2024
Komatsu ESG Databook

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocial

Data

Index

contribution
activities

ESG Databook 2024
Message from the President

003

Sustainability policy

003

Environmental initiatives at sales and service companies
Promoting legal compliance, and pollution mitigationand prevention
Management of chemical substances and pollution prevention

Management of sustainability
Materiality analysis
Structure for promoting sustainability
Dialogue with stakeholders
Major achievements
External recognition
Comparison with global principles
Green bond
Sustainability-linked bond

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

005

NOx and PM emitted from products009

Compliance and risk audit at overseas group companies

017

Holding regional environment meetings

023
031

Promoting diversity and inclusion
Offering of a variety of talent development opportunities
and improvement of employee engagement
Develop digital and open innovation promotion human resources
Occupational safety and health
Human rights policy
Business and human rights

Quality assurance - Our responsibility to customers Outline of procurement policy and supply chain
Overview of supply chain management processes
Komatsu group's supply chain management andpromotion of CSR procurement
Support for member companies of the Komatsu Midori-kai(management and society)Support for member companies of the Komatsu Midori-kai（environment）
Corporate governanceCorporate governance indicators
Compliance
Risk management

Organizational chart of the environmental management structure
Setting mid- and long-term targets and progress
Acquiring ISO14001
Relationship between business activities and the environment
Mitigating climate change through products and service
Reducing CO2 emissions in manufacturing operations
Reduction CO2 emissions in logistics
Development of our “Reman” remanufacturing business
Activities to effectively utilize resources (1. waste)
Activities to effectively utilize resources (2. water resources)

177

184
190

Amount of CO2 emissions by Scope3191

SBT (Science-Based Targets) approved

037

192

Environmental education

045

194

Environmental accounting

054

198

Major environmental achievements in FY2023

061

202

Scope of environmental data/calculation standards

063

205

Independent practitioner's assurance

074

206

Other CSR data

076

Social Contribution Activities
Accomplishments and approaches for social contribution activities

084

Nurturing the next generation

089

Clearing anti-personnel landmines andcommunity development support

101

225

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

112

Promoting sportsthe Komatsu women's judo club

121
126

211

218

Disaster relief

106

208
214

Developing people needed by the community

093

227
230
234

Index

128
131

237

GRI content index

139

245

SASB content index

With the planet
Our concept of environmental activities and promotion system

175

179

Environmental data

With business
Improving safety of products and solutions

173

Data

034

With people
The Komatsu Way and policy on human resource development

171

178

Biodiversity initiatives

029

170

175

Komatsu's eﬀorts regarding water

011

168

Editorial Policy147

In principle, the period covered by the information on the sustainability website is

149

from April 2023 to March 2024, but ongoing initiatives may include information
outside the period covered.

150

The reports principally cover all our domestic and overseas consolidated Group151

companies and if the scope is different from the above, we stated the scope of153

report in each page.

155

The date of the previous report is July 2023. The date of the latest report isAugust 2024. The next issue will be published in July 2025.

158

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

160

The reports contain Disclosures items referring to the GRI Standards. You can161

see a list of the Standard Disclosures and their location in our report here.

Komatsu has received an independent practitioner's assurance on important

163

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

166

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ESG Date Book 2024

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Message from the President

003

Sustainability policy

003

2

Data

Socialcontribution
activities

Index

ESG Date Book 2024

Sustainability policy

Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

Message from the President

Our priority on sustainability management aims to generate apositive cycle for resolution of ESG issues and improvement of
earnings to achieve sustainable growth.

With our “Sustainability policy” serving as a guideline for theachievement of a sustainable society and business growth, we arecommitted to meeting the challenge of climate change and othersocial issues, and we will fulfill our social and environmental
responsibilities as a global company through our business activities.
Hiroyuki Ogawa
President and CEO
Representative Director

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

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

With businessWith the planet

We provide an environment where
diverse and global employees canwork safely and healthily as one
team, with respect for eachindividual, and with satisfaction andpride.

We contribute to society throughour business activities by providing
our customers with safe and highly
productive products, services andsolutions that realize sustainableinfrastructure development,
resource development and arecycling-oriented society.

Through all of our businessactivities, we strive to reduce ourenvironmental impact and preserve
the global environment through theuse of advanced technologies.

We nurture employees who cantake on challenges in various
jobsites and regions, create newvalue together with customers, andcontribute to the realization of asustainable society.
As Komatsu Group, we shallrespect human rights related to allof our business activities.

We build relationships with ourbusiness partners and local
communities that enable mutual
trust, fairness, co-existence and coprosperity.
We comply with the rules of society,including laws and regulations, andstrive to respond sincerely to therequests and expectations of all
stakeholders, including society.

We strive to increase both global
environmental conservation andbusiness growth throughmanufacturing and technologicalinnovation.

We pursue collaboration and value
creation with our stakeholders
towards a sustainable planet andfuture.

Komatsu Ltd.
President and Chief Executive Officer

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Sustainability policy

Management ofsustainability

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Management of sustainability
Materiality analysis

005

Structure for promoting sustainability009

Dialogue with stakeholders

011

Major achievements

017

External recognition

023

Comparison with global principles

029

Green bond031

Sustainability-linked bond

034

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

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

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

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

* Internal interviews : worldwide executives (directors, executive officers including global officers).

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

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Materiality
Occupational safety and health and wellbeing[Employees]

Employee engagement and job satisfaction
Diversity and Inclusion

Skills development and workplace retention[Human rights][Customers]

Respect for human rights
Provision of solutions

Product safety and quality[Ethics /Governance]

Governance[Communities]

Contributions to local communities

Compliance

Development of low-carbon/low-emissions products,
solutions and business models[Environment]

Resource recycling and remanufacturing

Reduction of energy usage and GHG emissions

Forest conservation through business activities

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

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

Materiality[Employees] [Human rights]
Diversity and Inclusion

Gender equality

With people

Reducedinequalities

With business

Decent work andeconomic growthPartnerships for thegoals

Industry, innovation Sustainable cities
and infrastructure and communities

Skills development and workplaceretention
Employee engagement and job
satisfaction

Occupational safety and health andwellbeing
Respect for human rights[Customers][Ethics / Governance][Communities]
Provision of solutions

Product safety and quality
GovernanceCompliance

Responsible
Partnerships for the
consumption andgoals
production

Affordable andclean energy

With thePlanetResponsible
consumption andproduction

Industry, innovationand infrastructure

Climate action

Contributions to local communities[Environment]

Development of low-carbon/lowemissions products, solutions andbusiness models
Resource recycling andremanufacturing

Forest conservation through businessactivities
Reduction of energy usage and GHG
emissionsLife on land

Partnerships for the
goals

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

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Sustainability policy

Management ofsustainability

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Structure for promoting sustainability
A dedicated organization to promote sustainability
Komatsu has established the Sustainability Promotion Division, an organization under the direct control of the
President, to oversee activities relating to the promotion of the group’s sustainability-oriented management. The
Sustainability Promotion Division aims to enhance the Komatsu Group’s commitment to ESG management by
formulating and planning policies and measures related to the environment and society, thus enabling all
divisions and companies within the group to actively engage in sustainability initiatives.

Sustainability-related committees
The Sustainability Promotion Committee, chaired by the President, is held twice a year (and at other times asneeded) to deliberate and decide on the planning and promotion of sustainability measures for the KomatsuGroup, environmental and CSR policies, and important initiatives and activities, thereby facilitating theirimplementation.
Furthermore, the deliberations of the Sustainability Promotion Committee are regularly reported to and reviewed
by the Board of Directors.
Additionally, for each sustainability-related issue, such as human resources, occupational safety and health,compliance, human rights, and the environment, a committee chaired by the President or a responsible
executive officer is established, composed of representatives from various business and functional divisions.
These committees aim to discuss, decide, and promote policies and measures across the group. Specifically, theKomatsu Way Committee reviews personnel and educational measures, the Sustainability Promotion Committee
discusses measures related to the environment and human rights. In addition, the Strategy Review Committee
deliberates on business strategies for carbon neutrality and decarbonization. The deliberations by the abovementioned committees and business strategies are regularly reported to and discussed by the Board of
Directors.

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

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Sustainability policy

sustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index

DATA
FY2023: Key discussions on sustainability
Meeting names

Month
April

Board of Directors
October
Strategy review meeting

Sustainability Promotion
Committee

Komatsu Way Promotion
Committee

Main agenda items
Progress on medium-term management plan activities
Report from the Sustainability Promotion Committee

Talent acquisition, development, and utilization initiatives
Report on global engagement survey results

As needed

Review of business strategies related to climate change (R&D on low-carbon andelectric products)

September

Human rights policies and activities / environmental management measures

January

Progress on medium-term management plan activities / next medium-term
management goals

June

Progress on medium-term management plan activities and future direction

January

TCFD disclosure / human rights initiatives, etc.

Progress on medium-term management plan activities
Talent management initiatives

Risk Management Committee

As needed

Identification and organization of corporate risks (environmental, human rights, etc.)

Executive officers meeting

As needed

Progress management towards business goals

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Dialogue with stakeholders
Creating a variety of opportunities for dialogue
Engaging in dialogues with our stakeholders is essential for determining the relative effectiveness of Komatsu's
management and business operations in terms of meeting social needs. Every department that has directcontact with our stakeholders strives to create an environment of transparency and integrity by detailing ourcompany’s current situation, receiving feedback, and engaging in effective discussions.
Stakeholders

Customers

Business partners

Distributors

Employees

Local community

Examples of meetings andactivities

Purposes
Collaborate to realize
customers' goals and fulfill
corporate responsibility

Brand Management Activities

Collaborate to resolve issues
in society and in the regions
where we operate, andparticipate in local activities
Various meetings with
Midori-kai

Conduct safety patrols andprovide opportunities such as
for support of efforts for
obtaining certification

2 times a year

As needed

Distributor meetings in eachregion5 times a year

Meeting with the President

2 times a year

Sharing Q&A session content
with global employees via theintranet

As needed

Explanation by the President
on business performance andpolicies
Dialogue with the labor unionand employee representatives
to improve the workplaceenvironment

Daily

Daily

Explanation by the President
on business performance,
policies and strategies

Explanation by the President
on business performance,
policies and strategies

Frequency

Regular Meetings between
Management and Labor Union

As needed

Explanation of initiatives
related to operations, theenvironment and safety

Meetings with residents of thelocal community near the plant

As needed

Activities to resolve local
issues based on employee
suggestions

Voluntary activities by
employees

Daily

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Stakeholders

Purposes

Industry-academia
collaboration
partners

Exchange of ideas andopinions between
representatives such asuniversity professors and ourChief Technology Officer

Investors

Individual
shareholders

Data

SocialIndex

contribution
activities

Examples of meetings andactivities
Komatsu Science andTechnology Collaboration
CouncilFrequency

Biannually

CEO and CFO explanation ofbusiness performance,
policies and strategies

IR Meetings

Japan: Daily
Overseas: Several
times a year

Respond to inquiries and SRI
surveys

SRI Surveys

Daily

Shareholders Meetings

2 times a year, heldin Japan(held online since
FY2020)

Plant tours for shareholders

About dozen
times a year inJapan

CEO and CFO explanation ofbusiness performance,
policies and strategies
Plant tours and explanation ofoperations

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Data

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Communication with shareholders and investors
Operating within our commitment to high managerial transparency, through proactive investor relations (IR)activities on a global scale, Komatsu discloses information in a proper and timely manner and engage in two-way
communication.

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

2. Informational meeting for individual shareholders
Komatsu periodically holds shareholders’ meetings to explain the current status and future prospects of theKomatsu Group and the progress of the mid-term management plan to our shareholders. Since its inception in
1997, we have held 55 shareholder meetings, attended by about 17,000 shareholders in total. In FY2023, we
held a meeting in Osaka City in August, as well as an online meeting in December. Senior management provided
an overview of the company’s business and engaged in communication with shareholders. We received manyquestions from shareholders regarding the development status of electrified construction machinery towards
carbon neutrality, the effect of yen depreciation on our business performance, our efforts to develop humanresources for sustainable growth, and our shareholder return policies, fostering a two-way dialogue.

Shareholders’ meeting held in Osaka City

Online shareholder meeting

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3. Plant tours for individual shareholders
Komatsu holds plant tours for individual shareholders and Techno Center tours for children to deepen theirunderstanding of our business activities. In FY2023, we held plant tours for a total of 16 days at the Awazu Plant(Ishikawa Prefecture), Osaka Plant (Osaka Prefecture), Ibaraki Plant (Ibaraki Prefecture), Oyama Plant (Tochigi
Prefecture), and Techno Center (Shizuoka Prefecture).

Tour held at Awazu Plant

Tour held at Ibaraki Plant

Tour held at Techno Center

Tour held at Techno Center

4. Meetings for individual investors
Komatsu holds meetings for individual investors to explain the current
status and future prospects of the Komatsu Group and the progress of the
mid-term management plan. In FY2023, we had five online meetings forindividual investors.

A shot from an online meeting forindividual investors

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Index

DATA
Major IR activities in FY2023
Venue / Number of
events held

For corporate investors andsecurities analysts

For individual investors andshareholders

Financial results
briefing

４

Small meetings

７

Business and ESG
briefing

１

Plant tours

Ibaraki Plant: 1
Awazu Plant: 1

Overseas IR

Asia: 1
North America: 3
Europe: 2

Respond tointerviews

302

Reference information:
Number of participants, etc.

Theme
1. Growth strategy of
Gigaphoton
2. Komatsu's efforts to promotesustainability

Of which, one was held online in
Asia and one in Europe

Shareholder meeting

Osaka City, Osaka
Prefecture: 1
Online: 1

449 people in total

Plant tours

Awazu Plant: 4
Osaka Plant: 4
Ibaraki Plant: 4
Oyama/Tochigi
Plant: 2
Techno Center: 2641 people in total

Online: 5

Viewed live or on demand by atotal of 9,104 people

Meeting forindividual investors:

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

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

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

Communication with local communities (efforts in Japan)
To deepen the understanding of our business activities among local residents and the families of our employees,
we regularly hold "Plant Fairs." In FY2023, these events were held at eight locations, attracting approximately
57,000 visitors.
Due to the COVID-19 pandemic, we were forced to cancel these events after 2020, but in FY2023, we resumed
them for the community and our employees and their families, just as we did before.
Venue Name

Number of visitors (approx.)
Local residents and employees & their families:
approx. 4,500

Himi Plant
Awazu Plant

Same as above: approx. 9,000

Kanazawa Plant

Same as above: approx. 6,000*

Koriyama Plant

Same as above: approx. 2,500

Ibaraki Plant

Same as above: approx. 5,500

Shonan Plant

Same as above: approx. 8,500

Oyama and Tochigi Plants

Same as above: approx. 11,000

Osaka Plant

Same as above: approx. 10,000* Held as part of "Port Festa" at Kanazawa Port16

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contribution
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Major achievements
Sustainability policy and KPIs of mid-term management plan
Based on its Sustainability Policy, Komatsu seeks to contribute to society through its business.
In the mid-term management plan, the company strives for sustainable growth by creating a positive cycle ofresolving environmental, social, and governance (ESG) issues and improving earnings. This includes efforts to
reduce environmental impacts in response to climate change, provide safe, high-quality, and efficient products,
services, and solutions, and promote diversity and inclusion. To ensure the effective execution of these ESG
initiatives, key performance indicators (KPIs) have been established, and progress towards achieving these KPIs
is publicly disclosed. Additionally, the relationships between identified material issues, KPIs, and relevant SDGs
have been organized.
Furthermore, the achievement of ESG-related KPIs is directly linked to the performance-based component ofinternal directors' remuneration under the mid-term management plan, specifically through Stock-BasedRemuneration B.
Sustainability Policy

Materiality

With people

We provide an environment where diverse and global
employees can work safely and healthily as one team,with respect for each individual, and with satisfaction
and pride.
We nurture employees who can take on challenges invarious job sites and regions, create new value
together with customers, and contribute to therealization of a sustainable society.

As the Komatsu Group, we shall respect human rights
related to all of our business activities.

Materiality Key activity themes

No.

KPI

SDGs

Occupational safety and health and wellbeing
Employee engagement and job
Employees satisfaction
Diversity and Inclusion
Skills development
Human
RightsRespect for human rights

FY2024 Targets

FY2022 KPI
Performance

FY2023 KPI
Performance

Employees
Occupational safety and health and well-being

Build workplaces thatare safe and secure1Frequency rate oflost work time
accidents（per 1
million hours）

Employee engagement and job satisfaction

Increase employee
engagement

2

Engagement survey
scoresOngoing decrease fromthree-year averagefrequency rate of 0.65
from period of previous 0.80
mid-term management
plan (Performance
disclosed)
1. Domestic score :75 or more (69 in
FY2021)
2. Global score :85 or more (79 in
FY2021)

Notes: 1. Score represents
Implementation ofrate ofaction plan based onfavorable responses. FY2021 survey results
2. Global engagement
surveys are
conducted once
every two years(next survey to be
conducted in
FY2023).

17

0.62

Second global
engagement survey
conducted
1. Domestic score: 69
2. Global score: 80

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Sustainability policy

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Materiality Key activity themes

No.

Diversity and Inclusion

KPI

With the planet

Promote diversity andinclusion

4
Skills development
56SocialData

1. 17.0% or more
(13.9% on March 31,
1. Ratio of full-time2022)
female employees
2. 13.0% or more(consolidated)(10.0% on March 31,
2. Ratio of female2022)
managers(consolidated)

Index

contribution
activities

FY2022 KPI
Performance

FY2023 KPI
Performance

1. 14.1%(on March 31, 2023)
2. 10.3%(on March 31, 2023)

1. 14.5%(on March 31, 2024)
2. 11.1%(on March 31, 2024)

FY2024 Targets

Indicators related tofemale employees
3

Develop individuals'
skills and achievebusiness growthWith business

Ratio of employeeswith disabilities(surpassing legally
mandated rate)

2.5% or more (domestic,
single fiscal year basis,
2.42%
legally mandated level of
2.3%)

2.48%

Succession plans

Increased succession
planning for senior
management positions
at overseas Group
companies

Support andopportunities fordevelopment into
global key positions

Development of
human resources
with digitaltransformation andAl skills

Definition of global key
positions andformulation of
succession plans

Two-year aggregate
numbers of training
1. Digitalrecipientstransformation:
1. DigitalThree-year aggregate
5,341 for entry level*transformation:
numbers of training, 44 for practical
5,643 for entry level*
recipients
2. AI:, 84 for practical
1. Digital transformation
30 for entry level, 10
2. AI::
for practical
60 for entry level, 20
900 for entry level,
Notes: * Entry level digitalfor practical180 for practicaltransformation
Notes: * Entry level digital
2. AI :
coursetransformation
90 for entry level, 30
administered tocoursewider range offor practicaladministered towider range of
employees via
video lectures

employees via
video lectures

7
Human Rights

Cultivation of Smart
Construction
consultants

1,000 (aggregate)867

1. Internal
2. Procurement supply
chain
3. SalesRevised human rights
policy1. Internal:
Implemented"Business and human
1. Internal:
rights basic
survey targeting all
education"
Group companies
2. Procurement supply 2. Procurement supply
chain:
chain:(I) Conducted
Online survey"Training fortargeting major
procurement
suppliers
officers"
3. Sales:(II) Conducted onOn-site impact
site interviews withassessment in South
major suppliers
Africa3. Sales:Held discussions
with the Marketing
Department

Respect for human rights

Promote human rights
due diligence8

Human rights due
diligence activities

18

953

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Sustainability policy

Management ofWith people

sustainability

With businessWith the planetSocialData

Sustainability Policy

Index

contribution
activities

Materiality

With businessWe contribute to society through our business activities
by providing our customers with safe and highly
productive products, services, and solutions that realize
sustainable infrastructure development, resource
development, and a recycling-oriented society.

Customers

SDGs

Product safety and quality
Provision of solutions

We build relationships with our business partners andlocal communities that enable mutual trust, fairness, coexistence, and co-prosperity.

Ethics /Governance / Compliance
GovernanceWe comply with the rules of society, including laws andregulations, and strive to respond sincerely to therequests and expectations of all stakeholders, including
society.

Communities Contributions to local communities

Key activity themes

Materiality

No.

KPI

FY2023 KPI
Performance

FY2022 KPI
Performance

FY2024 Targets

Customers
Product safety and quality
Provision of solutions

Enhancement of
product safety

Improve productivity of
construction
workplaces bypromoting Smart
Construction

Provision of products
and solutions thatenable sustainable
resource development(mining equipment)

9

Development ofsafety devices andExpansion of range of
expansion of range ofmarketed models
marketed models
equipped with safety
equipped with safety
devices
devices (KomVision,
etc.)

10

Overseas sales of
2,700 units (single year) 2,448
ICT-intensive models

11

Number ofworkplaces using
Smart Construction(global total)

13,000 workplaces(single year)

8,955

2,038
11,740

Ratio of workplaces
using Smart
Construction that
20%
employ Solution Level
3 or higher: 15%(single
year)

22%

643

727

12

Enhancement andoptimization ofprocesses

13

790 units (aggregate,
Aggregate number of upward revision from
AHS units deployed prior target of 740
units)

14

Introduction andpromotion of open
technology platforms

Optimization ofmining operations

Completion of
introduction in threesmall sized wheel
loader models

Drowsiness detection
systems have been
retrofitted onto
HD785-7s in Europe
and Southeast Asia (thePhilippines).
With the exception ofcertain models, it has
been implemented in
the current rigid dump
trucks.

19Completion of phase 1
Currently conducting
development andtrials at multiplecommencement of
trials at customer
customer sites
workplaces

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Sustainability policy

Management ofsustainability

Materiality

With people

Key activity themes

Provision of products
and solutions thatenable sustainable
resource development(mining equipment)

No.

15

16

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

Building of value chain
adaptable toenvironmental anddemand changes

18

19

Ethics / GovernanceWith business

KPI

Augmentation of
hard rock mining
product lineupWith the planet

Expansion of productlineup and execution of
trials including thosefor new methods(mechanical cutting)Expansion of numberof marketed models(including new
developments)

92% (82% in FY2021)

Governance / Compliance

Strengthen
governance and ensure 20
thorough complianceactivities

FY2022 KPI
Performance
Load haul dump
machines:
Completion ofdevelopment of one
model
Mechanical cutters:
Advancement of
trials at customer
workplaces andlaunch targeting
specific customers

Mining Tunnel Boring
Machine: Productionof trial units
underway
Net sales: US$100
millionHydraulic excavators:
Tests conducted on
equipment jointly
developed withcustomers
Mining bulldozers:
Remote controls
trials at customer
workplacescompleted,automated operation
trials underway

Expansion ofSales growth rate: 15% Sales growth rate:
aftermarket business
13.5%(compared with(compared with(pursuit of business
FY2021, foreign
FY2021, foreign
growth and response
exchange rates fixed) exchange rates fixed)
to volatility)
Multi-sourcing ratio(Implementation ofbusiness continuity
measures across
supply chain)

Enhancement ofgovernance andentrenchment ofcompliance

Disclosure of initiative
results

20

Index

contribution

FY2024 Targets

Net sales: US$ 300
Expansion of hard
million (threefold
rock mining businessincrease)

Development of
automated
construction andmining equipment

SocialData

85%

Enhancement of
disclosure based onJapan's Corporate
Governance Code(business portfolio,
skill matrix)

Global e-learning
program on
Komatsu’s Worldwide
Code of BusinessConduct (conductedin 12 languages)

FY2023 KPI
Performance
Hydraulic excavators:
Testing conductedon joint researchvehicles with specificautomatic excavation
functions
Mining bulldozers:
Ongoing preliminary
research on
collaboration
between remotecontrolled bulldozers
and AHS dump
trucks
Net sales:
approximately US$80
millionHydraulic excavators:
Testing commenced
on joint researchvehicles withcustomers
Mining bulldozers:
Completion of
remote-control trials
at customer sites,
automated operation
trials underway, andexpansion of models
introduced to themarket (including
new developments)

Sales growth rate:+20% (compared withFY2021, foreignexchange rates fixed)

91％

Incorporation of
third-party analysis in
the evaluation
process of the Boardof Directors'
effectivenessGlobal e-learning
program on
Komatsu’s Worldwide
Code of BusinessConduct (conductedin 12 languages)

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Management ofsustainability

Materiality

With people

Key activity themes

No.

With business

KPI

With the planet

Data

FY2024 Targets

Socialcontribution
activities

FY2022 KPI
Performance

Index

FY2023 KPI
Performance

Communities
Contributions to local communities

Continuation of thedemining projectContinuation ofdemining project

Provision of￥30million in relief
support following
earthquake in Turkey
and Syria
Contributions tocommunities throughbusiness and disaster
relief support

21

Ongoing social
contribution
activities

Disclosure of activity
results

Continuation offorest restoration
projects at former
mine sites in North
America

Ongoing provision of
support for regional
human resource
development
programs with
Cummins Inc. (Chile,Peru, South Africa,and Australia)

21

Support forearthquake-affectedareas in the Noto
Peninsula(I) Donation of 600
million yen in relief
funds(II) Free lending ofheavy machinery toaffected
municipalities andsupportorganizations(III) Provision ofdisaster relief
supplies (e.g.,
emergency food)Continuation of theforest restoration
project at former
mine sites in North
America

Ongoing support forregional humanresource
development
programs with
Cummins Inc.
(Chile, Peru, South
Africa, and Australia)

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Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialData

Sustainability Policy

Index

contribution
activities

Materiality

SDGs

Reduction of energy usage and GHG
emissionsWith the planet

Through all of our business activities, we strive to reduce
our environmental impact and preserve the global
environment through the use of advanced technologies.
We strive to increase both global environmental
conservation and business growth throughmanufacturing and technological innovation.

Environment

Development of low-carbon / lowemissions products, solutions, andbusiness models

Forest conservation through businessactivities

We pursue collaboration and value creation with our
stakeholders toward a sustainable planet and future.

Resource recycling andremanufacturing

Materiality

Key activity themes

No.

KPI

FY2022 KPI
Performance

FY2024 Targets

FY2023 KPI
Performance

Environment
Development of low-carbon/low-emissions products, solutions, and business models

Plants with zeroenvironmental impacts

22

CO2 emissions fromproduction

23

Water consumption

24

Rate of renewableenergy use

Reduction of energy usage and GHG emissions

Reduction of CO2
emissions at customer
workplaces

25

CO2 emissions fromproduct use

26

Electrification of
construction andmining equipment

Forest conservation through business activities

45% reduction(compared with
FY2010)43％ reduction

51％ reduction

70% reduction(compared with
FY2010)69％ reduction

67％ reduction

20%

17％

25％

24% reduction(compared with
FY2010)21％ reduction

22％ reduction

Expansion of models indevelopment phaseand on market

27

28

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

Resource recycling and remanufacturing
Promotion of recycling29
oriented business

Expansion of Remanbusiness

Completion ofdevelopment of twomodelsLaunch of threemodels

1. Sales growth rate :1. Sales growth rate :1. Sales growth rate:
50%
28%
22.1％
(compared with(compared with（compared withFY2021, foreign
FY2021, foreign
FY2021, foreignexchange rates fixed)
exchange rates fixed)
exchange rates fixed)
2. Number of tree
2. Number of tree
2. Number of tree
planting machines
planting machines
planting machinesintroduced : 30
introduced : 9
introduced : 5(single year)

Growth of forestry
machine business(processmechanization)

Provision of solutions
that support
sustainable, cyclic
forestry businesses

Launch of one model

Completion of remotecontrol sensing
solution proof ofconcept test andselection of partners

Forest area : 23,705ha

Sales growth rate: 25% Sales growth rate:(compared with
16.5%(compared withFY2021, foreign
FY2021, foreignexchange rates fixed) exchange rates fixed)

Sales growth rate: 35%(compared withFY2021, foreignexchange rates fixed)

22

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Management ofsustainability

With people

With business

External recognition

With the planet

Data

SocialIndex

contribution
activities(as of June 20, 2024)(1) External recognitions for CSR activities (Recognitions for SRI)
[Global][CDP]An NPO that was established in the United Kingdom in 2000 and engages
in the surveying and global disclosure of corporate initiatives with respect
to carbon dioxide emissions and climate change, while simultaneously
analyzing and evaluating the surveyed details. In 2016, it started to run asystem aimed at selecting A-list companies, or companies recognized by
the organization as global leaders in terms of the implementation of action
on climate change.
One of the ESG management goals set by Komatsu in the Mid-Term
Management Plan “DANTOTSU Value – Together, to 'The Next' forsustainable growth,” which started in fiscal 2022, is to be selected as an Alist company in reference to CDP’s areas of focus—climate change andwater security.
[Trends in the selection of the company over the last three years]
2021

2022

2023

CDP Climate Change

A

A

A

CDP Water Security

A

A

A

[Dow Jones Sustainability Indices (DJSI)]
The sustainability indices were provided by U.S.-based S&P Global Inc.
They analyze and evaluate corporate sustainability from the threeperspectives of the governance & economic, the environment and thesociety to select high-ranking companies in each industrial sector.
One of the ESG management goals set by Komatsu in the Mid-Term
Management Plan “DANTOTSU Value – Together, to 'The Next' forsustainable growth,” which started in fiscal 2022, is to be selected for the
DJSI World.
[Trends in the selection of the Company over the last three years]
Komatsu has been selected as a constituent of the “World Index” forconsecutive years since 2006.

