harsh Operating Environments
While the KOMTRAX system described above is installed
on general construction equipment working in urban
environments, KOMTRAX Plus is used on heavy-duty mining
equipment operating in large-scale mines and similar sites.
Heavy-duty mining equipment operates at sites where
natural resources that support our daily lives, such as coaland iron ore, are extracted. Typically, general construction
equipment is moved in relatively short cycles from one
operating site to another. However, mining equipment, onceis at the mining site, will remain there in full operation, day
and night. And this equipment is expected to provide stable
operation at all times.
Minimizing idle time due to breakdowns requires planned
maintenance and part replacement.
KOMTRAX Plus helps meet the challenges posed byharsh operating conditions.

◆ KOMTRAX Plus and EQP Care

Komatsu
Product planningand development● Production planning● Parts repair planning●

Customers●

EQP Care

Monitoring of equipment
health andoperational
statusDistribution
over theInternet

Accurate
servicingDistributor●●

Maintenance based on R&M plan
Parts procurement
and planned maintenanceThe company began installing KOMTRAX Plus, a system
for monitoring the health and operational status of mining
equipment, in 2002. Now, approximately 10,000 mining
machines have been equipped with the system. KOMTRAX

Enhancing Quality of Life

Equipment
operatinginformation

Information
storageand distribution

Plus collects data from numerous sensors installed on
the mining equipment and provides real-time information(equipment health and operating information) that is used in
the operation of this large-size equipment. The informationis transmitted via satellite and consolidated in the EQP Careequipment allocation system.
Using the EQP Care system, customers, distributors, local
subsidiaries, and Komatsu can access a variety of information about the equipment via the Internet.
In addition to making KOMTRAX Plus data available,
EQP Care also consolidates various service and support
information for each vehicle. It then makes comprehensive
use of this data to propose accurate preventive maintenancemeasures to the customer. These measures are designed
to improve operation rates and optimize overhaul times, toreduce repair costs.
In addition, the system can analyze the way vehicles areused and, based on this data, suggest more efficient operating methods, thus reducing environmental impact by making
operation more fuel-efficient.

Voice KOMTRAX Plus Helps

Customers Reduce their
Fuel Consumption

Indonesia is rich in mineral resources and plays animportant role in supplying the world with coal. A large
number of mining machines manufactured by Komatsu arein operation in Indonesian mines, and the role KMSI playsin these developments is growing day by day.
Although Indonesia is a coal-producing country, thecost of fuel for running mining equipment has roughly
quadrupled over the past five years. This increase in fuelprices has caused the costs of operating a mining businessto swell by nearly 20%, eating into customer profits. Dump
trucks, in particular, use a large amount of fuel as they
drive up the slopes of a mine, making the high fuel cost for
dump trucks one of our customers' biggest headaches.
Even PAMA, our largest customer in Indonesia, has
asked us to help them reduce the fuel cost for dump
trucks.
To meet this request, we decided to make extensive
use of KOMTRAX Plus. After analyzing the data of a dump
truck with a payload of 90 tons (our flagship product),
Komatsu worked together with its distributors, KMSI, and
PAMA to successfully reduce the fuel consumption. The
activities that led to this success are described below.
In line with The KOMATSU Way and the importanceit assigns to the worksite, we started the process with afield study. We investigated the course taken by dump
trucks at the worksite and conducted detailed analyses ofthe driving methods of operators. After careful analysis of
the collected data, we found that we could decrease fuelMohamad Sholahudin

Devi Ari Suryadi

PT Komatsu Marketing andSupport Indonesia [KMSI]PT Komatsu Marketing andSupport Indonesia [KMSI]

consumption by using "economy mode" in combination
with certain course patterns.
After the field study, we began training activities.
Distributors trained operators in driving methods that
decreased fuel consumption. PAMA revised its standard
operating procedure for mining operations to emphasize totheir operators the need for energy conservation.
A strength of KOMTRAX Plus is its capability for visualizing the results of these efforts. A comparison of the fuelconsumption before and after the countermeasures clearlyshows their effect. PAMA acknowledged that the measures
had brought about a reduction in fuel consumption inthis particular case, but they also expressed the hopethat Komatsu will be able to generally improve the fuelefficiency of its equipment.
In response to this request, Komatsu developed a fueleconomy kit for dump trucks. This kit is currently being
installed on dump trucks of the same type in Indonesia andis producing good results.
Our goal is to continue
approaching our customers
with various proposals for improvement using KOMTRAX
Plus, including measures toreduce fuel consumption,and thereby contribute to
Discussion with PAMA operators
increasing the satisfaction of
about the fuel-saving operation
our customers.
based on KOMTRAX Plus data

10

Special Story 2

Development Story ofTier4-compliant Vehicles/Engines
Since 1996, the exhaust emission regulations applicable to construction machinery in Japan, the U.S.A. and Europe havebecome increasingly severe every five years, and from 2011, will enter into a stage with coming into force of the Tier4 regulations.
What was required was advanced technology that would make it possible to make exhaust gas “cleaner” and improvefuel efficiency. On the occasion of writing this report, we asked members of the Research and Development divisions whohelped to overcome this hurdle to tell us about their passionate involvement in their work.
Emissions Standards for Japan, the U.S.A. and Europe (See page 12)

Vehicles with Tier4-compliant Engines

The Road to Tier4-compliant
Hydraulic Excavators and Improved
Fuel Efficiency (Reduction of CO2)
Seiichi Fuchida, Group Manager
Research Division, Construction Equipment
Development Center 1, Hydraulic Excavator
Development GroupThe following are the main issues faced in the development of Tier4-compliant vehicles:(1) Improvement in engine exhaust heat rejection(2) Space required to mount exhaust gas treatment equipment(3) Creation of control logic for the exhaust gas treatment equipment(4) Improvement in fuel efficiency
In earlier research, Komatsu confirmed the performanceof Tier4 test vehicles after benchmark tests and tests ofTier3 vehicles. Tests were conducted under different climaticconditions, such as at high altitudes and in extreme cold,
and assuming various loads. Tier4-compliance and improved
fuel efficiency (10% lower than conventional equipment) wereconfirmed in the earlier research. A method for evaluating

Development of
Bulldozer D65-17(Tier4-compliant)Kazushi Nakata, Team Leader
Research Division, Construction Equipment
Development Center 1, Small Equipment
Development GroupThe D65-17 inherited the low fuel consumption (5% lower
than conventional equipment) achieved with the D65-16,
and has been further developed to incorporate ICT (Information Communication Technology) and to feature higher
environmental compatibility and safety.
We modified the engine in various ways, for example, byadding exhaust gas aftertreatment equipment and a variablegeometry turbocharger. We tried not to compromise the

The Road to Improved Fuel
Efficiency (Reduction of CO2)
on Dump Trucks
Hitoshi Nakanishi, Team Leader
Construction Equipment Development Center 2,
Dump Truck Development GroupW ith the articulated type dump truck HM300-3, wedeveloped a product that has exceptionally low fuelconsumption (8% less than conventional equipment), while
being able to handle the same work load as the conventional
dump truck. On top of this, the product features lower-noise,

11

fuel efficiency was also established, so that our customers
could actually see that they are saving fuel.
We encountered considerable difficulties in our development trying to satisfy the requirement for improved fuelefficiency. At the same time, we encountered problems that
had not been experienced, such as freezing of the intake
circuit and soot (PM) formation due to incomplete combustion by the Tier4-compliant Komatsu disel particulate filter(KDPF). However, regardless of how imposing the problems
were, we overcame it by mustering all our resources.
I think this was due, firstly, to Komatsu’s technicalcapabilities and, secondly,
to those who uphold thecompany’s corporate tradition. Our quest for environmentally friendly products will never stop.
Keeping this in mind, we
will continue to focus ourefforts on development.
PC220/PC240LC-10 hydraulic excavatorv e h i c l e ’s p e r f o r m a n c e ,including its acceleration,
responsiveness, and fuel efficiency. To confirm that theexhaust gas aftertreatment
equipment works normally
under different conditions,
we conducted various enD65-17 bulldozer
vironmental assessments,
including high altitude tests in Nagano Prefecture and low
temperature tests in Rikubetsucho, Hokkaido.
This was followed by renewed testing of the control system, and included hardware fixes. Although our development
schedule was tight, we were able to start mass production
with minimum delay, thanks to the cooperation of all thedevelopment centers and manufacturing staffs.
environmentally friendly operation.
To achieve this, we needed to use a variable piston pumpto efficiently control the engine rpm and torque, as well as
the hydraulic pressure. It took repeated tuning sessions toachieve maximum
performance for the
dump truck and tocomplete the development.
Onscreen eco
guidance as a visual
aid helps improving
fuel efficiency.
HM300-3 articulated type dump truck

Tier4-compliant Engines

Yoshimi Tamura, Senior Manager
Development Division, Engine Development
Center, Planning Office

Compared with Tier3, Tier4-compliant engine is required
to reduce soot (PM) emissions to one-tenth, so the Tier4
emission standard is a very stringent requirement that cannot
be met simply by extending the technology used for thetransition from Tier2 to Tier3. Technology used in existing onroad trucks cannot be applied to construction equipment,

Enhancing Quality of Lifeso we devoted considerable time and effort to develop an
aftertreatment device and a variable geometry turbocharger
to reduce soot (PM) emissions. Leveraging Komatsu’s inhouse vehicle and engine development and production
capabilities, we laidout a detailed set ofcheck items and succeeded in developing
Intakea product that was
Exhaustdifferentiated fromour competitors’ products.

Developing Engines
Compliant with New 2011
Emission Standards

Variable geometry nozzle

Variable Geometry Turbocharger

exhaust gas temperature. The problem we identified wasthat the soot (PM) collected in the KDPF did not combust
naturally during operation but continued to accumulate.
To solve this problem we needed to develop of a forced
regeneration system that would combust the soot (PM)accumulated in the
KDPF whenever it reaches a certain level. Dueto these unexpected problems we had to work
day and night to meetthe deadline.

Challenge to Develop Tier
4-compliant Komatsu Disel
Particulate Filter (KDPF)
Shinichiro Inoue, Team Leader
Research Division, Construction Equipment
Innovation Center 3
Component Technology Unit 2

Having had experience in marketing tunnel construction
machinery equipped with the KDPF since before the time of
the Tier3 emission standards, Komatsu was initially under
the impression that evolving this technology to meet theTier4 requirements would be easy. But working on Tier4,
we soon realized that conditions had changed significantly
in comparison with Tier3, because of the drastically lower

Soot filter

Oxidation catalyst

Komatsu Diesel Particulate Filter (KDPF)◆ Komatsu’s Actual Measurement Values
under the Exhaust Emissions Regulation◆ Emissions Standards for Japan, the U.S.A. and Europe
Restriction
starting in 2001
Restriction
starting in H13

Restriction
starting in 2006
Restriction
starting in H18

Restriction
starting in 2011
Restriction
starting in H23

Restriction
starting in 2014
Restriction
starting in H26

U.S.A.

Tier1

Tier2

Tier3

Tier4 interim

Tier4 final

EU

StageI

StageII

StageIIIA

StageIIIB

StageIV(g/kWh)Actual measurement value
Restriction starting in 2014
Restriction starting in 2011
Restriction starting in 2006
Restriction starting in 2001

0.4
Particulates

Japan

Restriction
starting in 1996
Restriction
starting in H8

0.3

130kW – 560kW

0.2
0.1
0

1

2

3

4
NOX

5

6

7 （g/kWh）◆ Timetebles for the Emission Regulation of Japan, the U.S.A. and Europe
Restriction starting in 1996

Japan

U.S.A.

EUkW
19 – Less than 37
37 – Less than 56
56 – Less than 75
75 – Less than 130
130 – Less than 560

2004

Less than 19
19 – Less than 37
37 – Less than 56
56 – Less than 75
75 – Less than 130
130 – Less than 560
560 –9.5 / 0.80*2

19 – Less than 37
37 – Less than 56
56 – Less than 75
75 – Less than 130
130 – Less than 560

2005
2006
8.0 / 0.80*1
7.0 / 0.40*1

6.0 / 0.30*1
6.0 / 0.25*1
7.5 / 0.80*2
7.5 / 0.60*2
7.5 / 0.40*2
6.6 / 0.30*2
6.4 / 0.20*2
9.2 / 0.54*2

Restriction starting in 2001

2007

2008

Restriction starting in 2006

6.0 / 0.30*1
6.0 / 0.20*1

Restriction starting in 2014

2010
2011
2012
2013
2014
2015
2016
6.0 / 0.40*1
4.0 / 0.03*1
4.0 / 0.025*1
4.0 / 0.30*1*1*1
4.0 / 0.25
3.3 / 0.02
3.6 / 0.20*1
3.3 / 0.02*1
0.4 / 0.02*1
3.6 / 0.17*1
2.0 / 0.02*1
7.5 / 0.40*2
7.5 / 0.30*2

4.7 / 0.30*2
4.7 / 0.40*2
4.0 / 0.30*2
4.0 / 0.20*2
6.4 / 0.20*2

8.0 / 0.80*1
7.0 / 0.40*1

Restriction starting in 20112009

4.7 / 0.03*2
3.4 / 0.02*1

0.4 / 0.02*1

2.0 / 0.02*1
3.5 / 0.10*1

3.5 / 0.04*1

7.5 / 0.60*3
4.7 / 0.025*3

4.7 / 0.40*3
4.0 / 0.30*3
4.0 / 0.20*3

3.3 / 0.025*1

0.4 / 0.025*1

2.0 / 0.025*1*1: NOx/PM*2: NOx+NMHC/PM*3: NOx+HC/PM (g/kWh)12

Pursuing Environmental Management
Komatsu promotes environment-friendly activities throughout the entire Group to realize its vision of“What Komatsu Can Do and What It Must Do” for the environment and the sustainable development of society.

In line with the Komatsu Earth Environment Charter
revised in 2010, the Komatsu Group embarks on global
initiatives across business areas guided by the fundamental
principles of(1) Contributions to Realization of Sustainable Society,(2) Simultaneous Realization of Environmental andEconomic Performance, and(3) Observance of Corporate Social Responsibility.

Enhancing Quality of Life

Komatsu’s Relationship with the Environment
In recognition of the fact that our business activities deeply
affect the environment on a regional and global level, we, at
Komatsu, have placed the focus on the following four key
areas:
1) Climate Change
2) Establishment of a Sound Material-Cycle Society3) Conservation of Air, Water and Other Environments aswell as Management of Chemical Substances
4) Biodiversity◆ Relationship of the Komatsu Group’s Business Activities with the Environment●●

Sales and After-sales Services●

Provision of environment-friendly products and services
Creation and operation of a transaction network for usedcomponents (parts), information on “Reman” sales, etc.

Activities based on health and safety
and environmental guidelines➡P.11-12,21,23
Sales andafter-sales
service agents➡P.20,28

CO2 reductions
in logistics

Development

Provision of solutions forcustomers’ environmental
activities● Promotion of fuel-efficient
operation● Product support throughuse of ICT
Products

Products➡P.20,22

Environment & Economy
LCA design
Local● Medium-term targets forcommunity
development ofenvironmental technology●

Reduction of environmental
impacts during the productusage stage●

Sales, Rentals, andAfter-sales Services

Improvement oftransport efficiency● Improvement ofpacking material●

Komatsu
employees●

Sales andafter-sales service
agents

Logistics●

Use

Communications
satellite➡P.9-10,21

Reuse of products●

Komatsu
employees

Reuse Reuse of parts
Reuse

Customers➡P.21

ReduceBusiness
associates

Procurement ofMaterials●

Green procurement

CO2

Use

Mitigation of climate change(energy conservation)

Effective utilization of resources(zero emissions)● Environmental risk management● Elimination of hazardous chemical
substances● Termination of use of organic
chlorinated cleaning solvents● Correspondence to biodiversity●

Remanufacturing of usedcomponents (parts) (“Reman” business)
Recovery➡P.23

Recycling of materials(outsourcing)➡P.23

Used vehicles

Recycle➡P.22,24-27

Komatsu
employees

Disassembly
Proper disposal of waste(outsourcing)

13

ParticulatematterManufacturing➡P.20,37-38●

NOX

Komatsu Earth Environment Charter (June 2010 revision)< Corporate Principles >Enhancing Quality of Life

1. Contributions to Realization of Sustainable Society
Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment ofour planet earth to future generations in a sound and healthy 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 ourbusiness activities. This is represented by our hybrid construction equipment which features a substantial reduction of CO2 emissions while
in operation and by our superior manufacturing.

2. Simultaneous Realization of Environmental and Economic Performance
We are committed to improving both environmental performance and economic efficiency, as a group of companies working toward superior manufacturing for customer satisfaction. To this end, we constantly take up the challenge of advancing technologies to develop creative
products that improve both environmental performance throughout the product’s life cycle and the product’s economic performance at thesame time.

3. Observance of Corporate Social Responsibility
Each company of the Komatsu Group promotes environmental conservation by not only complying with the applicable laws and regulationsof the concerned host community, region and country but also by establishing its voluntary standards which consider global and local
environmental concerns. Each company of the Group also strives to fulfill its corporate social responsibility by actively participating in local
environmental conservation programs and thereby promoting close-knit communication with local communities, while striving to become acompany trusted by all Komatsu stakeholders.

< Guidelines for Corporate Activity >1. Basic Stances on Earth Environmental Problems
We, at the Komatsu Group, work for sustainable society and earth environment through our global business operations by addressing thefollowing four environmental problems with the stances discussed below.
1) Climate Change
We will reduce the use of energy and emissions of greenhouse gas in all phases of our business activities ranging from research anddevelopment, procurement, production and logistics to sales and service as well as in the total life cycle of our products and services.
2) Establishment of a Sound Material-Cycle Society
Through our business processes, we work to minimize the use of natural resources, such as materials and water, promote their re-use
or recycle them as much as possible, and expand Zero Emissions from our manufacturing activities around the world. At the same time
we ensure the thorough management of waste materials in all our business domains, including our suppliers and distributors. We also
continuously work to increase the recyclability rate of products at the time of disposal.
3) Conservation of Air, Water and Other Environments as well as Management of Chemical Substances
We comply with not only local laws and regulations but also with our established standards concerning the conservation of water quality,
prevention of air pollution, noise and vibrations.
As much as possible, we also ensure the thorough management of chemical substances for use in our business activities, while continuously reducing the use of potentially harmful chemical substances or replacing them with alternative substances for discontinuation of
their use.
4) Biodiversity
We recognize biodiversity as one of the important issues concerning the earth environment, evaluate, understand and analyze impact on
it in all our business domains, and work on our tasks according to the criteria of the highest impact and/or the most effective actions.

2. Framework of Global, Group-wide Environmental Management System
The Komatsu Head Office, as well as the manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications,will work to maintain and improve their environmental management system, while other manufacturing facilities and suppliers will also workto establish their environmental management systems and reduce their environmental impact.
The Komatsu Environmental Committee develops environmental action plans and common guidelines for the Komatsu Group. Basedon these Group-wide plans and guidelines, each division or company sets up its own mid- to long-term targets, develops and implements
specific action plans, reviews them regularly and works to continuously improve them.

3. Environmental Education and Communication
We believe that it is important to enhance the environmental awareness of each and every employee and thereby actively promote environmental awareness and education programs for all employees.
We will gather environment-related information concerning not only our manufacturing facilities but also other related entities, such as
major affiliated companies and suppliers, and strive to disclose such information, thereby facilitating proactive communication with all our
stakeholders, such as customers, employees, local communities and suppliers and further expanding the content of environmental communication.

14

Environmental Management Structurecompany formulates environmental action plans (implementation policies) for each field, establishes action targets foreach fiscal year, and steadily advances its policies, while
following up on their implementation status.

Environmental Action Plan and Resultsfor FY2010
To promote the Komatsu Earth Environment Charter, the◆ Environmental Management
Implementation policies

Objectives
for FY2010

Resultsfor FY2010

Medium-and long-term
objectives

Maintenance for the Integrated Certification of environmenAcquisition of integrated
tal management systems (EMSs) is in progress.
certification by the Komatsu Group
Integrated certification of Komatsu House postponed
Manufacturing Facilities in Japanto next FYContinue to organize courses● Held 13 courses with over 5,200 participantsand expand them to overseas
locations

Futureinformation●

Enhancing Quality of Life

1. Strengthen environmental management systems

Integrated certification of
Komatsu House Ltd.

2. Environmental education and training: Implement
the education plan

Draw up and promote theeducation plan

3. Environmental communication: Publish anenvironmental & social report

Formulate a communication
plan and publish the report●

Enhance the quality of the● Published the Japanese version in July and the English
content; release report earlier
version in August 2010
than in previous years

P.19
P.20
－

◆ Research and Development
Implementation policies

Objectives
for FY2010

1. Reduce the environmental impact of construction
equipment
Develop vehicles compliant●

Develop low-emission construction equipmentwith Tier4-interim emission
standards●

Reduce CO2 emissions from construction equipment(improve fuel efficiency of products)

Reduce CO2 emissions ofequipment compliant with Tier4interim emission standards(hydraulic excavators: Δ 10%
compared to existing models)and hybrid equipment (hydraulicexcavators: Δ 25% compared toexisting ordinary models)●

Improve the recyclability rate of construction
equipment

Achieve 99.5±0.5％ forequipment compliant with thenext emission standards

Resultsfor FY2010

Medium-and long-term
objectives

Futureinformation

Developed a vehicle equipped with an engine
compliant with Tier4-interim emission standards (130
– 560kW) (D65-17, PC220/240LC-10, WA380-7,
HM300-3, etc.)● Introduced an engine oil (low ash oil) developed
specifically for KDPF equipped vehicles

Develop vehicles compliant with
the Tier4 emission standards
effective from 2011 in the U.S.A.,
Europe, and Japan

P.11
P.12

Achieved 10% reduction with a hydraulic excavator
compliant with Tier4-interim emission standards● Mass production of hybrid hydraulic excavators(HB205-1 and HB215LC-1)

10% reduction by 2015
compared to the 2007 level forvehicles compliant with Tier4
emission standards(hydraulicexcavator)
35% reduction for hybrid vehicle(hydraulic excavator)

P.11
P.21

Recyclability rate of 99.5±0.5％
by 2015

P.23

Maintain the reduction of
hazardous substances at 75%
compared to the 1998 level until
2015

－

●

●

Started indicating the substances contained in canned
counterweights (according to the manuals by Japan
Construction Equipment Manufacturers Association)● Adopted chlorine-free hydraulic hoses (changeover underway)● Established a recycling route for electric double-layer
capacitors● Achieved 75% reduction using a newly developed
vehicle (strict control of continuous use of alminium
radiators/rigorous management of packing materials
for canned counterweights)●

Maintain reduction of
hazardous substances at
75% compared to 1998●

Strictly control and reduce substances of environmental concern in construction equipment

2. Reduce the environmental impact of industrial
machinery●Market high-performance AC servo presses●

Market high-efficiency wire saws for solar cells

3. Promote reuse and recycling●

Promote the “Reman” business

Reduce the use of
mercury and lead in vehicles
compliant with Tier4 emission
standards
Introduce a separate
hazardous substances
control system for eachproduct type (to comply with
REACH regulations)
Expand business affiliations
for AC servo presses
Develop minor-change model
Expand and promote the“Reman” business●

Monitor panel of Tier4-compliant vehicles changed
over to a mercury-free LCD panel

－

－

●

Conducted surveys of substances by product type inJapan and the EU for mass production
The control system is being implemented outside
Japan (with the exception of the EU)

100% hazardous substances
control for parts destined for the
EU by May 2011

P.26

●

Launched more compact AC servo presses

Expand AC servo press sales
ratio

－

●

Minor-change model of multi-wire saws for solar cells
developed and released to the market
Reorganized the “Reman” business globally(concentrate operations into ten Reman Centers inregions with a high demand for remanufactured parts)

Expand business affiliations forhigh-efficiency wire saws
Promote reuse and recycling throughfurther improvements in recyclingrelated technologies for parts

P.21

●

●

P.23

Topics Biodiesel Fuel Project -Completion of BDF Pilot PlantIn 2009, the biodiesel fuel (BDF) project was started
at the Adaro Mine in Kalimantan, Indonesia. The projectprovides for cultivation of the jatropha and other plants
for production of BDFs and using these fuels to run
Komatsu dump trucks in operation at the mine.
At the Adaro Mine, in 2010, Komatsu built a pilot plantfor BDF production and a laboratory where the produced
BDFs are analyzed to maintain quality. Komatsu, as the
manufacturer, will from now on guarantee the quality ofthe dump trucks running on BDFs at the Adaro Mine.
The project is an example of a business model for
local production of a carbon-neutral biodiesel fuel for
local consumption. The future objective is to replace

15

20% of the kerosene consumed by 1,000 dump trucks
with BDFs, with the goal of achieving a reduction in CO2emissions of approximately 200,000 tons, roughly theequivalent of the CO2 emitted by Komatsu manufacturing facilities in Japan in the course of one year.

Pilot plant for BDF production

Local staff and the laboratory◆ Manufacturing
Implementation policies

Objectives
for FY2010

Resultsfor FY2010

Medium-and long-term
objectives

Futureinformation

1. Mitigation of climate change (energy conservation)
Make 20% improvement by FY2010 in the amountof CO2 emissions per unit of manufacturing value
Improve 1% over thecompared to the FY2000 level at the Komatsu Group previous fiscal year
manufacturing facilities in Japan● Curb total CO2 emissions to the 1990 level(Komatsu Group manufacturing facilities in Japan)
●

●
●

●

Maintain or make further progress in attaining zero
emissions at the Komatsu Group manufacturing
facilities in Japan

40% reduction by FY2015
compared to 1990 level
43% reduction by FY2020
compared to the 1990 level

P.22

By FY2015,
Japan: Attain a recycling rate ofAttained a recycling rate of 99.0% across the Komatsu
99.5% or greater
Group
Overseas: Attain a recycling rateof 95% or greater

P.24

●

Achieved 38.8% reduction in the amount of waste
generated per unit of manufacturing value over the
FY2005 level

20% reduction by FY2015
compared to the 2005 level

P.24

●

Achieved 30.3% reduction in the amount of waterused per unit of manufacturing value over the FY2005
level

25% reduction by FY2015
compared to the 2005 level

P.24

●

Achieved 48.7% reduction in the amount of VOCs
released per unit of manufacturing value over the
FY2005 level

50% reduction compared to the
FY2005 level

P.26

Continue the cleanup●

In progressComplete the cleanup work

P.25

No applicable underground
tanks

●

No applicable underground tanks

Sequentially address eachunderground tank that has beenin operation for 20 years or more

P.25

Resultsfor FY2010

Medium-and long-term
objectives

Futureinformation

Attain a recycling rate of 99%
or greater

Achieve a reduction of more than 15% by FY2010
Improve more than 15%
in the amount of waste generated per unit ofcompared to the FY2005
manufacturing value compared to the FY2005 level at level
the Komatsu Group manufacturing facilities in Japan● Achieve a reduction of more than 10% by FY2010 in
the amount of water used per unit of manufacturing Improve more than 10%
compared to the FY2005
value compared to FY2005 at the Komatsu Grouplevel
manufacturing facilities in Japan●●

Enhancing Quality of Life

2. Effective utilization of resources

Improved 27.0% from the FY2000 level; attained 3.8%
improvement over the previous fiscal year
Curbed total CO2 emissions by 18% compared to1990

3. Environmental risk management
Implement voluntary reductions in the release ofchemical substances
Substitute reductions in the amount of VOCs
released, which account for the majority of chemical
substances released● Implement voluntary reductions in VOCs
Achieve reductions of more than 20% and 50% by
FY2008 and FY2010, respectively, in the amountof VOCs released per unit of manufacturing value
compared to the FY2005 level● Undertake soil and groundwater remediation at the
Komatsu Group manufacturing facilities in Japan● Sequentially address each underground tank thathas been in operation for 20 years or more at the
Komatsu Group manufacturing facilities in Japan●

Establish a control systemfor chemical substancesand reduce the amountof released chemical
substances◆ Procurement and Logistics
Implementation policies
1. Green procurement●

Promote improvements at suppliers through theestablishment of environmental management
systems and by specifying matters that require
environmental consideration

Objectives
for FY2010
Provide guidance andsupport to member
companies of the Komatsu“Midori-kai” for acquiring
integrated certification of theirenvironmental management
systems (EMSs)●

Certification acquired within FY2010: 17 out of 17
Reinforce linkages with suppliermember companies acquired certification (equal to the
EMSs
target)P.20

Improve CO2 emissions perunit of net sales generated
through shipping of products
and components by 30.6% by
FY2015 compared to the 2006
level (Komatsu manufacturing
facilities in Japan)

P.22

Continue to promote modal shift－

Reduce procurement of new
packaging material to zero

P.22

Promote these efforts with afocus on components

P.22

2. Environmental conservation in logistics●

CO2 emissions per unit of net sales generated
through shipping of products and components(Komatsu manufacturing facilities in Japan)(in the scope of revised Law concerning the Rational
Use of Energy of Japan)

Improve by 14.4% over the
FY2006 level●●

Improve 10.7% over the previous fiscal year
Achieved 38.0% improvement compared to FY2006

The Oyama and Koriyama Plants are increasingly
emphasizing a shift to Japan Railway containers, raising
the modal shift ratio to 3.6%. At the same time, Komatsu’s
overall modal shift ratio (including the use of domestic
vessels) falls on 23.9%, remaining on the same level● The Awazu Plant is focusing on the use of speciallydesigned packaging for containers and has improved
Increase the packaging return
the packaging return ratio by 9.4%. The total
ratio
packaging return ratio for shipments within Japanaccounts for 45.1% of all export packaging● Improved the cargo weight per shipment index by
13.1% by loading containers directly at the plant,
improving the load ratio, increasing production at
Increase the size of shippedplants adjacent to ports, increasing the number of selfunits to large lots
propelled vehicles and similar measures（11.6 tons/
shipment -> 13.1 tons/shipment）●●

Shift to means of shipping with low environmental
impact●To save resources, aim at reducing procurementof new packaging materials to zero and make all
shipping containers returnable●

Promote reduction in shipping distances andimprovements in shipping efficiency

Promote modal shifts inshipping from trucks to inland
ferries or rail●

Using nearby ports to shorten
shipping distances by trucks

The distance per shipment using truck trailers (average
haul distance) was reduced by 13.3% (183 km/shipment
Implement further improvements,⇒158 km/shipment）across the Komatsu Group.
including reducing the operating
Transfer of production to the Ibaraki and Kanazawa
range of forklifts
Plants, which are adjacent to ports, is ongoing to
reduce shipping distances

P.22◆ Sales and After-sales Servicess
Implementation policies
1. Encourage Komatsu Group sales agencies
and rental companies in Japan to reduce theirenvironmental impact

Objectives
for FY2010
Enhance awareness ofthe environment througheducation and training basedon the Group’s environmental
guidelines

Resultsfor FY2010
Carried out activities for improvement throughguidance provided during onsite visits to 107 sites● Regularly issued the Safety and Environment
Newsletter (24 editions published yearly)●

Medium-and long-term
objectives

Futureinformation

Support environmental
conservation activities by
Komatsu Group sales agencies
and rental companies inJapan based on the Group’s
environmental guidelines

P.20

16

Environmental Management Structure◆ Environmental Impact Indicators by Region
EnergyWater Resources

Relationship between Business Activities
and the Environment(million GJ)

6.0

Enhancing Quality of LifeThe Komatsu Group procures various parts and materials
and, through the manufacturing process, utilizes the earth’s
resources, including raw materials, water, energy, andchemical substances, among others, to provide products tocustomers. Such business activities impact the environment
at each stage in the process.
The Komatsu Group will continue to provide more highly
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.

6
5.0

Input

Development
Ecology & Economy● LCA design● Medium-term targets
for developmentof environmental
technology●

Green procurement

2

1.2
1.0

0.5
Japan

Asia

(excluding Japan)

The Americas Europe

EnergyElectricity
Heavy oil A
Kerosene
Light oil
Natural gas
LPG
Gasoline
LNG
Steam
Other

938,591t

Procurement of Materials

3

2.0

Indirect Materials
Paints1,225t*1
Lubricants
14,873kℓ*1

●

4

3.3

3.0

0.0

6.12

5

4.0

◆ Environmental Impact Resulting from Business Activities ofKomatsu Group Companies, including Facilities outside Japan(FY2010)
Direct Materials
Steel(million m3)

5.9

815GWh13,000kℓ
6,000kℓ
10,000kℓ
16million Nm3
7kt
500kℓ
14,000Nm3
33kt
5MWh

0.93

1
0

0.12
Japan

Asia

(excluding Japan)

0.07

The Americas Europe

Water Resources
Groundwater 5.9million m3
Industrial water 0.3million m3
Supply water 1.0million m3

Manufacturing (36 Komatsu Group Manufacturing Facilities in and outside Japan)
Mitigation of climate change(energy conservation)● Effective utilization of resources (zero emissions)● Environmental risk management● Elimination of hazardous chemical substances*1● Termination of use of organic chlorinatedcleaning solvents*2●

Product
Product weight(construction, mining andIndustrial equipment)

1,619kt
Number of products(construction, mining andIndustrial equipment)

75,811vehicles

Environmental Risks(Air, soil, and groundwater pollution)

Measures for underground oil tanks
0unit*2
Storage for PCB transformers
476units*2
Groundwater observation wells
123wells*2
Company on-site landfills
ClosedOutputWaste
112kt
Total amount generated
Substances under the Pollutant Release andTransfer Register (PRTR) Law
98.5t*2(Waste furnaces
1 unit stopped)

Waste Recycling
Recycling amount

98kt
Hazardous waste manifests

Use inother industrial
sectors

Waste Disposal
Waste materials disposed by subcontractor 14kt
(Company on-site landfill of waste materials 0kt)

Atmospheric Discharges
561kt-CO2
CO2
SOx
69t
177t*2NOx
Substances under the PRTR Law 571.6t*2

Noise andvibration

Water-based Discharges
5.7million m3*2
Wastewater
BOD emissions
27t*2
COD emissions
18t*2
Substances under the PRTR Law(public water areas)
0t*2
Substances under the PRTR Law(sewerage)
0t*2

CO2 emissions: Calculated by multiplying the electric power, heavy oil, etc. consumed (see Energy section of Input column) by the CO2 emission coefficient (according to the Greenhouse Gas Emissions Calculation - Reporting Manual of the Ministry of the Environment based on the Act on Promotion of Global
Warming Countermeasures)
SOx emissions: Calculated by multiplying the “S content by percentage” (based on element tables of suppliers) by the amounts of heavy oil, kerosene, light oil, andcoke used.
NOx emissions: Calculated by multiplying the “nitrogen oxide emissions units” (obtained at each Komatsu facility) by the amounts of heavy oil, kerosene, light oil,natural gas, and LPG used.
Emissions and transfer of substances covered by the PRTR Law: Calculated by the “content ratio of specific chemical substances” contained in indirect materials
multiplied by the “discharge or transfer rate.” This calculation is based on the PRTR Law, which was designed to mandate the disclosure of the amount of specificchemical substances released into the environment to promote the management of such substances.

17

CO2

Waste

(1,000 t)(1,000 t)

270

264.5

240

50

223.3

◆ CO2 Emissions by Scope
Scope1: CO2 emitted directly by
manufacturing facilities
Disposal amount
Recycled amount

43.6

210

(by using generators, boilers, etc.)40(1,000 t)

90

90

50.9

120

50

100

40

80

22.5

30
Japan

EnergyLight oil 1,430kℓ*3

Asia(excluding Japan)

Logistics

Japan

EnergyElectricity
Kerosene

Asia(excluding Japan)0

The Americas Europe

15.3GWh*4
500kℓ*4
etc.

Japan

Asia

(excluding Japan)

0

Japan

Asia

(excluding Japan)

The Americas Europe

EnergyFuel, electricity

Use

Provision of environmentfriendly products and services● Creation and operation ofa transaction network forused components (parts),
information on “Reman” sales,
etc.

Recovery and Disassembly

Reduction ofenvironmental impact
during the product usage
stage● Provision of solutions forcustomers’ environmental
activities● Promotion of fuel-efficient
operation

●

11.4

20

The Americas Europe

Indirect Materials, Oils

Indirect Materials, Oils

38.9

40

11.1

EnergyFuelSales and After-sales Services

CO2 reductions in logistics● Improvement of transport
efficiency● Improvement of packing
materials
●

12.0

10
0

The Americas Europe

Packaging
2,930t*3
Steel
Resins44t*3
Wood, cardboard
4,021t*3

60

20

8.1

10

167.3

140

56.1

60

19.6

175.8

160

30

60

0

180

Enhancing Quality of Life

20

88.7

70

30

120

(by purchasing electricity)(1,000 t)

80

41.1

180
150

Scope2: CO2 emitted indirectly by
manufacturing facilities●●

Promotion of “Reman,” inwhich used components(parts) are recovered,remanufactured, andsupplied back to themarketReuse of products
Reuse of parts
Recycling of materials(outsourcing)Atmospheric Discharges
50.9kt-CO2*3
CO2

Atmospheric Discharges
7.8kt-CO2*4
CO2

Atmospheric Discharges
CO2, NOx,diesel particulate matter
Atmospheric Discharges
CO2

Returnable pallets

Waste oilproducts

Noise andvibration

Hazardous waste
manifests
Waste
disposal

Recycling conducted
at oil manufacturers

Use inother industrial
sectors

Coverage of Data *1 : 7 Komatsu manufacturing facilities in Japan*2 : 12 Komatsu Group manufacturing facilities in Japan*3 : Logistics from procurement to sales related to construction equipment in Japan*4 : Sales agencies and rental companies in Japan(Komatsu Construction Equipment Sales and Service Japan Ltd. and Komatsu Rental Ltd.) were added18

Environmental Management Structure
Organizational Chart of the Environmental Management Structure
Board of Directors
The highest executive body to discussand deliberate top-priority matters andmake decisions on management policiesof the Komatsu Group.

Person in charge of environmental management :President and CEO

Research and development divisions

Enhancing Quality of Life

Corporate level control division (Environmental Affairs Department)

Strategy Review Committee

Manufacturing divisions
Sales and after-sales services divisions

The executive body to study and review
basic policies, plans, and strategies,
hold deliberations involved in top-priority
corporate affairs, and put these before
the Board of Directors. This committee
consists of the standing executive
directors.

Business units
Affiliated companies
Manufacturing facilities outside Japan
Research

Earth Environment Committee
This committee has ultimate authority
for approving Komatsu’s environmental
conservation measures. Its meetings
are held biannually. Its mission includes
formulating specific environmental
action plans based on the Guidelines for
Corporate Activity of the Komatsu EarthEnvironment Charter and determining
Komatsu Group’s overall direction inenvironmental conservation. Chairedby an executive officer in charge ofenvironmental management, it consistsof executive officers responsible forindividual divisions.

Environmental Committee

Environment Management Groups

Development
Development Meeting

Environment Technology Working Groups

Manufacturing
Manufacturing Technology Meeting

Environment Management Personnel Liaison Council
Environmental and Energy Saving Working Groups

Logistics Planning Meeting

Logistics Manager Liaison Council

Manufacturing Facility Environment Management Committee

Environment Promotion Team

Procurement Division
Procurement Meeting

Global Safety and Environmental Affairs Meeting

Sales and after-sales service

Chaired by an executive officer in chargeof environmental management, thismeeting consists of officers responsible
for safety and environmental management in Komatsu manufacturing facilities
both in and outside Japan. Meeting
every two years as a rule, it provides
a platform to implement policies andmeasures formulated by the Earth Environment Committee and to exchange
information related to environmental
conservation worldwide.

Komatsu Japanese Dealer Meeting

Liaison Council (After-sales service division in Japan)
Liaison Council (Rental division in Japan)

Affiliated Companies’ Environmental Management Conference
Environmental Management Conference for Manufacturing Facilities outside Japan

Acquiring ISO14001
Komatsu has implemented a Group-wide initiative toacquire ISO14001 certification, an international standard
for environmental management systems. The objective is toenhance management quality by strengthening systematic
steps towards environmental conservation.
Since 1997, several manufacturing facilities both insideand outside Japan, received certification. In FY2005, thefour plants belonging to Komatsu Ltd. (the parent company),
the Awazu, Osaka, Mooka, and Oyama Plants, acquired
integrated certification, As the second step, in FY2007
Komatsu added its major affiliates in Japan and yet-to-becertified non-manufacturing facilities – notably the Head
Office – to the above four plants, with integrated certification
attained by the Group in Japan in May 2008.
Upon completing the April 2010 surveillance audit,
Komatsu NTC Ltd. (Toyama and Fukuno Plant) was includedin the integrated certification. The Group seeks to further
expand the scope of its integrated certification in the future
to cover its affiliates in Japan.

19

Procurement Control Manager Meeting

Four manufacturing facilities outside Japan, BKI (Bangkok
Komatsu Industries Co., Ltd.), KUI (PT Komatsu Undercarriage Indonesia), Hensley (Hensley Industries, Inc.), and KIPL
(Komatsu India Pvt. Ltd.) acquired certification in FY2009.
Other manufacturing facilities overseas are also being
encouraged to acquire ISO certification.

ISO14001
Integrated
Certification

Global Logistics Meeting

Environmental Education and Training
In Komatsu Group’s basic education system, the parent
company and individual divisions share the responsibility foreducation. The parent company develops educational materials
and provides educational services on relevant academic issues
for use by Komatsu Group companies. Individual divisions, on
the other hand, provide instruction on more hands-on matters,
including unique features particular to the individual divisions.
Education and training is tailored to different occupational
content, and includes lectures on the environment.
The FY2010 curriculum for environmental education wasessentially the same as for FY2009. Special emphasis wasplaced on learning about environmental laws and regulations inrelation to environmental risk management. Komatsu created its
own textbook for teaching environmental laws and regulations,and dispatched a lecturer from inside the Company to teachthe course at each business unit. To date, more than 200
employees have taken the lecture. In FY2011, the Company
embarked on an awareness campaign for employees, to drive
home the importance of conserving biodiversity.
Komatsu encourages employees to obtain an appropriate
environment-related certificate that is recognized by public
institutions.

Environmental Inspection
at the Komatsu Subsidiary in India
Komatsu has established environmental protection guidelines,
which are based on the Komatsu Earth Environment Charter,
to improve the level of environmental conservation and reduce
environmental risks in developing countries. After visiting subsidiaries in China in 2007, and Thailand and Indonesia in 2009, in
this fiscal year Komatsu representatives visited two subsidiaries
in India to inspect environment-related facilities and exchange
views on environmental matters. The inspections also included
the local waste disposal companies that the subsidiaries use.
The representatives found that each of the business units was

Enhancing Quality of LifeThe enactment of the revision to the Law concerning the
Rational Use of Energy of Japan in FY2006 made Komatsu topromote more and more implementing measures to reduce CO2
emissions associated with its logistics operation that had been
implemented by desterilizing returns and joint transpotation
with competitors. Starting in FY2011, these activities will be
expanded to a global scale. In preparation for this expansion,a Global Logistics Meeting was convened in FY2010 toassess the status of CO2 emissions and make improvements
in logistics processes. Work started with assessing the CO2
emissions of ten major overseas production facilities in the
U.S.A., U.K., Germany, Brazil, China, Indonesia, and Thailand.
Transport-related CO2 emissions were calculated using
the improved ton-kilometer
method, resulting in detailedtransport data comparable
to that available in Japan.
This was used to visualize
the status and to make imGlobal logistics meeting
provements.
(at the Komatsu Head Office)practicing energy savings,
carrying out air and water
quality measurements andwaste separation, and
had increased the ratio ofgreen space on their plantpremises. Moreover, there
were no indications ofserious environmental risks.
Measurement for exhaust gas emissions
Komatsu plans to continue
from the electrical generator
environmental inspections(in Komatsu India Pvt. Ltd.)in developing countries into the future, to raise the level ofenvironmental protection for the Komatsu Group as a whole.

Environmental Audit of Chinese Subsidiaries
Komatsu performs internal audits using the audit departmentsof regional headquarters (RHQs). In FY2010, three Chinese subsidiaries underwent environmental audits by Chinese auditors,
with support from the Komatsu Head Office. The Head Office
prepared check sheets, which were used to examine ISO14001
activities and observance of environmental regulations. The
audits were performed under the guidance of an environmental
expert from the Head Office to help reduce environmental risks
and improve the level of the local auditors. Environmental audits
at RHQs in countries other than China are planned in the future.

Supporting Environmental Activities at KomatsuGroup Sales Agencies and Rental Companies
Komatsu supports environmental activities at group sales
agencies and rental companies through education and guidance on ways to enhance their environmental management.
The Environmental Guidelines, distributed in April 2005,
comprise points and standards that should be observed inrelation to environmental issues that are of direct relevanceto operations at sales agencies and rental companies. These
include waste treatment, waste oil treatment, oil and grease
management, and treatment of wastewater from vehicle washing. Komatsu assists sales agencies and rental companies inmeeting the provisions of the Environmental Guidelines.
The Company also assists in the review of the environmental
aspects of operations, conditions, and equipment at the relevant business sites of the agencies and companies, gives onsite guidance, and proposes remedial actions that are tailoredto each site. This is done through joint visits to each of the sites
by persons in charge of environmental management at Komatsu
and at the sales agencies and rental companies. (In FY2010,
107 sites received this assistance.) As a result, awareness ofthe environment has risen at the agencies and companies andvarious improvements are underway.

Supporting Suppliers in Introducing
Environmental Management Systems
To reinforce environmental management at our suppliers,
Komatsu required the Komatsu “Midori-kai” group, which accounts for about 80% of the value of procurements, to have all its
group companies acquire EMS certification. By FY2008, all 126
business associates in Japan had acquired EMS certification.
Of new member companies, 28 companies acquired
certification between FY2009 and FY2010.

20

Mitigating Climate Change
Komatsu is reducing CO2 emissions generated by its business activities while delivering productsthat help customers promote their environmental activities.