DJSI

2021

2022

2023

DJSI WorldDJSI WorldDJSI World

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With businessWith the planet

Data

Socialcontribution
activities

Index[MSCI global sustainability indexes*1]
The Socially Responsible Investment indexes were developed by U.S.based MSCI (Morgan Stanley Capital International), Inc.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.

[ISS ESG]
The corporate sustainability rating indexes were developed by Germanbased ISS ESG.
[Trends in the selection of the company over the last three years]
Komatsu has been consecutively awarded "Prime" status in the machinery
sector.

[Japan][FTSE Blossom Japan index*2]
The index, which was established by U.K.-based FTSE Russell, selects
Japanese companies that implement excellent programs to facilitate ESG.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.
[MSCI Nihonkabu ESG select leaders index*1]
The index is part of those established by U.S.-based MSCI Inc., aimed atselecting Japanese companies with relatively high ESG ratings.
[MSCI Japan empowering women index*1]
The index is part of those established by U.S.-based MSCI Inc., aimed atselecting listed Japanese companies that promote a high level of gender
diversity.
[Trends in the selection of the company over the last three years]
Komatsu has been selected for consecutive years.

[Morningstar® Japen ex-REIT Gender Diversity Tilt Index℠*3]
This index evaluates and selects Japanese companies where gender
diversity policies are embedded in the corporate culture and companies
that promise equal opportunities to employees regardless of gender. Our
company has been selected in "Group 1," the top-scoring group of thisindex.

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With businessWith the planet

Data

Socialcontribution
activities

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

[Certifications][SBT]
SBT (Science based targets, namely, science-based emission reduction
targets) is an initiative advocated by the CDP, the United Nations Global
Compact, the World Wildlife Fund and the World Resources Institute. It
certifies companies that have established reduction targets compatible
with scientific knowledge aiming to achieve the target established under
the Paris Agreement of keeping the average rise in global temperature due
to climate change below two degrees from the pre-Industrial Revolution
levels in the worst-case scenario.
Komatsu’s CO2 reduction targets were certified as SBT in April 2017.
Please click here for further details about Komatsu's CO2 reduction and
SBT.
[DX Platinum Companies 2023-2025]
The Ministry of Economy, Trade and Industry and the Tokyo Stock
Exchange (TSE) select certain companies listed on TSE as “Digital
Transformation (DX) Stocks Selection” for their accomplishments
achieved by creating internal systems for promoting digital transformation(DX)* and excellent use of digital technologies leading to the enhancementof corporate value.
In FY2023, the company was selected as one of the newly established "DX
Platinum Companies 2023-2025" as "a company that has continued tomake particularly outstanding efforts since the program's inception."* Digital transformation: A company establishing a competitive advantage by utilizing data and digitaltechnology in response to intense changes in the business environment to transform products
services and business models based on the needs of customers and society, and transform
operations themselves, organizations, processes and corporate culture.

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Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

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

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

*1 THE INCLUSION OF KOMATSU LTD IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEXNAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF KOMATSU LTD BY MSCI OR ANY OF ITS
AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

*2 FTSE Russell confirms that Komatsu has been independently assessed according to the index criteria, and has satisfied the requirements
to become a constituent of the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE
Blossom Japan Index is designed to measure the performance of companies demonstrating strong Environmental, Social andGovernance (ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess
responsible investment funds and other products.
*3 Morningstar, Inc., and/or one of its affiliated companies (individually and collectively, “Morningstar”) has authorized Komatsu Ltd(“Komatsu”) to use of the Morningstar® Japan ex-REIT Gender Diversity Tilt Logo (“Logo”) to reflect the fact that, for the designatedranking year, Komatsu ranks within the top group of companies comprising the Morningstar® Japan ex-REIT Gender Diversity Tilt Index℠(“Index”) on the issue of gender diversity in the workplace. Morningstar is making the Logo available for use by Komatsu solely for
informational purposes. Komatsu’s use of the Logo should not be construed as an endorsement by Morningstar of Komatsu or as arecommendation, offer or solicitation to purchase, sell or underwrite any security associated with Komatsu. The Index is designed toreflect gender diversity in the workplace in Japan, but Morningstar does not guarantee the accuracy, completeness or timeliness of theIndex or any data included in it. Morningstar makes no express or implied warranties regarding the Index or the Logo, and expressly
disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index, any data included in it or the
Logo. Without limiting any of the foregoing, in no event shall Morningstar or any of its third-party content providers have any liability forany damages (whether direct or indirect), arising from any party’s use or reliance on the Index or the Logo, even if Morningstar is notifiedof the possibility of such damages. The Morningstar name, Index name and the Logo are the trademarks or services marks ofMorningstar, Inc. Past performance is no guarantee of future results.

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With businessWith the planet

Data

Socialcontribution
activities

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

[2020 Best IR Award]
The Japan Investor Relations Association selects member companies that haveconducted excellent IR activities and provides them with the Best IR Awards. In
addition, it gives the IR Grand Prix Award to companies that have received the BestIR Award for the third time.
In 2020, Komatsu received the Best IR Award.
This is the seventh time it has received the award, in addition to 2007, 2008, 2010,2013, 2016 and 2017. Also we have received the IR Grand Prix Award twice in 2010
and 2017.

[2023 Greatest IR Improvement Premium Company]
The Japan Investor Relations Association selects member companies that haveconsistently received high evaluations from the screening committee members
during the screening period (17 years from 2007 to 2023) and have beenrecognized for their efforts to improve their IR as the Greatest IR Improvement
Premium Company.
Komatsu has been selected for this selection.

[2023 Best Continual IR Efforts Premium Company]
The Japan Investor Relations Association selects member companies that havecontinuously applied for the Best IR Award during the screening period (17 years
from 2007 to 2023) and have been recognized as having continued their IR
activities over the medium to long term as the Best Continual IR Efforts PremiumCompany.
Komatsu has been selected for this selection.

[Tokyo Stock Exchange (TSE) “the corporate value improvement award” grandprix]
TSE created the Award program in FY2012, designed to annually award thecompanies which have achieved high corporate value by practicing managementof improving corporate value through initiatives that consider capital cost andother investor concerns.
Komatsu was selected for the Grand Prix award of the 8th Corporate Value
Improvement Award (FY2019) from all listed companies (about 3,650).

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Management ofsustainability

With people

With businessWith the planet

Data

Socialcontribution
activities

Index(3) Endorsement of initiatives[UN Global Compact]
The Global Compact, which is an initiative advocated at the World Economic Forumin 1999, requests that companies comply with and practice 10 principles withrespect to human rights, labor, the environment and anti-corruption. Komatsu
expressed its support for the United Nations Global Compact in November 2008.

[WBCSD]
The World Business Council for Sustainable Development (WBCSD), whose
members include more than 200 companies worldwide, is an organization thatcreates surveys and proposals on the economy, the environment and society witha focus on sustainable development. In addition, it works actively to implement
SDGs.
Komatsu decided to support WBCSD in 2010 and has been cooperating in its
activities.

[TCFD]The Task Force on Climate-Related Financial Disclosures (TCFD), which is an
initiative established by the Financial Stability Board in June 2017, requests thatcompanies disclose climate-related information that may affect financial mattersfrom the four perspectives of governance, strategy, risk management and metrics/
targets.
Komatsu expressed its support for TCFD in April 2019 and has disclosed
information in compliance with the request.

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Management ofsustainability

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With businessWith the planet

Data

Socialcontribution
activities

Index

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

ISO26000
core subjects/issues

UNGC 10principles[Ethics / Governance]

Organizational
governance

Human rights

Komatsu's materiality

Corporate GovernanceCompliance

Human
RightsPrinciple 1
Principle 2[Human rights]

Respect for human rights[Communities]
Contributions to local
communities

Diversity and Inclusion

Labourpractices■●“Quality and Reliability” oforganizational structure, business
operations, employees andmanagement■●Emphasis on corporate governance■●Compliance with the rules ofbusiness society[Employees]
LabourPrinciple 3
Principle 4
Principle 5
Principle 6

Incorporation into Komatsu's internal
guidelines■: Items of Komatsu's worldwide codeof business conduct●: Items of Komatsu group CSR
procurement guidelines

Skills development andworkplace retention

Employee engagement andjob satisfaction
Occupational safety andhealth and wellbeing[Human rights]

Respect for human rights

29■●Respect for human rights■●Due consideration to work-lifebalance■●Conversations or discussions with
employees or their representatives■●Zero tolerance for child labor andforced labor■●Promotion of equal opportunities for
employment, with zero tolerance fordiscrimination and any kind ofharassment■●Ensuring a safe and comfortable
work environment■●Human resources management infair and impartial manner

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Management ofsustainability

ISO26000
core subjects/issuesWith people

UNGC 10principles

With businessWith the planet

Komatsu's materiality[Environment]The
environment

Environment
Principle 7
Principle 8
Principle 9

Development of low-carbon/
low-emissions products,
solutions and businessmodelsResource recycling andremanufacturing

Forest conservation throughbusiness activities
Reduction of energy usage
and GHG emissions

Data

Socialcontribution
activities

Index

Incorporation into Komatsu's internal
guidelines■: Items of Komatsu's worldwide codeof business conduct●: Items of Komatsu group CSR
procurement guidelines■●Providing products, services andsystems that are environmentallyconscious■●Environmental protection■Komatsu Earth Environmental Charter■Declaration of Conservation of
Biodiversity●Reducing environmental impact,
managing chemical substances andbuilding up environmental
management systems■●Fair and appropriate business
operations

Fair operating
practices

AntiCorruption
Principle 10[Ethics / Governance]
Governance●Fair and proper relationship withgovernmental bodies and agencies■●Never providing, offering or
promising inappropriate money,
goods or favors

Compliance[Customers]

Provision of solutions

Product safety and quality[Environment]
ConsumerissuesDevelopment of low-carbon/
low-emissions products,
solutions and businessmodelsResource recycling andremanufacturing

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

Reduction of energy usage
and GHG emissions

Community
involvement
anddevelopment[Communities]

Contributions to local
communities

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

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Data

SocialIndex

contribution
activities

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

Outline of the green bondIssuerKomatsu Ltd.

Pricing dateJuly 10, 2020

Issue dateJuly 16, 2020

Maturity

5 years

Issue amount

JPY10.0 billion

Interest rate

0.130%
Applicable to the following projects:
Project A: Responses to environmental problems resulting from the use of
products

Use of proceeds

Efforts designed to help reduce CO2 emissions from products in use to 50% by
2030 from 2010 (Specifically, R&D, the provision and wide use of products,
services and solutions).
1) Products: hybrid hydraulic excavators, (applicable for low carbon-type
construction equipment certification by Japan's Ministry of Land, Infrastructure,
Transport and Tourism) and electric construction equipment.
2) Service: Support for fuel-economy machine operation by using IoT.
3) Solutions: Reduction of CO2 emissions by promoting wide use of ICT-intensive
construction equipment and providing applications which support optimization of
construction as a whole.
Project B: Responses to environmental problems resulting frommanufacturing.

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

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Lead manager

Nomura Securities Co.,Ltd.

Green bond structuring
agent*

Nomura Securities Co.,Ltd.

Rating"AA-" from Rating and Investment Information, Inc.

[Reference]Press release(Komatsu website released on July 10th, 2020)

Socialcontribution
activities

Index* This organization supports the issuance of green bonds by giving advice regarding the formulation of green bond frameworks and on
obtaining second-party opinions.

Komatsu's green bond frameworks（216KB）

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

List of investors who expressed their intention to invest
Asset Management One Co., Ltd.

OMUTA YANAGAWA SHINKIN BANKThe Kita Osaka Shinkin Bank
The 77 Bank, Ltd.

THE JUROKU BANK,LTD

SUMITOMO LIFE INSURANCE COMPANY
Zentouei Shinyokumiai

Daitokyo Shinkumi Credit Cooperative
NAGANO SHINKIN BANKThe Bank of Nagoya, Ltd.

Nippon Life Insurance Company

THE HIGASHI‐NIPPON BANK,LIMITED
Hiratsuka SHINKIN BANK
Fukushima Shinkin Bank

Sumitomo Mitsui Trust Asset Management Co., Ltd.

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

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

Outline of the Bonds
Sustainability-Linked Bonds(USD Denominated Senior Unsecured Straight Bonds)
1. Issuer

Komatsu Finance America Inc.

2. Guarantor

Komatsu Ltd.

3. Issuance amountUSD 600 million

4. KPI/SPT *2

SPT1.1: 45% reduction of the Scope 1+2 CO2 emissions (Intensity) (KPI1) fromproduction by March 31, 2025 from 2010 baseline
SPT2.1: 24% reduction of the Scope 3 CO2 emissions (Intensity) (KPI2) from use of
products by March 31, 2025 from 2010 baseline

5. Interest rate

5.499% per year during the period from and including October 6, 2022
until October 5, 2025
From and including October 6, 2025, the interest rate shall be increased by 10 bps
if SPT 1.1 has not been satisfied and increased by 15 bps if SPT 2.1 has not beensatisfied as of March 31, 2025

6. Interest payment date

April 6 and October 6 every year from and including April 6, 2023

7. Term

5 years

8. Maturity date

October 6, 2027

9. Payment date

October 6, 2022

10. Use of proceeds

To be allocated for the redemption of outstanding bonds and general businesspurposes

11. Offering method

Offerings in overseas markets, primarily in the U.S., Europe and Asia
(In the U.S., however, sales are solely for Qualified Institutional Buyers inaccordance with Rule 144A under the U.S. Securities Act of 1933)34

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12. Market

Singapore Exchange Securities Trading Limited

13. Credit Rating

A2 (Moody’s)
A (S&P)

Socialcontribution
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Index*2 SPT:
Sustainability performance targets, which are measurable target figures of KPIs over the specific time period asstated by the issuer
Komatsu Sustainability-Linked Bond Framework（1.78MB）

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

Reporting
Komatsu reports the performance of the KPI/SPT on an annual basis.
In addition, the external verification result is attached.

【Performance of KPI/SPT】
SPT

Performance

March 31, 2025

March 31, 2023

KPI1: CO2 emissions (Intensity) fromproduction

SPT1.1: 45% reduction from 2010
baseline

43% reduction from thesame

KPI2: CO2 emissions (Intensity) from use of
products

SPT2.1: 24% reduction from 2010
baseline

21% reduction from the
same

KPI

【Verification】
Komatsu obtains an annual verification of the performance of the KPI/SPT from DNV Business Assurance JAPANK.K..
External Verification Report (Issued October 2023)（104KB）

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With people
The Komatsu Way and policy on human resource
development

037

Promoting diversity and inclusion

045

Offering of a variety of talent development
opportunities and improvement of employee
engagement054

Develop digital and open innovation promotion
human resources061

Occupational safety and health063

Human rights policy

074

Business and human rights

076

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

Promotion system for various policies and measures
Komatsu holds the "Komatsu Way Committee" twice a year (or more as necessary), chaired by the President andcomposed of responsible persons from each business and function, to deliberate, decide on, and promote theexecution of policies and important measures regarding human resources, labor affairs, education and humanresources development, and employee benefits for the entire group. Furthermore, the content of thedeliberations of the Komatsu Way Committee is reported to the Board of Directors for consideration.

Global personnel policy
Komatsu Group companies have established a personnel management system that can be tailored to the uniqueneeds and circumstances of each region based on the following basic policy, with the aim of realizing anenvironment in which diverse human resources worldwide can contribute to business growth as a team.

1.
2.

3.
4.

We shall respect each employee’s human rights, personality, individuality and legally-protectedprivacy;

We shall respect diversity and treat and appraise each and every employee in a fair and impartial
manner. We shall not discriminate against any employee on the basis of race, ethnicity, color, sex,
sexual orientation, gender identity, age, religion, national ancestry, disability, marital status or otherlegally protected status. We shall vigorously promote equal opportunities for employment*;
We shall give due consideration to work-life balance and physical/mental health, and endeavor toprovide the employees with workplaces where they can effectively accomplish their tasks withsatisfaction and pride;

We will not tolerate inappropriate behavior and speech which prevents employees from working
effectively and comfortably. In particular, all Komatsu employees must not do any type of harassment
including harassment of subordinate personnel, sexual harassment, or harassment related topregnancy, childbirth, parenting, or nursing care, in and outside of workplace;37

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6.
7.

8.

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In designing and implementing Komatsu policies on employment conditions (such as wages, fringe
benefits, performance appraisal, promotions), we shall assure that such policies are, and areunderstood to be, fairly and clearly implemented. Such policies shall be accurately communicated to
employees and, to the extent practicable, made open and accessible;
We shall comply with all applicable laws and regulations governing employees’ rights and faithfully
accommodate, whenever applicable, conversations or discussions with employees or theirrepresentatives;

We shall not tolerate child labor or forced labor; andWe shall offer terms and conditions of employment that are sufficiently competitive in theirrespective regions.

* "Any action violating human rights (harassment of subordinate personnel, sexual harassment or other harassment related to pregnancy,
childbirth, parenting or nursing care)" is specified as grounds for disciplinary action.

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

The Komatsu Way/TQM promotion activities
To disseminate and practice the Komatsu Way at all Komatsu Group companies around the world, we areconducting various promotion activities and human resource development programs. Employees’ understandingof the Komatsu Way is deepened via training sessions and the creation of opportunities for exposition and groupdebates. We foster interpersonal communication between employees at such sessions to minimize generational
gaps, allowing for a more effective "trickle-down" spread of this knowledge. Since 2007, Komatsu has been
engaged in brand management activities to "be indispensable to our customers and continue to be their partnerof choice". This objective is accomplished by visiting customer workplaces to understand their ideals and tobuild relationships that enable us to work together with them to help achieve their goals through concerted
efforts by Komatsu Group and its distributors. In addition, the third edition of the Komatsu Way has beentranslated into 13 languages so that employees can read and understand it in their native languages. We havealso considered the intrinsic differences between foreign cultures, and have worked to craft the Komatsu Way ina manner that is both easy to understand and relevant to the international community at large. This allows us topromote the Komatsu Way in domestic and foreign settings, allowing for uniformity across the group.
The Komatsu Way training for overseas in FY2023 was conducted online for the European region. Additionally,
for the promotion of Total Quality Management (TQM), a new training program aimed at developing local
instructors was established, and the first session was conducted. In Japan, in addition to group training andonline training, we are providing an e-learning program to enhance understanding in job-specific training.
We will stay committed to the development of human resources and will strive to systematically ensure thespread of the KOMATSU Way and TQM so that they take root globally.
We believe that through these activities, we will be able to foster employees who practice the KOMATSU Way
and pass it on to the next generation, leading to the sustainable growth of the entire Komatsu Group.

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

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

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

Global BM workshop (Komatsu in Japan, October 2019)40

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DATA(1) Educational training that pertains to Komatsu Way/TQM in FY2023
Name of training course

Training dates(in FY2023)

Number of participants/
cases (in FY2023)

Course participants

Targets

Education for female
management candidatesof overseas subsidiaries(Diversity & Inclusion
development seminar)

Female management
candidates of overseas
subsidiaries

To train global female
management candidates
who have acomprehensive
understanding of theKomatsu Way

March 2024

13

Education for mid-level
managers of overseas
subsidiaries(Komatsu Way leadershipdevelopment program)Mid-level managers ofoverseas subsidiaries
expected to be
responsible for the corebusiness/functions

To train up local leaders
who understand andpractice the Komatsu
Way

February 2024 (heldonline)23

TQM training (foroverseas subsidiaries)

Employees of overseas
subsidiaries

To promote
understanding andpractice of TQM at ouroverseas subsidiaries

August 2023 (held online)

19

TQM Instructor
Development Program

Overseas local subsidiary
employees

To train local instructors
capable of conducting
TQM training in eachregion and company

November 2023

11

Training by job level

New employees,
assistant managers,
newly appointed
managers, etc.

To promote theunderstanding andpractice of the Komatsu
Way

Year round

1,229

All Komatsu QC
convention

Selected from theKomatsu Group in Japanand overseas

To present improvement
activities as OJT andstrengthen awareness of
the Komatsu Way
practices

November 2023 (inperson + recorded
distribution later)

88 improvement
presentations (including
29 from overseas)
Number of attendees:
approximately 850(2) The Komatsu Way-history of dissemination activities

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Other data on human resources* Above data are on the non-consolidated basis except item (2).
Numbers of employees and all other numbers shown are as of the end of each fiscal year, except as otherwise noted.

(1) Number of employees (Non-consolidated basis)
FY2021Total

FY2022

FY2023

11,927

12,20812,285Male

10,517

10,76010,771

Female

1,410

1,448

1,514

(2) Number of employees (Consolidated basis)
FY2021
Total
Non-Japanese

FY2022

FY202362,77464,34365,78342,50244,04045,272(3) Average age
FY2021Total

FY2022

FY2023

40.4

40.9

41.2

Male

40.5

41.0

41.4

Female

39.7

39.9

39.9

(4) Years of continuous employment
FY2021Total

FY2022

FY2023

15.9

16.4

16.7

Male

16.3

16.7

17.1

Female

13.5

13.9

13.8

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activities(5) Number of employees by age
Total
Total

Male

Female12,285

10,771

1,514Over 60

546

485

61

50-59

2,689

2,291

398

40-49

3,433

3,128

305

30-39

3,655

3,334

321

Under 30

1,962

1,533

429

(6) Annual total remuneration (average)

FY2023

Total

Male

Female8,308,017(Yen)

8,550,708(Yen)

6,641,250(Yen)* Minimum wages set by age* There are no wage rules or other institutional differences based on gender. The above gender differences are due to differences in laborcomposition, such as the percentage of women in management positions and job levels, and length of service.

(7) New graduates employment
Total

Employment category

Excludingbluecollar
work

Total

Male

Female

Total

Male

Female

Total

Male

FemaleCollege graduate

Junior college
graduate

High-school
graduate

FY2022

254

169

155

104

51

11

9

2

88

73

15

FY2023

290

192

161

109

52

15

12

3

114

88

26

FY2024

301

210

184

136

48

19

14

5

98

75

23

* Number for FY2023 is as of April 1, 2023

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contribution
activities(8) Mid-career employment (As of August 30, 2024)
Employment category

Total

Mid-career
employment ratio

Total

Excludingblue-collar
work

Total

Excludingblue-collar
work

Total

Male

Female

Total

Male

FemaleFY2021

24

23

9%

11％

17

12

5

7

6

1

FY2022

87

42

26%

20％

40

32

8

47

44

3

FY2023

198

96

41%

33％

110

90

20

88

74

14

College graduate

Others(9) Employee turnover
Total

Male

FemaleFY2020141(1.08%/0.86%)

122

19

FY2021200(1.54％/1.31％)

160

40

FY2022200(1.53％/1.36％)

163

37

FY2023203(1.49％/1.26％)

166

37

* The figures in parentheses in the table are (total turnover rate/voluntary turnover rate). The voluntary turnover rate does not include those
who retire at retirement age.
* Period covered: April to March of each fiscal year(10) Retention of new employees
Total

Male

FemaleNew employees (FY2021)

254

211

43

Enrollment (FY2024)

238

198

40

16
(6.3%)

13

3

Employee turnover［for3 years］(Turnover rate)* Enrollment for FY2024 is as of April 1, 2024

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Promoting diversity and inclusion
In growth strategies of the mid-term management plan, Komatsu set "enrich human resources base withdiversity" as a priority activity, alongside promoting the "enhancement of diversity & inclusion" initiatives. We
believe that by creating an environment where diverse human resources can thrive and expanding various
systems such as diverse working styles and support for balancing work and family life, we can create anenvironment where people can recognize and utilize each other's individuality and abilities, which will lead to thecreation of innovation and ultimately the growth of the entire company.

Global human resource development and promotion
With approximately 70% of our employees working overseas, Komatsu has been promoting the localization ofmanagement. In many local subsidiaries, national employees (local employees) are responsible for top
management. Among them, the heads of major local subsidiaries are appointed as "Global Officers," who bear
responsibilities not only as regional leaders but also as executives of the Komatsu Group. Additionally, individuals
who play a central role in the management of the Komatsu Group are appointed as our executive officers.
Komatsu has created approximately 700 "Global Key Positions" in Japan and overseas and developed asuccession plan for these positions. We are also aiming to foster the systematic cultivation of next-generation
leaders who will be responsible for global management through programs such as the “Global Management
Seminar” for management-level employees and candidates, and “KOMATSU Way Leadership Development
Training” for mid-level employees who play key roles in our businesses and functions.
Additionally, Komatsu trains engineers who provide continuous product support at customers’ sites around theworld. The Komatsu Philippines Corporation, a specialized educational institution, has trained over 150
engineers. Graduates of the training program, which lasts about six years, are subsequently employed as “global
engineers” and work around the world.

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

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Status in FY2023
Our strategy also includes working on "D&I literacy improvement activities"
to foster employees' awareness, which incorporates the conducting ofpromotional activities via the distribution of videos and columns on D&I. In
addition to the unconscious bias seminars held for all domestic KomatsuGroup managers in FY2022, we held seminars on psychological safety in
FY2023. We are also promoting further understanding by offering elearning on D&I to all employees of the domestic Komatsu Group.
Additionally, to encourage female employees to enhance their career
aspirations, we have been continuously holding the "D&I Talk Event" since
FY2022, where employees can pose direct questions to the management,with the first event featuring the president and female executives. The
event received high satisfaction ratings from employees who benefitted
from the opportunity to hear the thoughts and encouragement ofmanagement as they considered their own career pathways. We willcontinue to implement our existing measures for female employees, which
will include career plan training, networking workshops, external training,
and the Diversity & Inclusion Development Seminar (DIDS: a seminar for
female managers at Komatsu and its overseas subsidiaries focused on
developing female executives capable of implementing managerial
decisions rooted in the Komatsu Way, at the same time as promoting
gender diversity among future senior management). In recognition ofthese efforts, Komatsu was selected as one of the Nadeshiko Brand for
FY2023 by the Ministry of Economy, Trade and Industry in collaboration
with the Tokyo Stock Exchange – these organizations jointly selectcompanies that excel in promoting women's activities. (27 companies are
selected from approximately 3,900 listed companies.)

Scene from the D&I talk event

Scene of DIDS training

DATA(1) Diversity of management

Female employees(Female employees
percentage)

FY2023

Directors and Global officers
Executive officers (inJapan)*
Management position
General managers

NonJapanese employees(NonJapanese employees
percentage)

Mid-career
employees(Mid-career
employees
percentage)60

3(5.0%)

16(26.7%)

11(18.3%)

313(9.7%)

0(0.0%)

2(6.5%)

1,883

163(8.7%)

15(0.8%)

373(19.8%)

405

13(3.2%)

0(0.0%)

50(12.3%)* Komatsu’s non-consolidated data as of the end of fiscal year.

* Directors and global officers exclude outside directors and outside auditors.

* Percentage of director and global officer posts filled by internal personnel: 100%
* Management positions include executive officers.

* Executive officers (in Japan) do not include those who also serve as directors.

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Index(2) Women employees
FY2021

FY2022

FY2023Global (Consolidated)
Ratio of women employed

13.9%

14.1%

14.5％

Ratio of women in management
positions

10.0%

10.3%

11.1％

Number (ratio) of women employed

1,451（12.4%）

1,507（12.3％）

1,564（12.6％）

Number (ratio) of women in management
positions312（9.2%）

341（9.5%）

376（10.1％）

Number (ratio) of women managers

135（7.8％）

149（8.0％）

163（8.7％）

Number (ratio) of women juniormanagers

177（10.8％）

192（11.0%）

213（11.5％）

Komatsu Ltd. (Non-consolidated)* Data as of the end of each fiscal year.

* Management positions include executive officers.

Support for LGBTQ
In the "Komatsu's Worldwide Code of Business Conduct" revised in
October 2017, we explicitly prohibit unfair discrimination based onnationality, race, religion, age, sex, disability, sexual orientation, and gender
identity, and we consider discriminatory behavior against sexual minorities
as sexual harassment subject to disciplinary action. Additionally, we haveestablished an in-house counseling desk for LGBTQ individuals,
recognized same-sex partnerships, and expanded the scope of welfare
benefits. Furthermore, we are working to promote understanding of
LGBTQ issues and create a comfortable work environment for everyone byproviding education to all domestic Komatsu Group managers anddistributing videos to all employees.

e-learning

LGBTQ video

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

Facts about the initiative in FY2023
Number of harassment-related reports received (in Japan)

38

Basic education

New executive officer's program

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

New managerial-level employee training
Foremen training

Assistant manager training
Assistant foremen training

Mid-level employee training

Third- and seventh-year employee
training
New employee training

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

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DATA
FY2021
Employment ratio of
persons with disabilities

Number of BCC locations
Number of BCC staff
members

FY2022

FY2023

2.84％

2.73%

2.72%

11

11

11

156

165

180

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

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

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

Content

Selective Retirement System

Employees can choose to retire at age 60, 62 (management), or 65 (generalemployees).
Employees who choose to retire at age 62 or 65 receive the same benefits
as those who retire before age 60.

Part-time Work System
Second Job System

Career Support System

This system allows employees to work part-time when they choose to retire
at age 60 or 62 and are rehired after retirement.
Working hours can be set from 1/2 to 3/4 those of full-time employees andworking hours per day and working days per week can be decided.
Part-time employees who have been rehired after retirement can work asecond job under certain conditions to support their careers.

(1) Career Life Plan SeminarAll employees aged 45 and older are encouraged to develop an independentand autonomous career vision by considering their work prospects, work
style, lifestyle, and financial plan.
(2) Outplacement Support System
A skills development leave system and outplacement services for
employees aged 45 and over who want to progress their careers outside thecompany.

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DATA
FY2021
Reached age 60

FY2022

FY2023

252

355

301

Continued employment after age 60

216

325

282

Chose to retire at age 62 or 65

202

292

262

Rehired after retirement at age 60

14

33

20

36
(14.3％)

30(8.5％)

19(6.3%)

Retired at age 60(Retirement rate at age 60)* Data for Komatsu Ltd. (non-consolidated).

* People rehired after retirement include those rehired within the Komatsu Group.

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

Main system and measure
Main System and Measures

Creation ofdiverse work
stylesContent

Flextime system

Flexible work hours (5:00~22:00) with flexible start and end times (no core time).

Discretionary work system

A work system for employees who engage in highly discretionary work, such as
R&D. Under this system, employees can execute their work at their discretion.

Telework system

Work from home as often as desired to support career continuity and increased
productivity. Telework allowance paid.

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

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Main systems and programs
Systems and ProgramsContent

Childcare leave

Available for a maximum of three years from the birth of the child to the time thechild enters nursery school (the statutory leave period is up to 18 months without
pay). Also available for a maximum of three years for children up to the third gradeof elementary school in cases where a spouse is transferred, etc. Paid leave isavailable until the child is 2 years old(about 104 weeks) and can be taken in
installments.

Part-time work

Shortening of working hours by a maximum of three hours per day to allow for thecare of children until the child graduates from elementary school (statute allows
this only for children under three years old). Split-time acquisition is possible.

Child-care system Paternity leave

Up to 4 weeks (28 days) within 8 weeks after the birth of a child is available and canbe taken in installments. Paid leave is available until the child is 2 years old.

Allowance toward the cost ofusing child-care services

Allowance toward the cost of childcare for infants up to age two before entering
nursery school (10,000 yen/month).

Time off for sick/injured
childcare

Five days for the nursing care of one child up to the third grade of elementary
school and ten days for the second child onward (paid leave). (statute allows this
only for children up to the first grade of elementary school.)

A nursery school fee subsidy system, childcare services, and on-site day-carefacilities are available. Additionally, health management rooms located at each siteChildcare facilities and allowanceoffer private rooms for childcare and multipurpose use such as freezing breast
milk.

Family-caresystemFamily-care leave program

A maximum of three years is available for employees taking care of family
members, which can be taken in installments. Paid leave is available for a total of
93 days. (the statutory leave period is a total of 93 days without pay).

Part-time work

Shortening of working hours by a maximum of three hours per day, which can betaken for up to three years in total and can be taken in installments.

Family-care leave

Five days per year for attending to one family member in need of nursing care, andten days for the second family member onward (paid leave).

Paid vacation

Statutory annual paid leave is granted for 10 days per year if the attendance rate is
80% or more at the end of the first 6 months of employment Komatsu grants 20
days per year from the time of joining the company (in principle). Leave can betaken in half-day increments.

Life support leave

Can be used as sick leave, pregnancy leave, child-care leave or for care of family
members. An employee may add five new days of accumulated leave per year. A
maximum of 40 days of unused annual leave may be accumulated. Child-careleave may be used for school events for children aged up to third grade in juniorhigh school.

Flexible leave for refreshment

Provided to encourage employees to take five consecutive days of leave formental and physical refreshment.
Employees receive an additional five days of annual leave and a travel voucher
upon completion of their 15th, 25th and 35th year of continued service.

Interval system

To provide rest time after the end of the workday to ensure that employees cansleep and enjoy personal time. Provisions to ensure at least 10 hours between
shifts (interval).

Volunteer incentive program

Long-term paid leave of up to two years, or short-term paid leave of 12 days per
year.

Spousal transfer occupational
leave system

Acquisition for up to three years per spousal transfer (Acquisition up to one per
employee).

Leave for infertility treatment

Each employee is permitted leave of up to a whole year for infertility treatment.

Part-time work for personal
injury or illness

Up to 3 hours per day (up to 5 hours per day if approved by the company under
special circumstances) for periodic hospital visits due to personal injury or illness;these can be taken for up to 6 months.

Other types ofleave system

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Main support and measures
Support and Measures
Childcare service
during in-housetraining

Child-care
support“Childcare Day”
social event
Childcare support
seminarCreating an
Environment for
Male Paternity
Leave

Family-care
support

Provision of childcare services during in-house training at the Komatsu
Way Training Center (Komatsu City, Ishikawa Prefecture), a training
facility that serves as a human resources development facility for
Komatsu Group employees globally.
Setting a monthly "Childcare Day" and holding a social event to provide
a place for communication among employees raising children.
To support the balance between childcare and work, we hold childcare
seminars aimed at supporting employees who are parents andpromoting understanding among their bosses and co-workers.

To raise awareness among male employees about participating inchildcare and to promote understanding among superiors, coworkers,
and others around them, we have implemented e-learning programs ontaking childcare leave and released interview videos of male
employees who have taken childcare leave.

Seminar held by experts to provide opportunities for employees tothink about how to prepare for family-care and how to balance their
Family-care seminar work and personal lives. From FY 2020, the seminar has been held
online to increase awareness of family-care among a wide range of
employees across Japan.
Individual
consultation

Treatment
supportContent

Consultation
service forbalancing treatment
and work

Individual consultations with external experts have been held monthly
to provide tailored for employees.

To support employees’ health and safety, a consultation desk has been
set up at each site for those wanting to discuss balancing their medical
treatment and work. We have also introduced various systems
including fertility treatment leave to create a safe and secure working
environment for those needing medical treatment.

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DATA

* Data for Komatsu Ltd. on a non-consolidated basis (full-time employees)(1) Parental leave
FY2021

FY2022

FY2023

Number of employees taking
childcare leave (total)*1

91

184

217

Paternal leave

49

121

160

Maternal leave

42

63

57

Percentage of employees taking
childcare leave (total)*1

16.7%

34.5％

45.0％

Paternal leave

9.7％

25.7%

37.6％

Maternal leave

100%

100%

100%

Return rate of employees fromchildcare leave

98.4％

99.9%

100%

Number and percentage of
employees taking leave or leaveof absence, including thosetaking childcare-related leaveother than childcare leave*2

338（67.4％）361（76.9％）349（82.1％）*1 Employees who had a child within each fiscal year.

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

(2) Family-care leave
FY2021
Family-care leaves

FY2022
3

FY202372(3) Paid vacation
FY2021

FY2022

FY2023

Average days granted

20.0

20.0

20.0

Average days taken

19.9

20.8

20.9

99.5%

104％

105%

Average ratio(4) Volunteer time off (VTO)FY2021

FY2022

FY2023

Number of VTO users

27

32

42

VTO in long-term

0

0

1

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

Improvement of employee engagement
In 2021, Komatsu initiated a global engagement survey of its domestic and overseas Group companies. Eachdivision has formulated an action plan to address the issues raised in the survey and is steadily implementing
these plans. In FY2023, we conducted the second survey, and we will continue to conduct these surveys
regularly. Additionally, we will focus on employees' intentions and motivation, reflecting these in initiatives toexpand voluntary and autonomous challenges.

Overview of global engagement survey in FY2023
Number of
respondent

82% of the Employees (about 68,000 employees) of Komatsu and its Group companies
in Japan and other countries responded

Objectives

To regularly identify and analyze employee engagement, clarify our strengths andchallenges at that time and take them into consideration when discussing and deciding
plans for the future

Survey overview

60 questions related to employee engagement and the factors that influence it,
including vision (values, management policies), strategy and competitive advantages(goals, policy initiatives), leadership, and well-being (organizational culture, work
environment, aspects related to satisfaction, happiness, and mental and physicalhealth).

Methodology

Anonymous online survey

Results

Engagement Score Overseas: 80, Japan: 69 (Score is the percentage of positive
responses)* Engagement score KPI set in the mid-term management plan (target for FY2023)
Overseas: 85 or higher; Japan: 75 or higher

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

Target management system

Overview

Interviews are conducted between supervisors and employees to establish work goals at the start of theperiod and conduct a retrospective review at the end of the period. Based on the primary evaluation by the
direct supervisor, an Evaluation and Development Committee is convened at the departmental level. The final
evaluation is determined through a multi-person, multi-faceted assessment and relative evaluation.

Frequency

General employees are evaluated twice a year, while managers are evaluated once per fiscal year.
Regardless of this schedule, continuous dialogue and feedback between supervisors and subordinates is
encouraged to promote talent development and to manage and improve work processes. Additionally,
interviews for target management are conducted on a case-by-case basis in the event of changes in targets
due to transfers or alterations in job responsibilities.

TargetFull-time employees (general employees and managers)

Condition of labor unions
Having signed the United Nations Global Compact, Komatsu recognizes that freedom of association and theright to collective bargaining are intrinsic human rights that must be respected. Our engagements with labor
unions thus reflect this commitment, showcasing our dedication to ensuring the best for our people. We have alabor contract with the Komatsu Labor Union, which is organized by approximately 11,300 of our employees
across 8 of our Japanese branches. The Union employs a union-shop system, and the percentage of employees
who are union members (number of unionized employees / total number of employees including management
and other non-unionized employees) is 75.1%.
The Komatsu Labor Union is a member of its superior body, the All Komatsu Workers Union and a superiorindustry labor union, the Japanese Association of Metal, Machinery, and Manufacturing Workers. 11 of ourconsolidated subsidiaries and affiliates in Japan have labor contracts with a labor union that has joined the "AllKomatsu Workers Union", making up a total of approximately 6,600 employees.
In addition to this, Komatsu continues to comply with legislation related to labor rights, while responding in an
honest and transparent manner to all dialogues and discussions with individual employees and theirrepresentatives.

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

Main system and measures
Main System and Measures

Support forcareerdevelopment

Content

Subsidizing certifications

Employees who pass technical skills tests (national certifications) receive partial
or full subsidies for the examination cost.

Job posting system

Posts of the "Challenge Support Type" for taking on challenges in new businessareas and "Hometown Personnel Type" for pursuing a new career due to family
circumstances. If the employee meets the application and personnel
specifications set by the relevant department, they can apply to transfer to otherdepartments.

Study programs

Designed to help employees acquire skills and knowledge beneficial to their workin an intensive, formal setting. If the employee meets the application
requirements, they can apply to study at universities and research institutes inJapan and abroad.

Employee award programs for
distinguished achievement

Various award programs, including performance improvement award, projectaward, individual merit award, health and safety award, technical merit award, andvolunteer award.

Career development training
coursesIn-house language classes and subsidized correspondence courses andexaminations as determined by the company.

Career Development Program（CDP）

Once a year, supervisors and subordinates meet to share career goals and otheraspects of their work. We do this to promote the right person for the right job,provide suitable growth opportunities for employees, and support proactive
challenges and autonomous career development.

Sabbatical Leave ProgramThis program supports employees' "learning outside the company" at educational
institutions, etc., with the aim of acquiring new knowledge. Employees can take up
to three years off, with a maximum of one leave per employee.

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

DATA
Training hours and costs per employee
Items
Averagehours perFTE
Averagespent perFTE

FY2021

FY2022

FY2023

Nonconsolidated

49

54

54

Consolidated

40

46

49

Nonconsolidated

JPY215,000

JPY230,000

JPY236,000

Consolidated

JPY72,000

JPY97,000

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

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

FY2021

FY2022

FY2023

360

181

192

199
(4 countries)

21(7 countries)

32(9 countries)* Due to the impact of COVID-19, regional competitions were held in 2021-2022.
* In FY2023, the competition was held in Japan, including overseas subsidiaries.

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Service personnel human resource development
Framework Promoted by Department for Promotion of Distributor HR Development
Our service personnel, who support the operation of our products delivered to customers, take essential
responsibility for the Komatsu values of “Quality and Reliability.” Komatsu thus has established specialized
Department for Promotion of Distributor HR Development, which focuses on the human resource developmentof employees in the company and of our distributor service personnel.
As means for internal training and the service personnel development, we established the “Techno Service
School” for training our Japanese staff, and the “ the Komatsu Philippines” for training our Filipino staff, toconduct planned training by applying a job rotation system within the company including our overseas offices.
We have established training centers in 21 locations in 15 countries worldwide to support the development ofour distributor's sales and service personnel, not only in marketing, service, and operator skills but also inmanagement development and training for improvement activities.
The human resource development programs conducted at each training center are planned or supported by
Komatsu, depending on the content. Komatsu provides curricula and training materials for basic training courses
on products and services, and the local companies (Komatsu subsidiaries or distributors) conduct actual
training. We also provide advanced training courses by inviting managers and senior service personnel to Japan,
as well as special technical training courses provided by the training centers (mother training centers) whichhave specialized skills.
Having set up these training environments and assessing the quality of our distributors through small exams, wehave been providing practical training opportunities that bring synergy to sales promotion activities. In FY2023,
we further advanced the hybridization of online and in-person training programs, conducting more than 400
training sessions worldwide, with over 5,000 distributor staff in attendance.

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

Simulator developed

Training Filipino engineers at KPC
Komatsu Philippines Corporation (KPC), formerly known as Komatsu Human Resources Development
Center, is now in its 16th year since its establishment in the Philippines. KPC recruits Filipino students who
have graduated from science and engineering universities in the Philippines and trains them over six
years to become engineers who can work globally. Most recently, we established a new training facility(see photo below) in 2021 to strengthen our human resource development function. We will continue toutilize the new training facility to further enhance our training, and we are committed to expanding ourbusiness by developing our human resources.

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Developing digital and open innovation promotion humanresources
As part of the key initiative "enrich human resources base with diversity" within the growth strategies of our midterm management plan, we are focusing on "developing digital and open innovation promotion humanresources." For the development of digital human resources, we have been implementing "AI Human Resource
Education" since FY2019 and "DX Human Resource Education" since FY2022. This education spans fromintroductory courses aimed at acquiring basic knowledge to practical training aimed at solving problems inbusiness and projects, providing a structured curriculum that supports employee reskilling and the growth of ourbusiness.
The "AI Human Resource Education" is expanded annually, enhancing problem-solving skills in business andprojects, promoting practical implementation. Additionally, "DX Human Resource Education" aims to improve theskills of a wide range of employees by offering educational opportunities to all employees. Furthermore, to foster
open innovation promotion human resources, we are advancing both internal and external programs toaccelerate collaboration with industry, government, and academia. Since FY2023, we have been sending
employees, including those from overseas subsidiaries, to programs conducted by external companies to learn
design thinking, a critical thinking process for innovation creation.
To generate customer value that creates a virtuous cycle of solving ESG issues and improving profitability,
promoting digital transformation (DX) across all areas is essential. We will continue to develop the humanresources needed to produce DANTOTSU Products, DANTOTSU Services, and DANTOTSU Solutions.

Program overview
Education overview
Type of education

DX HumanResource
Education

AI HumanResource
Education(Entrylevel)(Practicelevel)(Entrylevel)(Practicelevel)

Objective

Cultivating talents
who can adapt todigital transformationin various fields.

In addition toacquiring knowledge
and skills related to AI,
we aim to develop
talents who can solve
customers' businesschallenges using AI.

Curriculum outline andobjectives

Course participants

Start
year

1. Acquire DX concepts andbasic knowledge
2. Practical problem-solving
using digital technology

All employees
including KomatsuGroup companies inJapan

FY2022Acquire ICT planning andsystem development
management methods

Selection ofengineers andprofessionals

FY2022

1. Acquire problem-solving
processes and methods
using AI
2. Plan practical application
themesAll employees
including KomatsuGroup companies inJapan

FY2019Specific proposals fortrialing and practicalapplication of problemsolving processes, such as
AI design

Selection ofengineers andprofessionals

FY201961

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Number of participantsType of education
DX Human Resource Education

AI Human Resource Education

FY2020

FY2021

FY2022

FY2023

Total(Entry level)

-

-

5,341

302

5,643

(Practice level)

-

-

44

40

84

(Entry level)

30

30

30

30

150

(Practice level)

10

10

10

10

50

* Set KPI of cumulative number of participants for 3 years from FY2022 to FY2024 in the mid-term management plan.
DX Human Resource Education: 900 participants in the entry level, 180 participants in the practice level
AI Human Resource Education: 30 participants in the entry level, 90 participants in the practice level* For entry-level DX Human Resource Education, we released DX overview lecture videos to all employees in FY22. Therefore, for FY22, thenumbers reflect the combined total of course participants and video viewers.

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

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

Meeting committee structure
The Komatsu Group holds various meetings to discuss and share information on safety, health, and healthmanagement, including the following:Group Safety and Health ConferenceThis conference convenes with the aim to increase awareness regarding safety and health for employees of theKomatsu Group and partner companies while raising the level of safety and health activities. It involves sharing
activity policies, priority items, and outstanding safety and health activities, and disseminating this information
within individual departments. The conference also includes the presentation of presidential awards related tosafety and health.

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Group Safety and Health Committee (Japan)

This committee, comprising both labor and management, investigates, deliberates, and decides on fundamental
measures to eliminate workplace risks and prevent health hazards.
Major items to be examined and discussed:
Formulation of safety and health regulations

Discuss and decide on annual activity policies and manage progress of activities, etc.

Global Conference for Safety and Health in the Community

We shall share and discuss information on safety, health, and the environment in each region globally, leading itto the safe and healthy activities of each overseas subsidiary. In FY2023, we held the conferences in North
America, Latin America, Europe, Asia and China.

Meeting on Mid-Term Health Planning (Japan)

Formulates and makes proposals for all company policies related with safety and health practices.
Summarizes health management activities of each company and business location.

Health Promotion Committee (Japan)

This committee consists of business owners and employees (organized by Komatsu Union) as well as the Health
Insurance Society. This occasion affirms a common recognition of "Health", and formulates measures andpolicies aimed to enhance the health care for employees and their families.

Basic policy on safety, health, and health management
As a guiding principle for employee actions, “Safety & Health, Compliance, Quality, Delivery, Cost” are prioritized,with safety and health taking precedence. Additionally, based on the President’s “Message concerning
Occupational Safety and Health,” the entire group is committed to ensuring a safe and secure work environment
and promoting the maintenance and improvement of employee health. To achieve this, all employees work
together to actively advance safety and health management activities under the established “Safety and Health
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Occupational safety and health policies
1.
2.
3.
4.
5.
6.
7.

Observe the laws and regulations concerning occupational safety and health as well as internal rules, key items
common to the Komatsu Group about occupational safety and health, and particularly items agreed as a result oflabor-management consultations in each workplace.
Set up targets for activities based on occupational safety and health policies, review their progress, andendeavor to continuously improve and enhance occupational safety and health activities.

Carry out occupational safety and health activities in management-and-labor partnership on a full participationbasis and keep good communication with stakeholders with regard to occupational safety and health.
Identify and evaluate the risk for occupational safety and health of a workplace and take appropriate actions
accordingly.

Actively promote employees' healthcare management and support the maintenance and promotion of
employees' health.

Actively promote education, training and qualification acquisition necessary for employees' occupational safety
and health activities, and endeavor to develop human resources for safely carrying out their responsibilities in
the workplace.
Subject to appropriate protection of personal information, publicly offer the knowledge and information aboutoccupational safety and health activities obtained through the business activities in order to secure safety andhealth in society.

Health management activities are promoted not only within the group companies in Japan but also incollaboration with the overseas group companies. Furthermore, the domestic Komatsu Group has embarked on
creating a “Health Culture” beyond traditional health management. Since FY2014, it has implemented the “FiveYear Health Development Plan” as a medium-term plan for health promotion aimed at “implementing outstanding
health management” and “improving employees’ health literacy,” and since FY2019, it has been promoting the“Second Health Development Plan.” The “Health Culture” that the Komatsu Group aims for is one whereindividuals and their colleagues are attentive to their health, consider necessary actions, and take steps to lead abetter life. To strongly promote these efforts, the Komatsu President announced the "Komatsu Health
Declaration" in June 2014, and revised it in April 2019.

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Safety, health, and health management initiatives
Safety and health key initiatives of Komatsu group in FY2023
We set key activity items and our target values and are promoting the following activities throughout the
Komatsu Group.
[ Safety and health management]
Major disaster elimination activities

Enhancement of compliance risk management.
Elimination of accidents involving inexperienced workers
Activities to maintain and improve occupational safety and health management systems.

[Health management]

Global Health Management Activities
Improvement of employees’ health literacy
Extension of healthy life expectancy▷ Tobacco-related diseases▷ Lifestyle improvement
Mental healthWorking to achieve a mid-term health development plan
In FY2023, the Komatsu Group has promoted activities under the Five-Year Health Development Plan (FY2014)
and the Second Health Development Plan (FY2019) to “implement outstanding health management” and“improve employees’ health literacy*.”
For the Second Heath Development Plan, while continuing the activities related to the previous mid-term plan,
we have promoted the creation of a lifelong culture of health by strengthening support for work-life balance,
primary preventative actions (lifestyle improvements), and by establishing systems and environments to“improve employees’ health literacy,” such as the introduction of ICT tools.
* Capability of voluntarily practicing healthy actions (lifestyle improvement/maintaining an appropriate exercise regimen and diet, etc.)

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Major accomplishments in FY2023 are listed below:

Item

Initiative

KPI

Improvement of
Health Literacy

Enhancing the ability toacquire, understand,select, and utilize
accurate healthinformation necessary
for individuals to engage
in proactive healthbehaviors

Cancer andlifestylediseases

Increase the percentageof employees using thevarious health checkup
consultations for the
early detection andtreatment of cancer andlifestyle diseases and theprevention of severe
diseases

ResultGoals(FY2024)

FY2022

FY2023

Communicative and Critical Health
Literacy Scale*1

3.54

3.55

3.7 or higher

Regular check-up percentage

100%

100%

-

(Reference) Secondary health checkup percentage

98.5%

98.9%

100%

Milestone checkup consultation
percentage

88.2%

84.4%

95% or more

Female cancer checkup consultation
percentage

56.9%

58.2%

80% or more

Tobacco-relateddiseases

Reduce secondary
exposure to cigarettesmoke and smoking
percentage

Percent of the Komatsu Group in
Japan that smokes

28.4%

28.5%

Not more than
the national
average ofsmokers(16.7%)

Lifestyle
improvement

Establish a system or
environment that leads tothe improvement ofmotivation to improve or
promote the healthy
lifestyles of employees(e.g. diet and exercise)

Percent of employees with Healthy
Action Competency*2

52.7%

53.8%

60% or more

Percentage responding to ourrecommendation to interview
employees under high stress

99.0%

97.7%

100%

Mental health

Reduce the number ofindividuals with mental
disorders, provide earlycare, appropriately
support their return toworkplaces, and create ahappy and vigorous
workplace(Reference) Stress check
implementation percentage

99.1%

98.6%

Percentage responding to highstress workplaces

97.0%

100.0%

100%(Scope of aggregation: All employees of the Komatsu Group in Japan)*1 The figures are calculated based on the average score out of 5 for the five questions in the questionnaire (1. Information collection, 2.
Information selection, 3. Understanding and communication, 4. Reliability assessment, 5. Planning and action).
*2 Capability of voluntarily practicing healthy actions (lifestyle improvement/maintaining an appropriate exercise regimen and diet, etc.)

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Initiative

ResultFY2022

FY2023

Absenteeism

Average number of days lost per employee per year due tomental health issues

1.28
days/
year

1.52
days/
year

*3

Presenteeism

Evaluate one's own work performance over the past fourweeks, assuming 100% performance when there is no illness
or injury
Presenteeism = 100 - Average score of all employees

9.9%

14.8%

*4

*3 FY2022: Number of subjects: 23,224 people FY2023: Number of subjects: 23,028 people*4 FY2022: Number of participants: 19,575 people (response rate: 99.8%) FY2023: Number of participants: 21,334 people (response rate:
98.5%)

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

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

Awarded the Excellence Prize at the "Extend Healthy Life Expectancy Award"
Our efforts to encourage and disseminate activities promoting the prevention of lifestylerelated diseases have been recognized, earning us the Excellence Prize at the "Extend
Healthy Life Expectancy Award" organized by the Ministry of Health, Labour and Welfare and
the Japan Sports Agency.
The "Extend Healthy Life Expectancy Award" aims to encourage and disseminate
outstanding awareness activities and initiatives for the prevention of lifestyle-relateddiseases. This award system recognizes companies, organizations, and municipalities thatare undertaking excellent initiatives.