Enhancing Quality of Life

Mitigating Climate Change throughProducts and Services
Introducing a New Type of Hybrid Hydraulic Excavator toWorld Markets
The new HB205-1 hybrid hydraulic excavator features
25% higher fuel efficiency than the PC200-8, which isequipped with a conventional engine. This has earned it
certification as a low-carbon emission construction machineby the Ministry of Land, Infrastructure, Transport andTourism. The new hybrid model’s clean engine meets the
U.S. Environmental Protection Agency’s (EPA) Tier3 emission
standards. In addition, it was designated by the Ministry ofLand, Infrastructure, Transport
and Tourism as an ultra lownoise construction machine,
generating 6dB less noise than
low-noise machines. All in all, theHB205-1 boasts dramatically
improved environmental performance with regard to emissions,
HB205-1
fuel efficiency and noise.
hybrid hydraulic excavator
Full Model Change for the WA1200 Super-large Wheel Loader
The WA1200-6, the world’s largest mechanical wheel
loader, is equipped with an advanced Komatsu engine. Its
multi-faceted exhaust emission control system has reduced
emission levels of nitrogen oxides (NOx), hydrocarbons (HC),carbon monoxide (CO), and other harmful substances. In
addition, fuel efficiency has been improved by 15% (comparing to conventional equipment),
by incorporating control features
such as controlling discharge
rate of the pump or the flow to
the hydraulic circuit dependent
WA1200-6 wheel loader
on the load onto the equipment.
Thermoelectric Modules
Thermoelectric modules are devices that take advantageof the Seebeck effect – two dissimilar metals are connected,
causing a temperature difference at the connection pointand current flow between the two metals. Marketing of thesedevices has started through KELK Ltd.
Komatsu had undergone a total of approximately 6,000
hours of verification testing with the heat-treating furnace at
the Awazu Plant until January
2011, and is now using therecovered energy for indoor
lighting of the plant. If waste
heat recovery from plants is
widely adopted (50% adoption)
in Japan, it will bring about areduction in CO2 emissions of1
million tons (Electric converVerification test of the heat-treating
sion: 2.9 ×109kWh) annually.
furnace at the Awazu Plant

21

Wire Saws for Solar Cells
Mainstream solar cells are made from thinly sliced siliconwafers. These wafers are manufactured by a machine known
as a multi-wire saw, which achieves high precision cutting
using a wire moving at high speed. The expansion of solar
energy generation has led to an increase in Komatsu NTC’ssales of wire saws. The advanced technology contributes
to the production and quality of solar cells, and at the sametime to the reduction of CO2 emissions worldwide.
◆ Wire saw sales rate trend(as the rate is 1.0 in FY2006)

9.0

7.9

8.0
7.0
6.0
5.0
4.0

3.2

3.0
2.0
1.0
0

1.8

1.8

1.0
2006 2007 2008 2009 2010
(FY)

Wire saw for cutting solar cell wafers

Automated Machine Control/Guidance System
An Automated Machine Control/Guidance System refers to a
construction system designed to improve the productivity of theoverall construction process and ensure quality. This is achieved
by applying Information and Communication Technology (ICT) toa series of processes, consisting of surveying, design, construction, supervision, and inspection and maintenance. Equipping
construction machines with the Automated Machine Control/
Guidance System makes it possible to compare the position
information of the machine with three-dimensional design data
to support operation of the machine by the operator or toautomatically control the machine. Incorporating these features
greatly reduces the need for guides and surveying work during
construction. It also reduces subsequent corrections, thereby
shortening construction periods, improving the operation ratesof the construction equipment, and reducing CO2 emissions.
Calculations based on internal test results have shown that theuse of one D65PX-16 medium-sized bulldozer will reduce CO2
emissions by 7.9 tons per year, or in terms of fuel, will help save
15 drums of fuel. After having already made inroads in Japan,
the U.S.A. and Europe, Komatsu is currently promoting thesystem on a global scale.
◆ Example of fuel consumption reduction effect byAutomated Machine Control/Guidance System
D65PX-16 annual fuel consumption(Previous operating hours: 800 hours per year)0
Previous
modelsAutomated Machine
Control/Guidance
System

10,000(ℓ)

20,00019,200 ℓ

16% reduction
16,128 ℓ*Effect of the Automated Machine Control/Guidance System
on Reducing CO2 Emissions (effect not guaranteed)Training on the AutomatedMachine Control/Guidance
System(China)

Initiatives to Mitigate Climate Change
in Business Operations◆ CO2 Emissions(1,000t)

100

400

350
324

(%)

100

100

90

86.8

80.0
or less

316

300
78.7
250

239

276
78.4
72.7

71.6
287

58.8

(FY)

1990

2000

2006

70.4

63.7

55.0

265

70.0
or less

80

70

66.3

200

0

73.0

2007

2008

60

188
2009

2010

0

Average target
from2008 to2012

Manufacturing value: Total production cost excluding direct material cost,
other facilities’ components, and procured components● Using Nearby Ports to Shorten Shipping Distances
Shipping distances were shortened by transferring production to the Ibaraki and Kanazawa Plants, both adjacent
to ports.
(1) The Kanazawa Plant “Shipping distance per unit”
193 km/unit ➡ 56 km/unit (71% of improvement)(2) The Awazu Plant raised its utilization rate of the Kanazawa
Port for component shipments by 11.4%. (Utilization rateof the Kanazawa Port raised from 80.9% to 92.4%)(3) Transferring production of industrial machinery to the
Kanazawa Plant resulted in a reduction of CO2 emissions
equivalent to 422 tons per year.
◆ Targeted and Actual CO2 Emissions per Unit of Net
Sales Generated though Shipping
t- CO /( hundredmillion yen )2

4

Total amount of CO2 emissions of theentire Komatsu Group manufacturing facilities in Japan
CO2 emission index per unit of manufacturing value
at Komatsu Group manufacturing facilities in Japan (compared to FY2000)
CO2 emission index per unit of manufacturing value at
Komatsu (non-consolidated) manufacturing facilities (compared to FY1990)

3

Upgrading from old production lines to high-efficiency production lines
Strict enforcement of cutting power to equipment not in operation

Using high-efficiency heat pumps in air conditioning systems
Renewing transformers to amorphous transformers
Using power saving control of engine-generators, etc.
(Minimum CO2 Operation)

Komatsu Castex’s New Iron Foundry Facility
Komatsu Castex Ltd. is in charge of the Komatsu Group’s
foundry division. Iron foundry operations account for about
30% of the CO2 generated by the Group, because of thehigh heat requirements.
Komatsu Castex Ltd. constructed the new iron foundry facility at the Himi Plant and transferred iron foundry operations
from the Oyama Plant. Komatsu Castex is now capable ofefficient operation. At the new iron foundry facility, the latest
high-frequency melting furnace (IGBT control) was adopted.
50% of the CO2 related to foundry is generated in themelting process. Using the new melting furnace, CO 2
emissions is reduced approximately 16% per weight in themelting process.

3.53

3.66

3.42

3.40

3.27

3.14

2.87
2.54

3.11
2.54

2.27

1
0

(FY) 2006

Demand Refining drying processes (shift to low-pressure air blowers)
side

Supply
side

3.66

2

◆ Main Initiatives in the Manufacturing Division

Introducing inverter-controlled pumps and motors
Adopting high-efficiency lighting to a greater extent

Enhancing Quality of Life

Reducing CO2 Emissions in Manufacturing Operations
As part of its efforts to mitigate climate change, Komatsu
has adopted an indicator of CO2 emissions per unit of manufacturing value with respect to the electricity, fuel gas, fueloil, and any other type of energy used in the manufacturing
operations. The Company has set a target of 20% reduction
in CO2 emissions by FY2010, compared to the FY2000 level.
In 2010, the increased use of energy for air-conditioning
during the heat wave aggravated the situation, but thecompany succeeded in achieving its medium-term target for
the fifth year in a row.

Reducing CO2 Emissions in Logistics● Improving Load Efficiency by Increasing Shipped Unit
Size to Large Lots
Transport efficiency was
improved by dense loadingof large-size containers. The
reduced number of transportruns resulted in a reductionof CO 2 emissions throughthe use of logistics. In addition, the use of returnable
Loading engines into containers
pallets contributed to the(Example: PC200 bound for China:load efficiency 98.8%)
conservation of resources.

2007

2008

2009

2010

2011
(Plan)

2015(Mid-term Plan)

Reducing CO2 Emissions
in the Non-manufacturing Divisions
With the revision of the Act on the Rational Use of Energy,
all Komatsu business units are assessing CO2 emissions inan effort to achieve reductions. The energy consumption of
non-manufacturing divisions, including the Head Office building, the Research Division, and the Field Testing Department,
is shown in the table below. Komatsu is proactively moving
forward by assessing and reducing CO2 emissions. These
efforts are not limited to Komatsu alone, but are expanding
to include the entire supply chain, from business associates
to sales agencies and rental companies.
◆ Energy Consumption of Non-manufacturing Divisions (FY2010)
Main sales andMainafter-sales services divisions
partner
NonProduction
companies Sales of construction
Rental(for reference) manufacturing
equipment
Komatsu(1,000 tons)

CO2

169.2

8.3

118.7

5.1

2.7

Crude oilequivalent

93.0

4.5

62.8

3.0

1.7

(1,000 kℓ)

22Creating a Resource Recycling Society
Komatsu is helping to create a resource recycling society by promoting the reuse and recycling of used components
and by improving the recyclability rate of construction machinery through its Reman business. At the same time, thecompany is stepping up activities to attain zero emissions at Komatsu Group manufacturing facilities.

Enhancing Quality of Life

Promoting the Reman Business
Komatsu’s “Reman” business remakes used engines,
transmissions, and other key components (parts) ofconstruction and mining equipment into “remanned”
components. These components, which have the same
quality as newly manufactured components, are then offered
back onto the market. The Group is promoting the “Reman”
business at ten Reman Centers around the world, with thosein Indonesia and Chile serving as global centers.

“Reman,” an abbreviation for “remanufacturing,” offers thefollowing advantages to customers:● Quality and performance guaranteed to be the same
as for new components● Lower cost for “remanned” components● Reduced idle time for construction equipment throughsufficient inventory of “remanned” components● Resource conservation and waste reduction throughreuse and recycling of components
The number of Reman Centers was expanded in 2010 byestablishing a remanufacturing plant for general construction
equipment engines and engine sub-components in Changzhou, China, and facilities in Russia and India for heavy-duty
mining equipment component remanufacturing.
Providing Reman-relatedInformation
T h e K o m a t s u Group has
set up “Reman-Net” fornetworking Komatsu RemanCenters around the world. The
Group is actively using thisnetwork to develop Reman
operations for reuse andrecycling of components at
the global level. IC tags andtwo-dimensional codes areu s e d t o m a n a g e a n i t e m ’s
remanufacturing history andtrack quality and durability
information. This important
information is fed back to
the Group, to help develop
components with appropriate
life spans.

23◆ Reman Process
Inspection upon receipt
High-pressure cleaning
Disassembly◆ Changes in Reman Ratios (base 2004 = 100)
Index(%)

198

200
180

161

160

100
80

157

138

140
120

169

100
2004

112

2005

2006

2007

2008

2009

2010
(FY)

Upper left: KCIS Kuzbass Support Center (Russia) Upper right: Komatsu India
Reman (India) Lower left: Komatsu Reman Indonesia (Indonesia) Lower right:
Komatsu Changzhou Rebuild Center (China)

Acquiring ISO14001 Certification for Reman Centers
To further environmental conservation efforts, the ten Komatsu Reman Centers around the world have been pursuing
ISO14001 certification. Three of the centers have already beencertified and the remaining centers are working on obtaining
certification. Certified Reman Centers are advancing environmental conservation through daily operations and throughinspections for maintaining and renewing their certification.
Future Steps
To further increase the reuse rate of used components(parts), the Komatsu Group is reducing the number ofdisposed parts by:● developing parts with suitable sizes and designs
exclusively for future remanufacturing● developing recycling-related technologies (assessment,
measurement, high-pressure cleaning, heat treatment, etc.)
to reduce waste components, and thereby further step up
reuse and recycling activities.

Component inspection
Component cleaning
Component remanufacturing
Assembly set-up
Assembly
Performance test
Painting
Final performance inspection
Factory shipment

Improving Recyclability Rate
Komatsu is moving forward with its changeover fromconventional rubber hoses to chlorine-free hydraulic hoses
for its construction equipment. Conventional rubber hoses
represented a bottleneck in Komatsu’s efforts to raise its recyclability rate for construction equipment. This changeover
opens the way to raising the recyclability rate to over 99% forhybrid vehicles and for newly developed vehicles that meet
the Tier4-interim regulations. This exceeds the target value
set by the Japan Construction Equipment Manufacturers
Association (97%) and comes close to Komatsu’s own
voluntary target of 99.5%.

◆ Amount of Water Resources Used by the
Komatsu Group Manufacturing Facilities in Japan

Effective Utilization of Resourcesin Manufacturing Operations(million m3)◆ Amount of Waste Generated by the Komatsu Group
Manufacturing Facilities in Japan
40

(%)

200

200

Amount of waste generated

38.2
30.4

30

33.0

34.1
29.8

29.8

150

113
20
99.2

100

99.8

99.2

99.2

99.2

95.9

99.0
89.6

10

1998

Disposed amount

59.4
14.0

48.5
0

99.1

2004

2005

2006

Recycled amount

2007

2008

2009

Index per unit ofmanufacturing value

99.0

100

61.2
19.6
2010

50

Recycled amount(1,000 t/year)

0

(FY)

Recycling rate** Recycling rate is calculated by dividing the amount recycled (including valuables)by the amount generated (including valuables).

Water Resources
Since FY2006, Komatsu has set a new medium-termtarget of achieving by FY2010 a 10% or greater reduction in
the amount of water used per unit of manufacturing value,compared to the FY2005 level.
The company has attained this medium-term target by
reducing the amount of water used per unit of manufacturing
value by 30.3%, compared to FY2005, through the reuse ofwater during processing and the elimination of wasteful dayto-day practices.
In particular, the Awazu Plant cut back on its groundwater
consumption through measures such as assessing the wells fromwhich groundwater is taken and repairing water leakage. As aconsequence, they were able to trim water usage by 16% perunit of manufacturing value compared to the previous fiscal year.
The plant also established a new medium-term target providing for a 25% or more reduction in the amount of waterused per unit of manufacturing value by FY2015, comparedto the FY2005 level.
In the years to come, Komatsu will make further efforts to
reduce the amount of water resources used and to achieve
its new medium-term target.

(%)

92.4

90.4

100
84.1

82.2

8.82

9
8.16

8.18

69.7

8.38

8

80
60

7.56

7

40

6.12

6

5.44

0

2004

2005

2006

2007

2008

2009

2010

20
0

(FY)

Coverage of data: Komatsu Ltd. and the Komatsu Group manufacturing facilities in Japan
Index per unit ofIndustrial water
Groundwater
Supply water
manufacturing value

Resource Conservation
by Non-manufacturing Divisions
Waste
The Komatsu Head Office is promoting zero emissions
and has remodeled its waste containers to make waste
separation easier through the use of visual aids. Other steadyefforts to recycle resources include the use of recyclingboxes and kitchen waste disposal machines. The amount ofwaste is also being measured at regular intervals. The results
showed that a 63.6% reduction has been achieved in theamount of combustible waste, compared to March in 2008
when measurements started. Komatsu also participated in
the ECOCAP Movement and collected enough bottle caps
to fund vaccines for 348 children in the developing world.
◆ Changes in the Amount of Combustible Waste from the Head Office(kg)

Combustible waste*1 : Komatsu defines “zero emissions” as a waste material recycling rate of 99% or more.
*2 : “Valuables” in this report refers to materials that can be sold to external companies.

100

10

Enhancing Quality of Life

Waste
In tandem with reducing the amount of waste produced
during manufacturing operations, Komatsu conducts zero
emissions*1 activities to use waste materials as resources.
The company continued to achieve zero emissions in
FY2010 through strict waste separation and utilization of wastematerials as valuables*2, boasting a recycling rate of 99.0%.
The medium-term target for waste emissions was also
attained in FY2010, the last fiscal year falling within this period,
with total waste emissions per unit of manufacturing value having decreased by 38.8% compared to FY2005. This dramatic
reduction was due to the fact that Komatsu Castex Ltd. madeadvances in effectively utilizing its waste molding sand.
At the same time, new medium-term targets were establishedfor recycling rates and total waste emissions per unit of manufacturing value at business units in Japan, and new mediumterm targets for recycling rates at overseas business units.
This fiscal year Komatsu will encourage mainly its Group
companies to practice thorough waste separation, with theaim of achieving the company’s new medium-term target.

1,000

871

800

739

600
400

450

415

November
2009

June
2010

317

200
0

March
2008

November
2008

November
2010

Topics The Environment Minister’s Commendation
awarded to the Oyama Plant

The Oyama Plant embarked on initiatives such as(1) Introducing high efficiency equipment basedon the top management’s realization of theimportance of saving energy(2) Issuing a declaration for each employee to reduce
CO2 emissions by 1 kg per day(3) Having energy conservation patrols make therounds of the plant to eliminate waste(4) Setting up a special department in charge ofintroduction of energy saving equipment.
Thanks to these activities, in which all corporate
levels participated, CO2 emissions per unit of manufacturing value in 2009 were reducedby 41% (compared to 2000), andin FY2010 the Oyama Plant wasawarded the Environment Minister’sCommendation for its activities tomitigate global warming.
Oyama Plant Manager

24

Environmental Risk Management
Komatsu is committed to thoroughly implementing measures that mitigate and prevent pollution,in strict compliance with the legal requirements of national and local authorities,
to minimize the environmental risks that accompany manufacturing activities.

Enhancing Quality of Life

Promoting Compliance and Pollution Mitigation
and Prevention
Komatsu Group companies are responsible for periodicallyreporting and archiving environmental measurement results,
in strict compliance with applicable laws and regulations ofnational and local authorities. In FY2010, the Komatsu Groupexperienced a single minor environmental infraction in Japanand corrective measures have been completed for this case.
The Group had no major accidents where the environment
was polluted in Japan.
Addressing Soil and Groundwater Contamination
Komatsu has established guidelines in Japan for testingsoil and groundwater, and performs investigations according
to applicable laws and regulations at business units that are
to be sold, closed, or demolished. If pollution is found, theCompany takes appropriate measures under the supervisionof local authorities. Komatsu has also performed voluntary
investigations at currently operating business units, tocheck for contamination from volatile organic compounds
compounds (VOCs), which had been used in previous years
in cleaning solvents and in other applications. Komatsu has
been surveying soil and groundwater for VOC contamination
at Group business units in Japan since 2005. All business
units where contamination was detected have implemented
countermeasures. The Company chose methods that would
clean up the sites in as short a time as possible. Work at the
Oyama Plant was completed in FY2009. With the demolition
and removal of the former Development Center at the Osaka
Plant in FY2010, an investigation was carried out according to
the Soil Contamination Countermeasures Act and the results
were reported to public authorities. The site was declareda so-called “designated lot subject to notification in case ofchanges”, because the levels of lead and other substances
exceeded standard values. The notification prescribed by thelaw was issued, and the required countermeasures have been
completed. The history of the detected substances cannot be
ascertained, and it is not clear what caused these substances
to exceed the standard. Komatsu will continue to takereliable clean-up measures and maintain its monitoring of siteboundaries to ensure that groundwater that does not meetenvironmental standards is contained within the premises.
◆ Status of Soil and Groundwater Cleanup in Japan
Presence ofBusiness unit contamination

25

Cleanup method

Awazu Plant

Yes(formerly)

Komatsu Plant

Yes

Osaka Plant

Yes

Shonan Plant

Yes

Excavation and removal, soil vapor
extraction, groundwater withdrawal andaeration, bioremediation
Excavation and removal, groundwater
withdrawal and aeration, bioremediation
Soil vapor extraction, air sparging,groundwater withdrawal and aeration,bioremediation
Excavation and removal, groundwater
withdrawal and aeration

Tochigi Plant

Yes

Excavation and removal, bioremediation

CleanupstatusIn process
In process
In process
In process
In process*Surveys revealed no contamination for the Koriyama Plant, Research Division in Hiratsuka,
Techno Center in Izu and Field Testing Department in Oita.

Managing PCB Waste
Komatsu conducts appropriate storage and managementof PCB waste, such as transformers and capacitors inaccordance with Japan’s Law Concerning Special Measures
Against PCB Waste and its Waste Disposal and Public
Cleansing Law. In FY2008, Komatsu began entrusting PCB
disposal to the Japan Environmental Safety Corporation(JESCO). A total of 95 PCB-containing capacitors had been
disposed of by FY2009. Another 69 capacitors were disposed of in FY2010. When JESCO started its ballast disposal
operations at its Kyushu facility, Komatsu re-examined the
PCB-containing lamp ballasts,
w h i c h i n c l u d e f l u o re s c e n tlamps, used at all its facilities.
The investigation revealed that
there were approximately 3,300
PCB-containing lamp ballasts
in use. These disposal efforts
are scheduled to continue inTransformers being removed
2011.
from the Osaka Plant for disposal◆ Number of PCB-containing Transformers andCapacitors in Storage
Company

Number of
disposalin FY2010

Site

Number of storage
High density Low density

Field Testing Department

0
0
52
0
0
0
0

0
67
59
309
0
2
0

7
112
59
6
5
1
3

Construction & Mining
Equipment Marketing Division

0

4

0

Subtotal of Komatsu

Komatsu House Ltd.

52
15
0
0
0
0

441
20
0
31
2
1

193
11
20
0
12
4

Komatsu Construction Equipment
Sales and Service Japan Ltd.

2

18

19

Komatsu Rental Ltd.

0
17
69

0
72
513

1
67
260

KomatsuLtd.

Head office
Awazu Plant
Osaka Plant
Oyama Plant
Mooka Plant
Shonan Plant

Komatsu Utility Co., Ltd.
Komatsu Castex Ltd.
Komatsu NTC Ltd.
Komatsu Cabtec Co., Ltd.

Total of Komatsu group
Total*The Komatsu Plant’s share has been transferred to the Awazu Plant.
High-concentration waste from Osaka Plant will be disposed of within 2011.
*The former Kawagoe Plant’s share is included in the Head office.

Reducing amount of PRTR-related substances and
VOC released
Most of released PRTR-related substances and VOC
are VOC used in paint. In FY2010, the amount of such
substances released increased as production increased.
Komatsu is making efforts to reduce the amount by (1) shifting to high solid paint and (2) improving coating efficiency.
(See figures and tables in P26.)

◆ Substances of Environmental Concern Banned or
to Be Reduced for Use in ProductsConcern

Reducing the Use of Substances of Environmental
Concern and Complying with the EU REACH Regulation
Responding to the increase in environmental conservation awarenessaround the world, Komatsu has been making efforts from an earlystage to reduce the use of asbestos, lead, and other substances ofenvironmental concern. In FY1999, Komatsu stipulated its own list of
banned substances and substances approved for use only in limited circumstances (see chart right), using as its base the chemical substancesbanned under Japan’s Law Concerning the Examination and Regulationof Manufacture of Chemical Substances Control*1 , as well as otherregulations in individual countries. At the same time, Komatsu begancomprehensive control of substances of environmental concern. The
company has already reduced its dependence on substances approved
for limited use, in keeping with its medium- and long-term targets fordeveloping environmental technology.
In response to the enactment of the EU regulation addressing Registration, Evaluation, Authorization and Restriction of Chemicals (REACH*2)
in 2007, Komatsu reviewed the list of substances approved for limited
use and revised the designation of certain substances to “reduced”
or “banned,” as appropriate. Through cooperation with suppliers, thecompany has initiated a system to strengthen control of substances ofenvironmental concern in products. This system has been deployed by
the corporations in Japan 2009, in Europe 2010, and is planned to be
deployed in the U.S.A. 2011.