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

Status in FY2023
Educational training for occupational safety and health (in Japan)
Education regarding mental healthContents

FY2023 PracticeStress tests/awareness training
implemented in 13 companies, with approximately 22,898
employees

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

“Support Letter for the Heart”, which is motivational
material for management personnel, is distributed every
other month (even months) to management personnel
within the Group.

Education based on job levels
Contents

Safety and Health education and mental health education isprovided to each level of Komatsu Group companies inJapan including new employees.

FY2023 Practice
New Employees (321 people)*
3rd year of employment with the company (293 people)
7th year of employment with the company (25 people)
Mid-career recruitment (118 people)
New Assistant Managers (383 people)
Foremen/Senior Foremen (156 people)
New Managers (231 people)* Total for head office employees

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

FY2023 Practice
Safety and health practical training for production
managers (20 trainees)
Education for production engineers (54 trainees)
ISO 45001 standards understanding training (48 trainees)
ISO 45001 internal auditor development training (97trainees)
ISO 45001 internal auditor level-up training (15 trainees)69

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Number of major work-related accidents (fatal)
FY2019Komatsu groupconsolidated companies

Non-consolidated sales
companies

Contractors

Total

FY2020

FY2021

FY2022

FY2023

Subtotal

1

3

0

2

0

Japan

0

0

0

0

0

Overseas

1

3

0

2

0

Subtotal

0

1

0

0

0

Japan

0

1

0

0

0

Overseas

0

0

0

0

0

Subtotal

0

1

0

1

0

Japan

0

0

0

0

0

Overseas

0

1

0

1

0

1

5

0

3

0

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

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

1.
2.
3.

The data for all industries (Japan) and construction and mining equipment manufacturing industry (Japan)
are provided by the Ministry of Health, Labour and Welfare.
The scope of the Komatsu Group (Japan) includes Komatsu Ltd. and group companies in Japan, with theaddition of Komatsu Safety Training Center, KCS, and KBS from FY2023.
The scope of the Komatsu Group (global) includes "Komatsu Group (Japan)" and overseas production
plants.

Frequency of occupational accidents (occupational illness frequency rate)

1.
2.
3.

Occupational illness frequency rate (OIFR): Number of occupational illness absences (times) / Total ofworking hours (hours) x 1,000,0000

Occupational illness: Back problems, heat illnesses, chemical poisonings, infection, etc. specified by the
Ministry of Health, Labour and Welfare
Komatsu Group (Japan): Komatsu alone + group companies in Japan71

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Occupational Safety and Health Management System ceritification and renewal of certification
Since FY2007, in Japan, the Komatsu Group has taken steps to acquire or renew OSHMS certification at eachbusiness site and has been working to obtain ISO 45001 integrated international standards certification since
FY2018. The Osaka Plant acquired ISO 45001 integrated international standards certification for the first time in
April 2019 and other divisions and Group companies acquired this certification in April 2020. We have also taken
steps to acquire or renew OHSAS 18001 certification for our overseas facilities and have been working to obtain
ISO 45001 certification since FY2018.
ISO 45001 certification requires the following activities to be properly managed by the company's occupationalsafety and health management system:
Occupational safety and health risks and hazards assessments to identify potential hazards in the workplace.
Prioritization and integration of action plans with quantitative targets to address occupational safety andhealth risks.
Actions to prepare for and respond to emergencies.
Assessment of progress toward goals for reducing and preventing health risks.
Internal audit.
Investigation of occupational injuries, illnesses, and accidents.
Occupational safety and health activities for employees and other stakeholders to raise awareness and reduce
occupational safety and health accidents.
Introduction of occupational safety and health standards in procurement and contractual requirements.
In Japan* As of March 31, 2024

Certified business locations*First year of certification

Osaka Plant

2019

Head Office
Awazu Plant
Kanazawa Plant
Ibaraki Plant
KomatsuOyama Plant
Tochigi Plant
Koriyama Plant

2020

Shonan Plant
Himi Plant
Shiga Plant
Field Testing Department
GIGAPHOTON
Group Company

KELK
Komatsu NTC
KOMATSU LOGISTICS Head Office

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Overseas
Certified business locations*First year of certification

Komatsu Chile SA

2018

Komatsu America Chattanooga Manufacturing Operation
Komatsu America Newberry Manufacturing Operation
Komatsu UK

2019

Komatsu Italia Manufacturing
Hensley Lingfeng Co., Ltd.
Bangkok Komatsu
Komatsu America Peoria Manufacturing Operation
Komatsu Mining Peru
Komatsu Mining Wadeville
Komatsu Mining Tianjin
Komatsu Germany (Construction Division)

2020

Komatsu Germany (Mining Division)
PT Komatsu Indonesia
PT Komatsu Undercarriage Indonesia
Komatsu Shantui Construction Machinery Co., Ltd.
Komatsu Mining Longview
Hensley Industries, Inc.
Komatsu Changzhou Construction Machinery Corp.

2021

Komatsu Shandong Construction Machinery Corp.
Komatsu Dalian Machine Tool
Komatsu do Brasil Ltda.
Desarrollos Technologicos S.A.
Komasu Manufacturing Rus LLC

2022

Komatsu South Africa (Remanufacturing center)
Distribuidora Cummins Chile S.A.
PT Komatsu Marketing and Support Indonesia

2023

DESARROLLOS TECHNOLOGICOS S.A73

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Human rights policy
In September 2019, Komatsu established our Human Rights Policy (revised in September 2023) and declaredthat we endeavor to conduct our business respecting human rights in compliance with the United Nations
Guiding Principles on Business and Human Rights, and to apply respect for human rights in accordance withinternational standards throughout our global organization. Based on this policy, Komatsu develops andimplements measures to prevent and mitigate negative impacts on the Group and our business partners' humanrights, including suppliers, sales and service distributors, and further improves its processes to correct potential
negative impacts on human rights.
This human rights policy has been incorporated into the Komatsu’s Worldwide Code of Business Conduct(revised in 2024) and is thoroughly communicated by all Komatsu Group employees worldwide.

Human rights policy
1.

2.

Scope of application
This policy applies to all business activities and all employees of the Group worldwide.
Furthermore, our business partners including suppliers and distributors are also expected andencouraged to comply with the policy in their own operations.

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

Prohibition of discrimination and harassment
We shall respect diversity and treat and appraise each and every employee in a fair and impartial
manner. We shall not discriminate against any employee on the basis of race, ethnicity, color, sex,
sexual orientation, gender identity, age, religion, national ancestry, disability, marital status or otherlegally protected status. We shall vigorously promote equal opportunities for employment. We shallnot tolerate inappropriate behavior and speech which prevents employees from working effectively
and comfortably, or any type of harassment including harassment towards subordinate personnel,
sexual harassment, or harassment related to pregnancy, childbirth, parenting, or nursing care, inand outside of workplace.

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Prohibition of child labor
We shall not tolerate all forms of child labor. Furthermore, we will not assign young workers to latenight or overtime work, or to tasks that threaten their health or safety.
Prohibition of forced labor
We shall not tolerate all forms of forced labor including bonded labor and human trafficking.

Freedom of association and right to collective bargaining
We respect the rights of workers concerning activities related to freedom of association andcollective bargaining in accordance with the laws and regulations applicable to the countries andregions where it conducts business activities. Even in cases where freedom of association and theright to collective bargaining are restricted by the laws and regulations of each country or region,
we will faithfully accommodate, whenever applicable, dialogue and discussion with employees ortheir representatives.

3.

4.

5.

6.
7.

Working hours and wages
We comply with all the laws and regulations on working hours and wages applicable to thecountries and regions where it conducts business activities and pays wages above the level atwhich employees can fulfill a minimum level of living. Furthermore, we set working conditions
including wage levels that are competitive in each region.

Stakeholder engagement
When we talk about “stakeholders”, we refer collectively to all parties that are affected by ourbusiness activities. Stakeholders include customers, shareholders, investors, distributors, suppliers,
local communities and employees. We will consult with independent external knowledge on humanrights issues and respect dialogue and discussions with internal and external stakeholders tounderstand human rights related issues. We will regularly and publicly communicate our activities onhuman rights based on this policy through our reports and/or Group website.

Local communities
Companies cannot continue to exist without maintaining good harmony with the local community. We
wish to be the most transparent company which actively seeks harmonious balance of interests withthe local communities through close communication and contributes to the local communities as avalued corporate citizen.
Human rights due diligence
We conduct human rights risk assessments for our existing and new construction/mining equipment
and forestry machinery businesses worldwide based on international norms such as the “UN Guiding
Principles on Business and Human Rights” with the help of external experts. In addition to risk
assessments, we will conduct CSR procurement assessments for suppliers and promote CSR
procurement through improvement activities based on the results of the assessments. We will also
perform risk assessments downstream in the value chain with the aim of proceeding with dialogue
with all relevant stakeholders including distributors, and building an approach directed at responsible
sales.
Guidance for employees
In order to ensure the effectiveness of this policy, we will conduct appropriate training and activities
to raise awareness in employees throughout the Group.

RemedyWe have established and maintained a Global Compliance Hotline at our headquarters to take reports
relating to non-compliance, including regarding human rights issues and make this Hotline number
known to all Komatsu Group employees. Any employee who believes a conflict arises between thispolicy and the laws, customs, or practices of the place where they work, or who has questions about
this policy or would like to confidentially report a potential violation of this policy, should raise thosequestions and concerns with the Hotline anonymously. In addition to the Hotline for Komatsu Group
employees, anyone other than Komatsu Group employees who become aware of any circumstanceor action that violates or appears to violate this policy or applicable law with respect to human rights,
can file a report anonymously. They can contact us at https://www.komatsu.jp/en/inquiry/ or call at+81-3-6849-9701.
Established: September 2019
Revised: September 2023

* This policy has been approved by the Sustainability Promotion Committee, chaired by the president.

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Business and human rights

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

Assessment of human rights risks: Keeping identification repeatedly of potential risks based on therequirements of national laws and international human rights laws and regulations.

Main human rights issues covered in risk assessment: Prohibition of child labor, forced labor, andoverwork; freedom of association; collective bargaining rights; prohibition of discrimination and harassment;
minimum wage; occupational safety and health, etc.
Key stakeholders in risk assessment: Komatsu Group companies, suppliers, distributors, business
partners, local communities, etc.

Integration into internal divisions and procedures, and appropriate measures: Adoption of improvement
activities based on risk assessment evaluation results (appropriate actions to prevent or reduce identified risks
and integration of these actions into internal divisions and procedures).
Follow-up survey (Monitoring): Monitoring of the status and effectiveness of risk prevention/mitigation
measures and the prevention of the recurrence of incidents.
Information disclosure: Disclosure of information on web pages and in reports to provide an overview of risk
assessment efforts and the actions taken to address identified risks.

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1. Formulation of human rights policy
In September 2019, Komatsu established our Human Rights Policy (revised in September 2023) and declaredthat we endeavor to conduct our business respecting human rights in compliance with the United Nations
Guiding Principles on Business and Human Rights, and to apply respect for human rights in accordance withinternational standards throughout our global organization. Based on this policy, Komatsu develops andimplements measures to prevent and mitigate negative impacts on the Group and our business partners' humanrights, including suppliers, sales and service distributors, and further improves its processes to correct potential
negative impacts on human rights.
This human rights policy has been incorporated into the Komatsu’s Worldwide Code of Business Conduct(revised in 2024) and is thoroughly communicated by all Komatsu Group employees worldwide.
In September 2023, the Human rights policy was revised following discussions by the Sustainability Promotion
Committee and final approval by the President. The revised policy incorporates Komatsu's "Purpose" and"Sustainability policy," clearly articulating the company's stance by stipulating the prohibition of forced labor andchild labor and respecting freedom of association and right to collective bargaining. The revised version has
been translated into 13 languages and disseminated to Komatsu Group companies and partner companies(suppliers) and sales agents.
Komatsu's "Human rights policy"

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

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

2014

With the support of BSR (Business for Social Responsibility), an external expert, we conducted arisk assessment of human rights issues for our global construction, mining, and forestry
equipment business.

2017

Conducted the second human rights risk assessment with the cooperation of BSR. In conducting
the assessment, we referred to the Universal Declaration of Human Rights and the UN Guiding
Principles on Business and Human Rights.

2020

With the support of an external expert, CSR Europe, a Belgian business network, we conducted asystematic global human rights risk assessment of our downstream business (sales of equipment
and spare parts) in construction, mining, and forestry equipment business. Based on thecharacteristics of our business, we assessed and prioritized risks from multiple perspectives,
including discrimination based on race, ethnicity, and country of origin, and forced labor, freedomof association, and fair labor conditions to identify and prioritised potential issues for eachbusiness sector and region.

2021

Prioritized how Komatsu’s human rights issues should be addressed and decided to conduct asurvey of suppliers and Komatsu Group companies, as well as an on-site impact assessment indownstream businesses.

2022- Conducted a human rights web survey of the Komatsu Group companies and major suppliers withsupport from external consultants.
- Conducted an on-site impact assessment of downstream businesses in South Africa with thesupport of CSR Europe.

2023- Revised the "Human rights policy."- Conducted "Business and human rights basic education" for all Group employees and"Procurement officer training" for purchasing personnel.
- Held "opinion exchange meetings" with headquarters marketing personnel in each region.
- Visited suppliers in Japan to exchange views on their efforts and the draft of the new humanrights guidelines being prepared.

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

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

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

DATA Human rights assessment results for group companies and suppliers
PeriodContent

Number of respondents

Human rights web survey in FY2022
From October 2022 to February 2023
11 categories, 106 questions in total
84 Komatsu Group sites in 48 countries*1(all Komatsu Group companies)

Midori-kai suppliers 292 companies in 4 countries*2

Total 376
Response rate

100% (total 84)

72.9% (total 213)

*1 All consolidated companies are aggregated to 84 for the survey, depending on the country/region and the business.

*2 As the European Union is planning to enact human rights due diligence legislation, the survey was not conducted this year so that it could
be conducted in accordance with the legislation in the future.

Supplier visits and meetings
To understand the actual issues identified in the 2022 human rights web
survey (targeting Komatsu Group and partner companies (suppliers)), we
visited five partner companies (suppliers) in Japan in March 2024 andexchanged views with their representatives and staff. Currently, Komatsu
is working on establishing human rights requirements. We aim to set more
specific and effective requirements based on the feedback received
during these visits, which will serve as the future due diligence evaluation
criteria.

Screening
In our global operations, we have established a screening system to check and regulate transactions withpartners designated specified in our sanction lists and other documents. We are ensuring compliance withinternational laws and regulations (such as embargoes).

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Response to conflict minerals
In line with our corporate social responsibilities, Komatsu is continuing its efforts to avoid using conflictmaterials produced in the Democratic Republic of Congo (DRC) or its neighbors, as these pose a human risk
when mined. We have informed our business partners of this policy through the Komatsu Green Procurement
Guidelines. Working hand-in-hand with suppliers, we conducted a country-of-origin survey to determine thelocation of origin of our materials. Komatsu continuously investigates the subject minerals using the RMAP* andother processes. As the number of minerals of concern is increasing, we are taking action while monitoring thelaws and regulations of each country.
* RMAP (Responsible Minerals Assurance Process): A process proposed by the Responsible Minerals Initiative (RMI), an internationalorganization.

Komatsu Green Procurement Guidelines

Response to UK modern slavery act
In response to the "Modern Slavery Act 2015" being enacted by the UK in October 2015, Komatsu UK Ltd.
revised its “Slavery and Human Trafficking Statement for the Financial Year 2015.” disclosed on the web site.
Recognizing the possibility of the risk of human rights violations occurring in Komatsu's business operations andits supply chains, this statement reports how such an issue will be properly managed.
Komatsu UK Ltd. website(2) Integration into internal departments and procedures and appropriate measures
As part of our response to risks, we conducted basic education on business and human rights for all employees
and procurement staff in FY2023. We plan to maintain and expand this education in the future.

(3) Follow-up surveys
We repeatedly conduct risk assessments and continuously follow up on identified risks. We also plan to follow
up on issues identified in the surveys conducted in FY2022.

(4) Disclosure of information
In the "Komatsu’s Worldwide Code of Business Conduct," we declare that we shall proactively disclose
information, except in cases involving confidentiality or trade secrets. We will also make efforts to disclose
relevant information on human rights issues to improve transparency and fairness.

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b. Human rights due diligence in downstream businessWe continue our efforts to establish a "responsible sales" approach, considering human rights in ourdownstream business, i.e., sales and service of products and spare parts.

[Activities in 2022] On-site impact assessment in South Africa
Based on the results of the risk assessments conducted up to the previous year, we have been conducting onsite impact assessments of our business operations on human rights since 2022.
In September 2022, we conducted an on-site impact assessment in South Africa with the support of CSR
Europe. The assessment was conducted in cooperation with Komatsu Ltd. and Komatsu South Africa (Pty) Ltd.,
which oversees sales and services in South Africa. Based on desk research conducted in advance, the on-site
impact assessment was carried out to hold dialogues with stakeholders involved in our business in South Africa.
No major human rights risks were identified, and intensive discussions on human rights were held, enabling us
and our customers to share awareness and deepen the understanding of issues and values.

DATA

Downstream impact assessment results
FY2022

CountrySouth Africa

Number ofinterviews

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

4．Correction and grievance mechanisms
Komatsu has established a "Global Compliance Hotline" at its head office, which can be used to report any
violation of human rights issues, and has made this hotline known to all Komatsu Group employees. The hotline
also accepts reports of violations or suspected violations of human rights policies and laws, as well as reports of
non-compliance or suspected non-compliance in procurement activities, to whom anyone can contact
anonymously if he or she becomes aware of facts that may indicate a violation or suspected violation. The "FivePrinciples of Compliance," which all Komatsu Group companies and their employees must follow, making it clearthat employees who use the system for appropriate reporting will not be treated unfairly in any way as a result of
their action.
In addition, Komatsu has joined the Japan Center for Engagement and Remedy on Business and Human Rights(JaCER) to receive and respond to wide range of enquiries, mainly from outside the company, on human rights
issues throughout the value chain.
Compliance
JaCER Grievance Platform

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5. Internal training
In FY2023, We conducted "Business and human rights basic education" for all Group employees and"Procurement officer training" for purchasing personnel. The materials were translated into 13 languages anddistributed to each Komatsu Group company. Additionally, we held "opinion exchange meetings" with Komatsu
headquarters marketing personnel five times in each region, where we introduced our previous efforts andgathered opinions on approaches toward responsible sales. We will continue to provide human rights educationand strive to enhance human rights awareness throughout the entire Komatsu Group.

Revitalization of local communities (social contribution activities)
We believe that revitalizing the local economy will also help solving potential human rights issues. Throughhuman resource development utilizing our core skills, we continue to focus on education at training centersaround the world, and support regional vocational training schools through our social contribution programs inways such as providing curriculums and training tools. This will also support the safe deployment of themachines and reduces further the risks for accidents and misuse.

Examples of specific human rights due diligence activities
Since 2019, we have conducted due diligence on Myanmar with the support of external experts, to identify theissues and discuss how we approach those issues. As a result, we made a decision in 2019 to terminate sales ofmining equipment to the jade mining market in Myanmar. We also terminated the operations of "Komatsu
Manufacturing Myanmar", our subsidiary engaging in mining equipment maintenance. We have since been in theprocess of liquidating the company. We will continue to work further with our distributors and external experts in
Myanmar to take effective measures to strengthen respect for human rights in our operations.

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Improving safety of products and solutions

084

Quality assurance- Our responsibility to customers -089

Outline of procurement policy and supply chain

093

Overview of supply chain management processes

101

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

106

Support for member companies of the Komatsu
Midori-kai (management and society)112

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

121

Corporate governance126

Corporate governance indicators

128

Compliance

131

Risk management

139

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

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

In 2013 and 2014, Komatsu introduced the ICT Bulldozer and ICT Hydraulic Excavator respectively, an innovationthat made possible the automatic control of blades and buckets. These systems by-pass the need for manualexperience, allowing even fresh or less-experienced workers to perfectly reproduce the same high-level
precision construction work of a skilled worker. This has eliminated the past need for ancillary workers andguiding processes, thus enabling our customers to make huge savings on labor costs and improving generalsafety.

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

Commencement of commercial operation of the large ICT bulldozer remote control system
In the stockpile area of the mine, where collected ore is shaped by large bulldozers and supplied to subsequent
processes such as crushers, the stockpile operation is a critical task that significantly impacts mine productivity,
while also requiring skilled work on dangerous slopes.
Komatsu has developed a system to perform this delicate stockpile operation remotely without boarding thebulldozer, and commenced commercial operation at the iron mine site of a customer in Brazil in 2023.
Operating bulldozers from remote locations without direct line of sight involves time lags in video and control
signals, making precise tasks such as slope shaping difficult. This system achieves safe and advanced
operability even from remote locations over 2 km away through high-speed communication of control signals
and the combination of ICT machine control and remote control systems.

Remote-controlled bulldozer performing stockpile operations
at the introduced mine

Remote control room that does not impair the operator's
sense of control

Given the trial at the introduction site exceeded targets in terms of safety and productivity, the mine has decided
to make all large bulldozers introduced within the next year operable by remote control systems.
Furthermore, this remote control system is expected to create an environment where even inexperienced
operators can work safely.

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Example of safety activities
Introducing “KomVision Human Detection & Collision Mitigation System” to the Japanese Market
Komatsu has launched hydraulic excavators*1
equipped with the in-house developed KomVision
Human Detection & Collision Mitigation System as astandard feature for the first time in the industry in
the Japanese market.
Komatsu has developed this system by upgrading
the “KomVision” bird’s eye view camera systemequipped with conventional models as standard in
the Japanese market. The system recognizes
humans around the excavator and prevents the
motion of the excavator when the system detects
people when the excavator starts to travel or swing.
The system also stops the excavator when it detects
humans while the excavator is traveling at slow
speeds. With these functions, the system helps curb
the possibility of collisions between the excavatorand people.

The PC490LC-11 equipped with KomVision Human Detection& Collision Warning System (since 2022)

This system comes standard on the PC200-11
model. Concerning the conventional models alreadyequipped with KomVision as a standard feature,
customers can update the software and retrofit their existing machines*2. With this new system, Komatsu willcontinue to expand support for workplace safety as its goal. Komatsu will also this system standard in the futureon other models*3, as it works to gather market needs and provide customer support in order to further advanceits safety support system.
The “KomVision” bird’s-eye-view camera system isused globally for hydraulic excavators, dump trucks,
wheel loaders, and motor graders. In 2023, welaunched the PC950-11, a large hydraulic excavator
equipped with this system.
*1 : Equipped as standard on the PC200/200LC-11,
PC210/210LC-11*2 : Limited to the models equipped with KomVision for hydraulicexcavators. Changing both cameras and software may beneeded in some cases.
*3 : Komatsu plans to make the system standard on 12 to 40-ton
hydraulic excavators (equipped with KomVision) in Japan. Not
applicable to some application-specific models (with a twopiece boom, super-long front boom, slide arm, etc.).

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

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1.All-around machine monitoring with 4 cameras and a monitor(Example of PC200-11)
Four monocular cameras capture all-around views of the machine, which are shown on the monitor. The operator
can select right, right front, left or rear views.

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

This system is not a device designed to mitigate collisions or detect human under all conditions.
There are limitations on the performance. Accidents are possible when the operator depends too heavily on the system or relies upon it ininappropriate situations. Never rely solely on this system to avoid collisions.
Before using this system, be sure to read the operator’s manual, and understand and use the system correctly.

This system is not a device to prevent the operator from careless operations, such as operating while looking aside.

This system does not stop the machine’s operation when the machine is travelling or swinging at a high or medium speed, or when thework equipment is in operation.

The system does not work when work-intended human are located in front or in the working area of work equipment or outside of cameradetectable areas.
The system may not be able to correctly detect people, depending on the conditions of the detection-intended object (e.g., running,squatted, wearing clothes in colors and tones which are not distinguishable from the surroundings), the conditions of the cameras(something attached on the lens, foggy, etc.) and the conditions of worksites (bad weather, dark, against the light, at night, steamy andsmokey, etc.).

Ensure a safe working area around the machine first and then operate the machine, because the system might stop the machine suddenly
and put the machine in unstable positions when it is engaged in lifting and traveling, working on steep slopes, or working on slippery
surfaces or soft ground. Turn off this system before loading on or unloading from trailers, because the system might stop the machinesuddenly, putting the machine in unstable positions.

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Signing a joint development agreement for guidance and semi-automatic functions of container
forklifts
In recent years, interest in modal shift to freight rail transport has been growing, aiming to address the shortageof truck drivers and reduce environmental impact. However, alongside a declining labor force, a shortage ofskilled operators for cargo handling at freight stations has become a challenge.
Since 2019, Komatsu has been conducting preliminary research on forklift guidance and semi-automaticfunctions. In April 2023, Komatsu signed a joint development agreement with Japan Freight Railway Company toequip container forklifts with these functions, aiming to improve the productivity and safety of cargo handling inrail transport.
[Forklift operation guidance and semi-automatic functions]
The operation guidance function displays the position of the forklift's forks, which are difficult for the operator tosee directly, on a monitor using multiple cameras and sensors. It also alerts the operator if the container is in an
improper position.
The operation semi-automatic function combines position recognition sensors such as LiDAR* and proprietarycargo recognition technology, allowing the forklift to automatically align with the container and accurately
control the fork position with only throttle operation by the operator.
Preliminary research confirmed that these functions significantly reduce accidents such as collisions withnearby containers and container drops, as well as alleviate operator workload.
Komatsu and Japan Freight Railway Company will continue to jointly develop mass-production vehicles withthese functions, aiming to introduce them to freight stations nationwide from fiscal year 2024 onward.

* LiDAR: Light Detection And Ranging, a technology that measures the distance and shape of objects by emitting laser light and analyzing
the reflected light.

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

Our basic approach to quality assurance
Komatsu's basic approach to quality assurance is to "ensure customer satisfaction by providing products thatmeet customer needs and effectively conducting support activities to ensure these products fully function, in
cooperation with affiliates, cooperating companies, distributors, dealers, and all other Komatsu entities acrossall activities from planning, development, production, sales, to after-sales service."

Mechanisms for quality assurance
Komatsu employees across all areas of our operations, from product planning to development, manufacturing,sales, and after-sales service, work together as a single cohesive unit to ensure that the products we develop
are safe, innovative, and of high quality. Our unique “monozukuri” system enables the creation and subsequent
introduction of highly competitive DANTOTSU products into the market, whilst maintaining our significant
competitive advantage through goods and services with a wide array of substantial features.
At each step of the development and manufacturing process, various meetings and evaluations are conducted
to assess conformity and promote activities aimed at achieving goals, ensuring quality and reliability throughrigorous quality assurance activities.
Through these efforts, Komatsu provides products and services that consider the global environment, comply
with international standards and regulations of various countries, and strive to improve customer safety andsatisfaction.

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Structure for quality assurance
The majority of Komatsu's products, such as construction and mining equipment, utility equipment (compact
machines), forest machines, and industrial machinery, are used as manufacturing equipment at customer worksites. These products are required to contribute to customers' operations with high utilization rates andproductivity over long hours every day. Reflecting these product characteristics, Komatsu's sales and service
staff visit customers directly to provide detailed advice and maintenance activities related to products and work
methods. They also collect customer feedback and requests about the products and quickly relay thisinformation to the relevant departments to enhance customer satisfaction.
Komatsu also maintains comprehensive databases on market information regarding product quality. Company
staff are able to utilize this wealth of information to ensure the rapid resolution of quality-related issues, should
they be raised.

Using ICT to support customers throughout the product lifecycle
Komatsu uses ICT-based remote vehicle management systems in order to track the current status of a vehicle's
health, its operating status, and other relevant information metrics. Komatsu has equipped general construction
equipment with KOMTRAX and large mining equipment with KOMTRAX Plus. By utilizing this information in
products and services, Komatsu contributes to improving the operating rates of customers' vehicles andreducing maintenance costs, thus providing comprehensive lifecycle support.

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Quality assurance activities at the global level
The goal of Komatsu's global quality assurance activities is to achieve a unified quality level at all locations
worldwide. To this end, we engage in activities aimed at standardized technical drawings, manufacturingsystems, inspection methods, information collection, and quality management across all regions.
Komatsu has a number of manufacturing facilities that it refers to as “Mother plants”. These plants have productdevelopment capabilities and serve as the central hub for global product development initiatives using cuttingedge technologies and techniques. Any form of progress or advancement that is conceived at a “Mother plant”
is immediately disseminated to other Komatsu manufacturing locations around the world, creating a uniform
ecosystem that promotes technological development and enhances product quality.

Promoting product safety activities to ensure safety and reliability
Komatsu prioritizes safety and reliability of our products as the most important issues in its quality assurance
activities. By establishing product safety action standards and guidelines, and ensuring that all employees
comply with them as a united team, we aim to provide products that are safe, reliable for long-term use.

Information system for product safety
To quickly detect product safety issues in the market, Komatsu has established an information system forproduct safety to ensure rapid responses. Centered around the company-wide product safety committee, wehave built a system that allows for the rapid execution of a series of activities, including (1) analysis and handlingof accident causes, (2) communication with relevant government authorities, and (3) making decisions oncorrective measures such as product recalls, involving top management to continually make improvements.

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Providing product safety information to customers
The methods for providing product safety information to customers are as follows:1.

Information on the product or in the user manual

3.

Efforts made on a case-by-case basis, such as visits by engineers or top management to customers whennecessary

2.

Explanations provided by sales dealers to customers

Recall management system
Komatsu strictly oversees compliance with legal requirements. Should a defect be found in its products, thecompany initiates prompt correction measures and moves forward with proactive information disclosure, andstrive to ensure safety in the market.

1.
2.
3.
4.
5.
6.

1.
2.
3.
4.
5.

Procedure regarding recalls

Obtain defect information from the market

Proposal for rectification of the situation based on information regarding the defect; decision regarding
what measures the company will take toward the market
File a notice with relevant authorities as provided under the law
Inform customers through appropriate channels

Take appropriate corrective measures including, for example, repairs, replacements
Grasp the progress situation of the corrective measures

System to deal with recalls appropriately

Strengthening of information collecting systems on product quality in the market

Promotion of technical verification of the problem involved in the recall and timely decision making

Promotion of early resolution in compliance with laws and regulations (notification to authorities, information
disclosure, recall collection, etc.)
Grasp the progress situation of the corrective measures

Regular auditing of recall-related operations

Komatsu strictly oversees compliance with legal requirements. Should a defect be found in its products orservices, the company initiates prompt correction measures and moves forward with proactive information
disclosure.

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

1. Basic policy for procurement
Komatsu's procurement policy is based on the philosophy of aiming to build a Win-Win relationship with ourbusiness partners, who are on an equal footing with us, and encouraging each other. The policy aims to evaluate
and select suppliers in a fair and equitable manner from a SLQDC (Occupational health & Safety, Compliancewith the Law, Quality, Production capacity & delivery and Cost competitiveness) and ESG perspective.
As evaluation criteria for selecting suppliers and evaluating ongoing transactions, Komatsu has established CSR
Procurement Guidelines and Green Procurement Guidelines, which are published on our website. In addition to
making these guidelines known to our suppliers, we strive to ensure that their business activities align with theseguidelines by providing necessary support and guidance. Our support and guidance include the following
examples:Providing employee education curriculum and training on relevant laws and international rules.

Offering support to help suppliers build a promotion system (e.g., formulating operation rules), auditing andadvising on the operation status.
Awarding prizes and rewards to business partners that have made significant progress in CSR activities.

2. CSR procurement guidelines
To promote CSR activities throughout the supply chain, we established and released the "CSR Procurement
Guidelines" in 2011. These guidelines, in line with international standards such as ISO 26000 and the 10
principles of the United Nations Global Compact, integrate Komatsu's code of conduct and the Komatsu Way.
They outline the expectations we have for our business partners, covering a broad range of ESG issues,
including corporate governance, compliance, environmental protection, human rights and labor, corporate
ethics, social contribution, and coexistence with local communities. Efforts to comply with these guidelines areincorporated into our business contracts with partners. In the event that a clear violation of these guidelines is
identified at a partner company and appropriate corrective measures are not taken within a reasonable period,
we may suspend or terminate our business relationship with that company.

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

Komatsu group CSR procurement guidelines(Established on August 30, 2011; Revised on April 1, 2019, on April 1, 2021 and on April 1, 2024)

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

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

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

4. Considerations for the environment(1) Continue efforts to reduce environmental impact resulting from business operations.
(2) Appropriately manage chemical substances contained in products.
(3) Build up environmental management systems such as the ISO14000 series and "Eco Stage."(4) Pollutant air and water, other wastes, noise, vibration, etc. that affect the health and living environment ofcommunity, must be appropriately managed and disposed of in accordance with relevant laws andregulations.

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

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

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

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

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3. Green procurement guidelines
The Green Procurement Guidelines are a supplementary addition to the environment-related issues included in
the CSR Procurement Guidelines. In 1992, Komatsu established the "Komatsu Earth and Environment Policy,"
declaring its commitment to environmentally conscious business activities to achieve a sustainable society.
Through these guidelines, we prioritize green procurement of raw materials and procured components/parts,
which are essential elements in our production. We also encourage our business partners to engage inenvironmental management and activities to reduce environmental impact.

Komatsu green procurement guidelines(1.25MB)
In relation to these guidelines, we have also conducted the following surveys in our supply chain.

(1) Conflict minerals (U.S. Dodd-Frank Act)
From a CSR perspective, Komatsu has a policy of not using "conflict minerals," such as tin, tantalum, tungsten,and gold (3TG), sourced from the Democratic Republic of Congo and surrounding countries. This policy iscommunicated to our business partners through the "Green Procurement Guidelines." Between 2011 and 2014,
using the Japan Auto Parts Industries Association (JAPIA) survey template (JAPIA sheet), we conductedinvestigations on the content and origin (upstream smelters) of these minerals in parts supplied by our partners.
The results indicated that the amount of these minerals used in our products is negligible, and we have not used
any "conflict minerals." Since then, we have continued to monitor this issue through CSR-related SAQ
questionnaires and human rights due diligence surveys.
In the future, if the use of "conflict minerals" is identified in our company or among our business partners, we willpromptly switch to procurement from smelters certified by RMI.

(2) REACH regulation
The REACH regulation governs the registration, evaluation, authorization, and restriction of chemical substancesin the EU. Companies that manufacture target chemical substances in the EU or export finished products
containing target chemical substances to the EU must comply with this regulation and apply for registration andauthorization if the annual use of these substances exceeds certain amounts. Substances subject to theregulation, especially those classified as Substances of Very High Concern (SVHC), are updated annually. Like
our approach to conflict minerals, Komatsu uses JAPIA sheets to survey the content of regulated substances ineach component from our business partners and reports the findings to the EU authorities. Additionally, we work
closely with our partners to reduce the use of SVHCs and to transition to verified safe alternative substances.

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4. Component category and procurement policy
Komatsu's general production policy is to manufacture products directly within the area of demand. We have 46
of our 58 plants related to construction or mining equipment overseas.
Concerning components, parts, materials and other items, we are promoting local procurement proactively
based on production and procurement policies that we set in accordance with the characteristics of each.
Above all, for Components B and C listed below, we are expanding cross sourcing between regions to respondflexibly to changes in the international trade environment such as exchange rate fluctuations, FTA and EPA, andimport/export regulations aiming for globally optimal procurement.
Policy on Production and Procurement of Components and Parts for Construction and Mining Machinery
Category

Definition

Components A

Key components for differentiation that
determine product quality and functions

Components B

Components that we need to purchaseintensively from certified suppliers from theviewpoints of functions, quality, andinvestment

Components C

Parts with relatively low levels oftechnological difficulty, which should
desirably be produced or procured close to
the assembly plant

Production andprocurement policy

Examples of parts

Permanent development
and production in Japan(supply from Japan to theworld)Engines, transmissions,axles, hydraulic equipment,
and electronic equipment

Optimal procurement from2 or 3 regions in the world

Floor parts of cabin,cooling parts,
undercarriage parts,cylinders, high-pressure
hoses, tires, rims, andoperator's seats

Local procurement

Thick/ thin sheet-metalparts, machined parts, andcast and wrought products
as materials

The breakdown of procurement in monetary terms in the construction and mining equipment business of theKomatsu Group in FY2023 is shown below.

Components Types by Percentage of Procurement
in Monetary Terms

Origin of components by Percentage ofProcurement in Monetary Terms

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5. The Komatsu Midori-kai & supply chain
In the construction and mining equipment business, Komatsu collaborates with approximately 2,700 partnercompanies (primary suppliers) worldwide. From this pool, we select priority suppliers through a screening
process that considers ESG, country, industry, product-specific risks, and business relevance. These evaluations
include factors such as the management philosophy and ethos of top management, SLQDC* performance
including development and proposal capabilities in transactions with Komatsu, the strategic and technicalimportance of supplied items, transaction history, and scale with Komatsu. We then form the Komatsu Midori-kai,a group of particularly critical partners, from this evaluation. The Komatsu Midori-kai currently operates in five
regions: Japan, China, Thailand, North America, and Europe. The procurement from these member companies
accounts for 74% (as of FY2024) of Komatsu's total procurement. Each regional Midori-kai collaborates withlocal Komatsu manufacturing plants to promote region-specific activities, holding regular meetings to enhance
understanding of Komatsu's business and facilitate communication between Komatsu executives and member
company leaders. The annual Komatsu Midori-kai General Meeting held in Japan in November attracts
participation from both Japanese and many overseas member companies. During this meeting, Komatsu
executives provide business briefings and outline our global procurement policies and priority activities. To
support member companies in enhancing their competitiveness, the Komatsu Midori-kai in Japan and Chinaorganizes members into groups (subcommittees) by their supply items. These groups engage in cooperative
improvement activities focused on common themes such as safety, the environment, and advanced production
technology. Successful improvement cases are shared among companies within the same group to facilitate thehorizontal spread of knowledge and best practices.
* SLQDC: abbreviation for Safety, compliance with the Law, Quality, Delivery and Cost

General meeting of Midori-kai (Japan)

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Detail of critical suppliers
Number of Critical Suppliers
Sub-contracted*1

Area

Midori-kai

Non Midori-kai

Total

Proprietary parts*2

Invested by
KomatsuHighlydepend on
business w/
t Komatsu

Invested by
KomatsuHighlydepend on
business w/
t Komatsu

Big
enterprise

Trading
firm,
Material

Japan

156

6

87

2

7

43

11

China

63

2

37

1

4

14

5

Thailand

32

19

1

10

2

USA

44

19

8

EU

40

34

2

sub total

335

9

120

28

Japan

1

1

USA

1

1

EU

1

1

Indonesia

4

India

18

4

Vietnum

4

3

Philippines

1

sub total

30

2

8

0

1

17

2

365

11

170

4

13

137

30

G.Total

1

15

1

4

1

162

4

12

1

2
14
1
1

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

Classification and breakdown of critical suppliers
Category
12
3
4

Number of Company

Total Tier 1 suppliers
Critical
suppliers*

Annual Purchase amount

2,709

100%

100%

Level-3

365

13%

74%

Level-2

198

7%

63%

Level-1

15

1%

8%

* Number of upper "Level" includes those of lower "Level".

Level-1: Critical suppliers of which shares Komatsu G. invests in.
Level-2: Critical suppliers who depend highly on business with Komatsu.
Level-3: All of Critical suppliers.

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Overview of supply chain management processes
1.. Prior to commencing a transaction
When determining whether to start a business with a new business partner, we conduct a preliminary evaluationof the company by researching public information, performing interviews, and conducting on-site audits. We
also utilize the new supplier evaluation checklist to assess both the basic SLQDC criteria and ESG aspects of thecompany.
Compliance with the aforementioned CSR Procurement Guidelines and understanding of the Green
Procurement Guidelines are also included in the evaluation items, with the highest weighting assigned to ESGrelated categories. We prioritize procurement from business partners with high ESG performance.
If the ESG field rating is less than 50%, the transaction will not be allowed to commence.
Weight of points for new supplier evaluation by item

Category

Evaluation item

Weight (%)

ESG

Occupational health and safety, environment,compliance, export control, information security

27%

General management

Management policy, organization, financial structure,
employee training, etc.

24%

Production capacity

Production planning to progress management anddelivery management system, procurement ability,
and outsourcing management

20%

Technical superiority

Development capability, cost efficiency, andmaintenance ability, etc.

16%

Quality

Assurance system, on-site management, initial
product management, etc.

12%

Total

100%

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

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

CategoryNo

Objective

1

Determine companies ofconcern for export control.

2

Determineassociation
with antisocial forces.

Check whether
the company
falls under or isrelated to antisocial forces.

3
Confirm
management
status.

Management

4

BCP

Number ofcompanies
Frequency
Number of
subject tocompanies
individual
follow-up
Level-1 Level-2 Level-3 Japan Overseas
Critical suppliers (Tier 1
suppliers only)

Check whether
the company
falls under or isrelated to the listof companies of Chaser searchOnce aconcernin the CISTEC
year
published bydatabase.
Japanese andoverseas
government
agencies.

Compliance

ESG

Content

Measures to
check

5

6

Confirm
Creditmanagement
investigation and financial
status.

Periodicsurvey ofbusinessconditions

Surveys on
profit and loss,
employment,
operation rate,
investment, andoverallmanagement.

Check for violations of labor, environment,
antitrust, subcontracting, immigration, andother laws and regulations.

Identify any risk of natural disasters (flooding,tsunami, landslide, etc.) based on businesslocation.

Other Tier 1
suppliers

〇

〇

〇

〇

〇

〇

〇

〇

Public financial
information
and reports
As neededfrom private
creditinvestigation
agencies.

〇

〇

〇

〇

Questionnaires Quarterly〇

Verify throughpublicinformationandspecialized
agencies.

Search forcases ofviolations
announced by
the LaborStandards
Bureau, local
governments,
Japan Fair
Trade
Commission,
Immigration
Bureau, etc.

Implementation status in FY2023*1

Twice ayear

Monthly

Check hazard
maps
published by
the Ministry of Once
every 3Land,
Infrastructure, years
Transportation
and Tourism,
and Aqueduct.

2,176

0

-

2,235

0

-

2,235

2

2

2,235

0

0

1,385
(Japan)

1

1

〇

〇

〇
〇
〇
(Japan) (Japan) (Japan)〇〇

Number ofcompanies
withcompletedor planned
corrective
actions

〇

〇

〇

〇

〇

*1 If annual surveys are not performed, the most recent survey results are shown.

3. Risk assessment, audit, and support for corrective and improvement
activities for key business partners
To address the potential risks identified in the supply chain, Komatsu conducts risk assessments and audits, inaddition to the previously mentioned assessments, based on the importance of our business partners. Theserisk assessments and audits, conducted by our experts, cover individual areas of business activities. They arecarried out through both desktop surveys and on-site surveys. The table below outlines the content, scope, andimplementation status of these assessments and audits in FY2023.

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We report apparent and potential ESG risks identified through these risk assessments and audits to ourbusiness partners, request them to develop corrective plans, and implement appropriate measures within areasonable period. If it is difficult for the partners to address these issues independently, Komatsu provides
guidance and support, with our experts assisting upon request. In FY2023, we supported 28 companies. No
business partners were terminated due to significant negative impacts resulting from these risk assessments,
audits, and corrective actions in FY2023.
The status and results of these processes, especially concerning significant risks, are reported regularly to ourmanagement by the Procurement Division through monthly reports, including the details and progress ofcorrective measures.
We then incorporate the results of these assessments and audits into our purchasing policies to maintainconsistency between our supplier code of conduct and purchasing activities.
In parallel with these individual corrective activities, we provide various educational and training programs and elearning materials to support our partners in enhancing their understanding and capabilities in CSR activities.
In FY2023, we conducted human rights education for 538 employees and environmental law education for 99
partner companies.
We also recommend obtaining official certification from external third-party organizations to enhanceenvironmental management and health and safety activities.
Activities regarding supply chain risks, including those involving our partners, are reported and reviewed twicea year by the Sustainability Committee, attended by top management including directors.
Major individual risk assessments and audits of business partners
Target (○ to be implemented)

Category

GeneralNo.

12Management
and QCD

3

4

Complianceand ESG

5

Content

Strengtheninteractive
communication
through Midori-kai
activities

Corporateevaluation

Measures tocheck(1) Interaction among
company leaders at
Meeting
regular meetings.
(2) Promote activities
to improve
productivity, energy
conservation, etc.
throughsubcommittees.

Evaluate annual
SLQDC and ESG
performanceFreuency〇

Plant visit,
activity briefing,etc.

all-year

KPI result

Annually

KPI result,management
interview

Confirm quality
assurance systemand process control
status.

Written survey,
onsite audit,
voucher check,etc.

Annually(designatedcompanies)

Confirm monthly
Monthly operation operation capacity
capacity check
forecast and the way
to forecast.

Written survey,
management
interview

Monthly

Identify potential
risks in the areas ofaccounting andfinance, labor
Compliance risk
management,(CR) audit on
important process procurement(subcontracting law),and information
security.

Written survey,
onsite audit,
voucher check,etc.

Number ofcompanies
Number ofwithcompanies corrective
action plans
Level-1 Level-2 Level-3 Japan Overseas
formulated
Critical suppliers (Tier 1
suppliers only)

Other Tier 1
suppliers

Twice a year

Evaluate the factor
about the above andcorporate
management

Quality audit andheat treatment
audit (only forcompanies withsafety parts andheat treatment
processes)

Implementation status in FY2023

Once every
2 years

104

〇

〇

〇

〇

〇

〇

〇

〇
Japan

〇
Japan

〇

Completedcorrective
actions

335

-

-

220

-

-

〇

〇

〇

〇

〇

335

0

0

99

0

0

Heat
treatment
audit
337

0

0

166+α*1

0

0

4

2

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Target (○ to be implemented)

Category

No.

6

7

Complianceand ESG8

9

10

Content

Measures tocheck

Survey oncompliance with laws
Survey on theand regulations
employment
Questionnaire
regardingstatus of overseas
and interview
employment ofworkers
overseas workers(including trainees).

CSR SAQ survey

Risk survey onhuman rights

Implementation status in FY2023

Number ofcompanies
Number ofwithcompanies corrective
action plans
Level-1 Level-2 Level-3 Japan Overseas
formulated
Critical suppliers (Tier 1
suppliers only)

Other Tier 1
suppliers

Completedcorrective
actions

Annually

〇

〇

-

-

-

Onsite audit
such as safety
patrol, interview
withmanagement
and safety
managers, etc.

Twice a year

〇

〇

99

15

15

Written survey,
onsite audit,
Interview withmanagement
andenvironmental
officers, etc.

Annually

〇

〇

99

0

0

Implemate educationon the latest
Online education Annuallyenvironmental laws
and regulations

〇

〇

99

11

11

Once every
3 years

〇

〇

〇

-

-

-

Once every
2 years

〇

〇

〇

-

-

-

Confirm
organizational
structure to promote
Occupational
occupational safety
health and safety
and health activities,
level assessment
compliance with(including
labor-related laws
compliance check)and regulations, andevaluation ofactivities.

Promoteacquisition ofenvironmental
management
system (EMS) andenvironmental
education

Freuency

Index

contribution

Mandate acquisitionof third-party
certification forenvironmental
management

Self-assessment ofoverall CSR using achecklist.

Self-assessment
focused on humanrights andoccupational healthand safety using achecklist.

Questionnaire
and interview〇
EMS*1 Check with Tier 2 and subsequent suppliers if risk is anticipated.

Examples of corrective action support for business partners
Category

Management

No.

Major support

1

Cash management support

Content

Advance payment, cash payment, etc.

Purchase of excess inventory, advanced ordering &receiving, etc.
Purchase of production equipment, lending, etc.

2

Human resource support

3

Provision of education andtraining programs

Dispatch of managers and technical instructors on
secondment, acceptance of training at our company, etc.
For managers and general employees

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

Categories for the division of roles for procurement
departments

Meetings for the exchange of information with groupcompanies

The development of the procurement staff who will be responsible for
CSR procurement is also an important issue. We have compiled basic
matters that purchasing departments must not forget in promoting
global procurement - in particular, the basic philosophy and code of
conduct that should be kept in mind when working with business
partners -- in the KOMATSU Way (Procurement). In addition, we havebeen facing significant changes in laws and regulations of Japan andother countries on business transactions, employment and labor,
environmental protection, export control and other matters.
Responsible persons from the procurement department are required tounderstand these trends and reflect them appropriately in their daily
KOMATSU Way procurement
procurement activities. In 2023, Komatsu conducted compliancerefresher training and human rights education for a total of 538 managers and other employees in the
procurement division. This training aimed to update their understanding of CSR procurement and share theimportance of further raising awareness across the entire division. Going forward, Komatsu continues to ensure
thorough understanding through group training and e-learning tailored to each job class, from new employees tomanagers.

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2. Partnership declaration
The Partnership Declaration is our voluntary code of conduct and states that a large company, or parent
enterprise, shall partner and cooperate with small and medium companies with the aim of facilitating theircoexistence and coprosperity and shall, in fair dealing with the small and medium companies, enhance theadded value of the supply chain overall.
Komatsu announced the declaration in August 2020, expressing its support for the activities implemented by
the Cabinet Office, the Small and Medium Enterprise Agency and different economic organizations.
Komatsu complies with the rules and regulations stated in the Act against Delay in Payment of Subcontract
Proceeds, Etc. to Subcontractors and in the promotional standards of the Act on the Promotion of
Subcontracting Small and Medium-sized Enterprises. Moreover, Komatsu will continue to help its business
partners to become organizationally stronger by providing support for their efforts to enhance productivity andstreamline work with the use of ICT and by providing training programs.
In July 2022, the basic principles (Article 3) of the Act on the Promotion of Subcontracting Small and Mediumsized Enterprises were revised. In response, Komatsu issued a letter to all domestic Tier-1 suppliers, including
sub-materials suppliers, encouraging them to reflect fluctuating raw material, energy, and labor costs in productprices. We are actively promoting the optimization of purchasing prices. In 2023, we held price negotiations with
1,246 companies and proactively implemented necessary price adjustments. We will continue to hold pricenegotiations with our suppliers at least once a year from 2024 onwards.
In January 2023, we launched the "Supplier Portal (KOMATSU Global portal)," a website for sharing information
with our business partners. This site allows both our employees and business partners to share daily order andproduction data, and utilize tools that facilitate data processing and analysis. By using this portal, it is possible todetect fluctuations in production and orders, and anticipate the demand for intermittent production parts.
Additionally, it enables the monitoring of management indicators such as delivery date achievement rates anddefect rates. As of May 2024, approximately 1,100 companies are using the website. Moving forward, we willcontinue to enhance the portal's functionality and expand its content, striving to strengthen information sharing.

Logo of Partnership Declaration

The partnership declaration *only available in Japanese（221KB）
Please access the following website to read the Partnership Declaration.
National association of small and Medium enterprise promotion organizations *only available inJapanese107

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

Changes in reported cases

4. Risk Assessment in the supply chain
Procurement from business partners accounts for a substantial percentage of our production costs, reachingnearly 90% for medium-sized hydraulic shovels, a typical piece of construction machinery. Therefore, for the
stable continuation of our business activities, it is essential to identify and respond to risks in our supply chain at
an early stage. There are a wide range of risks in the supply chain, including the management of business
partners, their SLQDC status, natural disasters, pandemics, international trade conflicts, and import/export
regulations. Komatsu visualizes risks through regular risk assessments that we conduct, particularly for criticalsuppliers, and we are carrying out activities to mitigate those risks. In the construction machinery industry, themarket has been in a downturn since the second half of 2023. Komatsu monitors the load status of Midori-kai
companies in Japan on a monthly basis, closely observing the impact on each company's management andproviding necessary support. Starting in 2024, the overtime work limit regulations will also apply to thetransportation industry, raising concerns about a nationwide shortage of transportation capacity. In 2020,
Komatsu announced its declaration of voluntary action to improve logistics based on mutual understanding andcooperation with suppliers and logistics companies, and joined the "White Logistics" promotion campaign by the
Ministry of Land, Infrastructure, Transport and Tourism. We are continuously working towards sustainablelogistics by reducing long-distance transportation through the use of modal shifts, optimizing loading andunloading area layouts to reduce driver working hours, and striving to set appropriate freight rates.

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To respond to the increasingly frequent and diverse
natural disasters in recent years, we have been
operating a supply chain management system inJapan linked to disaster information from the Japan
Meteorological Agency since 2012. This system aims
to quickly assess the impact of natural disasters,such as earthquakes, tsunamis, and typhoons, on ourbusiness partners and our supply chain. We havebuilt a database of locations and production details
for over 20,000 sites managed by 7,662 business
partners, including secondary and subsequent
suppliers, thereby visualizing the risks of supply
disruptions caused by disasters and enabling us totake prompt and targeted actions. During the Noto
Peninsula earthquake on January 1, 2024, thissystem allowed us to quickly check the status ofaffected business partners and, where support was
requested, dispatch building and equipment
maintenance personnel from Komatsu to assist in
rapid disaster recovery.
In 2019, our supply chain was greatly impacted by
Epicenter of the Noto Peninsula Earthquake in January 2024
the flooding of rivers caused by Typhoon Hagibis (No. and the Cooperative Company Distribution Map19), which damaged multiple business partners. In
light of this, we linked the Komatsu supply chain management system to the hazard maps released by the
Ministry of Land, Infrastructure, Transport and Tourism to understand in advance the potential location-relatedrisks faced by our business partners. We have taken measures for our business partners with location-relatedrisks; for example, backing up to store welding and processing programs and important production data (BOM,
tooling lists, production drawings, jig and tool drawings, etc.), and building up safety stock and securing
alternative suppliers in response to the BCP status of each company. In addition, since 2020, the global supply
chain has been severely disrupted due to the shortage of semiconductors in a wide range of industries,
COVID-19 lockdown, US-China decoupling and disruptions in international logistics. Moreover, the reduction inmodel changeover periods in automobiles and home appliances has increased the risk of sudden production
discontinuation of construction machinery parts, especially electrical and electronic parts. We have addressed
these emerging risks by strengthening inventory management including at the distribution stage, promoting
replacement with stably available general-purpose semiconductors and parts, expanding the scope of preorders and forecasts for critical parts, and accumulating inventory. We are expanding our Asian Procurement
Center to further increase local procurement in ASEAN member countries and South Asia in Spring 2023. We arealso promoting multi-sourcing policy, even in cross-sourcing activity (placing concurrent orders with suppliers in
multiple regions), to reduce the risk of over-reliance on procurement from a specific region.

Disaster recovery support (lending electric generators)

Disaster recovery support(assisting the centering of working
machines)

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Information security measures in the supply chain are also an urgent issue. In 2021, Komatsu establishedinformation security guidelines for business partners to clarify the standards we require of our suppliers. We
also provided e-learning education to 156 Midori-kai companies in Japan. We are strengthening security
measures throughout the supply chain by asking suppliers to conduct security surveys using self-check sheets
and following up on any supplier issues that are identified during this exercise.
Implementation status of information security self-check
FY2021

FY2022

FY2023

Number of companies
implementing self-check sheets

156

156

Number of people engaging ine-learning

120

117

*-

Number of companies subject
to individual follow-up

12

14

*-

156

* From FY2023, we will shift from comprehensive support to individual support.