Designation

Inputting specifications of substances ofenvironmental concern contained in products●●●

Responding to survey results● Summarizing information
on targeted substances●●

Sendingsurvey forms

16

(46)

Komatsu is currently examining whether to designate the following
substances, which might be used in Komatsu products, as
substances to be reduced.
●●●

Lead arsenate/ diarsenic pentaoxide/ diarsenic trioxide● DEHP/DBP/BBP*4,DIBP*5
Triethyl arsenate● Bis (tributyltin) oxide
Short chain chlorinated paraffins*1:Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture etc.
*2:REACH(Registration, Evaluation, Authorization and Restriction of Chemicals):
EU regulations for Registration, Evaluation, Authrisation and Restriction of Chemicals*3:Specified brominated fire retardants*4:Diethylhexyl phthalate, dibutyl phthalate, benzyl butyl phthalate*5:Diisobutyl phthalate*6:Dibutyltin compounds・Triphenyltin compounds◆ Breakdown of the Amount of PRTR-related Substances Released andTransferred at Komatsu Group Manufacturing Facilities in Japan
Xylene 13.9%

Other 2.0%

Molybdenum andits compounds 3.2%
Chromium andits compounds 9.6%

SupplierA

BOM

Supplier
B

Toluene 5.4%

Atmosphericdischarges
30.1%
Adherence
to products
Amount51.7%
transferred(Waste)5.1%
Chemicallytransformed
or eliminated
13.1%

Manganese andits compounds 33.9%

Sendingcompletedsurveys

Ethylbenzene 10.0%

Methylenebis(4,1phenylene)=diisocianate 1.6%

Supplier survey
management
Table listing
substances ofenvironmental
concern

Generating summary formodel under development

To be reduced(subject to limited use)

Substancesof Very High
Concern(SVHC)
under theEU REACH
regulation

Procurement

Database forparts subjected
to surveys

Checking for targeted
substances upon parts
registration

10

Nickel 1.4%

Control system
for substances ofenvironmental concern

Checking for targeted
substances upon releaseof technical drawings

BannedOther 0.8%
Xylene 1.5%
Toluene 1.1%
Ethylbenzene 0.7%
Manganese andits compounds 0.7%
Other 1.1%
Xylene 4.4%
Methylnaphthalene 3.8%

Other 3.6%
1,2,4-trimethylbenze 1.3%

Note: Substances handled in quantities of 1 ton or more

◆ Names of Class I Designated Chemical Substances and the Amounts Released
and Transferred by Group Manufacturering Facilities in Japan (handling 1 ton or more)◆ Changes in the Amounts of PRTRrelated Substances Released* atGroup Manufacturing Facilities in Japan

Numberunder the
PRTR Law

1,400

412
80
53
87
300
438
453
448
308
296
88
321
297
277
132
258
188
349
392
405
207
71
407
400

Enhancing Quality of LifeCAD system(technical drawings)●

Sending informationon technical drawings

Name● Asbestos
PCBs● Specified chlorofluorocarbons/hydro chlorofluorocarbons (HCFCs)● Trichloroethylene● Triethanolamine● Chromium (VI)
● Cadmium● PBB／PBDE*3● Lead● Mercury● Arsenic● Selenium● Hydrofluorocarbons (HFCs)		
● Methanol● Hexachlorobenzene● Specified phthalate ester (DEHP/DBP/BBP*4, DIBP*5)● HBCDD*3● Specified polycyclic aromatic hydrocarbons● Perfluorooctanesulfonic acid (PFOS)● Specified Organotin Compounds(Tri-substituted Organotin Compounds・DBT・DOT*6)● Short chain chlorinated paraffins●◆ Control System for Substances of Environmental Concern
DesignNumber of
substances

Name

Manganese and its compounds
XyleneEthylbenzene
Chromium and chromium (III) compounds
Toluene
Methylnaphthalene
Molybdenum and its compounds
Methylenebis(4,1phenylene)=diisocianate
Nickel
1,2,4-trimethylbenzene
Chromium (VI) compounds*1 *2
Vanadium compounds
1,3,5-trimethylbenzene
Triethylamine
Cobalt and its compounds
Hexamethylenetetramine
N,N-dicyclohexylamine
Phenol*3
HexaneBoron compounds
2,6-Di-tert-butyl-4-methylphenol
Ferric chloride
Poly(oxyethylene) = Alkyl ether(Limited to Alkyl
carbon numbers 12 to 15 and their compounds)
Benzene*2

AmounthandledAmount released
Air

Water

Soil

(unit: t)
AmountChemicallyAmounttransferredtransformed contained in
Buried Sewerage Waste or eliminated products

656.5
377.1
220.7
185.0
135.8
72.0
59.6
38.9
27.7
27.0
25.1
21.2
9.8
9.3
8.5
8.1
8.1
5.7
5.6
4.7
2.0
1.2

1.1
263.0
189.0
0.0
103.0
－
0.0
0.0
－
2.4
0.0
－
4.2
1.1
－
－
0.5
0.0
5.6
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
0.0
－
－
－
0.0
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

12.9
27.8
14.1
3.2
20.1
－
0.0
0.0
0.5
0.3
6.2
－
0.7
0.0
0.5
－
7.1
0.0
0.0
0.2
1.0
1.2

－
83.8
17.1
－
9.0
72.0
－
8.7
－
24.4
－
－
4.8
8.2
－
8.1
0.3
5.6
0.0
4.6
0.0
－

642.5
2.5
0.5
181.7
3.7
－
59.6
30.2
27.3
－
－
21.2
－
0.0
8.0
－
0.2
0.1
－
－
1.0
－

1.1

－

0.0

－

－

－

0.4

0.8

－

0.7

0.0

－

－

－

－

－

0.4

0.3

*1: During chrome plating, chromium (VI) compounds become chromium (III) compounds. Therefore, the amount transferred and the amount contained in products are enteredunder “chromium and chromium (III) compounds.”*2: PRTR Class I Specified Chemical Substances*3: Although the contained amount of those substances is so little that it is needless to register on PRTR, the amount of releasing them exceeds 1 ton, and we disclose the fact
herein.

(kg/
million
yen)

(t)

1,200
1,000

4.9

5.2
1,214

1,036

6

1,288

5
5.0

4.0

977

800

4

402

400
0

3

2.4

2.3

600

2

569.9

1

0
2005 2006 2007 2008 2009 2010 (FY)
AmountreleasedIndex per unit ofmanufacturing value*Substances handled in quantities of 1 ton or more

◆ Amount of VOCs Released by Group
Manufacturing Facilities in Japan
(t)

(%)

2,000

120
100 101.4 95.4

1,500

1,453 1,626
1,693

1,321

1,000

51.3

60

833.3

30

47.6
564

500

0

90

78.8

0

2005 2006 2007 2008 2009 2010 (FY)
Amount of
VOCs released

Index per unit of manufacturing
value (compared to FY2005)

26

Biodiversity
Komatsu will remain committed to protecting biodiversity throughout its business activities,
fully recognizing that they impact the eco-system.

Enhancing Quality of Life

Initiatives that deal with biodiversity

Declaration of Biodiversity by Komatsu

The 10th meeting of the Conference of the Parties to
the Convention on Biological Diversity (COP 10) was heldin Nagoya in October 2010. The conference signaled theincreasing importance of maintaining biodiversity and utilizing
it in a sustainable manner on a global scale.
With the establishment of Komatsu’s “Declaration of
Biodiversity” and “Biodiversity Guideline” in January 2011,
business units worldwide embarked on activities designed topreserve biodiversity.

Komatsu and Biodiversity
Komatsu understands that its business activities dependon biodiversity and impact it at the same time. And Komatsu
is promoting its initiatives to preserve biodiversity on twolevels.
First, the Company continues to promote ongoing efforts
to reduce the environmental impact of Komatsu’s businessactivities. Komatsu has also made it mandatory to consider
biodiversity when deciding how land is to be used, forexample, when building factories.
Second, Komatsu is getting directly involved in preserving
biodiversity, and at the same time expanding its “one site
one theme activities” to raise employees awareness of theneed to preserve the ecosystems that are indigenous to aregion.

Komatsu recognizes that its business activities are dependent on and influence
benefits from the ecosystem services through biodiversity. Based on this understanding, Komatsu takes actions in accordance with the following guidelines as
it shares a sense of responsibility regarding the biodiversity crisis, and strives toconserve diverse resources and engage in the sustainable use of biodiversity.
I. Recognition by Management
Komatsu recognizes that conservation and promulgation of biodiversity areimportant management tasks.
II. Activities
Komatsu shall promote activities by basically integrating climate change
problems 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 from products
2) Reduction of direct environmental impact in the lifecycle of products
3) Consideration of biodiversity when using land
2. Komatsu shall work for conservation and promulgation of biodiversity
through its social contribution activities.
III. Promotion
After considering realistic possibilities, Komatsu shall promote activities bymeans of a step-by-step approach.
IV. Collaboration with Local Communities
To conserve local biodiversity, Komatsu shall collaborate with municipal authorities, local residences, NGOs and other pertinent groups; promote activities; andwork to become a company of which local communities can feel proud.
V. Involvement by All
To foster the growth of employees with a mindset of biodiversity, Komatsu shallpromote activities by having all employees involved. Accordingly, Komatsu shallpromote such activities on a global and group-wide basis by having not only
suppliers, but also customers involved.
VI. Communication
While working to educate its employees in the field of biodiversity, Komatsu
shall actively disclose its efforts regarding biodiversity and thereby enhancesocial awareness of biodiversity.

◆ Positions of Komatsu’s Each Activity
Impact on biodiversity

Social activities

Business activities

IndirectGreening of Factories(Increasing the green
coverage ratio of plant premises in Japan)

Direct・Reduce the environmental impact of business
units CO2, VOC, wastewater management, etc.
・Reduce the environmental impact of machine
operation CO2, NOx, etc.
・Incorporating procurement standards
・Biodiesel fuel project・Fair Trade Office・Greening of factories Plants surrounded byforest (regional species)
・Consideration for biodiversity in land use Land
modification, erection of buildings, holding
management
・Support rehabilitation of depleted mining sites
Restore vegetation (local species) to predisturbance state・Employee education Nurturing environmentallyengaged employees

・One site one theme activities(provide places tointeract with nature)・Preserve regional rare and endangered species
・Planting with the aim of creating natural forests
・Preserving the natural woodlands of a region (Satoyama)
・Planting trees in Indonesia
・Use of vacant lot at the Komatsu Plant (biotope)

The green coverage ratio of plant premises in Japan isbeing increased, working toward a target of 20% by 2015.

◆ Planned Increase of the Green Coverage Ratio
(%)

25
20

17.7

2010

2011

19.3

20.8

21.6

21.6

2013

2014

2015 (FY)

15
10
5
0

Cooperation with NGOs/NPOs

16.6

2012

◆ Relationship between Komatsu’s Business Activities and Biodiversity
Business activities
Impact on biodiversity■ Chemical substances released into the
air CO2, SOx, etc■ Chemical substances released into thewater BOD, etc.
■ Chemical substances released into the soil

Risks for the loss of biodiversity
・Habitat loss ・New species introduction
・Contamination
・Climate change

Manufacturing
Procurement of Materials

Logistics
Resources■ Energy Resources

Crude Oil, Natural Gas, etc.

Development■

Land Use■(Construction of plants, etc.)

Renewable Resources

Water, Wood, etc.

Land Modification

Recovery and Disassembly

27

Sales and After-sales Service

Mineral Resources

Iron Ore, Copper Ore, etc.

Use

Risks for the loss of biodiversity
・Habitat loss ・New species introduction
・Contamination
・Climate change

Impact on biodiversity
Chemical substances released into the
air CO2, SOx, etc■ Chemical substances released into thewater BOD, etc.
■ Chemical substances released into the soil■

Enhanced Safety in the Workplace
Komatsu is formulating new policies for occupational safety and physical and mental health management
to foster a safe and comfortable work environment.

Komatsu has been disseminating the Message from theKomatsu President regarding Health and Safety throughout
the Komatsu Group.

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 andpromote employee health.”

2. The Komatsu Group shall promote “proactive occupationalsafety and health activities” in order for all employees to achieve
the above conditions by working together as one team.

3. Each and every person in a senior management position of theKomatsu Group shall acknowledge the above two matters as
top priority tasks and shall take the initiative in demonstrating
the execution of daily duties accordingly.

In addition to the above, this year the company formulated
an occupational safety and health guideline: “All KomatsuGroup companies, together with all top managers andemployees, shall promote occupational safety and healthactivities, so that employees can work in a safe and comfortable work environment in accordance with the policies
described below.”

Occupational Safety and Health Policies(published on April 1, 2011, in conjunction
with Komatsu’s Worldwide Code of Business Conduct)(1).Observe the laws and regulations concerning occupationalsafety and health as well as internal rules, key items common
to 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 andhealth policies, review their progress, and endeavor to continuously improve and enhance occupational safety and healthactivities.
(3).Carry out occupational safety and health activities inmanagement-and-labor partnership on full participation basis
and keep good communication with stakeholders with regard
to occupational safety and health.
(4).Identify and evaluate the risk for occupational safety and healthof a workplace and take appropriate actions accordingly.
(5).Actively promote employees’ healthcare management andsupport the maintenance and promotion of employees’ health.
(6).Actively promote education, training and qualification acquisition necessary for employees’ occupational safety and healthactivities, and endeavor to develop human resources for safely
carrying out their responsibilities in workplace.
(7).Subject to appropriate protection of personal information, publicly offer the knowledge and information about occupationalsafety and health activities obtained through the businessactivities in order to secure safety and health in society.

Occupational Safety

Enhancing Quality of Life

Message from the President and New Policies
Concerning Occupational Safety and Health

Efforts on Health and Safety Management
by Manufacturing Subsidiaries
Following the certification of the Awazu, Osaka, Oyama and
Ibaraki Plants, the Kanazawa Plant acquired Occupational Safety &Health Management System (OSHMS) certification in FY2010. At
the same time, Komatsu Castex Ltd. and Komatsu Utility Co., Ltd.
(now the Komatsu Tochigi Plant) were the first Group companies toacquire certification. The Komatsu Group has performed assessments to anticipate risks, mainly through small-group workplace
activities on safety aiming at “zero accidents.” In FY2011, theGroup will steadily implement OSHMS at already certified plants,
and promote acquisition of OSHMS certification at other Komatsu
plants. At the same time the Group will foster occupational safety,
mainly through small-group “zero accidents” activities on a fullparticipation basis. While continuing to upgrade safety-related
education and training, the Procurement Division and the divisions
in charge of safety will jointly support safety activities Group-wide,
to include overseas subsidiaries and business associates.
(For example, in FY2010, 74 business associates in Japan, together
with 6 plants overseas, held safety instruction on 9 occasions.)

Health and Safety Management at Komatsu Group
Distributors and Rental Companies
Komatsu supports safety activities at Group distributors andrental companies in Japan through training and guidance on ways toenhance their safety management. Persons overseeing occupational
health and safety at Komatsu and at its distributors and rental
companies, provide guidance on areas for improvement throughvisits to relevant offices, factories, and rental business shops (a totalof 107 sites were visited in 2010) to verify firsthand the state of safety
management at the site. At distributors and rental companies whereoccupational accidents have occurred, Komatsu assisted in determining the causes and formulating countermeasures, and applied thesemeasures to other distributors and rental companies across Japan.
The Komatsu Group further strives to reduce occupational
accidents by promoting risk anticipation.
Group Activities
The Group as a whole has been conducting compliance and risk
audits on safety to confirm the state of compliance with relevantlaws and regulations.
Efforts to eradicate occupational accidents throughout the Groupwill continue based on intensified management-labor cooperation.
◆ Incidence Rate of Occupational Accidents(Frequency Rate of Lost Worktime)(Frequency rate)
All industries

2.0

1.5
Construction andmining equipment
manufacturing industry 1.0
Komatsu(non-consolidated) 0.5
Komatsu Group
manufacturing facilities
in Japan

0

1.85

1.95

1.90

1.83

1.75

1.43
1.11
0.81

0.81
0.43

0.50

0.33
2004

0.40
2005

0.78

1.54

0.89
0.66 0.68
0.44

2006

2007

1.62
0.74

1.61
1.00

0.47
0.15
0.19
0.13
2008
2009
2010
0.64

(FY)

28

CSR Theme 2

Developing People
Key Activities
Priority Issues

Global Management Seminar◆ Contributing to human resource development inlocal communities◆ Enhancing our employees and suppliers throughThe KOMATSU Way(employees and business partners
in the supply chain)◆ Enhancing our employees and distributors
through brand management(employees and distributors)

Sharing The KOMATSU Way
Globally and Contributing
to Society through Human
Resource Development
Masakatsu Hioki
Senior Executive Officer
Supervising Compliance, Legal Affairs, Human
Resources, Education and Safety & Health Care
Komatsu Ltd.

- First, please explain in concrete terms what is meantby developing people.
Hioki: Komatsu’s overseas production went into full swing
from the mid 1980’s. In the process, the number of national
employees increased, resulting in a growing globalization of
our work force. Many of these national employees are stillworking for us, and are part of Komatsu’s “backbone”.
At Komatsu, we encourage national employees to build on
experience working for the company and open the road forthem to advance to top management in their respective region.
This is what we call “localization of management.” Komatsu
also devotes efforts to the development of professionals inmany fields such as production, sales and product support.
Our way of developing human resources is to thoroughly
groom those employees who will assume a role in businesslocations, whether in Japan or overseas.

- What exactly do you mean by making management
local?
Hioki: Our top management around the world would be
people who have worked with Komatsu for a long time, have29

made their career there, and have a deep understanding ofKomatsu’s way of management and set of values. Offering
this kind of employee, who enjoys recognition by thosearound him/her, the chance to move into top management
will also act as a motivation for employees in all regions.
It is better to have local nationals in top management if
we are to earn the trust of the local community and of all
stakeholders and establish good relations.
I believe that the “localization of management” is themost desirable form of management for both Komatsu’s
employees and the local community.

- What role do you expect resident staff to play?
Hioki: In our case, a Japanese expat working abroad is alocal representative with a limited term of service. Japanese
staff is expected to act as a “bridge resource”, that is, tobridge the gap between Japan and the host country. Thiskind of “bridge resource” does not have to be a superhero.
What is important is to know one’s specialty well and tohave the kind of strong will and commitment to get one’s
message across. Foreign languages, especially English, tend
to be thought of as very important, but as long as you have

mastered your area of specialization, the language will cometo you naturally later.

- What do you do about developing human resources
to support Monozukuri (manufacturing competitiveness)in foreign countries?

- Is it correct to say that you believe that by developing human resources you can contribute to the local
community?
Hioki: Komatsu’s overseas business depends on the
support we get from the local community. Providing people
the opportunity to receive training at Komatsu facilities or
to work at our local companies does not only represent a
contribution to the local community, but also translates into
the development of human resources available to Komatsu.
Even if an individual trained by Komatsu decides to join
another company, we do not consider this a loss because it
will still benefit his/her community.
Komatsu thinks that faithfully dedicating ourselves toour core business is what
CSR activities are all about.
I believe we are able to fulfill
our corporate social responsibility by pursuing ourbusiness activities, and that
includes human resource
development and contribut- Competing in the assembly event of theing to local community.
“All Komatsu Technology Olympics”

Young trainees from the local community enrolled in the apprenticeschool established by Komatsu Cummins Chile Ltda.

- Please elaborate on The KOMATSU Way.
Hioki: The KOMATSU Way refers to the values, attitudes
and patterns of behavior that support our operations. The
KOMATSU Way was built up by our forerunners at Komatsu,
and we want to maintain it globally and through our next
generations. We want to share these Komatsu spirits with
employees all over the world.
In the top management chapter of The KOMATSU Way,
top management is required to explain about businessresults and status quo of the company to employees at least
twice a year. This does not only apply to the presidents ofJapanese operations, but the presidents of Group companies overseas. Because the top management itself has
taken the leadership in practicing The KOMATSU Way, thisprinciple has also permeated every workplace of Komatsu.
The KOMATSU Way should not be forced on anyone. Instead, employees are encouraged to digest and understandit, and practice whatever they think is reasonable. This isbased on the premise that the individuality of employees
must be respected.
Sharing The KOMATSU Way will help employees experience a sense of belonging and encourage them to stay withthe same company all their working life. The KOMATSU
Way also yields a variety of positive effects overseas. For
example, the number of employees who have worked for
Komatsu for a long time is increasing, and we are seeing
more national employees who should shoulder managementtasks in the future.
I believe that an important element essential to retain
employees at Komatsu for a long time and to develop theircareer there is to make them feel that having joined Komatsu
was a positive move and worthwhile for them. This is what
I call “a company worthy of spending one’s prime lifetime
with”.
There are three elements that make up this feeling. The
first is the creation of a safe and comfortable work environment, where people are held in high esteem; the second
is to provide people with a fair opportunity to take up newchallenges, and the third is to compensate people properly
for their efforts. Having these three elements neatly in placeis important for employees, I think.

Developing People

Hioki: Plants playing a crucial role in Monozukuri are undertaking initiatives to improve technical skills on the shop floor.
Our technical competitions, originally limited to Japan,
became globalized full-scale as “All Komatsu Technology
Olympics” in 2004 by including overseas manufacturingsubsidiaries. Staging this kind of technical competition will
act as a great motivation catalysis for employees entrustedwith Monozukuri, making them work harder on the shop floor
to improve their technical skills.
In the past, the Product Support Division used to send Japanese expats to train the service engineers of our overseas
distributors. Against the background of a growing numberof our equipment delivered to customers around the world,
however, dispatching Japanese expats to local distributors totrain people is not efficient enough to keep up with expanding
sales. We were faced with the question of how many qualified
service engineers we could train worldwide. In response, wehave come up with different approaches to training humanresources for product support in different countries.
The Komatsu Human Resource Development Centerin the Philippines, for example, offers mechanics training
courses for university graduates, and in China, an effort isunderway to provide service training courses in cooperation
with Shandong University. Developing human resources in
our Strategic Markets will not only strengthen our service
capabilities for end-customers, but will also address theissue of contributing to local communities.

30

Special Story 3

Training Field Engineers in thePhilippines for Worldwide Duty
Three years have passed since the Komatsu Human Resource Development Center (KHRDC) wasestablished in Manila the Philippines in 2008.
The center was set up mainly to train field engineers to take on duties at mines around the world.
Fifty-two Filipino trainees in the Philippines and in 13 other countries across the globe are working
hard every day at mastering The KOMATSU Way and acquiring technology and knowledge.

Urgency of Training Specialists
for Duty at Mining Sites

31

Training Curriculum■ Stage 1 (6 months)
Acquire basic knowledge/technology in the structural
makeup, functions, etc. of construction and mining equipment

Highly skilled field engineers capable of providing superior
product support are indispensable to maintain stable operation of large mining equipment at busy mining sites.
Komatsu has been aware of this necessity for quite sometime, and established a college for product support specialists in Japan, placing emphasis on training Japanese fieldengineers. The Komatsu Human Resource Development
Center in the Philippines was set up in 2008 to reinforce
these efforts and expand them on a global scale.
Every year the Center in the Philippines accepts 20 Filipino
university graduates who majored in mechanical engineering.
Trainees spend four years acquiring knowledge in The
KOMATSU Way, which embodies Komatsu’s policies andvalues.
The Center was established in the Philippines because
Filipinos have had a long record of making major contributions to the growth of Komatsu’s business overseas, throughtheir good knowledge of English, their ability to cope withdifferent cultures, and their superior ability for teamwork.

After four years of training, the trainees are ready to step
onto the global stage and take on their duties at KomatsuGroup companies around the world. According to Komatsu’s
educational policy, the training content not only qualifies
them for assignments as field engineers, but also as application engineers, IT service engineers, and operator trainers.

Entering the Global Stage
After Four Years of Training

Serving as an OJT Site
for University Students

The Human Resource Development Center trains fieldengineers using a four-year curriculum.

Separate from the training program, the Center also accepts university students for on-the-job training (OJT). With
many state-run universities in the Philippines requiring students to earn credits by participating in OJT in industry, 20
students were accepted in 2011 to go through three weeks
of practical training at the well-equipped Human Resource
Development Center. Komatsu will continue contributing tosociety by responding to such needs.

■ Stage 2 (6 months)
Acquire advanced practical knowledge/technology at thetraining center or at mining sites within the Philippines■ Stage 3 (3 years)
To produce field engineers with the highest level oftechnical knowledge of construction equipment, trainees
are first sent to Japan for one month of training, and thento mining sites in other countries for practical training.

to Become
Voice Aspiringa Field Engineer
Appreciated by
Customers around
the World

Mr. Ever Dave Vinatero Buyan
Trainee, Global Field Engineer, KHRDC

I

Bicol University and KHRDC:
Voice TheA Global Partnership for
Human Resource
Development

Engineer Edgardo O. Aguilar
Dean, College of Engineering
Bicol University, PhilippinesE

nvironmental conservation efforts is one of Komatsu’s
highest priority management tasks, and it endeavors tocontribute to the sustainable growth of society by integrating advanced technologies into environmental conservation
efforts in all its business activities. Bicol University (BU)
aims to be a Green University in the coming decade. It
looks up to Komatsu as an example of a company with apeople and environment friendly plant, creating a safe work
environment that enables peace of mind not only to people
but also to its stakeholders.
BU and Komatsu Human Resource Development Center(KHRDC) share the same vision for producing global
engineers.
BU expects its graduates to be:(a) Technically competent, with a passion for technology;
with a global perspective and driven by the need for
quality in the practice of its profession;(b) Creative and innovative in advancing the state-of-theart in their fields of expertise;

Developing People

am one of the first batch of Global Field Engineer
trainees to enter KHRDC. During our 1st stage of training, I had learned many helpful ideas, and acquired data,
information, facts and a wealth of knowledge from trainers
from Japan, Singapore and Philippines. Through classroom
lectures and practical training, as well as OJT at mine sites
while working with the mechanics at local distributors, I
was able to broaden my perspectives and understandingof construction and mining equipment.
Currently, I am working as a product support engineer
in Chile. I was first posted at the Komatsu Reman Center,
where I learned a lot about the “Reman” business whileworking at different departments, such as disassembly,
assembly, hydraulics, electronics, and quality assurance.
On my next assignment, at the Radomiro Tomic Minelocated next to the Chuquicamata Copper Mine, I learned
how to repair and maintain 930E electric dump trucks andhow to prepare overhaul schedules for keeping machines

in top condition.
I am now working at a new project named Pascua
Lama, the first bi-national mining project in the world.
Approximately 60 Komatsu mining equipments including
the 930E are in operation at this mine. For the moment, weare assembling equipments and are working to maintainquality of the assembly process in order to make sure
performance of the machines during the actual operationis good even under extreme conditions of this site, with analtitude of 5,200m where temperature can reach minus 40
degrees Celsius.
To be a renowned global field engineer, whose work is
recognized not only by Komatsu, but also by customers
around the world is a dream I have been working hard tofulfill. I want to become a world class field service engineer
who can speak at least 5 different languages. And if given achance, I want to become a top executive of the company
someday where I can share my knowledge and ideas.
This project (KHRDC) initiated by Komatsu Ltd. is a very
good start for young engineers like myself, who are juststarting to make our way into this world. I am expecting
continued support from the company to keep us motivatedto work hard and become excellent field engineers. I
commend KHRDC for a job well done in training young
engineers in preparing them for the future. I hope that
Komatsu will continue to accept and look for ideas toimprove the training process.

(c) Results oriented and equipped with the know how tomake and communicate decisions while working asa team member for multi-cultural and multi-national
audiences;(d) Ethical, principle centered, and socially responsible
The graduates of BU who are now with Komatsu as fieldengineers can go beyond the basic foundations to be able
to adapt and experience an environment of the industry
which is a very rewarding experience.
A partnership with KHRDC offers BU to improve thequality and international comparability of its engineering
programs, with a vision for producing excellent engineers
by 2020. The partnership will also provide evidenceof compliance by BU to its ISO9001:2008 mandate ofcontinually striving for excellence in instruction, researchand extension by meeting the highest level of clientele
satisfaction and adhering to quality standards.
Given the highly qualified trainees from BU and otheruniversities in its Training Institute, KHRDC will be able toproduce excellent field engineers to meet the highest levelof customer satisfaction as it continues its expansion in
emerging markets and build more lasting relationship with
its customers.
BU looks forward to a mutually beneficial relationshipin educating for peace and international understanding
while trying to adapt to and mitigate the effects of climatechange, as BU and Komatsu strive to contribute to thedevelopment of various economies and peoples.

32

Developing Together with Employees
Employees of the Komatsu Group companies are an irreplaceable asset for the Group.
That is why we try to foster a work environment with opportunities for challenge and creativity. The Company strives
to maximize the trust given to it by its employees.

Global Policy on Human Resources Management
Human resources management systems differ from region
to region, reflecting differences in historical and cultural
backgrounds, differences that must be respected and duly
taken into consideration.The basic policies for personnel
systems common to all Komatsu Group companies aroundthe world are embodied in Komatsu’s Worldwide Code ofBusiness Conduct, as stated below. Each region uses thesepolicies to formulate a personnel system that has a competitive edge over other companies.
Komatsu’s Worldwide Code of Business Conduct (Chapter 5 of A)

Developing People

1 We shall respect each employee’s fundamental human rights,
inherent personality, individuality and legally protected privacy.
2 We shall treat and appraise each and every employee in a fair andimpartial manner. We shall not discriminate against any employee on
the basis of nationality, race, religion, age, gender, physical or mental
disability, or other legally protected attributes that are irrelevant to his
or her performance. We shall vigorously endeavor to promote equal
opportunities for employment and eliminate harassment in the workplace.
3 We shall endeavor to provide the employees with workplaces
where they can seek good balance between their private life andprofessional life while effectively accomplishing their respective
tasks with satisfaction and pride.
4 We shall endeavor to design and administer the systems of humanresources management in a manner that is most reasonable andpersuasive to the employees. We shall make such systems open
and clearly explain them to the employees to the maximum extent
practicable.
5 Komatsu Group companies shall comply with all applicable laws
and regulations governing employees’ rights in jurisdictions in which
they operate and faithfully accommodate, whenever applicable,
conversations or discussions with employees or their representatives.
6 We shall not tolerate child labor or forced labor.
7 Komatsu Group companies shall endeavor to offer to theirrespective employees those terms and conditions for employmentthat are sufficiently competitive in their respective regions.

Komatsu has set forth Komatsu’s Five Principles for Hiring,
namely: (1) the company does not consider age or gender, inhiring decisions; (2) the company does not consider nationalor regional origins in hiring decisions; (3) the company does
not consider religious affiliation or beliefs in hiring decisions;(4) the company does not consider the existence of disabilities that are not job performance related in hiring decisions;and (5) the company gives significant consideration to work
experience at other companies or in other industries in hiring
decisions. Komatsu conducts its hiring practices based onthese five principles, which are disclosed on its website.

Developing Human Resources Globally
The development of global human resources is an ongoingtheme for the Komatsu Group. To maximize corporate value,
while growing together with its employees, Komatsu is setting the following policy in an effort toward further developing
its human resources.
Basic Policy on Education and Training■ Each employee should set high goals, be self-reliant and selfmotivated in acquiring knowledge and skills.
■ The Company should support employee career development
through the implementation of necessary education for both theCompany and employees in a focused manner.
■ The objective of the education policy is “education”, facilitating theongoing growth of the Company and its employees.

While fulfilling basic and specialized education in fields
such as research and development, production, and sales
and after-sales service, the Company is also supporting theacquisition of the necessary attitudes that go with knowledge
and skills, at every level in the Company, from new hires tomanagement. Furthermore, we intend to promote humanresource development on a global, Group-wide basis,including the training of employees outside Japan, as well as
the employees of our business partners.

Topics New training center opened on the site where Komatsu

was founded to celebrate the company’s 90th anniversary

In May 2011, a new training center was opened in“Komatsu Green Park” in Komatsu City, the site where
Komatsu was founded, to commemorate the company’s
90th anniversary. This new training center consolidates
educational facilities scattered throughout Japan andacts as a training center for various fields on a global,
Group-wide basis. Positioned as a global hub for service
training, it will focus on actual training, as well as the development of new training programs and materials. At thesame time, the center will assume the role of Komatsu’s
human resource developer. The center is equipped withinterpretation booths for three languages and hosts avariety of meetings and events from Japan and abroad,making it a center for cultivating global teamwork.
Within the “Komatsu Green Park”, the building that33

housed the head officewhen the company was
founded in Komatsu City
World-largest dump truck 930E in
was re-opened as the “Komatsu Green Park” opened in May 12“Kids Pavillion”, wherechildren can try their hand at running equipment or enjoy
various science experiments. A park with a nature area
lets children enjoy the natural surroundings or get handson experience with growing plants.
These facilities are not solely aimed at accelerating
Komatsu’s global human resource development, but
are meant to be a contribution to Komatsu City, thecompany’s birthplace, with the hope that they will attract
local children and provide an opportunity to develop aninterest in science and nature.

Nurturing Leaders and Global Management
The development of global human resources is an ongoing theme for the Komatsu Group. We are nurturing
human resources that can play an active role on the global scene, to develop the next generation of leaders ina timely manner, and to train employees in our global operations to take on positions in management.

Pursuing Localization of Global Management

We have been holding the Top Management Forum andGlobal Management Seminars since 2006, targeted at top
and senior managers of our global subsidiaries. The forum
and seminars have been attended by 50 persons so far. The
purpose of the seminars is to deepen the understanding ofKomatsu’s corporate strategy, The KOMATSU Way, and ofleadership in general, through the discussion with the President and top management, and provide opportunities toengage in group discussions, to share information and build
teamwork. On the last day of training, participants are given
an opportunity to present proposals to top management on
the practice of The KOMATSU Way.
A follow-up meeting was held in the Global Management
Seminar in 2008, with 15 former participants of this seminarin attendance. This meeting was used to further deepen theunderstanding of The KOMATSU Way outreach and humanresource development.
In 2009, seminars were inaugurated for “The KOMATSU
Way Leadership Development Program”, to train middle level
managers from all over the world, The first seminar was heldin Shanghai, China. In 2010, the second seminar was held inJakarta, Indonesia, and the third again in China. Even thoughnurturing employees for top management positions is important, superior mid-level management potential is essential
for the actual implementation of policies. Noting that humanresource development is an urgent matter, especially in
China and Greater Asia, where the market is rapidly growing,
we continue to support such career development activities.

Komatsu is actively promoting localization of management
at its global subsidiaries. This policy is based on the belief
that Komatsu’s differentiation and competitiveness are
grounded in Japan’s culture of Monozukuri. The company
encourages placing the management of subsidiaries in thevarious regions, each with its own historical and cultural
background, into the hands of local nationals. This is inview of the fact that the majority of consolidated Group employees are non-Japanese, although the company remains
rooted in Japan.

Developing People

Nurturing the Next Generation of Leaders

Voice In South Africa,

People of South Africa
run ourJapanese company

Michael A. Blom
President
Komatsu Southern Africa (Pty) Ltd. (KSAf)

I

Seminar held in Shanghai, China in November 2010, attended by 24 persons

In the spirit of global teamwork, we will continue to share
our values, and focus the Group’s power in the same direction, as we continue to pursue growth.

n 2008, I was the first non-Japanese person to beappointed President of KSAf. This was eleven years
after KSAf was established, and 27 years after I joined
Komatsu Southern Africa at age 20 (1981) and was put
in charge of parts procurement.
I believe that KSAf succeeded in making its management national because the successive generations ofJapanese presidents, each in their own time and intheir own way, dedicated themselves to building thecompany system and developing national management. And this success story spawned a philosophy
that can be summed up in the words: “In South Africa,
people of South Africa run our Japanese company.”
In order for the company and staff to grow, we, as amember of the Komatsu Group, which has its roots inJapan, must understand what is required and operate
in a way that best fits local needs, by connecting thisunderstanding with local wisdom and knowledge.

34

CSR Theme 3

Growing with Society
Key Activities◆ Engaging in dialogues with our stakeholders◆ Providing social contributions through the useof our core technologies and resources (e.g.,disaster relief or activities to remove antipersonnel
land mines)◆ Contributing to our local communities where we
do business◆ Strengthening our corporate governance andcompliance◆ Promoting compliance with environmental, labor,
and social norms within our group and among
business partners

Komatsu’s demining machine at work in Angola

Global Activities
with a Focus on
Communication
Fusao Seki
Senior Executive Officer
Supervising Corporate Communications,
CSR and General Affairs
Komatsu Ltd.

- First, please explain in concrete terms what is meantby growing with society.
Seki: In line with Komatsu’s philosophy that our corporate
value is the total sum of trust placed in us by society and our
stakeholders, we strongly believe that our growth must go
hand in hand with the growth of all of our stakeholders andof society.
T h i s y e a r, w e n a r ro w e d d o w n t h e c o re t h e m e s f o r
Komatsu’s CSR activities from the viewpoint of how we cansatisfy the demands of society through our core business.
Without trying to sound overly self-important, we are moving
forward by concentrating on the societal needs that we canbest serve by the business fields and activities that we aregood at.
And as business becomes more and more global, I believe
it is important to respect regional characteristics and culture
in all our activities, and thoroughly follow through on basic
issues, such as abiding by internal controls and regulations.

35- It says here: Providing social contributions through theuse of our core technologies and resources. How does thisrelate to the earthquake and tsunami that caused widespread destruction in Japan’s Tohoku region this March?
Seki: As reconstruction work continues in the disasterhit areas, my heart goes out to all those who have sufferedlosses. When a disaster of this magnitude strikes, the firstand foremost need at the disaster site is equipment, such as
construction machines and generators, and prefab housing.
To illustrate Komatsu’s commitment to leveraging our corebusiness to contribute to society, I would like to point to
the many times Komatsu has rushed to the site of a natural
disaster and quickly provided assistance. In this latest
disaster, as well, Komatsu started its relief work immediately
after the earthquake hit.
Although this is not related to natural disasters, I would liketo mention that demining machines, which Komatsu developed from what was originally construction equipment, arecurrently in action in Cambodia, Angola and other countries.
The machine has received high acclaim from the NPO withwhich we are jointly engaged in mine disposal and from thelocal people who use the machine. The machine makes thedemining process quicker and safer, compared to the casewhen demining work was done by hand.
I think that the above cases, where Komatsu’s fields ofspecialization closely match the needs of society, can be
regarded as examples of activities that contribute to society.

- Is the company engaged in any other activities
related to its worldwide operations?
Seki: All our global entities, such as subsidiaries anddistributors, in the various countries and regions engage intheir own activities. As is the case with Komatsu’s business,to be able to know what is most urgently needed, you mustbe familiar with the circumstances, culture and customs of
the region.
For example, Komatsu Southern Africa (Pty) Ltd., hasbeen joining hands with a customer to provide young people
who were not able to get a proper education due to racial
discrimination with educational opportunities, to make them
employable. As another example, several subsidiaries in
China have jointly set up a fund made up of contributions
from both the employees and the subsidiaries, that is used
for worthwhile purposes, such as building elementary
schools.
In many other places worldwide, Komatsu and its global
subsidiaries engage in activities that are unique to thelocation, addressing needs that are particular to the region.
Komatsu, on its part, will continue to work under local
leadership to search for appropriate themes and implement
these themes, to make Komatsu an indispensable presence
in a region, not only from a business standpoint, but also as
a corporate citizen.

Ground breaking ceremony ofan elementally school in Yunnan (China)- You mention dialogues with stakeholders.
What does this involve?
Seki: Stakeholders are generally considered to be interested
parties, but at Komatsu, we specifically include customers,
shareholders and investors, distributors, business partners
in the supply chain, the local community, and employees in

Kids’ tour of working vehicles held at Komatsu techno center(in Izu, Shizuoka prefecture)- I think you have placed more emphasis than before
on corporate governance and compliance. Are you
facing any new challenges?

Growing with Society

Young people training in“Komatsu/Denron Community Center”

this group. We have always given great importance to communication, and this is where Komatsu feels its strongest
commitment, as evidenced by Komatsu’s President giving
in-person briefings to employees, distributors, business
partners, shareholders and investors worldwide on thecurrent state of the company at regular meetings.
After making sure that information is properly sharedwithin the Group, we want to take this one step further in the
future, by explaining facts on how we do business to society.
Any areas not meeting the needs of stakeholders, we will
endeavor to tie this kind of communication into our activities
to better align our activities with society. I think repeating thiskind of two way communication will become increasingly
important.

Seki: We have set up a system that ensures higher managerial transparency through measures such as the strengthening of corporate governance and the establishment of aninternational advisory board that includes knowledgeable
persons from outside the company. As for compliance, wehave made changes to the system, to be open-minded andlearn from past mistakes. This is because we believe thatobserving compliance will translate into aggressive businessdevelopment.
What will become increasingly important from now onwill be taking a global approach that also encompasses ourbusiness partners. Komatsu’s Worldwide Code of BusinessConduct, established in 1998, continues to undergo revision,
with the 8th edition having been published in 2011. To makesure that employees familiarize themselves with the Code,we have our global subsidiaries translate the Code into theirrespective local languages. On another front, the regulationsof the Komatsu “Midori-kai” group, an association of thecompany’s business associates in Japan, were recently
revised to ensure that Komatsu’s business partners also
observe applicable laws and regulations.
Whatever the activity, the more globalized it is in nature,
the greater the need will be to know global rules andcircumstances, and to take a realistic approach. Komatsu
will continue to bolster its CSR activities, while taking thecircumstances of each individual country into account.

36Special Story 4

Together with
Business Partners

The relationship of trust we have with our business partners in the supply chain(suppliers) is the foundation of Komatsu Group’s manufacturing operations. Komatsu
thinks of its business partners as equal partners. Over a long history of collaboration,
the Company and its business partners have overcome various difficulties by jointly
addressing issues to realize solutions.

Business Partners are
Important to Komatsu

Green Procurement andCSR Procurement

For a manufacturer, business partners in the supply chain– the suppliers of materials, parts and components – areimportant partners who help sustain the quality and reliabilityof products. Komatsu places great value on this relationshipof mutual support, which has not been limited to procurement, but over the course of many years has also extended
to management and human resource development.
In this age of accelerating globalization and developmentof flexible production systems, our relationship with ourbusiness partners takes on an increasingly important role.

I n 1 9 9 9 , K o m a t s u i s s u e d i t s “ G re e n P ro c u re m e n t
Guideline” to supply customers with products that are inharmony with the environment. With the understanding
and cooperation of its business partners, the Company
has been giving preference to merchandise and productsthat have a minimal environmental impact. The Company
also distributes an “Environmental Check Sheet” to its main
business partners to allow them to clarify their understandingof their environmental management systems and grasp theenvironmental impact of their products. At the same time,
the check sheet calls for and supports the certification ofenvironmental management systems.
As part of the commitment to complete implementation of
CSR procurement throughout the supply chain, Komatsu is
encouraging its business partners to comply with social norms,
including laws and regulations, environmental and corporate
ethics, and consideration of human rights and labor rights
in the workplace. Business partners are willing to disclose
information to Komatsu, because of the long relationship oftrust that has been forged through the mutual support the twosides have shown for each other in hard times. Based on thisrelationship, Komatsu assesses the level of safety and qualityof their business partners on an ongoing basis, through visits
and other careful fact-finding. Through close communication
with its associates, the Company provides recommendations
on safety and quality, as necessary.
In August 2011, the Company plans to issue a “CSR
Guideline”, which will incorporate a revised version of the“Green Procurement Guideline” as well as CSR issues. To
pursue a globally accepted form of procurement, Komatsu
will formulate a guideline that responds to societal needs andwill require business partners to observe the guideline.

Organizations that
Facilitate Collaboration
The Komatsu “Midori-kai” group is an association of theCompany’s major business partners in Japan. With 163
member companies, this group supplies roughly 80% ofKomatsu’s total procurement in Japan.
Komatsu holds various events to foster communication
with Midori-kai group members, convening general conferences, roundtable discussions for managers, and informal
New Year’s business functions. Representatives from each
Midori-kai group company attend these meetings, together
with Komatsu’s top management, providing a forum forinteraction and exchanges of opinions. Outside Japan, theKomatsu Shantui Midori-kai group in China is already active,
and European and North American Midori-kai groups havebeen launched, bringing total participation to more than 115
overseas companies. Komatsu plans to establish an association of business partners in Asia (other than Japan and
China) and strengthen global partnerships with its business
partners.

37

Providing Educational Opportunities
to Support Human Resource Development
Komatsu shares common goals with its business partners,
together aiming to achieve ever-higher levels of quality, cost,and delivery (QCD) through tireless efforts for improvement.
To that end, the Company actively supports human resource
development. It provides education and training in quality
control (QC) activities and manufacturing technologies. It
also allows employees of the Midori-kai group companies toparticipate in technical training provided to Komatsu’s own
employees.
Komatsu is trying to take an “agricultural” approach toprocurement. It is important for Komatsu to build a relationship where the Company and its business partners pool
their knowledge and draw up with a blueprint for harvestinga good crop in the next year that exceed the current year
results. Ultimately, this is what will keep quality consistent at
Komatsu.

Topics Supporting Companies

Stricken by the Earthquake

Growing with Society

Komatsu’s first step in supporting its business
partners that suffered devastation in the recent
earthquake and tsunami was to thoroughly assess
the circumstances of each company. Based on thisassessment, companies were supplied with daily
necessities, such as food, water, cooking utensils,
and items for keeping warm. In addition, every
effort was made to restore production capabilities
as early as possible. On the weekend immediately
following the earthquake, Komatsu plant employees
went to each stricken area and joined together
with the employees of the business partners to
repair and inspect equipment. The goal was to first
help seven of the hardest hit business partners toresume production. All in all 53 people were involvedin this work, over a total of 188 days. Thanks
to these initiatives, Komatsu’s disaster-affectedbusiness partners were able to resume production.
This made it possible for production at Komatsu’s
own facilities tocontinue smoothly,
while at the sametime strengthening
the spirit of teamwork between
Komatsu and its
Supporting reconstruction for abusiness partners.
business partner in the stricken area

Officers’ Meeting of Komatsu Midori-kai Held in May, 2011

to Further
Voice Effort
Progression for Both
Sides – Komatsu
and Midori-kai
Companies

Mr. Shigeo Tsuda
President Nagatsu Industries Ltd.
President, Komatsu Midori-kaiThe recent Tohoku earthquake has affected manymembers of the Midori-kai group, but Komatsu has
extended great support to these companies in a variety
of forms, including dispatch of manpower and relief
donations. This has resulted in even stronger ties between
Komatsu and the members of the Midori-kai.
Since I became Chairman of the Midori-kai, I have often
been interviewed about the future prospects of small andmedium-sized companies and the current circumstances of
our association of cooperating firms. On such occasions,
I usually speak about Komatsu and its close relationshipwith the Midori-kai group. Although it is less frequent now,
at first I would get skeptical looks from the interviewers.
But, when I quoted concrete examples, reporters would
invariably be surprised, saying: “That’s different from thestories I hear at other companies.”
Maintaining this kind of relationship requires effort
on both sides. Komatsu, under the leadership of its top
management, has formulated The KOMATSU Way as it
applies to procurement. I consider this to be an indicator of
Komatsu’s commitment to continuing its partnership withthe members of the Midori-kai group. The Midori-kai, on
its part, strives to ensure that each member lives up to thepolicy that the customer is No.1. I am convinced that these
efforts will maintain and nurture our relationship, and willcontribute to improving the business performance of both
Komatsu and the Midori-kai member companies. To keep
this relationship alive, I think the member companies of ourassociation, especially those that are family-owned, must
nurture successors that are capable of maintaining open
communication with Komatsu and of establishing a systemof succession.