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5. Awareness building activities to ensure the penetration of CSR into the
supply chain
To raise our business partners' awareness of Komatsu's CSR procurement guidelines, we are carrying out
awareness building activities around Compliance and BCP at the Komatsu Midori-kai meetings and monthly
business meeting held in each office. In addition, "CSR Report" issued for Midori-kai member companies shares
CSR-related "Everybody's Compliance" articles which are published for the employees of the Komatsu Group,
and information regarding the revision of related laws and regulations in Japan and other countries.
To ensure the further penetration of CSR in the supply chain, in FY2021, we conducted an SAQ survey on CSR
activities using the standard survey tool released by the Global Compact Network Japan (GCNJ), of which
Komatsu is a participant. The survey was designed to gather data from 156 Midori-kai companies. To date, 153
companies have submitted their responses. From this data, we can confirm that 95% of the respondentcompanies are aware of our CSR procurement guidelines.
Moreover, in FY2022, as part of our human rights due diligence, we conducted a human rights risk survey acrossa total of 292 Midori-kai companies in Japan and overseas. Based on the UN Guiding Principles on Business andHuman Rights and other international norms, we collected responses on a dedicated website regarding thestatus of human rights initiatives in 11 categories, including human rights management, occupational safety andhealth, and working conditions. To ensure objectivity, the entire survey process from question formulation toresults analysis was conducted and overseen by outside experts. We then translated the survey results into
various languages and issued a report to each company to provide them with personalized feedback on issues
and responses. Based on the results of this survey, we will provide individual follow-up support to business
partners that need to increase their awareness of CSR and human rights issues.
In FY 2023, we visited five companies in the domestic Midori-kai and conducted interviews and discussions withexternal experts to develop human rights guidelines for our business partners. Based on the feedback from eachcompany, we will incorporate their opinions into the guidelines.
Questionnaire items
No

ThemesQuestionnaire items

Human rights
management

Commitment to human rights, establishing human rights due diligence system,complaint handling mechanisms

2

Work environment andhuman rights

Prohibition of discrimination and inhumane treatment, prohibition of child laborand consideration for young workers, prohibition of forced labor
Employment and labor relations, personal information protection, proper
management of working hours, welfare, wages, respect for workers' rights toorganize3

Occupational healthand safety

Occupational health and safety policies and management, workplace safetymeasures and environmental improvements, measures to address workers'
health risks

4

Community impact

Impact on the community

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

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

(1) Komatsu experts conducting safety patrols
Using check sheets and on-site patrols, we conduct surveys to ensure compliance, particularly with laws (e.g.,reports and inspections), unsafe locations on-site, and the existence of unsafe actions. If any issues are
identified, we request the submission of a countermeasure report that details measures to prevent recurrence,
followed up accordingly. From FY2018, we reviewed the check sheets and evaluation criteria to evaluate theactivities of Midori-kai member companies using the same standards company-wide and follow-up (One-rank-up
Activities) to improve the activity levels of each company annually. From FY2023, we created more site-focusedcheck sheets to conduct safety activity checks at each company's site from the same perspective,
strengthening our bottom-up activities.
In the follow-up, we also train on-site supervisors of business partners through fixed-point observation of work
cycles on site and joint implementation of risk assessments.
To eliminate serious accidents, we regularly conduct comprehensive inspections of the safety devices installedon automated lines and machines and the operation of these devices, forklift and crane operations, and thestatus of the standards established for working in high places, using a unified check sheet. In particular, we arepromoting safety measures for automated lines and machines, due to the policy to secure safety, not only by
operators’ caution but by machines’ function and/or mechanism.

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

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

(4) Focused guidance for companies with repeated accidents
We select companies that have had repeated accidents as target companies for Special Safety Activities,
proposing specific improvements according to each company’s situation. We share the activity promotion plans
created by each company and provide special support and guidance.

(5) Introducing labor safety and health management systems
To elevate the level of activities at each company, we support them in acquiring occupational safety and healthmanagement systems, including ISO and OSHMS certification. In 2015, 97 companies adopted the Japan
Industrial Safety and Health Association (JISHA)'s Workplace Safety Health Impact Project for small andmedium-sized enterprises to objectively evaluate their compliance with safety and health laws throughindependent certified auditing bodies. For identified issues, we help develop corrective action plans, andKomatsu offers improvement guidance and support, leveraging our experts in response to requests frompartner companies.

Risk assessment training

Group performing a mutualsafety patrol

Presentation by Sekigahara factory
at a Komatsu safety meeting

Changes in the results of safety activity evaluations from 2019 to 2023 (99 Midori-kai member companies,
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Changes in the number of accidents at Midori-kai member companies in Japan and China

Status of one-rank-up activities

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2. Compliance
The Komatsu Group conducts compliance and risk audits (CR audits) and has extended these audits to 16
business partners in which Komatsu holds minority stakes since 2016. The audits cover four fields: accounting,labor management, procurement (Subcontract Act), and information security. They aim to identify potential risks
and implement corrective measures. Compliance with relevant laws and regulations, the setting and operation ofbusiness rules, segregation of duties, decision-making authorities, and the inspection of related documents andon-site examinations are all part of the process to identify and address potential risks.
Voluntary establishment of compliance systems by business partners is essential for promoting CSR
procurement. We believe that such a system should desirably be established by 1) formulating rules(establishing codes of conduct of each company), 2) building a structure for promoting CSR procurement(including the appointment of persons in charge of CSR procurement and practical affairs), 3) introducing awhistleblowing system, and then 4) providing employees with awareness training. Under this policy, we provided
support to 99 companies, mainly custom goods suppliers belonging to the Midori-kai, for their establishment ofcompliance systems by providing practical examples at Komatsu and employee training materials, etc. As of theend of FY2021, we have completed support activities for all of the companies. The follow-up after completion of
the support activities and the inspection of the status of the activities of major business partners will involve a
SAQ survey.
In FY2023, no serious violations of Japanese labor-related laws and regulations or environmental violations werereported by any of Japan Midori-kai's 156 companies.

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The problems found by CR audit and countermeasures (2016-2023)
Items

Problem found by audit
Workflow, operational guidelines, anddecision-making authority are either not set
or insufficiently definedFinance &accounting

Physical inventory (including fixed assets) iseither not conducted or not performed
regularly and timely
The rules for the disposal and forced
evaluation loss of idle assets are unclear
Management of company official seals,
password updates for the accounting system,
and access control are inadequate

Labor
management

Deficiencies in subcontractor agreementswith self-employed person
Handling of fractions (less than 30 minutes) inworking hours management

Countermeasures

Establish and review workflow andguidelines, provide guidance for physicalinventory implementation, etc.

Separate approvers and applicants, etc.

Switch to direct employment, review time
card operations, etc.

Lack of necessary information in order forms(Article 3 documents): provisional price,
payment terms, etc.
Risk of delayed payments (within 60 days ofreceipt)
Procurement(Subcontract Act)

Risk of early offsetting of the cost of suppliedmaterials
Violation of the prohibition on subcontract
payment reductions (reduction of theequivalent amount of discount fees due tocash payments)

Review order forms and supplementary
documents, review workflows, etc.

Unclear rules for obtaining evidence ofcounterparty consent when canceling orders
Result of CR audit to level-1 critical suppliers

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3. Personnel development
Komatsu believes that the greatest support we can provide to Midori-kai member companies is human resource
development, and thus, we offer various programs tailored to different levels within the organization (see tablebelow). From FY2020 to FY2022, we had to cancel most face-to-face training programs due to the COVID-19
pandemic. As an alternative, we provided remote education curricula using online meeting systems, which could
also be utilized as employee training materials by Midori-kai companies. In 2023, we resumed in-person training
while also adopting a hybrid style that combines both remote and face-to-face education.
In recent years, we have particularly focused on "Management Salons" and "Skills Transfer Activities." TheManagement Salons aim to develop young managers who have recently taken on new business responsibilities.
During these sessions, Komatsu executives and company managers analyze the current strengths andweaknesses of each company and exchange views on their medium-term management visions, aligning andsharing policies and ideas. Skills Transfer Activities are designed to facilitate the improvement and succession of
on-site skills. Through these activities, we assist companies in building systems for promoting skills transfer andskills evaluation, and in developing instructors in key skill areas by sharing Komatsu's expertise.
Training and Other Programs for Midori-kai Member Companies
Target job level

Management

Employees inmanagerial
positions

OutlineMajor
achievements

Commissioned
training

Komatsu accepts sons and daughtersof corporate managers of member
companies and provides them with onthe-job training for up to five years.

56 trainees havebeen acceptedsince 1972.

Zero

Middle management
training

Komatsu's training program for its
executive candidates is open to
candidates for member company
successor. Duration of the training isseven months.

30 people haveparticipated since2005.

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

Provided to a totalof 32 companies
since 2014

4companies

Managerial training

For newly appointed managers and onsite job leaders (e.g. general managersof centers and team leaders)Around 40 people
participate every
year.

35 people

Leader training (forfield managers)

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

Around 60 people
participate every
year.

35 people

Komatsu TechnicalInstitute

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

33 people haveentered since2008.

3 people

Production engineer
training

It is an exclusive training program for
the Midori-kai on sheet metal
processing and mechanicalengineering. Five-day training isprovided once a year.

Around 40 people
participate every
year.

29 people

Program

Representatives

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Major
achievements

FY2023
results

Instructor training

A 30-day program for candidates forskilled instructors of each company

149 people haveparticipated since2015.

8 people

Inspection training
schoolInspection skills training and classroom
lectures

Held as needed

65 people

All Komatsu QC
competition

Participants are selected from among
the Midori-kai members.

All Komatsu skills
competition(Advanced TechniqueContest)Participants are selected from among
the Midori-kai members.

All Komatsu Safety
Competition

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

Program

Instructor training (classroom instruction)

OutlineAround 20
companies
participate every
year.
Around 5companies
participate every
year.

6companies
27 people

5companies

Instructor training (practical instruction)

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4. Supporting productivity improvement activities by using ICT
Addressing the issue of the labor shortage, which has been growing more serious in recent years, is an urgent
task for Komatsu and members of the Midori-kai. Komatsu continues to promote the networking of production
sites and facilities using ICT (KOM-MICS) and improving productivity and labor efficiency through its application.
As a countermeasure against the labor shortage, we are expanding these activities to members of the Midorikai. Through tools such as the KOM-MICS Logger, developed by Komatsu, data on operational status andoperating conditions from machine tools and welding robots are automatically collected from each company's
controllers and accumulated on the network. These data are then processed and edited on a PC using
applications designed for specific purposes, visualizing issues related to improving operating rates and leading
to collaborative analysis and implementation of improvement measures.
Outline of KOM-MICS

Change in the number of KOM-MICS Loggers
installed

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

Issues to consider when creating BCP
BCP workshops

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Support for member companies of the Komatsu Midori-kai（environment）
１．Support for those obtaining environmental management certifications
We have requested all member companies of the Midori-kai in Japan and China to obtain certifications forenvironmental management systems (EMS), such as ISO14001 and Eco-Stage, and provided them with
instructions and support for obtaining the certifications. In Japan, all 156 member companies have obtained thecertifications, and we began to check the renewal status of the certifications in 2018. In China, a total of 60
companies have already obtained the certifications. We encourage Midori-kai companies in the U.S., Europe, andThailand to obtain similar certifications, aiming to ensure that over 90% of these suppliers (all manufacturing
companies except trading companies) have been certified by the end of FY2024.
Over ten years have already passed since the Midori-kai members in Japan obtained the certifications. Like inthe case of the safety and health activities, it is important to follow-up the status of the certifications in eachcompany's business activities. To realize this, we started environmental audits for the outsourcing companies ofthe Midori-kai from 2021, and 4 companies were audited by 2023. Through written surveys on compliance withenvironment-related laws and regulations, etc., and on-site inspections at each company's offices, we evaluate
how well EMS has been established on site and promote activities to support further improvements. Since
FY2022, we have expanded check sheet-based voluntary verification to all Midori-kai outsourcing companies inJapan and have held study sessions on environmental laws and regulations. In FY2023, we conducted
specialized training focused on the Water Pollution Control Act and the Sewerage Act, which were identified ashaving the most relevant facilities through our written surveys. We will continue to increase the number of onsite
audits, especially for companies bearing anticipated risks.
Environmental audits

Onsite audit

Documents screening

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Number of Midori-kai member companies with EMS certifications (as of the end of March 2024)

RegionNumber ofmembercompanies

Number of companies which have obtained certification

Percentage ofcompanies withcertification

FY2019FY2020

FY2021

FY2022

FY2023

FY2024
TargetFY2024
TargetFY2023
Progress

Japan

156

156

156

156

156

156

156

100%

100%

China

63

57

58

60

60

60

63

100%

95%

Thailand

32

16

16

18

20

30

95%

63%

North
America

44

19

19

27

27

27

42

95%

61%

Europe

40

32

34

34

35

35

38

95%

88%

Total

335

264

283

293

296

298

329

98%

89%

N/A

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

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Changes in electric power consumption(Midori-kai 93 companies)

Change in CO2 emissions(Midori-kai 93 companies)

Independent practitioner's assurance

Independent practitioner's assurance

Status of setting of targets for the reduction of GHG
emissions (155 companies in the Midori-kai)
Not set/not
answered yet

Already set
Short-term target

126

29

Medium- andlong-term target

44

111

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

Changes in clean water usage by Midori-kai's top 10
companies

On-site investigation of water risks

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4. Responding to environmental regulations in China
The basic goal of the environmental regulations in China is the eliminationof three things: exhaust gases, discharged water, and solid waste.
However, when operating under those regulations, the regulations andstandards set forth by each local government have priority. Regarding
discharged water from plants, to address the aggravated water pollution inrivers and lakes, the standards for BOD/COD (Biochemical Oxygen
Demand/Chemical Oxygen Demand), which are indexes of amounts oforganic substances in discharged water, are especially strict whencompared to the country-wide standards in Japan, and there is anincreasing number of cases where centralized water treatment systems
for discharged water, etc. need to be installed.
Komatsu checks the regulatory compliance status of the Midori-kai
members in China on a regular basis.

An example of measures to meet
regulations in China (Daikyo Machinery
Shandong Co., Ltd.: Installation of a
welding fume dust collector andexhaust air ducts)

In addition, in China, extremely tough environmental regulations were
imposed in 2015, mainly in the coastal areas, aiming to improve air
pollution issues (PM2.5) drastically. As a result, companies engaging inbusinesses such as painting, welding, casting and plating are required totake thorough measures to reduce exhaust air, smoke and soot (including
VOCs). Working together with member companies of the Midori-kai in
China, we provide support for complying with the regulations, including the
installation of facilities. As a result of measures taken by the companies, 18
companies had been certified as exempt from the regulations (as green
companies) as of March 31, 2022. We will continue to work with eachcompany to reduce risks to our business continuity.

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5. Dealing with biodiversity
In 2011, Komatsu established “the Declaration of Biodiversity by
Komatsu,” committing to reducing environmental impact through ourbusiness activities and contributing to conservation through social
contribution activities. We have received support for our policies from
Midori-kai members in Japan and other countries, and together we areengaging in community contribution activities such as environmental
conservation. Additionally, since FY2021, we have been providing
educational programs to encourage each company to implement theirown initiatives tailored to their unique regional circumstances. We also
request each company to report on their efforts annually and share theseexamples to promote best practices among the companies.

Cherry tree planting activity in China(Jining, Shandong Province)

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

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

Corporate governance framework
At the Company, the Board of Directors is positioned as the core of corporate governance, and to improve theeffectiveness of discussions at meetings of the Board of Directors, the Company has worked to put in place asystem to ensure thorough discussions of important management matters and prompt decision making, andreform their operational aspect. Having introduced the Executive Officer (Shikko Yakuin) System in 1999, theCompany has separated management decision making and supervisory functions from executive functions to
the extent permitted by laws and regulations, and while appointing both Outside Directors and Outside Audit &Supervisory Board Members, limits the Board of Directors to a small number of members.
Corporate governance of the company (As of June 30, 2024)

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

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

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Corporate governance indicators* As of March 31, Fiscal-Year end
Corporate GovernanceFiscal2016

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Fiscal2022

Fiscal
2023

Women

0

0

1

1

1

0

0

1

Men

7

5

4

4

4

5

5

4

Total

7

5

5

5

5

5

5

5

0

0

0

0

0

1

1

1

Men

3

3

3

3

3

3

3

3

Total

3

3

3

3

3

4

4

4

10

8

8

8

8

9

9

9

6

4

4

4

4

4

4

4

60

50

50

50

50

44

44

44

30

38

38

38

38

44

44

44

0

0

13

13

13

11

11

22

Women

0

0

0

0

0

0

0

0

Men

2

2

2

2

2

2

2

2

Total

2

2

2

2

2

2

2

2

1

1

1

1

1

1

1

1

Men

2

2

2

2

2

2

2

2

Total

3

3

3

3

3

3

3

3

5

5

5

5

5

5

5

5

60

60

60

60

60

60

60

60

20

20

20

20

20

20

20

20

Unit

Number of Directors*Entering the numberof people after theordinary general
meeting ofshareholders

Number of Internal
Directors

Number of
Independent
Directors

Women

Members

Total
Number of Corporate Executive Officers on the Board

Members% of Corporate Executive Officers on the Board% of Independent Directors on the Board％% of Women on the Board
Number of Internal
Members
Number of Audit &Supervisory Board
Members

Number of
Independent Members

Women

Members

Total% of Independent Audit & Supervisory Board Members% of Female Audit & Supervisory Board Members％

Average Age of Board Members

Age

61.8

63.2

63.2

60.6

61.6

61.6

62.6

63.0

Term Limits for Board Members

Years

1

1

1

1

1

1

1

1

Number of Board Meetings

Times

17

15

15

15

15

15

15

16

Board Meeting Attendance

％

99

100

100

99

100

100

99

99

Attendance of Independent Directors at Board Meetings

％

98

100

100

100

100

100

97

98

Number of Directors Attending Less Than 75% of Board
Meetings

Members

0

0

0

0

0

0

0

0

Number of Audit Committee Meetings

Times

15

15

15

15

15

15

15

15

Audit Committee Meeting Attendance

％

97

100

99

100

100

100

97

100

Attendance of Independent Auditors at Board Meetings

％

96

100

98

100

100

100

98

100

Number of Auditors Attending Less Than 75% of Board
Meetings

Members

0

0

0

0

0

0

0

0

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Corporate GovernanceFiscal2016

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Fiscal2022

Fiscal
2023

2

2

1

2

2

2

2

2

32

30

29

31

26

25

28

28

34

32

30

33

28

27

30

30

6

6

3

6

7

7

7

7

0

0

0

0

0

0

0

0

26

27

29

26

28

27

27

27

26

27

29

26

28

27

27

27

Women

0

0

0

0

0

0

0

0

Men

2

2

2

2

2

2

2

2

Total

2

2

2

2

2

2

2

2

0

0

0

0

0

1

1

1

Men

3

3

3

3

3

3

3

3

Total

3

3

3

3

3

4

4

4

5

5

5

5

5

6

6

6

Unit
Number of Executive
Officers*Excl. Board Members

Women
Men

Members

Total

Ratio of Female Executive Officers
Number of Executive
Officers(Global Officers)

Women
Men

Members

Total
Number ofInternal Members

Human
Resource Advisory
Committee Meｍbers％

Number of
Independent
Members

Women

Members

Total
Number of Human Resource Advisory Committee
Meetings

Times

1

1

2

3

2

5

3

3

Human Resource Advisory Committee Meeting
Attendance

％

100

100

100

100

100

100

100

100

Women

0

0

0

0

0

0

0

0

Men

1

1

1

1

1

1

1

1

Total

1

1

1

1

1

1

1

1

1

1

1

1

1

2

2

2

Men

3

3

3

3

6

6

6

6

Total

4

4

4

4

7

8

8

8

5

5

5

5

8

9

9

9

Number ofCompensation
Advisory Committee
Meｍbers

Number of Internal
Members

Number of
Independent
Members

Women

Members

Total
Number of Compensation Advisory Committee Meetings

Times

2

2

1

1

1

1

4

4

Compensation Advisory Committee Meeting Attendance

％

100

100

100

100

100

100

100

100

Unit

Fiscal2016

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Fiscal2022

Fiscal
2023

100

100

102

103

103

103

116

120

36

73

93

41

28

65

120

120

19

19

99

46

35

57

87

99

155

192

294

190

166

224

323

339

Compensation

Basic Remuneration

Compensation of Chief
Executive Officer

Performance-Based Bonus in
Cash
PerformanceBased Remuneration (StockBased)

Millions
of
Yen

Total

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Compensation
Fiscal2016

Fiscal2017

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Fiscal2022

Fiscal
2023

427

357

357

345

331

331

359

372

0

0

0

0

0

0

0

0

Performance-Based Bonuses in
Cash

154

246

310

130

88

207

369

369

Performance-BasedRemunerations (Stock-Based)

83

68

300

147

108

182

249

278

Total

664

671

967

622

527

720

977

1019

Basic Remunerations

86

86

87

87

87

87

90

90

Stock Options

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total

86

86

87

87

87

87

90

90

Basic Remunerations

85

85

103

108

109

122

146

151

Stock Options

0

0

0

0

0

0

0

0

Performance-Based Bonuses in
Cash

9

9

0

0

0

0

0

0

Performance-BasedRemunerations (Stock-Based)

4

5

0

0

0

0

0

0

Total

98

99

103

108

109

122

146

151

Unit
Basic Remunerations
Stock Options

Compensation of
Directors*Excluding External
Directors*Including those who
retired during the term

Compensation of Audit &Supervisory Board
Members*Excluding External Audit&
Supervisory Board
Members*Including those who
retired during the term

Compensation ofExternal
Directors and External
Audit &
Supervisory Board
Members

Performance-Based Bonuses in
Cash
Performance-BasedRemunerations (Stock-Based)

Millionsof
Yen

Shareholder Rights
None

Anti-Takeover Measures

Compliance

Malus and clawback system

Yes

In the event of a significant revision of financial statements or an event that has a significant
impact on the reputation of the Company due to the execution of business by Directors, theperformance-based renumeration paid to the Internal Directors could be required to be reduced,
confiscated or refunded. In principle, the content of the refund request, etc. will be decided by the
Board of Directors after the deliberation by the Compensation Advisory Committee according toeach event.

Unit
Political Contributions

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

8

8

8

8

8

Millions of Yen

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Compliance
While Komatsu is expected to achieve its own sound and sustainable growth as a global corporation, a growing
number of stakeholders also expect Komatsu to give due consideration to the environmental and social impacts
of its business activities, products and services, and to make positive contributions to the sustainable
development of society. Komatsu believes that meeting these expectations is our social responsibility as a good
corporate citizen.
For Komatsu to continue to earn the trust of society, each and every employee of Komatsu is required to act ingood faith, ethically and in compliance with laws, regulations and other rules generally recognized and respectedby society (the “Rules”).
To make certain that the entire Komatsu Group complies with the rules of the business community, Komatsu has
appointed an executive officer at the head office in charge of compliance, and has established the ComplianceDepartment to handle this issue exclusively. Additionally, the company has set up a Compliance Committee
chaired by the president and CEO, which deliberates and decides on policies and important measures related tocompliance for Komatsu and the entire Komatsu Group. This committee also promotes the implementation ofthese measures and regularly reports the progress of compliance activities to the board of directors.
Komatsu proceeding with compliance activities as follows.

1. Formulate the Code■ Komatsu's Worldwide Code of Business Conduct
The company has formulated Komatsu's Worldwide Code of Business Conduct (established in 1998 andrevised 11 times to date) as a compilation of best business practices to be observed by officers andemployees of Komatsu Group companies around the globe.
Part 1 of “Komatsu’s Worldwide Code of Business Conduct” (the “Code”) provides principles and standards forresponsible business conduct that Komatsu follows to fulfill its social responsibilities.
Part 2 of the Code lists the basic rules that should be followed anywhere in the world among the wide range ofrules in the business community, along with examples, and provides a code of conduct that all Komatsu Group
employees should follow.
If any actions are discovered to be in violation of "Komatsu's Worldwide Code of Business Conduct,"disciplinary measures such as salary reduction and suspension of pay raises will be taken according to theemployment regulations. Such actions will also be taken into consideration in performance evaluations.
Komatsu considers CSR as a key responsibility, which is shown by Komatsu's Worldwide Code of BusinessConduct clearly focusing on the importance of CSR.
The compliance system for the Code of Conduct is regularly audited by an auditing company.

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Contents
Part I Guidance for BusinessConduct

Part II Rules to be Observedby Employees

1. Stakeholder Relations

1. Ethical and Proper BusinessConduct(1) Customers(2) Shareholders and Investors(3) Distributors and Supply
Partners(4) Local Communities
2. Business Operations with
Integrity and Fairness(1) Fair and Free Competition(2) Anti-Bribery: Relationship with
Governmental Agencies andOfficials(3) Proper Export Control(4) Firm Approach Against AntiSocial Groups(5) Protection and Managementof Information(6) Customary Practices
3. Respect for Human Rights
4. Employment(1) Human Resources
Management Policy(2) Occupational Safety and
Health Policy
5. Environmental Protection
6. Disclosure of Information(1) Disclosure of Information(2) Appropriate Financial
Reporting(3) Prevention of Insider Trading
7. Internal Control Systems andCompliance Framework(1) Internal Control Systems(2) Compliance Framework(1) Fraud (Behavior detrimental tocompany assets and value,and behavior for improperly
pursuing company profits/interests)(2) Bribes and Kickbacks (vis-àvis customers, suppliers,
distributors, etc.)
2. Conflicts of Interest
3. Antitrust Compliance and Fair
Competition
4. Anti-Bribery: Relationship with
Governmental Agencies andOfficials
5. Export Control
6. Trade Secrets and Proprietary
Information
7. Non-Discrimination/
Harassment
8. Employee Privacy
9. Safety and Health
10. Safety and Reliability of
Products and Services
11. Environment
12. Disclosure
13. Internal Control Systems(1) System of Internal Control(2) Internal/External Auditor
Cooperation(3) Records Retention
14. Financial Controls andRecords
15. Prohibition of Insider Trading132

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Komatsu's Worldwide Code of Business Conduct is available at:
Komatsu's Worldwide Code of Business Conduct
Established

January 1, 1998

Last revised

April 1, 2024 (12th edition)
18 languages

Languages

Japanese, English, Chinese, Spanish, Portuguese, German, Dutch, Italian,
Polish, French, Swedish, Finnish, Indonesian, Thai, Russian, Tamil,
Taiwanese, Korean■ Five Principles of Compliance
The "Five Principles of Compliance" (the “Five Principles”) are the fundamental compliance actions that must
be adhered to by all companies and employees within the Komatsu Group. These principles, summarized in
short phrases, were established in 2006 and have been revised once since then.
To ensure employees are reminded of and follow the “Five Principles” daily, posters are displayed in theworkplace.

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2. Implement the Code■ Various training programs
Komatsu systematically implements hierarchical training programs across various levels of officials andemployees. These programs are conducted as needed within domestic affiliated companies, overseas
subsidiaries, construction equipment DB and forklift dealers, as well as partner companies.

Scene from an educational training session

Educational targets
Executive officers
Employees at all hierarchical levels

Komatsu and domestic affiliated companies

Employees scheduled for overseas
assignments
Factories and business headquarters

Overseas subsidiaries

Managerial level

Construction equipment DB and forklift dealers

For managers / all employees

Partner companies

For managers / leaders
Number of participants

Global training on the code of conduct (e-learning andgroup training)<Group training (in Japan)>・Level-based training

Approx. 5,700 people

Approx. 1,530 people
Approx. 2,880 people

・Individual training by request (offices and relatedcompanies in Japan)<Group training (overseas)>・Individual training by request (overseas subsidiaries)

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Index■ Compliance for Everyone"Compliance for Everyone " is a monthly information magazine on compliance. Since it was first published in
2006, this magazine has kept being distributed to all Komatsu Group employees on the first working day ofeach month.
The magazine covers a wide range of topics beneficial to all employees, from legal matters to communication,manners, morals, and ways of thinking.
In addition to the regular edition, a summary edition highlighting key points for use in morning assemblies andmeetings, and a visualized edition visualizing the content are published as well.

Compliance for Everyone■ Compliance portal
The "Compliance Portal" is an intranet platform where Komatsu Group employees can access essential
information about compliance. It includes details on the "Compliance Hotline" and the "Komatsu’s Worldwide
Code of Business Conduct," as well as educational materials and relevant regulations. This portal is used toshare information and ensure that all Komatsu Group employees are well-informed about compliance matters.

Compliance portal top page135

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3. Understanding the actual situation■ Visualization survey
The purpose of these measures is to facilitate the early detection, correction, and prevention of potential
compliance issues within the workplace. This involves gathering information during regular operations to
identify any actions that might violate laws, internal regulations, or business society rules.
【Workplace Compliance Interview】
The aim of these interviews is to provide opportunities for supervisors and subordinates to discuss and reflect
on compliance issues. This is done through a formal interview format to ensure thorough communication andunderstanding.
【Web Survey】
These surveys, conducted in questionnaire format, target all employees of Komatsu and its group companies
on a biennial and alternating basis. They also serve as compliance awareness surveys.

Web survey invitation flyer and questionnaire form screen■ Compliance hotline (Internal reporting system)
To address inquiries and reports from group employees regarding the rules of the business world, we haveestablished a Global Compliance Hotline at our headquarters. This aims to detect and correct issues at an
early stage. Additionally, Komatsu Group companies have set up and operate regional compliance hotlines toensure that all employees can make inquiries and reports.
This system ensures that employees who make legitimate reports should not suffer any disadvantage as aresult of their reporting. This is clearly stated in "Komatsu's Worldwide Code of Business Conduct," the "FivePrinciples of Compliance," and the employment regulations of each company, thereby encouraging the use of
the inquiry and reporting system.

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Internal whistleblowing hotline

Whistleblowing process

FY2021
Number of reports worldwide(number of serious cases)

FY2022

FY2023420(0)

534(0)

638(0)

126

141

194

Number of reports received
through internal reporting hotlines
in Japan out of the above■ Compliance risk audit
As part of our risk management activities, Komatsu has been conducting compliance risk audits (CR Audits)since FY 2008.
For details, please refer to the link provided.

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Index■ External consultation hotlines
We have established various external consultation hotlines. To maintain appropriate procurement activities
within the Komatsu Group, “Supplier Consultation Hotline” is established to address and rectify issues
reported by suppliers, particularly those concerning violations of the Subcontract Act. "Driver Consultation
Hotline," is also established to specifically address transportation-related inquiries from drivers in response to
the 2024 Logistics Issue. These hotlines aim to identify and resolve individual problems effectively.

4. Reacting to contingencies
If any issues arise, we take prompt corrective actions, investigate the root cause, and strive to prevent
recurrence.
1. Number of compliance violations in FY 2023 (violations with a significant impact on management): 0 (zero)
2. Regarding anti-corruption
Number of employees who
were dismissed because of
conflict with Komatsu's anticorruption policy (global)

FY 2023: ZeroFines imposed on Komatsu
related to corruption /amount of penalties (global)

FY 2023: Zero

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

FY 2023: 12 times
Approx. 130 people (planned overseas assignment)

Establishment of internalreporting system related tocorruption (global)

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

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Risk management
The foundation of Komatsu’s management is to maximize its corporate value through the pursuit of “Quality andReliability.” Any uncertainty that hinders this pursuit is considered a “risk,” and measures are taken to address all
risks threatening the sustainable development of the Komatsu Group.

1. Major risks and assessment
Komatsu identifies risks that may affect its business activities from a enterprise-wide perspective and evaluates them basedon "impact on business performance," "likelihood of occurrence," and "impact duration in case of risk occurrence," todetermine the priority of risks. In this assessment, risks related to important issues derived from materiality analysis are also
incorporated. Furthermore, the company identifies "corporate risks," which are significant enterprise-wide risks, and "regionalrisks," which are specific to the business activities of each country and region. After determining the responsible
departments for countermeasures, activities are carried out to avoid or minimize risks and maximize opportunities.
To further strengthen its risk management, Komatsu has established a Risk Management Committee, chaired by the
President, with the Executive Officer Supervising General Affairs as Vice Chairman and the Risk Management Group of theGeneral Affairs Department acting as the Secretariat. This committee is responsible for developing a comprehensive
corporate policy on risk management, identifying “corporate risks” through the selection and evaluation of risks from anenterprise-wide perspective, inspecting and following up on the implementation status of risk countermeasures, andcontrolling risks when they materialize. This committee was held in November and February of the fiscal year 2023, and thecontent of its deliberations and activities is regularly reported to the Board of Directors.

(1) Risk map (risk prioritization)
The risk map (risk prioritization) based on FY2023 risk assessment results is as follows. For details on the risks, please referto the 155th Securities Report.

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The corporate risks for FY2023 are as follows.
Risk nameRisk description

Impact on Business

Risk mitigation actions

Risks related to
product and solution
strategies

Our company defines its purpose as"creating value throughmanufacturing and technology
innovation to empower a sustainable
future where people, businesses,
and our planet thrive together."
Based on future market and societal
needs, we are promoting thecreation and market introduction of
new products and solutions, such as
electrified machinery, Smart
Construction, mine automation (e.g.,
AHS), and data-driven businesses(e.g., KOMTRAX). However, if we failto develop products and solutions
that meet customer needs by therequired time or if our developed
products and solutions do notreceive favorable evaluations from
customers, we may losecompetitiveness in the market.

If we are unable to provide products
and solutions that maintain anadvantage over competitors, it
could affect our businessperformance, and this impact could
be prolonged.

We have designated fiscal year 2023 as "the firstyear of market introduction of electrified
construction machinery" and have introduced fourelectrified models (3-ton class electric mini
excavator "PC30E-6", 20-ton class electric
excavator "PC200LCE/210LCE-11", electric micro
excavator "PC05E-1", 13-ton class electric
excavator "PC138E-11") to the Japanese andEuropean markets. Additionally, we have started
demonstration tests of hydraulic excavators
equipped with hydrogen fuel cells and have signed ajoint development agreement with General Motors
for hydrogen fuel cells in ultra-large dump trucks.
We are developing and verifying hydrogen fuel cell
modules for our main ultra-large dump truck model,
the 930E, in mining. Furthermore, we acquired
American Battery Solutions, a US battery
manufacturer, to integrate their battery technology
with our expertise and network, aiming to develop
and produce optimized batteries for various
construction and mining machinery used under
different environments and conditions, accelerating
our electrification efforts.
To grow our solution business, we established a newcompany, EARTHBRAIN Ltd., in April 2021, in
collaboration with NTT Docomo, Sony
Semiconductor Solutions Corporation, and Nomura
Research Institute, Ltd. As workstyle reforms are
required at construction sites worldwide, we arepromoting DX (Digital Transformation) in theconstruction industry, aiming to improve safety,
productivity, and environmental performance. For
example, we jointly developed a remote control
system for construction machinery with
EARTHBRAIN and started providing it to customers
in March 2023. This system is expected to maximize
work efficiency and further improve safety throughcoordination with Smart Construction Fleet andSmart Construction Retrofit. Moreover, in addition to
expanding sales of ICT construction machinery, we
expanded our business by promoting "Smart
Construction 3D Machine Guidance," which allows
retrofitting of ICT functions such as machine
guidance, in overseas markets. Regarding thepromotion of mine site automation, we have steadily
advanced the introduction of the Autonomous
Haulage System (AHS) for mines, with a cumulative
total of 727 units in operation as of the end of March
2024. Additionally, to establish new solutions forbalancing safety and productivity at mine sites, wehave been promoting activities to introduce remotecontrol bulldozers for mines since June 2020 andstarted commercial operation of the large ICT
bulldozer "D375Ai-8 Remote Control Specification"
for mines in May 2023.

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Risk description

Impact on Business

Risk mitigation actions

Geopolitical risks

Our company operates globally, with
development, production, and sales
bases in various countries
worldwide. Social, political, andmilitary tensions in specific regions
can potentially impact our business.
We monitor and analyze political andeconomic conditions, as well as
regulatory trends in each country, tominimize the impact of diverse
geopolitical risks, such as resource
price fluctuations, import/export
regulations, and supply chain
disruptions. However, geopoliticaluncertainties are increasing,including the situation between
Russia and Ukraine. Politicaldivisions and military tensions on
global scale may cause supply chain
disruptions and affect financial andeconomic stability. We gather andanalyze information on economic
security-related regulations,
including the Economic Security
Promotion Act, but unexpected
situations may negatively impact ourbusiness performance.

Considering the Russia-Ukraine
situation, Komatsu has halted
shipments of main units, parts, andcomponents to Russia andsuspended operations of its
production subsidiary in Russia. The
business environment in the CIS(including Russia, Belarus, and six
non-sanctioned countries) remains
uncertain. Continued inability tosupport customers in theseresource-rich Central Asian
countries could impact futurebusiness.
Our electronics-related products
incorporate advanced technologies,
some of which are subject to export
controls under the Export Trade
Control Order. While the current
impact is minimal, further tighteningof regulations could result in lost
sales opportunities and hinder
service support, affecting ourbusiness.

The six non-sanctioned CIS countries are important
markets in resource-rich Central Asia. To enhancesales and profitability in this region, we established
Komatsu Central Asia LLP, a wholly-owned
subsidiary in Kazakhstan, to handle sales andservice functions. We have set up a dedicateddepartment to promptly collect and share
information on amendments to the Export Trade
Control Order with relevant business units, ensuring
timely and appropriate responses.
Regarding export controls on advanced
technologies, we aim to offset any sales declines bydeveloping markets outside regulated regions,enhancing product differentiation, improving
capabilities with long-life modules, and increasing
the profitability of the parts business, thereby
diversifying and expanding revenue sources.

Risks associatedwith addressing
social issues

Our company operates globally andrecognizes various social issues,
including climate change, water
resource depletion, and humanrights concerns. While we aim toaddress these issues sincerely andfulfill our social and environmental
responsibilities as a global company,
contributing to society through ourbusiness activities, there is a riskthat our efforts may be deemed
insufficient by society. This
perception could negatively impact
our business performance bydamaging our brand image andsocial credibility.

We have long prioritizedenvironmental initiatives as one of
our top management priorities. In
2021, we declared our goal toachieve carbon neutrality by 2050,
and in our medium-term
management plan launched in April
2022, we set this declaration as achallenge goal and actively pursued
related activities. However, if our
responses to social issues are
deemed inadequate bystakeholders, it could affect ourbusiness performance andpotentially prolong these impacts.

To significantly reduce CO2 emissions across theentire lifecycle, we are advancing the market
introduction of electric construction machinery andconducting pioneering research into fuel cells andhydrogen engines. We are also developing "poweragnostic trucks" that can operate with any powersource. Additionally, by utilizing advanced digitaltechnologies for autonomous driving and remote
operation, we aim to enhance construction
efficiency and promote activities towards a lowcarbon society as an industry leader. Based on the
TCFD recommendations, we assess the risks andopportunities that climate change poses to
Komatsu and strengthen our resilience throughscenario analysis. We also promote initiatives
addressing climate change and water security
through constructive dialogue with stakeholders.

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Risk description

Impact on Business

Risk mitigation actions

Risks associatedwith talentacquisition anddevelopment

At our company, we consider talent
to be one of the criticalmanagement resources thatgenerate new value. Under thisbelief, we continuously invest in our
workforce, aiming for sustainablegrowth and development of both thecompany and employees, inalignment with internal and external
environmental changes andmanagement policies. However, due
to the declining labor force, adecrease in experienced engineers,
and a shortage of engineering talent—particularly in key areas such as
digital technology and EV-related
technology—the competition for
talent acquisition is intensifying
globally. If we fail to secure thesetalents as planned or develop
employees with the skills required inthese specialized fields and secure
the capabilities necessary for
product research and development,
our ability to execute our businessplans and achieve sustainablegrowth could be significantly
impacted.

Our medium-term management planis built on three pillars: 1)
Accelerating growth throughinnovation, 2) Maximizing earning
power, and 3) Building a resilient
corporate structure, with a focus on"enhancing a diverse talent base." To
advance "accelerating growththrough innovation," it is crucial toacquire and develop digital talents
proficient in software development.
Failure to secure and develop thesetalents as planned could affect themedium-term management plan andthe company's sustainable growth.
In progressing our solution
business, it is essential to speed up
technological innovation by
integrating our core technologies
with external knowledge throughpartnerships and M&A. If these do
not proceed as planned, it could
impact the medium-term
management plan and thecompany's sustainable growth.
In a challenging environment for
talent acquisition, the retention anddevelopment of acquired employees
become critical. Without
understanding and addressing
employee engagement
appropriately, there is a risk ofincreased talent turnover due todeclining engagement, affecting thecompany's sustainable growth.

We promote Diversity & Inclusion to create aworkplace where diverse employees can work withpeace of mind, fostering an environment conducive
to innovation, enhancing individual motivation, anddriving cultural change for overall company growth.
As part of this, we are improving the ratio of female
employees, supporting LGBTQ, and promoting theemployment of people with disabilities while
disclosing human capital information.
With the reconstruction of our headquarters
building, we aim to strengthen our functions as anurban innovation center that revitalizes co-creationand collaboration activities, including industryacademia collaboration and open innovation.
Additionally, to secure outstanding talent, we
position our global headquarters as a key
recruitment hub, expanding opportunities toexperience Komatsu through new recruitment
events and internships utilizing both real and online
formats, thereby enhancing our recruitment
capabilities.
Due to the difficulty in acquiring digital talents, weare advancing internal development. Since 2019, we
have been implementing the "AI Talent Development
Program" with a unique curriculum to cultivate
talents with knowledge and skills in AI, the ability toconvert customer business challenges into AIsolvable problems, and the capability to drive
projects in collaboration with leading companies.
Furthermore, we regularly conduct engagement
surveys globally to understand, analyze, andaddress employee engagement, identifying
strengths and challenges by region andorganization, and reflecting these insights in HR
policies.

Risks associatedwith AI utilization

The evolution of AI has the potential
to change the fundamental
assumptions of our business, and its
effective utilization is essential forour strategy of “accelerating growththrough innovation.”Already, in our
major business of construction
equipment and vehicles,
approximately half of the sales,
particularly in mining equipment,
come from the aftermarket businessof parts and services, which
accounts for about two-thirds of thesales. Through the promotion of DX(Digital Transformation) utilizing ICT
such as online parts sales and AIbased failure diagnosis, we areglobally enhancing the added value
across the entire value chain after
new vehicle sales. Failure to
strategically incorporate AI may
result in the loss of new business
opportunities and reduced
competitiveness of our product andservices in the future.

Generative AI is a rapidly evolving
field, and there is much publicdebate about its opportunities andrisks. Rather than viewing thesechanges as threats, we need to seethem as opportunities and makeeffective use of generative AI. If wefail to respond swiftly to these rapid
technological changes and improve
productivity and efficiency for ourcompany, clients, and agents, it
could affect our competitiveness.
Conversely, incorrect use ofgenerative AI could lead to
information leaks due to the input ofconfidential information or violationsof others' rights.

To strengthen coordination among our global bases
and promptly respond to changes brought about by
AI utilization, we have established a crossdepartmental project led by the Chief Technology
Officer (CTO). This project ensures we quickly adapt
to changes through AI utilization. By developing andimplementing advanced use cases, we gain
knowledge and capabilities in new AI technologies
and ensure safe implementation. Furthermore, aspart of our risk management for AI usage, we haveestablished global AI usage policies and rules, alongwith conducting internal training based on theseguidelines. This approach ensures we prevent
information leaks and rights violations while safely
incorporating AI into our business.

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Regional risks for FY2023
Risk nameRisk description

Impact on Business

Risk mitigation actions

Risks related tohuman rights issues
in emerging markets

As it becomes increasingly
important for companies to respecthuman rights and act responsibly,
the emergence of human rights
violations in business activities canlead to community backlash,boycotts, social criticism, loss ofcorporate reputation, businessdelays or interruptions, andcessation of transactions.
Particularly in emerging markets,
which are considered our "Next
Volume Zone" for promising newmarkets, the risk of human rights
issues is more pronounced, posing ahigher impact on our businessgrowth.

Komatsu's overseas sales ratio
reaches approximately 90%, withemerging markets accounting forabout 54% of these sales.
As economic growth continues, thecontribution of emerging markets tosales is expected to increase
further. In this context, insufficient
efforts to address human rights
risks in emerging markets or failure
to respond adequately can lead todecreased sales, slowed growth,and significant financial losses.

In 2019, Komatsu established the "Policy on Human
Rights," declaring that it would conduct businessglobally in compliance with international standards
for human rights respect. This policy is reflected inthe "Komatsu Code of Conduct" and is thoroughly
communicated to all employees across the global
group.
Based on this human rights policy, we continuously
identify, prevent, mitigate, and address human rights
issues in business activities through due diligence,in collaboration with external experts. In FY2022, we
conducted web-based human rights surveys
targeting all Group companies both in Japan andoverseas, as well as major suppliers. The results
were feedbacked to the responding companies, andwe are working on risk mitigation measures.
Additionally, in FY2022, we conducted an impact
assessment in the Republic of South Africa. We
engaged in focused discussions on human rights
with various stakeholders, achieving results insharing and deepening the understanding of issues
and values with customers.
All these initiatives strive to ensure objectivity byincorporating participation, support, and advice
from external research institutions.

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2. Our specific initiatives(1) Information security
Komatsu recognizes that threats to information security are becoming increasingly sophisticated and complex
each year. We are implementing activities to enhance the overall information security level of the group.
(a) Management and promotion system

To establish and operate an organizational structure for information security, including the capability to respondto cyberattacks, Komatsu operates a global CSIRT (Computer Security Incident Response Team) covering all
global bases. The role of the CSIRT is to carry out peacetime activities to prevent information security incidents
through information gathering, various system measures, and employee education, and to respond promptly tominimize damage and restore systems early in the event of an incident. Additionally, we conduct regular cyber
BCP drills to strengthen our response capabilities in case of emergencies. CSIRT activities are regularly reported
to the "Risk Management Committee," which manages enterprise-wide risks, to share issues with the committee
members, including the President and Directors, ensuring proper operation.
Furthermore, in FY2023, we established the FSIRT (Factory Security Incident Response Team) to respondpromptly to information security incidents involving networks and connected equipment at each production
plant, continuously working to enhance information security throughout the group.
(b) Personal information protection

Komatsu recognizes that appropriately protecting the personal information of customers, business partners,
employees, etc., is essential for conducting business. We have formulated and adhere to the "Global Privacy
Policy." Additionally, we ensure proper handling through e-learning and internal audits. Overseas, we also work toprotect personal information in accordance with laws and social demands in each country and region, such ascompliance with the General Data Protection Regulation (GDPR) in Europe.
(c) System measures

To counter threats such as unauthorized access and computer virus infections from outside and prevent
information leaks resulting from these threats, we have built a multilayered defense system combining various
system measures. For example, when implementing telework, we have a system that requires multiple processes
to access the system from outside, ensuring strict verification of identity.
(d) Education and training

To enhance the awareness and knowledge of all employees who handle information, we mandate that all
employees regularly take e-learning courses. As a measure against suspicious emails, we conduct several
training sessions each year using mock spear-phishing emails. This training is conducted not only in Japan but
also for some overseas subsidiaries, promoting the improvement of information security levels globally.
(e) Information security audits

By conducting information security audits on group companies, we strive to improve the information security
level of the entire Komatsu Group. Komatsu employees with specialized knowledge conduct the audits andprovide advice to enhance effectiveness, ensuring independence and fairness by acting as third parties without
direct interests.
(f) Efforts to improve information security across the supply chain

Komatsu requests that not only our company and group companies but also dealers and partner companies thatshare our business secrets manage information security in line with our policies. We also provide ongoing andeffective support. We recommend periodic checks and interviews using checklists and the use of designatedinformation security materials to our dealers and partner companies regarding system measures and proper
information management methods. Through these activities, we share the necessity of proper information
system management for handling business secrets and ensuring stable business continuity with all
stakeholders, aiming to reduce risks.

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Greater political divisions globally may lead to tighter regulations in some countries. The Komatsu Group
collects and analyzes information on trends related to the Economic Security Promotion Act and othereconomic security-related regulations.

(3) Compliance risk audits
As a part of its risk management activities, Komatsu has been conducting compliance risk audits (CR audits)since FY2008. These covered areas are not included in J-SOX audits, which are conducted in accordance with
the Financial Instruments and Exchange Act of Japan to evaluate the internal controls related to financial
reporting, and identify potential compliance risks within the company, with a particular focus on confirming andevaluating the status of legal compliance. Our internal specialist team conducts the internal audits at Komatsu
and its Japanese/overseas affiliates, as well as at independently owned distributors and business partners.
Through these audits, we strive to raise control and compliance awareness levels at each company and in every
department. We continually review our audit method according to changes in the business environment andraising the quality of CR audits. The status of CR audits is reported monthly to the president and annually to theboard of directors.
The audited items in FY2023 are:

1. Safety, 2. Environment, 3. Labor, 4. Finance and treasury, 5. Quality assurance and recall, 6. Emissions
regulations, 7. Vehicle inspections and specific voluntary inspections (inspections required by law), 8. Export
control, 9. Information security, 10. The Anti-Monopoly Act, 11. The Subcontract Act
In addition, as CR audits that cover areas across the above items, we implement field instructor audits (Safety,
Environment) and audits of sales office bases (Finance and treasury, Labor, Information security), which are
implemented at each distributor base, as well as audits of overseas representative offices (Finance andtreasury, Labor, Information security), which are implemented for overseas offices.

Implementation of compliance risk audits

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Our concept of environmental activities and promotion system

147

Organizational chart of the environmental management structure

149

Setting mid- and long-term targets and progress

150

Acquiring ISO14001

151

Relationship between business activities and the environment

153

Mitigating climate change through products and service

155

Reducing CO2 emissions in manufacturing operations

158

Reduction CO2 emissions in logistics

160

Development of our “Reman” remanufacturing business

161

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

163

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

166

Environmental initiatives at sales and service companies

168

Promoting legal compliance, and pollution mitigation and prevention

170

Management of chemical substances and pollution prevention

171

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

173

NOx and PM emitted from products

175

Komatsu's efforts regarding water

175

Compliance and risk audit at overseas group companies

177

Holding regional environment meetings

178

Biodiversity initiatives

179
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Our concept of environmental activities and promotion
system
We, at the Komatsu Group clearly defines the basic policies of environmental conservation, which will be theguidelines of business activities, when engaging in business activities while working to realize a sustainable
society, and promotes environmental conservation activities.

Komatsu Earth and Environment Policy (June 2022 revision)
Corporate Principles
1. Contributions to Realization of a Sustainable Society

Humankind must not only promote the further development of a prosperous and comfortable society but alsopass down our planet earth and its indispensable environment to future generations in a sound and healthy
condition.
We at the Komatsu Group define environmental conservation efforts as one of the highest priority managementtasks, and endeavor to contribute to the sustainable growth of society by integrating advanced technologies
into environmental conservation efforts in all our business activities. We also aim to achieve carbon neutrality
with net zero CO2 emissions by 2050, and contribute to sustainable development through efforts to reduce CO2
emissions from products and in our manufacturing, and to establish a recycling-oriented society.

2. Simultaneous Realization of Environmental and Economic Performance

As a group of companies working to improve our manufacturing for the satisfaction of our customers, we at the
Komatsu Group are committed to improving both our environmental performance and economic efficiency. To
this end, we are constantly engaged in technology innovation to provide economical products, services andsolutions through improving fuel efficiency at our customers’ workplaces and strengthening their cyclicalbusinesses, while striving to minimize the environmental impacts related to the entire lifecycle of products fromproduction to disposal.

3. Observance of Corporate Social Responsibility

We at the Komatsu Group promote environmental conservation by not only complying with the applicable laws
and regulations of our host communities, regions and countries but also by establishing our own voluntarystandards addressing global and local environmental concerns. Each company of the Group also strives to fulfill
our collective corporate social responsibility and create value toward a sustainable planet and future throughparticipating in environmental conservation activities in each region, disclosing environment-related information
to society, and maintaining close communications with our stakeholders.

Guidelines for Corporate Activity
1. Initiatives for the Earth and Environment

We at the Komatsu Group contribute to sustainable development and climate change mitigation and adaptation
through the following initiatives.

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1)Response to Climate Change

We will reduce the amount of energy used and greenhouse gas emissions generated across the entire lifecycleof our business. We do not limit ourselves to cutting emissions from our bases and from the use of our products.
Rather, we broaden the target to include customer workplaces in their entirety.

2)Establishment of a Recycling-oriented Society

Through our business processes, we work to minimize the use of natural resources such as materials and water,
promote their reuse, or recycle them as much as possible. At the same time, we ensure the comprehensive
reduction of waste in all business areas. We also contribute to the establishment of a recycling-oriented society
by strengthening our forestry machinery business, which supports a sustainable forest management cycle ofplanting, cultivating and harvesting, as well as our remanufacturing (Reman) operations, which involve therefurbishment and reuse of components.

3)Conservation of Air, Water and Other Natural Systems as well as Management of Chemical
Substances

We comply with not only local laws and regulations but also with our own established standards concerning theconservation of water quality and the prevention of air pollution, noise and vibrations.
As much as possible, we also ensure the comprehensive management of chemical substances used in ourbusiness activities, while continuously working to reduce the use of potentially harmful chemical substances orreplace them with alternatives for the discontinuation of their use.

4)Response to Biodiversity

We recognize biodiversity as an important environmental issue, evaluate, understand and analyze impacts on it
in all our business areas, and work on our tasks according to the criteria of highest impact and/or most effective
actions.

2. Framework of Global, Group-wide Environmental Management System

Komatsu and major companies of the Komatsu Group will establish an Environmental Management System, andwill work to maintain and improve environmental activities. Other group companies and suppliers will also work toestablish environmental management systems that help to maintain and improve environmental activities.
Each company or business unit of the Komatsu Group will set its own mid- and long-term targets in accordancewith the mid- and long-term targets set based on the Komatsu mid-term management plan, and will develop andimplement specific activity plans. Top management will regularly review targets, activity plans and status, andwork on continuous improvement.

3. Environmental Education and Communication

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

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

Main themes regarding the environment, including climate change
Body

Chairperson

Major discussion items related to climate change

Chairman of the Board

Discussions regarding goal of achieving carbon neutrality by
2050
Establishment of Sustainability Policy
Formulation of new mid-term management plan
Report from the Sustainability Promotion Committee
Reports from research, development, and product planning
divisions and the Chief Technology Officer
Reports from production and procurement divisions
Mid-term management plan progress report

Strategy Review Committee

President

Low-carbon product development strategies
Mining business growth strategies
Forestry machinery business growth strategies
Smart Construction growth strategies
Growth strategies for major production bases
Report from the Sustainability Promotion Committee
Reports from the Risk Management Committee

The Executive Officer Meeting

President

Progress in product development (including climate changerelated KPIs)

Board of Directors

Body

Chairperson

Major discussion items related to climate change

Sustainability Promotion
Committee

President

Initiatives for addressing ESG issues
CSR activity reports
Deliberations and reports regarding important environmental
matters and key performance indicators (KPIs)
Revision of environmental policies

Risk Management Committee

Executive officer supervising
general affairs

Report on responses to natural disaster risks

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Setting mid- and long-term targets and progress
Komatsu has been moving forward under the new mid-term management plan from 2022. We set new ESG
targets and expressed our commitment to sustainable growth through a positive cycle of profit improvement
through growth strategies and initiatives for ESG issues.
Our 2030 target is to reduce CO2 emissions from product operation and production by 50%.
The 2030 target, including other indicators, is as follows:
Mid- and long-term targets
Area

Products

Production

Application
Construction
Equipment
MiningEquipment
Forestmachinesetc.