38

Communicating with Stakeholders
Komatsu takes advantage of a variety of opportunities
to communicate with its stakeholders.

For Komatsu, corporate value is the cornerstone ofmanagement – it is the total sum of trust given to us bysociety and all stakeholders. Two-way communication withstakeholders is essential for heightening this trust. Throughkind of communication and by listening to opinions froma broad range of stakeholders, the company strives tomake its business activities valuable both society and thecompany, by incorporating the results of these efforts into
Komatsu’s business operations.

Komatsu continually tries to harmonize its interests
with the interests of the local community as a responsible
corporate citizen, and make itself more open to society.
Worldwide, the company maintains a dialog with local
governments and local residents, so that the community
can gain a better understanding of the company’s businessactivities.

Communication meeting held in February 2011at the Peoria Plant of Komatsu America Corp.

Germany: Communicating for
Human Resource Development in the Region
Komatsu Hanomag GmbH (KOHAG) is communicatingwith local educational institutions to promote regional humanresource development, an important issue for both regional
development and business. By joining the board of local
universities, KOHAG has key influence on the contents ofcourse programs and what method of education would besttranslate into development of the economy in the region.
W ithin the framework of the collaboration between
KOHAG and local universities, KOHAG has received 25
apprentices from the universities since 2005, providing themwith technical training in fields such as welding and assembly
technology. Of the three years that technical students spend
at the university, they receive a two-year credit for the timethey spend at KOHAG. After graduation, students can either
join KOHAG or find employment elsewhere being welleducated.
In January 2011, Lower Saxony’s Minister of Social
Welfare visited KOHAG to get a first-hand look at theapprenticeship program. The minister was given a tour of
the trainee’s worksite to gain an understanding of KOHAG’s
initiative. There was an exchange of opinions between the
Minister and KOHAG’s President about the public-private
partnership for making education the top priority for theregion and how well educated professionals will benefit both
the region and business.

CSR Training
As society places ever-higher expectations on businesses,
there is a strong push for companies to shoulder theircorporate social responsibility. Against this background,
Komatsu pursues CSR training, to help employees consider
their attitude toward the role of their work in society. In FY
20 1 0 , s e s s i o n s
w e re h e l d a t a l lfour Komatsu
manufacturing
facilities in Japan,
giving employees
an opportunity tobetter understandthe way Komatsuaddresses sociCSR training held in January 2011
etal challenges.
at the Ibaraki Plant

Lower Saxony’s Minister for Social Welfare visiting training workshop
in January 2011

Communicating with Employees“Employee Meetings”
At least twice a year, the President and CEO convenes
a “Meeting with the President” event for employees at
each business unit, to explain the state of the company, its
direction for the future, and the President’s thoughts. Thesemeetings use an active question and answer format to allow
top management and employees to interact directly. Anotheropportunity for exchange of opinions is the Employees
Meeting, where top management from each business unit
explains the current state of the business to their employees,
and encourages employees to share work-related thoughts
and requests.

Growing with Society

39

Communicating with the Local Community

Living in Harmony with Local Communities
As a responsible corporate citizen, Komatsu pursues initiatives
that enrich the lives of the people living in the communities where Komatsu operates.

Indonesia: Supporting the Spiritual Practices ofLocal Residents

KI is convinced that there is no other way than to live inharmonious relation with society, and will continue to pursue
these initiatives.

In 2006, PT Komatsu Indonesia (KI) established a Fund forSocial Contribution to actively serve the surrounding communities of the region. One recent initiative is for supporting
mosques, which serve as a place of prayer and communion
for the local population.

Gathering at the Qurrota Ain Mosque

Providing a Location for a 1,800-person Mosque
KI has also made a location available on its premises forthe erection of a mosque. Most of KI’s employees are Muslims, and the KI Mosque, which can hold 1,800 persons, isused for ritual events and regular prayers, and as a meeting
place for the people of the local community.

Activities of employees and local residents at the mosque on the KI premises

Australia: Partnering to Raise the Level ofTechnical Education in the Region
Komatsu’s distributor in Australia, Komatsu Australia Pty
Ltd. (KAL), is partnering with three local technical institutes toprovide courses in service technology for construction andmining equipment. These courses offer training in mechanical technology, with an emphasis on practical skills andto develop human resources that can master these fields.
Training courses are also offered for technical teachers,
who will be able to teach these subjects in the future. One
objective is to establish these courses as a standardized
approach to training of apprentices recognized and qualified
by the Australian government.
KAL provides the training facilities, access to machines,
and technical training staff. The institutes have the strengths
in technical education expertise through their facilities andteachers geared to nationally recognized qualifications
approved by the Australian government. As of May 2011,
approximately 147 students and apprentices were enrolled
in the courses either at KAL or the institutes. In addition toteaching mechanical and service technology, the courses
provide training on overall skills necessary that transformstudents into leading members of society, such as attitudes
toward safety, the environment, and business.
After finishing the courses, students and apprentices
will work for KAL or apply for employment elsewhere in
the region.Since 2009, KAL has employed 60 apprentices
entirely in-house and trained them at its facilities. Oncethese apprentices have completed their coursework, they
will be posted as
employees at various locations.
KAL will continue
promoting this kindof partnership with
regional educational institutes accruing benefit toboth customers
and the local comTrainees being taught practical skills
munity.
in the service technology course

Growing with Society

Supporting the Renovation of Mosques
The majority of the residents who live in KI’s surrounding
Sukapura District of North Jakarta are faithful Muslims whocome from the Batavia tribe of Jakarta. The mosque serves
as a place of prayer and gathering for people to solve theirproblems and engage in semi-formal traditional events. The
prayer leader (Imam) leads the community mobilizing thepeople to share their problems through spiritual activities,
and activities at the mosque are a source of peace andcomfort for the people.
As a contribution that will benefit the surrounding community, KI donated funds for the renovation of the Qurrota
Ain Mosque in August 2010. The newly renovated mosque
is now not only a holy place of prayer used for meeting andceremonial agenda, but also serves as a space to educate
the community’s children as well as develop new skills for
adults and as a place for solving community problems where
government officials can communicate with local scholars
and public figures. This provides local residents with a senseof belonging, and the company with a sense of solidarity,
through its financing of the renovation project. KI believes
that such activities offer benefits to both the local community
and the company.

40Removing Anti-personnel Landmines-Contributing to society by providing demining machines-

Using its expertise in construction equipment technology, Komatsu is supporting demining work in areas plagued by antipersonnel landmines. Komatsu also participates in community development projects to revitalize landmine-affected areas.

Removing Anti-personnel Landmines
Vast numbers of anti-personnel landmines have been left
behind in the aftermath of regional conflicts across the globe
in the latter part of the twentieth century. Many of theselandmines remain explosive indefinitely, claiming countless
victims, whether they are people carrying on with their daily
lives or children playing outdoors.
As a manufacturer of construction equipment, Komatsu
has put its expertise and Monozukuri resources to work indeveloping demining machinery and participating in demining activities.
The Komatsu Demining Machine for Anti-personnel mines
Komatsu’s demining machine uses a bulldozer weighing
approximately 27 tons as its base. Not only is this machine
highly reliable and durable, it can move speedy on rocky
terrain, wetlands and slopes and can efficiently handle
large areas. Spare parts are readily available, and by simply
changing the attachment on the front of the vehicle, it canbe used as a bulldozer for ground leveling, road construction
and other work.
The machine is also equipped with the same remotecontrol technology that is used on construction equipment
in disaster recovery areas and similar conditions. Remotecontrol operation greatly improves operator safety in thesecircumstances.

Growing with Society
The Komatsu Demining Machine for Anti-personnel mines

From Demining to Regional Reconstruction– Working Jointly with a Japanese NPO
Since 2008, Komatsu has been working jointly with theJapan Mine Action Service (JMAS), a non-profit organization
registered in Japan, on a project for regional reconstruction
in Cambodia and Angola. Komatsu loaned the demining
machine to JMAS free-of-charge to ensure smooth cleanup
operations, and safe use of construction equipment whendeveloping agricultural land and constructing wells, building
schools, and repairing and building roads and bridges. Thishas helped to reconstruct and revitalize the communities in
the regions.

41

In March 2011, a land transfer ceremony was held to markthe completion of minefield rehabilitation work that extends
across two villages in Battambang province in northwestern
Cambodia. Once soil safety has been ascertained andinfrastructure is in place, 500 families from surrounding
villages will settle on this land. The ceremony was a grand affair, attended by nearly 1,300 people, including government
officials from both Japan and Cambodia, representatives of
JMAS and Komatsu, and settlers and local residents.
Komatsu hopes to continue and further broaden theseregional reconstruction activities, which started out as
demining projects.

Nearby residents coming to settle in the area
Photographed in front of the KOMATSU Safety Village Primary School◆ Contributing to society by providing machines
for removal anti-personnel mines
March
1999

Ottawa Treaty comes into effect(Total Prohibition of the Use, Stockpiling, Production andTransfer of Anti-Personnel Mines)

August2002

The Japanese government decides to make the developmentof a demining machine an exception to the three-point ban
on weapons exports.

March
2003

Komatsu applies for a public subsidy program offered by
the Ministry of Economy, Trade and Industry and NEDO andembarks on the development of a demining machine2004 to2006

Demining machine site tests in Afghanistan and Cambodia
with the support of the Ministry of Foreign Affairs

July
2007

First machine delivered to Afghanistan(Given to an NGO under ODA from the Japanese government)

January
2008

Agreement concluded with Japan Mine Action Service(JMAS), a non-profit organization registered in Japan

March
2008

Second machine delivered to Cambodia (under the Grant Aid
for Research and Development of Mine Clearance Related
Equipment by the Government of Japanese).

June
2008

Third machine delivered to the Cambodia project (REAK
SMEY SANGHA SEN CHEY, Battambang province)*Loaned to JMAS free-of-charge

October
2008

Fourth machine delivered to the Angola project (Mabubas*Loaned to JMAS free-of-charge
village, Bengo province)

April
2009

Angola local reconstruction project started
Fifth machine delivered to Cambodia

September(Delivered under the Grant Aid for Conflict Prevention and2010
Peace Building by the Government of Japan.
March
2011

Land transfer ceremony held for the Cambodia local
reconstruction project(mentioned in this document)

Disaster Relief -The Tohoku EarthquakeKomatsu is supporting the areas stricken by the Tohoku Earthquake through its business activities.
We believe that the most effective support is to promptly provide construction equipment and to ensure
continued operation through servicing support.

Disaster Relief
Providing Equipment andTemporary Housing for Reconstruction
Since the Tohoku Earthquake struck in March 2011,
Komatsu has committed to disaster relief initiatives equaling
800 million yen, in the form of its own construction equipment, forklifts, temporary housing, and power generatorsleased free of charge, as well as prefab housing for clinics
and community halls. To enable responsive and continuous
relief work, Komatsu set up a dedicated organization in
the stricken area, tasked with ensuring smooth delivery ofequipment and replacement parts and service operations.

Extending Scholarships to Students
Komatsu will support affected students who will play acentral role in the future of Japan’s manufacturing in thestrong belief that no student should have to give up studying
due to the consequences of the disaster.
Such supporting activities include the “Komatsu Scholarship” set up with a total endowment of 200 million yen forstudents of disaster-stricken national technical colleges in
the Tohoku and North Kanto regions. The scholarship fundwill receive annual contributions of 20 million yen for theduration of ten years.
In addition, Komatsu and Rio Tinto, a leading international
mining group of mineral resources, have reached an agreement to jointly offer scholarships to undergraduate andgraduate students of Tohoku University under the name
“Rio Tinto-Komatsu Scholarship”. The scholarship will beendowed with 400 million yen over a period of ten years.

Disaster Relief and Recovery within the Group
Disaster Relief for AffectedGroup Members and Employees
Immediately following the earthquake, Komatsu immediately began confirming the safety of its employees and theirfamilies, and its business partners (distributors and suppli-

Restoring Production and Normalizing Business Activities
In the wake of the earthquake and tsunami disaster, someof Komatsu’s own plants were forced to stop production,
due to direct damage or delays in parts procurement. But,
thanks to prompt measures, production was resumed at
an early date. Komatsu is also aware that production may
be affected in the future by external factors, such as power
restrictions, recovery of the logistics network, and nuclear
power plant issues, but the company will take a flexible approach, and will strive to maintain production and minimize
any inconvenience to our customers worldwide.

Growing with Society

Hydraulic excavators at work in stricken areaers). This is in line with Komatsu’s policy of giving top priority
to lives and safety. Those stricken by the disaster were
supplied with daily use articles, which were in short supply,
from plants and distributors located in unaffected areas. To
help people get back on their feet, and alleviate uncertainty
about the future, the Group continued to retain employees,
including non-regular workers, providing housing assistanceto those living in disaster-stricken areas, and extending
other forms of financial relief. The Group companies andunions jointly collected contributions that were channeled to
employees stricken by the disaster.
After assessing the situation of each business partner
individually, business partners that suffered serious damage
were supplied with daily use articles, and Komatsu employees were dispatched to help the partners quickly recoverand restart production. Komatsu employees also worked
with business partners and distributors to ensure thatfacilities were repaired and inspected, and that procurement
parts were delivered.

Response to the Nuclear Power Plant Accident
Contributing Products and Technology
The private and public sectors are partnering to takemeasures against the effects of the accident at the Fukushima Nuclear Power Plant that followed the earthquake andtsunami. Komatsu continues to collaborate with governmentand corporations working in the disaster-hit areas, contributing products, technology and service. To protect operatorsfrom the danger of radiation while working in the vicinity of
the accident sites, radio-operated construction equipment
are being utilized at the sites.
Sales Event for Vegetables Grown
in Fukushima and Ibaraki Prefectures
Komatsu organized events for employees that featured
direct sale of vegetables grown in Fukushima and Ibaraki
Prefectures. This was a show of support for the farmers
that have been affected by rumors of contamination of theiragricultural produce with radioactive substances leaking
from the damaged nuclear power plant. This event was held
four times in total at the Head Office and in several plants,
achieving sales of 1.05 million yen worth of vegetables.

42

Environmental Data by Manufacturing Facility in Japan
Manufacturing facility

Awazu Plant (established in 1921)

Kanazawa Plant (established in 2007)

Overview

Location

Komatsu, Ishikawa Prefecture

Kanazawa, Ishikawa Prefecture

Main products

Small and medium-sized bulldozers, small hydraulicexcavators, small and medium-sized wheel loaders, Ultra-large hydraulic excavators, large presses
motor graders, armored vehicles, etc.

Osaka Plant (established in 1952)
Hirakata, Osaka Prefecture
Large bulldozers, medium-sized and large hydraulicexcavators, mobile crushers/recyclers/tub grinders(crushers, soil stabilizers, tub grinders, etc.)

Site/production area (1,000 m2)

716/187

134/22

Number of employees

3,269

581

2,052

September 1997

May 2007

July 1997

Date of ISO14001 certification acquisition

541/121*T h e n u m b e r o f e m p l o y e e s i n c l u d e s t h o s eworking for Komatsu affiliates on the premises.
*Number of employees as of end of March 2011.

Item
Environmental impact

Major Performance*R efer to the Data on Environmental Impact
Resulting from Business Activities for details on
the methods used to calculate amounts.
*Total emissions of waste are expressed as acomposite of the amount recycled (excluding
valuables) and the amount disposed.
*R ecycling rate is calculated by dividing theamount recycled by the amount generated(including valuables).
*Total emissions of BOD and COD are calculated
by multiplying the average concentration by theamount of wastewater.

Actual value

Item

Actual value

Total CO2 emissions

2,813 t-CO2

Total CO2 emissions

35,319 t-CO2

NOx total amount

12,998 kg

NOx total amount－ kg

NOx total amount

2,930 kg

SOx total amount

3,681 kg

SOx total amount

0 kg

SOx total amount

Total emissions of waste

1,685 tTotal emissions of waste

208 t

Amount recycled

1,684 tAmount recycled

Recycling rate

99.9 %

Recycling rate

BOD emissions

3,894 kg

COD emissions

2,812 kg
1,851,783 m3

173 kgTotal emissions of waste

1,553 t208 tAmount recycled

1,550 t100 %Recycling rate

99.8 %

BOD emissions

209 kg

BOD emissions

103 kg

COD emissions

463 kg

COD emissions

72,000 m3

Wastewater

Converted to calorie
equivalents (GJ)

Actualconsumption

Item*The heat energy conversion factor is calculated
in keeping with Greenhouse Gas Emissions
Calculation - Reporting Manual by the Act on
Promotion of Global Warming Countermeasures.

Actual value

41,111 t-CO2

Wastewater

Energy consumption

Item

Total CO2 emissions

735 kg149,185 m3

Wastewater

Item

Actualconsumption

Converted to calorie
equivalents (GJ)

Item

Actualconsumption

Converted to calorie
equivalents (GJ)
662,323

Electricity

73,108 MWh

710,862

Electricity

7,138 MWh

69,597

Electricity

68,162 MWh

Heavy oil A

2,818 kℓ

110,176

Heavy oil A

0 kℓ

0

Heavy oil A

215 kℓ

8,407

Kerosene

12 kℓ

424

Kerosene

0 kℓ

0Kerosene

81 kℓ

2,973

Light oil

264 kℓ

10,0780 Nkm3

Town gas
LPG

01,517 tLight oil

1 kℓ

53

Light oil

275 kℓ

10,505

Town gas

0 Nkm30

Town gas

3,692 Nkm3

154,695

1t

61 t

3,062

76,159

LPG

25

LPG

Other

1,939

Other

990

Other

1,592

Total

909,638

Total

70,666

Total

843,556

Air

Regulated
value

Facility

Actual
value

Item

Unit

Nitrogen oxides (NOx)ppm

Boiler

180

96

ppm

Diesel engine

950

640

Facility
N/A

Regulatedvalue

Actual
value

－

－

ppm

Regulated
value

Facility

Actualvalue

Boiler150

18

Metal furnace

180

52

Paint drying furnace

230

4

ppm
－

K-value regulation

17.5

1.2

Soot and dust

g/m3N

Boiler

0.3

0.002

g/m3N

Diesel engine

0.1

0.019

N/A

－

－

g/m3N

Regulation of total emissions (Nm3/h)

1.573

0.002

Boiler

0.03

0.001 or less

Metal furnace

0.1

0.013

Paint drying furnace

0.1

0.0036g/m3N*Regulated values are in accordance with the Air Pollution Control Law and local regulations.

WastewaterCompliance Conditions to Major Regulations

Data

43

Sulfur oxides (SOx)Item

Regulated value
according to the Water
Pollution Control Law Unit

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

AveragepH

5.8-8.6

5.8-8.6

7.3

6.8

7.1

5.0-9.0

7.9

6.9

7.4

5.8-8.6

8.0

7.3

7.5

BOD (Biochemical oxygen demand)

160mg/ℓ

80

3.9

1.0

2.0

80

2.9

2.9

－

25

1.6

0.2

0.7

COD (Chemical Oxygen Demand)

160mg/ℓ

80

6.7

ND

1.4

80

13.0

5.0

6.4

25

7.4

3.7

4.9

Suspended solids (SS)

200mg/ℓ

120

6.2

ND

1.3

120

4.5

4.5

－

80

3.6

1.2

2.1

Mineral oils

5mg/ℓ

5

ND

ND

ND

5

ND

ND

－

3

0.1

ND

0.1

Copper

3mg/ℓ

3

ND

ND

ND

3

ND

ND

－

3

ND

ND

ND

Zinc

2mg/ℓ

2

0.15

ND

0.08

5

ND

ND

－

2

ND

ND

ND

Nitrogen

120mg/ℓ

120

4.4

2.1

3.7

120

5.8

5.8

－

120

19.0

2.2

5.7

Actual value

Actual value

Actual value

Phosphorus

16mg/ℓ

16

0.27

0.03

0.12

16

1.6

1.6

－

16

1.8

ND

0.4

Cadmium

0.1mg/ℓ

0.1

ND

ND

ND

0.1

ND

ND

－

0.01

ND

ND

ND

Lead

0.1mg/ℓ

0.1

ND

ND

ND

0.1

ND

ND

－

0.01

ND

ND

ND

Chromium (VI)

0.5mg/ℓ

0.5

ND

ND

ND

0.5

ND

ND

－

0.05

ND

ND

ND

Trichloroethylene

0.3mg/ℓ

0.3

0.004

ND

0.003

0.3

ND

ND

－

0.03

ND

ND

ND

Tetrachloroethylene

0.1mg/ℓ

0.1

ND

ND

ND

0.1

ND

ND

－

0.01

0.0007ND

0.0007

Dichloromethane

0.2mg/ℓ

0.2

ND

ND

ND

0.2

ND

ND

－

0.02

ND

ND

ND

1,1,1-trichloroethane

3mg/ℓ

3

ND

ND

ND

3

ND

ND

－

1

ND

ND

ND

*R egulated values are in accordance with theWater Pollution Control Law and local regulations.
*ND (“not detected”) indicates a value below thelower limit of detection.
*N D i s c o n s i d e r e d t o b e t h e l o w e r l i m i t o fdetection when calculating the average.
*O ther items are confirmed to be below theregulated value.

*Data for the Awazu Plant include data for the Komatsu
Machinery Corporation and the Komatsu Engineering
Corp. (Awazu Plant).

*D ata for the Kanazawa Plant include data for the
Kanazawa Dai-ichi, Dai-ni and the Kawakita Plant.

*Data for the Osaka Plant include data for the Rokko
Plant.

Ibaraki Plant (established in 2007)

Oyama Plant (established in 1962)

Koriyama Plant (established in 1995)

Shonan Plant (established in 1966)

Hitachinaka, Ibaraki Prefecture

Oyama, Tochigi Prefecture

Koriyama, Fukushima Prefecture

Hiratsuka, Kanagawa Prefecture

Large wheel loaders, dump trucks

Engines for construction/industrial machinery,
diesel generators, hydraulic equipment, axle,
excimer lasers, etc.

Hydraulic cylinders, swivel joints, gear pumps

Control equipment for construction and mining
equipment, hybrid components Thermoelectricmodules, temperature control equipment, etc.

251/46561/140

297/19

68/5

872

3,600

448

1,035

May 2007

May 1997

July 2002

March 2000

Item

Actual value

Item

Actual value

Item

Actual value

Item

Actual value

Total CO2 emissions

4,659 t-CO2

Total CO2 emissions

70,086 t-CO2

Total CO2 emissions

12,823 t-CO2

Total CO2 emissions

2,901 t-CO2

NOx total amount－ kg

NOx total amount

59,145 kg

NOx total amount

84,908 kg

NOx total amount

0 kg

SOx total amount

142 kgSOx total amount

657 kgSOx total amount

4,810 kg

SOx total amount

Total emissions of waste

411 t

Total emissions of waste

3,590 tAmount recycled

411 t

Amount recycled

3,590 tRecycling rate

100 %Recycling rate

100 %BOD emissions

9,771 kg

BOD emissions

4,797 kg

BOD emissions

COD emissions－ kg

COD emissions

17,552 m3

Wastewater

7,897 kg
568,800 m3

Wastewater

Item

Actualconsumption

Converted to calorie
equivalents (GJ)

Item

Actualconsumption

Converted to calorie
equivalents (GJ)Electricity

10,522 MWh

Heavy oil A

66 kℓ

102,800

Electricity

93,484 MWh

2,581

Heavy oil A

358 kℓKerosene

14 kℓ

511

Kerosene

Light oil

113 kℓ4,316

Town gas

0 Nkm3

LPG

35 t

0

Total emissions of waste

964 t

Amount recycled
Recycling rate
COD emissions

133 t

964 t

Amount recycled

133 t

100 %

Recycling rate

100 %

67 kg

BOD emissions

2,716 kg

226 kg

COD emissions

19,995 m3

Wastewater

0 kg

Total emissions of waste－ kg
35,907 m3

Wastewater

Item

Actualconsumption

Converted to calorie
equivalents (GJ)

907,395

Electricity

11,020 MWh

106,639

Electricity

7,476 MWh

13,978Heavy oil A

2,880 kℓ

112,608

Heavy oil A

0 kℓ

0

4,293 kℓ

157,553

Kerosene

0 kℓ

0Kerosene

0 kℓ

0Light oil

3,760 kℓ

143,613Light oil

0 kℓ0Light oil

0 kℓ

0Town gas

6,177 Nkm3

258,816

Town gas

0 Nkm30

Town gas

15 Nkm3

637

0t

1,758

LPG

2,259

LPG

13,152

LPG

57

Other

3,407

Other

0

Other

0

Total

112,022

Total

1,487,021

Total

232,399

Total

75,173

N/A

N/A

Regulatedvalue

Actual
value

－

－

－

－

Actual value

Regulatedvalue

Actualvalue

Diesel engine

950

830

Gas turbine

70

17

Boiler180

72

Annealing furnace

200

50

K-value regulation

7.0

Diesel engine

262 t

74,536

Other

Facility

45 t

Converted to calorie
equivalents (GJ)

Actualconsumption

Item

Regulatedvalue

Actualvalue

Cogeneration engine

760

740

0.57

K-value regulation

11.5

0.39

0.1

0.021

Tempering (electric) furnace

0.2

less than 0.003

Boiler0.3

0.002

Baking (electric) furnace

0.2

less than 0.003

Annealing furnace

0.25

0.01

Cogeneration engine

0.2

0.05

Electric furnace

0.2

0.001

Facility

Actual value

Facility

Actual value

0

Regulatedvalue

Actual
value

N/A

－

－

N/A

－

－

Facility

Actual value

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

5-9

－

－

－

5.8-8.6

7.6

6.9

7.2

5.8-8.6

7.4

6.9

7.2

5-9

8.1

6.2

7.3

600

950*

190

557

25

15.6

3.6

8.4

20

8.7

ND

3.4

600

200

2.0

45.0

－

－

－

－

25

19.8

6.5

13.9

40

17.0

6.2

11.3

－

－

－

－

－

－

－

－

50

19.2

2.4

9.4

50

26.0

1.0

4.8

600

110

ND

21.0

30

61.0*

5.4

25.0

5

0.5

ND

0.5

1

ND

ND

ND

5

ND

ND

ND

－

－

－

－

3

ND

ND

ND

2

ND

ND

－

3

ND

ND

0.05

－

－

－

－

2

0.12

ND

0.06

2

0.12

0.12

－

2

0.14

0.02

0.07

－

－

－

－

20

10.0

3.5

6.4

120

29.0

29.0

－

－

－

－

－

－

－

－

－

2

1.0

0.1

0.3

16

3.1

3.1

－

－

－

－

－

－

－

－

－

0.1

ND

ND

ND

0.1

ND

ND

－

0.1

ND

ND

ND

－

－

－

－

0.1

ND

ND

ND

0.1

ND

ND

ND

0.1

ND

ND

ND

－

－

－

－

0.1

ND

ND

ND

0.1

ND

ND

ND

0.5

ND

ND

ND

－

－

－

－

0.3

ND

ND

ND

0.3

ND

ND

－

0.3

ND

ND

ND

－

－

－

－

0.1

ND

ND

ND

0.1

ND

ND

－

0.1

ND

ND

ND

－

－

－

－

－

－

－

－

0.2

ND

ND

－

0.2

ND

ND

ND

－

－

－

－

3

ND

ND

ND

3

ND

ND

－

3

ND

ND

ND

*Data for the Oyama Plant include data for the Komatsu
Cummins Engine Co., Ltd., the Industrial Power Alliance Ltd., and the GIGAPHOTON, Inc.

Data

*Data for the Ibaraki Plant include data for the Mooka
Plant.
*After the advisory meeting with local sewerage works
division, measures are being executed because the restriction value was temporarily exceeded.

Average*Data for the Shonan Plant include data for KELK Ltd.

44

Environmental Data by Manufacturing Facility in Japan
Manufacturing facility

Research Division (established in 1985)

Komatsu Utility Co., Ltd. (established in 1968)

Komatsu Castex Ltd. (established in 1952)

Overview

Location

Hiratsuka, Kanagawa Prefecture

Oyama, Tochigi Prefecture

Himi, Toyama Prefecture

Main products

R&D on business fields of the Komatsu Group

Forklift trucks, mini shovel, mini wheel loaders, Iron castings, steel castings, molds for casting,
etc.
etc.

Site/production area (1,000 m2)

195/0

245/48

Number of employees

193

1,070

1,219

May 2008

February 1998

January 2000

Date of ISO14001 certification acquisition

429/73*T h e n u m b e r o f e m p l o y e e s i n c l u d e s t h o s eworking for Komatsu affiliates on the premises.
*Number of employees as of end of March 2011.

Item
Environmental impact

Major Performance*R efer to the Data on Environmental Impact
Resulting from Business Activities for details on
the methods used to calculate amounts.
*Total emissions of waste are expressed as acomposite of the amount recycled (excluding
valuables) and the amount disposed.
*R ecycling rate is calculated by dividing theamount recycled by the amount generated(including valuables).
*Total emissions of BOD and COD are calculated
by multiplying the average concentration by theamount of wastewater.

Actual value*The heat energy conversion factor is calculated
in keeping with Greenhouse Gas Emissions
Calculation - Reporting Manual by the Act on
Promotion of Global Warming Countermeasures.

Air

Item

Unit

Nitrogen oxides (NOx)

ppm
ppm

Actual value

Item

Actual value

2,095 t-CO2

Total CO2 emissions

4,719 t-CO2

Total CO2 emissions

77,389 t-CO2

NOx total amount

293 kgNOx total amount

1,429 kgNOx total amount

14,449 kg

SOx total amount

46 kg

SOx total amount

1,168 kg

SOx total amount

1,925 kg

Total emissions of waste

84 t

Total emissions of waste

Total emissions of waste

8,316 t8,053 t565 t

Amount recycled

83 t

Amount recycled

565 t

Amount recycled

Recycling rate

98.1 %

Recycling rate

100 %Recycling rate

99.3 %

BOD emissions

5 kg

BOD emissions

431 kg

BOD emissions

3,307 kg

11 kg

COD emissions

561 kg

COD emissions

COD emissions
Wastewater

Energy consumption

Item

Total CO2 emissions

3,417 m3

Wastewater
Item

99,659 m3

Item

Actualconsumption

Converted to calorie
equivalents (GJ)Electricity

4,169 MWh

40,317

Electricity

7,866 MWh

Heavy oil A

32 kℓ

1,251

Heavy oil A

440 kℓKerosene

104 kℓ

3,809

Kerosene

4 kℓLight oil

52 kℓ

1,983

Light oil

32 kℓ

Town gas

0 Nkm3

Town gas

0 Nkm3

LPG

4t

0
211

LPG

Other

10

Total

47,582

Regulatedvalue

Actualvalue

Service generator

303

70

Cold/hot water generator

390

34

Facility

Converted to calorie
equivalents (GJ)

Actualconsumption

Item

Actualconsumption

Converted to calorie
equivalents (GJ)

76,471

Electricity

150,097 MWh

1,457,585

17,204Heavy oil A

2,417 kℓ

94,485147

Kerosene

1,176 kℓ

43,1591,222

Light oil

309 kℓ11,8210125 t

4,340 kg
1,256,862 m3

Wastewater

0 Nkm3

Town gas

0

6,275

LPG

Other

554

Other

138

Total

101,873

Total

1,765,419

Facility
Small boilers*

Regulatedvalue

Actual
value

（260）

64

ppm

3,152 tFacility

158,230

Regulatedvalue

Actualvalue

Annealing furnace

200

60

Annealing furnace (small)

180

30

Calciners

220

7

ppm
Sulfur oxides (SOx)－

K-value regulation

11.5

0.2

K-value regulation

Soot and dust

g/m3N

Service generator

0.1

0.022

Small boilers*

g/m3N

Cold/hot water generator

0.2

0.001

0.16

K-value regulation

17.5

0.95

0.004

Annealing furnace

0.25

0.01 or less

0.2

0.01 or lessCalciners

0.15

0.01 or lessg/m3N

Arch furnace

0.1

0.01 or less

*Regulated values are in accordance with the Air
Pollution Control Law and local regulations.

WastewaterCompliance Conditions to Major Regulations

Annealing furnace (small)g/m3N*R e g u l a t e d v a l u e s o f N O x , s o o t a n d d u s t a re i naccordance with self-regulatory measures, because
these boilers are small.

Data

Item

Regulated value
according to the Water
Pollution Control Law Unit

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

AveragepH

5.8-8.6

5.8-8.6

7.4

7.0

7.2

5.8-8.6

7.4

7.0

7.2

5.8-8.6

8.8

6.9

7.8

BOD (Biochemical oxygen demand)

160mg/ℓ

10

2.0

1.0

1.7

25

7.9

1.9

4.3

25

5.1

1.3

2.6

COD (Chemical Oxygen Demand)

160mg/ℓ

25

7.0

2.0

4.5

25

10.9

2.9

5.6

160

6.3

2.3

3.5

Suspended solids (SS)

200mg/ℓ

65

14.0

2.0

5.3

50

18.8

2.4

7.6

90

20.0

ND

6.3

Mineral oils

5mg/ℓ

5

1.0

1.0

1.0

5

ND

ND

ND

5

ND

ND

ND

Copper

3mg/ℓ

1

ND

ND

ND

3

ND

ND

ND

1

ND

ND

ND

Zinc

2mg/ℓ

1

ND

ND

ND

2

0.23

ND

0.07

2

ND

ND

ND

Nitrogen

120mg/ℓ

120

－

－

－

20

6.0

2.3

4.2

120

8.4

1.6

4.8

Phosphorus

16mg/ℓ

16

－

－

－

2

0.67

0.21

0.44

16

0.83

0.07

0.31

Actual value

Actual value

Actual value

Cadmium

0.1mg/ℓ

0.1

0.01

ND

0.01

0.1

ND

ND

ND

0.1

ND

ND

ND

Lead

0.1mg/ℓ

0.1

0.05

0.05

0.05

0.1

ND

ND

ND

0.1

ND

ND

ND

Chromium (VI)

0.5mg/ℓ

0.5

0.05

0.05

0.05

0.1

ND

ND

ND

0.5

ND

ND

ND

Trichloroethylene

0.3mg/ℓ

0.3

ND

ND

ND

0.3

ND

ND

ND

0.3

ND

ND

ND

Tetrachloroethylene

0.1mg/ℓ

0.1

0.002

0.002

0.002

0.1

ND

ND

ND

0.1

ND

ND

ND

Dichloromethane

0.2mg/ℓ

0.2

ND

ND

ND

0.2

ND

ND

ND

0.2

ND

ND

ND

1,1,1-trichloroethane

3mg/ℓ

3

0.002

0.002

0.002

3

ND

ND

ND

3

ND

ND

ND

*R egulated values are in accordance with theWater Pollution Control Law and local regulations.
*ND (“not detected”) indicates a value below thelower limit of detection.
*N D i s c o n s i d e r e d t o b e t h e l o w e r l i m i t o fdetection when calculating the average.
*O ther items are confirmed to be below theregulated value.

45

7.0
（0.5）

Overview

Manufacturing facility

Komatsu Cabtec Co., Ltd. (established in 1918)

Location

Ryuou-cho, Gamou, Shiga Prefecture

Nanto, Toyama Prefecture

Komatsu NTC Ltd. (established in 1945)

Shinshiro, Aichi Prefecture

Komatsu House Ltd. (established in 1971)

Main products

Cabs for construction equipment

Machine tools, sheet-metal machines, semiconductor manufacturing equipment

Prefabricated structures for businesses

Site/production area (1,000 m2)

41/7

188/68

Number of employees

366

670

40

December 2007

June 1999

March 2002

Date of ISO14001 certification acquisition

31/10*The number of employees includes those working for Komatsu affiliates on the premises.
*Number of employees as of end of March 2011.

Item
Environmental impact

Major Performance*Refer to the Data on Environmental Impact
Resulting from Business Activities for details on
the methods used to calculate amounts.
*Total emissions of waste are expressed as acomposite of the amount recycled (excluding
valuables) and the amount disposed.
*Recycling rate is calculated by dividing theamount recycled by the amount generated(including valuables).
*Total emissions of BOD and COD are calculated
by multiplying the average concentration by theamount of wastewater.

Actual value

Air

Unit

Total CO2 emissions

639 t-CO2

NOx total amount－ kg

NOx total amount－ kg

NOx total amount

356 kgSOx total amount

4 kg

SOx total amount

0 kg

SOx total amount

76 kg
36 t

Total emissions of waste

401 t

ppm
－

Soot and dust

g/m3N

Total emissions of waste

1,697 tTotal emissions of waste

Amount recycled

187 t

Amount recycled

1,517 tAmount recycled

36 t

Recycling rate

97.2 %

Recycling rate

94.2 %

Recycling rate

100 %BOD emissions

800 kg

BOD emissions

719 kg

BOD emissions

50 kg

COD emissions

577 kg

COD emissions－ kg

COD emissions

127 kg133,305 m3
Actualconsumption

1,437,941 m3

Wastewater

Converted to calorie
equivalents (GJ)

Item73,596

Electricity

21,257 MWh0Heavy oil A

0 kℓActualconsumption

15,270 m3

Wastewater

Converted to calorie
equivalents (GJ)

Converted to calorie
equivalents (GJ)

Item

208,130

Electricity

625 MWh

6,231

0

Heavy oil A

54 kℓ

2,111

Actualconsumption

Electricity

7,536 MWh

Heavy oil A

0 kℓ

Kerosene

26 kℓ

954

Kerosene

1 kℓ

18

Kerosene

0 kℓ

0Light oil

57 kℓ

2,158

Light oil

12 kℓ

458

Light oil

5 kℓ

195

0 Nkm3

Town gas

0 Nkm3

11,195

LPG

35 t

Other

0

Total

87,903

Town gas

0223 t

Facility
N/A

Regulatedvalue

Actual
value

－

－

－

N/A

Town gas

0 Nkm3

1,733

LPG

80 t

Other

138

Other

0

Total

210,478

Total

12,543

Facility

Regulatedvalue

Actual
value

－

－

N/A

－

0

N/A

－

－

Regulated
value

Facility

0
4,006

Actualvalue

Boiler250

59K-value regulation

17.5

0.51

Boiler0.3

0.003*Regulated values are in accordance with the Air Pollution Control Law and local regulations.

WastewaterCompliance Conditions to Major Regulations

Nitrogen oxides (NOx)
Sulfur oxides (SOx)Actual value

8,308 t-CO2

LPG

Item

Item

Total CO2 emissions

Item*The heat energy conversion factor is calculated
in keeping with Greenhouse Gas Emissions
Calculation - Reporting Manual by the Act on
Promotion of Global Warming Countermeasures.

Actual value

3,776 t-CO2

Wastewater

Energy consumption

Item

Total CO2 emissions

Item

Regulated value
according to the Water
Pollution Control Law Unit

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

AveragepH

5.8-8.6

5.8-8.6

7.4

7.0

7.2

5.8-8.6

7.3

6.4

6.8

5.8-8.6

7.3

6.3

6.9

BOD (Biochemical oxygen demand)

160mg/ℓ

20

17.0

1.0

6.0

160

0.5

ND

0.5

160

6.5

0.5

3.3

COD (Chemical Oxygen Demand)

160mg/ℓ

20

7.1

2.7

4.3

－

－

－

－

160

16.0

4.0

8.3

Suspended solids (SS)

200mg/ℓ

20

8.4

0.5

3.7

200

2.0

ND

1.1

200

6.0

1.0

2.4

Mineral oils

5mg/ℓ

－

－

－

－

5

ND

ND

ND

5

ND

ND

ND

Copper

3mg/ℓ

0.1

0.03

ND

0.01

－

－

－

－

－

－

－

－

Zinc

2mg/ℓ

0.5

0.14

0.02

0.04

－

－

－

－

－

－

－

－

Nitrogen

120mg/ℓ

8

7.7

1.5

4.5

－

－

－

－

120

25.0

3.3

13.3

Phosphorus

16mg/ℓ

0.6

0.5

ND

0.2

－

－

－

－

16

3.4

0.3

1.4

Lead

0.1mg/ℓ

0.03

ND

ND

ND

－

－

－

－

－

－

－

－

Actual value*R egulated values are in accordance with theWater Pollution Control Law and local regulations.
*ND (“not detected”) indicates a value below thelower limit of detection.
*ND is considered to be the lower limit of detection when calculating the average.
*Other items are confirmed to be below the regulated value.

Actual value

Actual value*D ata for Komatsu NTC Ltd. include data for Lossev
Technology Corporation, Toyama Kiko Corporation,
and D.S.K. Co., Ltd.

Komatsu Construction Equipment Sales and Service Japan Ltd. (established in March 1967)

Location

Sagamihara, Kanagawa Prefecture (Head office)Yokohama, Kanagawa Prefecture (Head office)Komatsu Rental Ltd. (established in Oct. 2006)

Activities

Sales and service for construction machinery

Rentals for construction machinery, engineering works construction machine apparatuses, and vehicles

101 sites

Number of bases

147 sites

Number of employees

1,936

981

Date of ISO14001 certification acquisition

－

－

Item

Environmental impact

Major Performance*Total waste emissions are equal to the amountdisposed + the amount recycled (including valuables)*R ecycling rate is calculated by dividing theamount recycled by the amount generated (including valuables.)Energy consumption*The heat energy conversion factor is calculated
in keeping with Greenhouse Gas Emissions Calculation - Reporting Manual by the Act on Promotion of Global Warming Countermeasures.

Actual value

Item

Actual value

Total CO2 emissions

5,050 t-CO2

Total CO2 emissions

2,712 t-CO2

Total emissions of waste

4,009 tTotal emissions of waste

2,118 tAmount recycled

2,824 tAmount recycled

1,692 tRecycling rate

70.4 %

Recycling rate

Converted to calorie
equivalents (GJ)

Item

Item

Actualconsumption

79.9 %
Actualconsumption

Converted to calorie
equivalents (GJ)Electricity

9,622 MWh

95,931

Electricity

5,663 MWh

Heavy oil A

50 kℓ

1,967

Heavy oil A

0 kℓ

0

Kerosene

379 kℓ13,906

Kerosene

101 kℓ

3,718Light oil

48 kℓ

1,834

Light oil

90 kℓ

3,442

LPG

27 t

1,345

LPG

9t

427

1,304

Town gas, et al.

Town gas, et al.
Total*A part of data is not included because of the influence of the earthquake

Data

Overview

Manufacturing facility

116,287

Total

56,462360
64,40946

Environmental Data by Manufacturing Facility outside Japan
The Americas
Overview

CMO

EuropePEORIA

NMO

KDB

Hensley

KUK

KOHAG

KMG

Manufacturing
facilities

Komatsu America Corp.

Komatsu do Brasil
Chattanooga Manufacturing Operation Peoria Manufacturing Operation Newberry Manufacturing Operation Ltda.

Hensley Industries,
Inc.

Komatsu UK Ltd.

Komatsu Hanomag
GmbH

Komatsu Mining
Germany GmbH

Location

Tennessee,
U.S.A.

Texas,U.S.A.

Birtley,
United Kingdom

Hannover,
Germany

Düsseldorf,
Germany

Main products

Hydraulic excavators, Large wheel loaders, Utility equipment
Hydraulic excavators, Buckets, teeth and(small construction equipment) bulldozers
edges
motor graderslarge dump trucks

Hydraulic excavators

Wheel loaders,compactors

Ultra-large hydraulicexcavators

Illinois,
U.S.A.

South Carolina,
U.S.A.

São Paulo,
Brazil

1,812

Number of employees

Energy consumption

7,483

Electricity (MWh)17,587

3,097

829

497

292

531

445

29,88035,745

4,525

4,675

7,231

Heavy oil, light oil, et al. (kℓ)

177

140

－

490

132

239

2

9

Natural gas (thousand m3)

1,209

2,573

26

－

4

869

736

1,177

LPG, et al.

(t)

－

24
(LPG)

81
(LPG)

510
(LPG)

113
(LPG)

－

－

－

Total energy consumption (GJ)

114,405

127,161

279,40735,943342,341

367,256

85,39672,877(t-CO2)

7,054

15,408

2,059

5,329

21,073

4,569

4,232

5,075

Water consumption (t)8,047

32,944547

31,936

48,217

7,598

7,547

11,817

CO2

Total emissions of waste (t)

396

2,908

338

8,530

28,968742

Date of ISO14001 certification acquisition

April 1998

March 2002

March 2004

January 2002

November 2009

December 1998

September 2000

July 2002KUE

STAVMEK

KFAB

KUI

KOFI

BKC

Europe

5,178

Asia

Overview

KMR

Manufacturing
facilities

596

Komatsu Manufacturing Komatsu Utility
Rus, LLC
Europe S.p.A.

Stavmek s.r.o.

Location

Yaroslavl,
RussiaEste (PD),
Italy

Main products

Hydraulic excavators, forklift trucks

Utility equipment(small construction
equipment)

KI

Komatsu Forest AB

PT Komatsu
Indonesia

PT Komatsu
PT KOMATSU
Bangkok Komatsu
Undercarriage Indonesia FORGING INDONESIA Co., Ltd.

Czech RepublicUmeå,
SwedenJakarta,Indonesia

West Java,
Indonesia

West Java,
Indonesia

Chonburi,
Thailand

Manufacture ofsheet metal partsfor construction
equipment

Forestry equipment

Hydraulic excavators, bulldozers,
wheel loaders

Crawler typefor construction
machinery, rollers

Parts for construction machinery

Hydraulic excavators

155

404

119

371

971

200

406

456

Electricity (MWh)

2,957

3,189

3,784

2,418

34,127

6,913

40,448

7,995

Heavy oil, light oil, et al. (kℓ)

14

－

－

－

1,132

272

1,291

590

Natural gas (thousand m3)

1,025

613

371

－

1,729

－

－

－

LPG, et al.

(t)

－

－

－

－

180
(LPG)

216
(LPG)

－

29
(LPG)

Total energy consumption (GJ)

71,87055,33850,92827,402

463,226

90,368453,488

103,939CO2(t-CO2)

3,043

2,509

2,724

335

30,767

6,184

31,566

5,924

Water consumption (t)

7,507

9,298

17,511

4,353

97,12539,04847,13469,947

Energy consumption

Number of employees

Total emissions of waste (t)

279

872

162

259

7,146

Date of ISO14001 certification acquisition－

November 2001－

October 2003

June 2000

July 2009

962

KSC

KCCM

KCF

5,937

693

October 2008

September 2001

KSD

KUCC

Asia
Overview

Data
Energy consumption

47

BKI

Manufacturing
facilities

LTK

KIPL

Bangkok Komatsu
Industries Co., Ltd.

L&T-Komatsu
LimitedKomatsu India Pvt.
Ltd.

Komatsu Shantui Construction Komatsu (Changzhou)
Komatsu (ChangMachinery Co., Ltd.
Construction Machinery Corp. zhou) Foundry Corp.

Komatsu（Shandong)
Komatsu UndercarConstruction Machinery Corp. riage China Corp.

Location

Chonburi.
ThailandBangalore,
India

Chennai,
India

Shandong,
China

Shandong,
China

Main products

Forklift trucks,
Castiron partsfor construction
machineryHydraulic excavators Dump trucks

Jiangsu,
China

Jiangsu,
China

Iron castings andWheel loaders,foundry molds for
Hydraulic excavators hydraulic excavators,
construction andmotor gradersmining equipment

Shandong,
China

Mini construction equipCrawler typement, forklift trucks,
for construction
hydraulic equipment andmachinerymining equipment

Number of employees

337

677

205

828

573

289

339

322

Electricity (MWh)33,824

7,263

561

11,3603,351

52,082

5,755

30,338Heavy oil, light oil, et al. (kℓ)

68

548

67

1,286

1,961

154

810

82

Natural gas (thousand m3)

－

－

－

406

－

－

119

1,016

(t)

160.56
(LPG)

149
(LPG)

－

－

30
(LPG)

167
(Coal, LPG, LNG)

7,919
(LNG)

－

Total energy consumption (GJ)

347,943

101,038

8,174

179,849

110,484

531,507523,699

347,200

CO2(t-CO2)

18,7628,701

702

16,538

7,901

41,82428,243

26,198Water consumption (t)62,97759,55923,168

179,612

108,457

100,488

52,74592,860Total emissions of waste (t)

7,508

2,010

75

1,446

1,134

11,346703

4,630

Date of ISO14001 certification acquisition

December 2009

June 1999

January 2010

December 2000

December 1999－－

LPG, et al.

September 2000

Notes 1. All data, except the number of employees, were derived from performances of all manufacturing facilities during FY2010.
The number of employees was based on the companies’ data as of March 31, 2011.
2. Conversion to CO2 and total energy consumption were based on statistical data of each region, country, and that of IEA for 2010.
3. Total emissions of waste are expressed as a composite of the amount recycled and the amount disposed.

All values are sum of
former 3 corps(KUC, KHM, KSCC)

Environmental Management and Environmental Accounting
Courses in Environmental Education and Training in Japan (excluding general environmental courses)
Organizer

No.

Course nameHead Office

1
2
3
4
5
6
7
8
9
1
2
3
4
5
6

Advanced environmental education (held every two years) Environmental specialists (Komatsu and affiliates)

Divisionsoverseeing
environmental
management at
plantsTargetParticipants

Overview of the ISO14000 series

Administrators (Komatsu, affiliates, and business associates)

Training of internal auditors / Refresher courses

Environmental auditors (Komatsu, affiliates, and business associates)

Development and manufacturing (introductory)

Development and manufacturing staff (for second-year employees)

Environmental training for manufacturing engineers

Assistant foremen/ foremen/ manufacturing engineers/ students of Komatsu Institute of Technology

Training new employees

New Employees (Komatsu and affiliates)

Lectures on the environment, experience-oriented education Komatsu Group managers and employees
Education for enhanced environmental understanding (e-Learning) Komatsu Group managers
Education to refresh environmental understanding (e-Learning) Komatsu Group managers and employees
Education in the basics of auditing

Managers and employees

Overview of the ISO14000 series

Managers and employees

Training of internal auditors

Environmental auditors

Training new employees

New Employees

Regulatory education and personnel exchange

Employees

Specialist training

Environmental conservation practitioners (persons involved in regulatory affairs, etc.)

FY2007

FY2008FY2009FY2010

19
36
51
97
50
186
308
－
191
371
2,138
30
666
788
113

－
32
41
139
66
227
1,329
－
164
153
302
59
675
1,276
1,776

16
55
40
182
91
115
398
－
237
98
836
7
1,116
517
2,466

－
83
273
112
114
200
1,002
－
194
99
468
26
1,240
448
952

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
Certificate name
Pollution control administrators
Energy administrators
Environmental management system auditors

Effects on Society during the Product Use Stage*

Number of persons with certificate*

Environmental impact reduction effects

FY2007

FY2008FY2009FY2010192 (51)
39 (14)8

195 (49)40 (13)8177 (39)48 (13)7

178 (33)42 (10)
6◦Environmental impact reduction resulting ◦Reduction of expenses for processing
waste materials
from on-site recycling methods◦Environmental impact reduction resulting ◦Savings in operating and maintenancecostsfrom product operation◦Waste components reduction resulting from ◦Reduction of repair costs“Reman” businessTangible benefits* Concerning the effects on society derived from product use by customers, the major items of qualitative
information are shown here as a reference.

Environmental Costs (Investments and expenses)
Category

Komatsu and Komatsu Group manufacturing facilities in Japan

Investment
FY2009

Expenses
FY2010FY2009Investment* Investment* Contents(millions of yen) (millions of yen)

FY2010

Expenses* Expenses* Contents(millions of yen) (millions of yen)

1,228

1,544

2,671

3,692

1. Pollution prevention cost

871

1,107

◦Investment for installation and conversion ofpollution mitigation/prevention facilities(installation of effluent processing facilities,
conversion of painting booths, etc.)

700

1,191

◦Cost of maintaining equipment for mitigation/prevention of
air and water pollution and for noise and vibration prevention(labor and depreciation costs)

2. Global environmental conservation
cost

337

291

◦Investment for implementing energy conservation
measures(installation of new ventilation systems, etc.)

866

1,162

◦Cost of maintaining energy conservation facilities, such ascogeneration systems (labor and depreciation costs)

3. Resource circulation cost

20

146

◦Investment for reducing the volume of wastematerials(conversion of recycling facilities, introduction ofequipment for separating waste, etc.)

1,105

1,339

◦Waste material processing cost

0

1

218

259

◦Reduction of the environmental impact of components, etc.
shipped outside Japan◦Reduction of the environmental impact of mass-production units

702

929

◦Cost of maintaining environmental management systems◦Cost of creating green spaces and beautifying manufacturing sites

12,03914,128◦Cost of R&D activities to reduce the environmental impact of
products◦Cost of R&D activities to develop environmentally-friendly
construction equipment(1) Business area cost(2) Upstream/downstream cost

2

23

295

172

(5) Social activity cost

0

0

11

13

(6) Environmental remediation cost

0

0

746

418

1,526

1,740

16,387

19,440(3) Administration cost(4) R&D cost

Total

◦Investment for beautifying manufacturing sites◦Investment in research facilities for reduction ofenvironmental impact◦Cost of conducting surveys and remedial countermeasuresrelated to soil and groundwater contamination* All figures are rounded off to the nearest million yen.

Komatsu and Komatsu Group manufacturing facilities in Japan

Environmental impact reduction effects

Economic benefits

Items ofenvironmental
impactTangible benefits

CO2 emissions

Water
consumption

Waste materials
generation

Reductionamount(t/year)Rate ofyear-on-yearchanges (%)

76,791

680,098

5,501

Data

Environmental Effects

40.4

12.5

38.9

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

Monetary value* Major activities(millions of yen)

332
1
793
473

Avoidance benefits ofenvironmental risks(see Note below)

Contribution to profits(see Note below)◦Energy conversion, etc.

◦There were no accidents or◦Proceeds from mobile recycling
pollution in Japan during FY2010
equipmentthat led to violations of the law.
◦Proceeds from value added due
to reduced environmental impact◦No litigation costs were requiredin Japan during FY2010.
of products (engines)◦Promotion of recycling through thoroughgoing◦Proceeds from Reman businesssorting◦Reuse of furnace slag for roadbed materials

3
1,602

* Figures are rounded off to the nearest million yen.
Note: Komatsu used statements instead of numeral figures to describe the “Avoidance benefits of environmental risks” and the “Contribution to profits.” The company will further develop concepts and ways to understand effects in thesecategories. The sales amounts of businesses for content presented in “Contributions to profits” in FY2010 are as follows:◦Mobile recycling equipment business: 1.0 billion yen◦Engine business: 120.8 billion yen (Total for intra-Group sales from the Engine Business Division)◦“Reman” business: 35.3 billion yen (Worldwide Reman business sales from April 2010 to March 2011)48

Company Profile
Company name

Komatsu Ltd.

◆ Changes in Consolidated Sales

EstablishedMay 13, 1921

(billion yen)

Head Office

2-3-6, Akasaka, Minato-ku, Tokyo 107-8414, Japan

2,500

Representative

President and Chief Executive Officer Kunio Noji

2,000

Common Stock

Consolidated¥67,870 million (US$828 million*) as of March 31, 2011

1,000

*The translation of Japanese yen amounts into US dollar amounts is included solely(for the fiscal year** ended
for convenience and has been made for the fiscal year ended March 31, 2011 at
March 31, 2011) the rate of ¥83 to US$1, the approximate rate of exchange at March 31, 2011.
**Komatsu’s fiscal years end on March 31. “FY2000,” for example, meansfrom April 1, 2000 to March 31, 2001.

Main lines of business(Komatsu Group)

0

Komatsu Group profile Number of affiliated companies 184(as of March 31, 2011)

Number of employees by region:

Consolidated

41,059Non-consolidated

8,210

Consolidated subsidiaries
in Japan
Consolidated subsidiaries
outside Japan

10,043

18,253The Americas
9,128
Europe and CIS
3,138
China
4,115
Asia (excluding Japan and China) and Oceania
5,319
The Middle East and Africa
1,106(as of March 31, 2011)

Japan

Industrial machinery,and others
Construction and mining
equipment, vehicles

2,021.7
277.0

1,843.1
1,431.5

227.4

162.9
1,711.2

2,048.7

1,744.7
1,268.5

2006

2007

2008

2009

1,615.6

2010

(FY)

◆ Sales by Region (FY2010)
The Middle
East and Africa
104.5(as of March 31, 2011)

22,806

194.3

182.0

500

Manufacture and sale of construction and mining equipment, utility
equipment (small construction equipment), forestry equipment,
industrial machinery, etc.

Number of employees:

1,893.3

1,500

Consolidated¥1,843,127 million (US$22,206 million*)
Non-consolidated ¥742,519 million (US$8,946 million*)

Net sales

2,243.0

Asia(excluding Japan and China)
and Oceania
398.3
China
428.2

6%

Japan
349.1

19%
22%
1,843.1(billion yen)

22%

23%
9%

The Americas
397.4
Europe and CIS
165.4

Note: The sales ratio by region has been rounded off to the closest whole number.

Environmental and Social Activities to Date & External Commendations◆ Overview of Komatsu’s Environmental and Social Activities to Date
1962
1991

●

1992

●

1994

●

1997

●

Began support for the Flower Association of Japan since its founding

Earth Environment Committee established● Company name changed in Japanese public relations to “Komatsu,”with new corporate brand logotype●

Komatsu Earth Environment Charter and Environmental Action Plan formulatedFirst Environmental Report published● Board of Corporate Auditors established
Oyama Plant becomes first in Japanese construction equipment
industry to acquire ISO14001 certification

Ethics Committee established(Renamed as Compliance Committee later)● First edition of Komatsu’s Worldwide Code of Business Conduct published1999 ● Executive Officer system established; Board of Directors reorganized● Compensation Council established2000 ● First Global Environmental Affairs Meeting convened● Environmental Report published; published annually thereafter
2001 ● Compliance Department established2002 ● All seven Komatsu Group manufacturing facilities in Japan acquire
ISO14001 certification
2003 ● Environmental Affairs Department established
1998

2004
2005

●

●

Corporate Social Responsibility Department established●First European Health, Safety, and Environment Meeting convened

All Komatsu Group manufacturing facilities in Japan attain zero emissions
The KOMATSU Way explicitly defined and promotion activities launched2007 ● Seventh edition of Komatsu’s Worldwide Code of Business Conduct
published2008 ● Agreement concluded with Japanese NPO Japan Mine Action Service (JMAS)● The Komatsu Group in Japan acquire ISO14001 integrated certification● Development of PC200-8 hybrid hydraulic excavator announced● Signed the United Nations Global Compact
2009 ● Started Angola local reconstruction project with JMAS● PBZ and PAS series of press brakes acquire MF eco machine* certification● Basic agreement reached between Komatsu, Adaro and UT on thebiodiesel project in Indonesia
2006

●
●

*The MF Eco machine Certification System is an eco-label established by the Japan
Forming Machinery Association.

New medium- and long-term targets are set to reduce CO2 emissions
from manufacturing facilities
Komatsu Earth Environment Charter is revised
2011 ● Vehicle equipped with a new type of engine that meets Tier4 emission
standards for Japan, the U.S.A. and Europe is introduced in the North
American market● Komatsu’s “Declaration of Biodiversity” is established● Local reconstruction project in Cambodia is completed with JMAS● CSR themes are defined● “Komatsu Green Park” opens in Komatsu City, the company’s birthplace
2010

●
●

◆ External Commendations and Evaluations on Komatsu’s Environmental Conservation and Social Activities
2010 May. ● Received the 2010 Chairman’s Award from the Japan Construction Mechanization Association for developing the PC200-8E0 Hybrid Hydraulic Excavator
Oct. ● Ranked 18th among 1,900 companies in Japan in the Nippon Foundation’s Annual Corporate Performance Rankings
Dec. ● Awarded the Good Enterprise Grand Prix from the Japan Investor Relations Association (JIRA)● The Oyama Plant received the “Environment Minister’s Commendation” for its activities for mitigating global warming● Komatsu ranked 8th according to the “NICES” company rating system by Nihon Keizai Shimbun, Inc.
Ranked 16th among 253 companies in Japan in Nikkan Kogyo Shimbun Ltd.’s Seventh Annual Corporate Performance Rankings
Ranked 29th among 475 companies in the 14th Corporate Environmental Management Ranking by Nihon Keizai Shimbun, Inc.
Feb. ● Awarded first prize for the 2011 Integrity Award from the Internal Control Council of Japan (ACFE)
Apr. ● Komatsu Hybrid System for construction equipment receives the 2010 JSME Medal for New Technology from the Japan Society of Mechanical Engineers (JSME)

2011 Jan.

●●

Komatsu Ltd. is included in the Socially Responsible Investing (SRI) indexes indicated below.

49(As of September 2010)

Message from Top Management
Independent Review on CSR & Environmental Report 2011

People and Technology –Building a Bridge to the Future

Regarding the Independent Review
Komatsu views the independent review
process as crucial for ensuring the integrity
and objectivity of its CSR & Environmental
Report. For that reason, Komatsu hasreceived an independent review from
Deloitte Tohmatsu Evaluation and Certification Organization Co., Ltd., a memberof the Deloitte Touche Tohmatsu Group.
The results are as represented below withregard to the information appearing in the
CSR & Environmental Report 2011.

Pursuing sustainable growth through the CSR activities of our core business.
First, I would like to express my heartfelt sympathy to all
who have suffered in the Tohoku earthquake and tsunamithat struck in March 2011. Immediately following the quake,
Komatsu made construction equipment available under freeof charge lending, to assist with restoration and reconstruction. And our commitment to supporting the reconstructionof the devastated areas through our business activities isongoing.

Komatsu’s Management and CSR(Corporate Social Responsibility)
K o m a t s u ’s c u r re n t b u s i n e s s e n v i r o n m e n t c a n b e
represented by the status of our strategic markets – China
in the forefront, followed by the rest of Asia and the CIS,
Latin America, the Middle East, and Africa. These markets
are growing at a satisfactory rate, and we anticipate that thegrowth of these countries and regions will continue to be a
driving force in the future.
In step with our mid-range management plan and its
March 2013 targets, our initiatives are focused on incorporating Information and Communication Technology (ICT)
into products and components, making further progress inensuring safe and environmentally friendly performance, andexpanding and improving our sales and after-sales service
organization in our strategic markets. Through these activities, we will develop not only business for Komatsu, but also
the products and services that we supply to our customers
will contribute to economic development and a better
standard of living, and to reduced environmental impact andimproved safety.
The world faces a host of challenges and expectation fromsociety towards responsible corporate behavior is growing.
Komatsu is conscious of this responsibility and believes that
our core business which embody our strength are in fact
CSR activities that respond to society’s demands.
In the years to come, we will be constantly vigilant inensuring that the actions of our management are in line withthe expectations and demands of society. As we carry out
our CSR activities, we will engage with our stakeholders
through two way dialogue in order to better understand what
our top priority issues should be. By doing so, we hope toenhance the trust placed in us by society and to contributeto sustainable growth.

Environmental Activities
K o matsu considers environmen t a l a c t i v i t i e s a t o p
management priority. To meet the mid-range managementtargets set last year, we are actively pursuing initiatives using
measures that are both “proactive” and “protective.”On the “proactive” side, we are emphasizing reductionof CO2 emissions throughout product use, to help mitigate◆ CSR and Management Cycle

Management
PolicyEnhancing thetrust placed in us
by society➡ Further growth

http://www.tohmatsu.com/teco/

Business
DomainImplementation ofmanagement➡ Contributing tosociety

Management
Strategy

Is management
in line withsocietal demands?
➡ Always monitor◆ Supplementary Explanation regarding the Conducting of Independent Review Procedures
As a supplementary explanation, the following provides an overview of the review procedures conducted during an independent review.

The KOMATSU Way

Supplementary explanation regarding independent review procedures

Corporate
Citizenship

Step 1
Formation ofplan for review
process

Demands of Society● Confirmation of items to be

climate change through a variety of measures. For example,
we are reducing the environmental impact of products
throughout their life cycle and expanding the market for lowfuel consumption hybrid hydraulic excavators. In addition,
our biodiesel fuel project is working on the local productionof carbon-neutral biodiesel fuel. Last year we also enacted
a “Declaration of Biodiversity.” One of our first initiatives was
to dedicate a space in the place Komatsu was founded asa rural natural recreation area for children to enjoy natureand get hands-on experience with growing plants. We also
stepped up activities to increase the green coverage ratio in
all our plants.
On the “protective” side, we have started sales of construction equipment that meets the Tier4-interim emission
standards taking effect in 2011, and are actively reducing
the use of chemical substances that are of environmental
concern.
We will continue to maintain strong cooperation with
our overseas affiliates, distributors, and business partners
around the world to bolster our environmental activities, witheven higher objectives in sight.

Sharing our Values within the Group
Serving as cornerstones of our actions are The KOMATSU
Way and Komatsu’s Worldwide Code of Business Conduct.
The KOMATSU Way comprises a set of values, basic attitudes and patterns of behavior to be passed on to the future

included in the report(1) Scope of information(2) Information collection
process(3) Information collection
method(4) Level of importanceof individual pieces of
information● Finalization of items to
be reviewed and review
methodology

Step 3

Execution ofreview

Reporting on
review results● Review of offices andpersons in charge● Inspections of business
units

Step 4● Reporting results of review(revisions and suggestions)

Check of final
version of repor● Follow-up on issues

identified during Step 3

Step 5
Submission of
independent
review report● Submission of

independent review report

Supplementary explanation regarding site visits to business units

1.Business units
visited in this review:● Komatsu Ltd. Head Office● Awazu Plant

2.Visits to business units take place

in a planned rotation. Records forbusiness units not visited during thisreview were reviewed at the KomatsuLtd. Head Office.

Executing a review at the Head Office(with persons in charge of Development Division in photo)

Executing a review
at the Awazu Plant

Scope of This Report● Komatsu (parent company) manufacturing facilities, specifically the following seven plants
The Awazu Plant [including the Komatsu Machinery Corporation and Komatsu Engineering Corp (Awazu Plant).], the Kanazawa Plant [including the Kanazawa-Daiichi Plant,
the Kanazawa-Daini Plant and the Kawakita Plant], the Osaka Plant [including the Rokko Plant], the Ibaraki Plant [including the Mooka Plant] and the Oyama Plant [including
Komatsu Cummins Engine Co., Ltd., Industrial Power Alliance Ltd. and GIGAPHOTON, Inc.], the Koriyama Plant, and the Shonan Plant [including KELK Ltd.].
● Komatsu Group manufacturing facilities in Japan, specifically the above seven plants and the following five business units
Komatsu Utility Co., Ltd., Komatsu Castex Ltd., Komatsu Cabtec Co., Ltd.,, Komatsu NTC Ltd. [including Lossev Technology Corporation, Toyama Kiko Corporation, and
D.S.K. Co., Ltd.] and Komatsu House Ltd.
● Komatsu Group manufacturing facilities outside Japan, specifically the following 24 plants
Komatsu America Corp.,[Chattanooga Manufacturing Operation], [Peoria Manufacturing Operation], [Newberry Manufacturing Operation], Komatsu do Brasil Ltda., Hensley
Industries, Inc. (The Americas), Komatsu UK Ltd., Komatsu Hanomag GmbH (Germany), Komatsu Mining Germany GmbH, Komatsu Manufacturing Rus, LLC, Komatsu
Utility Europe S.p.A. (Italy), Stavmek s.r.o (Czech Republic), Komatsu Forest AB (Sweden), PT Komatsu Indonesia Tbk, PT Komatsu Undercarriage Indonesia, PT Komatsu
Forging Indonesia, Bangkok Komatsu Co., Ltd., Bangkok Komatsu Industries Co., Ltd., L&T-Komatsu Limited (India), Komatsu India Pvt. Ltd., Komatsu Shantui Construction
Machinery Co., Ltd., Komatsu (Changzhou) Construction Machinery Corporation, Komatsu (Changzhou) Foundry Corp., Komatsu (Shandong) Construction Machinery Corp,
and Komatsu Undercarriage China Corp.
● Komatsu Group manufacturing facilities including outside Japan:All of the 36 above-mentioned offices are shown.

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Komatsu Ltd.
2-3-6, Akasaka, Minato-ku, Tokyo
107-8414, Japan
http://www.komatsu.com/CompanyInfo/csr/

Komatsu welcomes your comments.
E-mail: kankyo@komatsu.co.jp
CSR Department
TEL: +81-3-5561-2799
FAX: +81-3-3505-9662
Environmental Affairs Department
TEL: +81-3-5561-2646
FAX: +81-3-5561-2780
HEER110729

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