ObjectBase Year

2030 Targets

FY2023
Achievements
and Progress

CO2

Fuel
consumption
reduction

2010

50％ reduction

22% reduction

CO2

Improvement
rate of basic
unit

2010

50% reduction

51% reduction

Electricity

Ratio ofrenewableenergy in total
electricity
usage

-

50%

25%

Water

Improvement
rate of basic
unit

2010

2024 target:
70% reduction
2030 target:under
consideration

67% reduction

Waste

Improvement
rate of basic
unit

2010

40% reduction

54% reduction

Japan

CO2

Improvement
rate of basic
unit

2006

39% reduction

41% reduction

Overseas

CO2

Improvement
rate of basic
unit

2011

22% reduction

14% reduction-

CDP
A List（Climate,
Water)DJSI World

CDP
Climate︓A
Water︓A
DJSI World: Selected

Domestic
andoverseas
production
bases

Logistics

External evaluation

Index

-

-

External
evaluation* We have achieved our previous 2030 target for water input volume (i.e. a 60% reduction in water input intensity compared with 2010) andare now considering a new target.

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

From 1997

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

2008

The Komatsu Group in Japan acquires integrated certification.

2015

Main production sites in overseas countries achieve 100% certification.

From 2018

Sales and service divisions are added to integrated certification in Japan.
2018: Komatsu Customer Support Japan Ltd.
2019: Four bases (Nagoya, Osaka, Hiroshima, Fukuoka) of Komatsu Industries Corp.
2022:One base（Kantou）of Komatsu Industries Corp.

* Except KMC: KMC has been carrying out internal audits by specialists from KMC or Komatsu headquarters.

ISO14001:2015
Domestic Integrated
Certification

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Scope of the integrated certification in Japan
Scope of the Integrated Certification in Japan (212KB)

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

Environmental policies of plants in Japan
Awazu Plant (260KB)

Kanazawa Plant (212KB)

Osaka Plant (212KB)

Oyama Plant (396KB)

Ibaraki Plant (160KB)

Koriyama Plant (212KB)

Himi Plant (212KB)

Shiga Plant (164KB)

Hiratsuka district (188KB)

Techno Center (208KB)

Test Engineering Center (780KB)

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

Environmental Impact Resulting from Business Activities of Komatsu Group Companies, including
Facilities outside Japan (FY2023)
Independent Practitioner's Assurance

Environmental Impact Resulting from Business Activities of Komatsu Group
Companies, including Facilities outside Japan (FY2023)(516KB)

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Environmental impact indicators by region
Scope1 : CO2 emitted directly by manufacturing
facilities

Scope2: CO2 emitted indirectly by manufacturing
facilities

Independent Practitioner's Assurance

Independent Practitioner's Assurance(by using generators, boilers, etc.)(by purchasing electricity, steam and hot water)

EnergyWater Input

Independent Practitioner's Assurance

Independent Practitioner's Assurance

Energy related CO2（Scope1 and Scope2)

Amount of generated waste

Independent Practitioner's Assurance

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Climate change
Mitigating climate change through products and service
Reducing CO2 emissions from construction equipment
The main bulk of CO2 emissions produced throughout the lifecycle of our construction equipment is centered on
product operation, during which approximately 80 to 90% of emissions are produced. We have acknowledged
this fact, and are working to reduce these operational emissions through three different initiatives:“DANTOTSU Products”, “DANTOTSU Service”, and “DANTOTSU Solutions”.

Step1: reduction of CO2 emissions through DANTOTSU Products
We provide products which have been designed tooperate with great fuel efficiency while reducing grossCO2 emissions. Komatsu pioneered the creation andintroduction of the hybrid hydraulic excavator, marked
as the first of its kind to be introduced into the market.
These hybrid construction machines have beencertified by the Ministry of Land, Infrastructure,
Transport and Tourism of Japan as a “Low Carbon
Type Construction Equipment.”
A total of 16 of our hybrid models have received suchcertification, such as the HB215-3, HB205-3, HB335-3,
and HB365-3.
In addition to this, another 24 of our product models(including the bulldozer D71PX-24, the hydraulicexcavator PC78US-11, the wheel loader WA150-8)
have been certified to meet the Ministry of Land,
Infrastructure, Transport and Tourism's “Construction
Machines Fulfilling Fuel Economy Standards” signifying
these products as construction equipment with great
fuel efficiency.

HB335-3

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

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

Reducing CO2 emissions from product operation
Komatsu has set the target of reducing the CO2 emissions from the operation of products (such as construction,mine, and forestry equipment) by 50% by FY2030 (compared to FY2010).
To evaluate progress toward this goal, we compared the performance of the current year’s products to the
products of the reference year (FY2010) and estimated CO2 reductions through the improvement of fuelconsumption and work efficiency. The products of FY2023 achieved a CO2 reduction of 22%, compared to thereference year.
CO2 emission index for product operations

Independent Practitioner's Assurance

Note: Some data have been partially revised as a result of revisions to past data.

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Aiming to create a market for electrified construction equipment
All seven of Komatsu’s models of electrified construction equipment receive initial GX
construction machinery certification
Komatsu has received the initial certification for all seven models in its lineup of electric construction machinery
under the newly established GX construction machinery certification system by the Ministry of Land,
Infrastructure, Transport and Tourism.
The GX Construction Machinery Certification System is designed to promote the spread of GX construction
machinery contributing to carbon neutrality, aiming to reduce CO2 emissions in construction work andcontribute to the protection of the global environment.
Komatsu has obtained certification for all seven models, including five battery-powered electric hydraulicexcavators and two cable-powered electric hydraulic excavators for the domestic market.

Komatsu’s Seven Electrified Construction Equipment Models Receiving Initial Certification

Komatsu has set a challenging goal of achieving carbon neutrality with net-zero CO2 emissions by 2050. Thisinitiative extends not only to its own facilities and product usage but also encompasses efforts to reduce CO2
emissions across customer sites.
Electrified construction equipment has hurdles in terms of introduction costs and infrastructure development,
and the market has not yet been formed in Japan. Komatsu aims to create this market early by introducing adiverse range of models to meet customer needs, positioning FY2023 as the inaugural year for market
introduction of electrified construction equipment, having already announced the market introduction of fourmodels. The initial certification under the GX Construction Machinery Certification System will accelerate these
efforts.
Through the DANTOTSU Value, which creates cutomer value that generates a virtuous cycle of profit
enhancement and ESG issue resolution, as outlined in the mid-term management plan "DANTOTSU Value –Together, to 'The Next' for sustainable growth," Komatsu aims to take the next stage toward future job sites andcreate new value for a sustainable future for the next generation.

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Reducing CO2 emissions in manufacturing operations
As part of our efforts to address climate change, Komatsu promotes activities to reduce CO2 emissions per unitof internal manufacturing value, using this as a key indicator, for all energy used in research, development, andproduction at our global locations, including electricity, gas, and oil.
In FY2023, energy-saving improvements focused on high-load plants in Japan and overseas (such as those forcasting, forging, heat treatment, and machining), the expansion of solar and biomass power facilities, andincreased purchases of green electricity overseas have significantly reduced our CO2 emissions per unit.
Additionally, the proportion of renewable energy used in our electricity increased to 25%.

Item

FY2022

FY2023

Target of FY2030

CO2 emissions basic unit (compared to FY2010)

57

49

50

The rate of renewable energy use

17％

25％

50％

Major achievements in FY2023
Japan
Improved productivity and energy efficiency of utility facilities

Expansion of photovoltaic facilities and biomass power generation
Overseas
Improved power factor of electric power facilities and forging methods
Expansion of photovoltaic facilities and green electricity purchases

CO2 emissions, energy indicators in production activities
Energy related CO2 emissions

Independent Practitioner's Assurance

The amount and ratio of renewable electricity

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Energy consumption

Independent Practitioner's Assurance

Significant CO2 reduction by improving casting yield
The Himi Plant produces cast components for construction machinery and is Komatsu's largest CO2-emitting
plant. Since FY2019, a project team has been working on reducing CO2 emissions in the casting process,achieving over a 10% reduction in CO2 emissions per unit through energy-saving improvements.
The melting process of iron in casting is particularly energy-intensive and produces a large amount of CO2,
accounting for about 40% of the plant's total CO2 emissions. This is due to the high electricity consumption forheating and the difficulty in improving product yield, which lowers efficiency.
Amid these challenges, by revising material shapes, improving riser injection, and enhancing directional
solidification, it is expected that the molten metal yield for some parts will be improved by more than 20%, we arechallenging to further reduce CO2 emissions.

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Reduction CO2 emissions in logistics
CO2 emissions reduction conditions in global transport(Basic unit of CO2 emissions per cargo weight)
Komatsu is promoting modal shift to use coastal vessels and railways in domestic transportation while
enhancing transportation efficiency by improving the loading ratio. Additionally, to shorten transportation
distances to ports for export products, we actively use Kanazawa and Hitachinaka ports close to our factories.
In FY2023, domestic modal shift improvements reduced the basic unit of CO2 emissions per cargo weight by 2
points from the previous year, achieving the target. However, overseas, a decrease in production volume led to a
3-point deterioration in the basic unit of CO2 emissions compared to the previous year.
Komatsu will continue to promote efficiency in both domestic and overseas transportation to reduce CO2
emissions associated with logistics.
CO2 emissions in transport

Independent Practitioner's Assurance* A basic unit index is an index relative to the CO2 emissions per cargo weight in a reference year (2006 for Japan, 2011 for Overseas) as 100.

Improvement of CO2 Emissions in overseas transportation- Starting the transport of construction machinery with electric vehicles (EV trailers) at BKC BKC (Thailand) has started transporting construction machinery using
electric vehicles (EV trailers).
We transport Komatsu products exported to North America and Southeast
Asia from factories to ports.
The fuel consumption of EV trailers used for transportation is about halfthat of conventional diesel engine vehicles, which not only reduces energy
consumption during transportation, but also significantly reduces CO2
emissions.
We will monitor the situation and consider further expansion of these
activities in the future, so that they will be evaluated as initiatives thatenhance the value and image of a company that takes environmental
measures into account.

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For the creation of a recycling-based society
Development of our “Reman” remanufacturing business
Komatsu promotes the “Reman (remanufacturing) business” at our Reman plants/centers in 11 countries
worldwide. “Reman business” involves remanufacturing the used engines, transmissions, and other components
removed from construction and mining machinery that have been in operation at customer sites for a long
period. We engage in various processes involving the collection, disassembly, cleaning, salvage or replacement,
reassembly. We subsequently conduct performance tests, paint, and conduct shipping inspections before
supplying the parts back to the market as newly manufactured components. Each plant/center not only
functions independently but is also connected to each other through a network to share technical informationnecessary for Reman Business on a global basis. In addition, we obtain the durability information of Remancomponents operating in the market and provide important feedback to develop components with an optimum
lifetime. With the Reman business, approximately 40,416 tons of CO2 reduction effect in FY2023 was estimatedcompared to the case of making new products.
We offer the following benefits to customers.

Quality and performance that matches new components
Lower cost for "remanned" components

Reduced idle time for construction equipment because of adequate inventory of "remanned"
components
Resource conservation and waste reduction through reuse and recycling of components

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Reman factories and centers map

Reman process

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

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

Activities to effectively utilize resources (1. waste)
Komatsu promotes activities to reduce waste discharge while also implementing "zero emission" activities torecycle and effectively use the generated waste.
At our domestic manufacturing sites, we are mainly working to convert waste plastic into valuable resources,
reduce wood waste by improving packaging methods, and reuse packaging materials. We are also actively
promoting recycling through waste separation at overseas sites. In FY2023, we promoted the effective use ofsand used in the casting process at overseas factories, significantly reducing waste discharge. As a result, thebasic unit of waste emissions was reduced by 54% compared to FY2010, achieving our target.
Item

FY2022

Index of waste generated per unit
(Reference year: 2010)

62

163

FY202346

Target of FY2030
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Major activities in the previous fiscal year
《Japan》
Reduction of wood chips through packing mode improvements for items procured overseas
Promotion of waste sorting to turn waste plastics into valuable commodities《Overseas》
Effective use of sand in the casting process
Amount of generated waste

Independent Practitioner's Assurance

Resource circulation initiatives
Plastic product industrial waste generated at the Osaka Plant is outsourced to external contractors forprocessing, contributing to solid fuel conversion and thermal recycling. Amid growing concerns about plastic
waste in Japan, the "Act on the Promotion of Resource Circulation for Plastics" was enacted on April 1, 2022.
In line with the acceleration of resource circulation across society, the Osaka Plant has also aimed to enhance
the level of recycling by turning plastic product waste into valuable resources. Given the difficulty ofconsolidating various plastic materials into valuable resources, we focused first on polyethylene packaging
materials, which have a single material composition and stable quality. We strengthened activities to properly
separate these materials.
As a result, from FY2022, we successfully turned these materials into valuable resources to be used as raw
materials for plastic products such as agricultural containers. Currently, we are exploring the valorization ofpolypropylene plastic cases and plastic pallets, and we continue to expand our recycling efforts further.

Valuables:
After compression of polyethylene
packaging sheets

Valuables storage status

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Improvement of transportation packaging for sub-assembly parts
At Komatsu Logistics, we assemble sub-assemblies of transmissions, a key component of Komatsu
construction machinery, and deliver them to the Komatsu Ibaraki Plant. To prevent quality issues such as rain
damage during delivery, we cover them with plastic bags.
The Ibaraki Plant has been improving the layout of storage areas to efficiently transport the delivered parts.
In response, Komatsu Logistics proposed changing the storage location of the transmissions to a roofed areawith less risk of rain damage.
This proposal was adopted by the Ibaraki Plant, reducing the quality risks associated with rain exposure.
With the reduced risk, discussions among the relevant parties concluded that covering the transmissions withplastic bags was no longer necessary.
This improvement eliminated the cost of purchasing plastic bags and the labor involved in covering anduncovering them, achieving both cost reduction and waste reduction.
Moving forward, we will continue to identify and address areas for improvement, ensuring there is no excessive
packaging or unnecessary transportation.

Before improvement

After improvement

Environmental impact reduction activities in indirect departments
Komatsu actively engages in environmental activities within its indirect departments as well. In FY2023, in
preparation for the temporary relocation in January 2024 due to the reconstruction of the head office building,many items such as equipment, splash prevention panels, chairs, and desks were to be discarded. These
discarded items were targeted for reuse activities within the Komatsu Group and external organizations such as
Midori-kai companies. As a result, many of the discarded items were effectively utilized. Furthermore, during theISO14001 external audit, these activities were highly evaluated for their contributions to reducing plastic waste
and improving CO2 reduction performance.

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Activities to effectively utilize resources (2. water resources)
Given that our plants in the Hokuriku area of Japan use particularly large amounts of water, Komatsu optimizes
water use for snow melting purposes in winter and also reduces the amount of new water input in production
processes by recycling cooling water for facilities and the air-cooling of water-cooling facilities.
In FY 2023, although the total water input volume decreased, the basic unit dropped by 2 points from theprevious fiscal year to 33 points.

Item

FY2022

Index of water input volume per unit
(Reference year: 2010)

FY202331

Target of FY2024
33

30* New target for 2030 is under consideration.

Major activities in the previous fiscal year
《Japan》
Recycling cooling water for heat treatment facilities and air-cooling compressors

Optimization of water use for snow melting; installation of water-saving nozzles in welfare buildings《Overseas》
Use of rainwater and recycled water for sprinklers

Water input in production activities
Water input volume

Independent Practitioner's Assurance

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Increase the Recycled Water Quality and Quantity by Improve the Water Treatment Plant

PT Komatsu Undercarriage Indonesia commits to conserving clean water for the future. Water is essential not
only to health but also to poverty reduction, food security, peace and human rights, ecosystems, and education.
Because of these reasons, all employees of Komatsu Undercarriage Indonesia contribute to these activities,
starting from the president's policy, providing facilities, and increasing employee awareness of using water.
Komatsu Undercarriage Indonesia started implementing 3R (Reduce, Reuse, Recycle) in FY2010, and since thensucceeded in reducing it by 60% in FY2023.
In FY2015, Komatsu Undercarriage Indonesia created a Water Treatment Plant to recycle the wastewater andalso created a groundwater tank to collect the wastewater from ablution. In FY2023, the quality of recycled water
improved to be within clean water standards and the capacity also improved. In parallel with the increased quality
and capacity, the rainwater harvesting container was also created by building a dam at the sewer canal.
After improvement, Komatsu Undercarriage Indonesia can produce clean water of around 800 m3/month, andreduce with the same amount of water. In the future, to achieve the final target reduce water usage 70% vs
FY2010 by increase the recycled water, the water pond will be created to increase the capacity of rainwater
harvesting containers and increase the collected wastewater.

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Environmental initiatives at sales and service companies
Support for sales and service divisions in developing environmental
management systems
Komatsu also continues to be committed to safety and the environment in the sales activities of Komatsu Group
construction machinery. To raise awareness about environmental management, in FY2023, we supported thedevelopment of environment management systems and improvements of our worksites. Additionally, we
conducted on-site compliance checks and follow-up study sessions to ensure improvements. Furthermore, toenhance information sharing with sales companies, we revamped the intranet for providing information to sales
companies, including updated legal information and educational materials to offer extensive support.
Item
CO2（kt-CO2）

FY2022

FY2023
7.5

Year-on-year
6.4％ decrease

7.1

Acquisition of ISO14001 certification
Komatsu Customer Support Co., Ltd. (“KCSJ”) has implemented activities in FY2023 to renew ISO 14001
certification, an international standard. We promoted environmental improvement activities mainly at ourcertified sites, including at the Head Office of each company, implemented standardized environmental
improvement initiatives at other sites, and successively renewed the certification of all companies, including
Head Offices, as planned.

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

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Emergency Training

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

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

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Environmental risk management
Promoting legal compliance, and pollution mitigation and prevention
Komatsu complies with national and local laws and regulations and ensures that it periodically reports andmaintains measurement results.
In FY2023, there were nine minor violations of environmental regulations in Japan. No fines were imposed, andall issues have been resolved.
At overseas sites, there was a minor violation related to emergency training in North America (KAC). No fines
were imposed, and the issue has been resolved.

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

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

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Management of chemical substances and pollution prevention
Reducing the amount of PRTR-related substances
In FY2023, the number of PRTR* substances with a handling volume of 1 ton or more (0.5 tons or more for Class
1 Designated Chemical Substances) increased 4 from the previous fiscal year, reaching a total of 29 substances.
This increase is due to the addition of new substances subject to PRTR following the revision of the PRTR law.
The three substances, xylene, ethyl benzene, and toluene, account for approximately 81% of the emissions from
Komatsu and Komatsu Group production sites, with most of these emissions being released into theatmosphere.
In FY2023, each business site has been making improvements by switching to paints and thinners with lower
PRTR Class 1 content, resulting in a reduction in the handling volume.
In FY2024, we will continue to switch to sub-materials with lower PRTR Class 1 content, improve coating
efficiency, reduce coating film thickness, and recycle paint thinner.
* PRTR: Law designed to mandate the disclosure of the amount of specific chemical substances released into the environment to promote
the management of such substances (The notification system based on the PRTR Law)

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

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

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Amount of PRTR-related substances released into the atmosphere
Independent Practitioner's Assurance

Komatsu Group Manufacturing Facilities in Japan

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

Reducing VOC Emissions
The majority of VOC emissions are from VOCs contained in paint and thinner, such as xylene and ethyl benzene.
In FY2023, VOC emissions decreased by approximately 16% compared to FY2022. We will continue our efforts
to reduce VOC emissions in the future.

Amount of VOC Released
Komatsu Group Manufacturing Facilities in Japan

Independent Practitioner's Assurance

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Reducing the use of substances of environmental concern and complying
with the EU REACH and SCIP regulation
Komatsu is aware of the harmful environmental impacts that certain materials possess, and has madecontinuous efforts from an early stage to reduce the use of a number of such substances. These included
asbestos, lead, and other such items. In FY 1999, we created our own list of banned and limited-use substances(Refer to “Substances of Environmental Concern Banned or to Be Reduced for Use in Products”), which was
based in part on Japanese legislation (Japanese Law Concerning the Examination and Regulation of
Manufacture of Chemical Substances Control) that banned a number of chemical materials as well as regulatory
measures in other countries.
We have also implemented more stringent measures in the control of substances that raise environmental
concerns. In compliance with REACH*1 and SCIP*2, we began revisions of our FY 1999 listing of banned andlimited-use substances. We have also collaborated with suppliers to create a regulatory system that strengthens
control of potentially harmful materials being used for production. We have rolled this system out in Japan andEurope, with plans to continue implementation in other areas of operation.
Through the use of this system, we identify SVHC (substances of very high concern) in not only vehicles forexport to the EU or produced at local EU companies, but also in vehicles currently in production and in newly
developed vehicles. Furthermore, we also regularly check for new SVHCs to be added to the list.
As of May, 2024, there are 240 SVHCs registered, with the list being revised every six months. We expect thisnumber to increase to about 1,500 in the future. We have also devised a workflow to monitor control of thesesubstances.

Control system for substances of environmental concern

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

NumberChemical Substance
Hexavalent Chromium

Cadmium

Mercury

PCB

Asbestos

Specified CFCs/Alternati
ve CFCs (HCFC)PBB/PBDE/DBDE *4/HBC
DD
Banned21

Trichloroethylene

Triethanolamine

Pentachlorothiophenol *4

Hexachlorobutadiene *4

PFOS (Perfluorooctane sulfonate)

To be reduced(Subject tolimited use)

Hexachlorobenzene

2,4,6-Tri-tert-butylpheno
l *4

Arsenic

Selenium

Polycyclic Aromatic Hydr
ocarbons (PAH)

Methanol

DZ

BNST
Substances ofVery High
Concern(SVHC) under
EU REACH
Regulations

RCF (Fire-Resistant Ceramic Fibers) (Alumina andScilica Types)

Sulfur Hexafluoride *4

Lead

Alternative CFCs (HFC)15

Tri-substituted Organost
annic Compounds

Specified phthalate ester(DEHP/DBP/BBP/DIBP) *3

DOTE

Specified Chlorinated Fla
me Retardents (TCEP)

UV327

Komatsu controls the use of the following substances, which might be used in Komat
su products.
(240)*5

DEHP/DBP/BBP/DIBP etc(5 substances)
Specified Lead Compou
nds(4 substances)

HBCDD/DBDE/
Trisphosphates(2-Chloroethyl)
DOTE

RCF
UV327

*1 REACH: EU regulations for the Registration, Evaluation, Authorization and Restriction of Chemicals*2 SCIP (Substances of Concern In articles as such or in complex objects (Products))*3 Diethylhexyl phthalate, dibutyl phthalate, benzyl butyl phthalate, diisobutyl phthalate*4 Review for stricter limits due to regulatory trends.

*5 The number of substances registered up until May, 2024. Includes materials that are not contained in Komatsu construction equipment

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

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NOx and PM emitted from products
To reduce the NOx (nitrogen oxide) and PM (particulate matter) contained in the exhaust gases of diesel engines,
which are used in construction equipment and other machinery, new emission control regulations have been
established, and we have been developing products that emit cleaner exhaust gasses. About 73% of theconstruction machinery manufactured in FY2023 complies with regulations equal to or more stringent than U.S.
Tier 3 and EU Stage IIIA regulations. As a result, the average NOx and PM emitted by the construction equipment
products produced by Komatsu are shown below:
Average emission value of NOx and PM

Independent Practitioner's Assurance

FY2021

FY2022

FY2023NOx(g/kWh)

3.5

3.5

3.7

PM(g/kWh)

0.18

0.17

0.19

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

Basic initiatives
1.

2.
3.
4.
5.
6.

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

We provide quality drinking water and sanitary services to those involved in our business, including the local
community.
We learn about water together with stakeholders to raise our awareness of water and our responsibilities
and aim to realize better planet and future.
We carry out water-related initiatives and proactively disclose achievements.

Through these initiatives, we contribute to the SDGs, a set of common goals for the world.

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Actions against water-related risks
Based on the Komatsu Earth Environment Charter, the Komatsu Group has promoted the reduction of water
usage, recycling, and activities focused on water quality protection. In 2023, we conducted a "Water Risk Survey"
at 58 key business sites, both domestic and international, regardless of production status. This survey included:(1) the identification of general and objective water risks using the WRI Aqueduct, and (2) a subjective awarenesssurvey of water risks deemed important by Komatsu. By combining these two approaches, we achieved a morecomprehensive "Water Risk Survey."
The results of this "Water Risk Survey" revealed that some areas within the Komatsu Group face significant risks,such as water scarcity (water stress) and disaster risks from river flooding. Moving forward, we will continue to
conduct regular "Water Risk Surveys" to update and address water-related issues within the Komatsu Group.

Water stress risk survey
Using WRI Aqueduct, we surveyed the water stress risks at 30 main domestic and international production basesof the Komatsu Group, focusing on the use of water resources necessary for production activities, including
clean water (tap water/city water), industrial water (clean water for industrial use), and well water.
As of 2023, the business locations rated as having high or middle-to-high water stress risks accounted forapproximately 6% of our total water usage. While about 68% of the water used by Komatsu overall is well water,
we found that all the water used in the locations with high water stress risks is clean water. This underscores theimportance of reducing water usage and increasing water recycling to secure water resources in these areas.
We will effectively use these survey results for activities we have conventionally engaged in, such as thepromotion of water usage (input volume) reduction and recycling, adaptation to physical risks of heavy rain andflood, aiming to reduce the water-related risks the Komatsu Group is exposed to. In addition, when planning theconstruction of a new business base or the transfer of a base, we will survey water stress in that area to identify
the risk level.

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

Current Status of Reservoirs:
1.
2.

Oyama Plant 20,000 ton 10,000 ton and 4,000 ton reservoirs
Tochigi Plant 12,000 ton reservoir

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International case studies (KIPL: Komatsu India Pvt. Ltd.; and KRA: Komatsu Remanufacturing
Asia)
KIPL: Flooding from rivers may enter the parts warehouse and remanufacturing store during heavy rainfall. The
following measures have been taken to prevent the entry of river flood water:
1.
2.

Installation of a rainwater drainage ditch outside the parts warehouse and remanufacturing store;

Installation of a rainwater drainage ditch around the test track and water treatment facility (by 2024).

KRA: This area receives heavy rainfall and is located in a canyon, so large amounts of water may enter the site.
The following measures have been taken to prevent the entry of water:
1.
2.

Installation of a protective wall to prevent the entry of water from the plant entrance;
Installation of a concrete wall and drainage ditch.

Our water-related risk survey was conducted at the operations of one of our main supply chain companies(Midori-kai), and Midori-kai has made collaborative efforts in our water-related risk reduction activities since
FY2017.

Compliance and risk audit at overseas group companies
Komatsu has been conducting planned compliance and risk audits (CR audits) since FY2007 to prevent risks atoverseas subsidiaries.
In FY2023, we conducted audits in Europe, China, and North America. The audits were carried out with thesupport of environmental managersat mother plants in Japan, after verifying the self-check sheets prepared by
the local subsidiaries. The results showed that none of the companies had any major problems that could lead toenvironmental risks, and they were all actively engaged in activities to reduce their environmental impact.
We will continue to conduct follow-up audits and expand environmental audits to local subsidiaries in otherregions.

Past Environment Audits
Year
2007

Area
China

2008

—

Year

Area

2016

India and Indonesia

2017

Russia and China

2009

Thailand and Indonesia

2018

Indonesia and Brazil

2010

India

2019

China and the United States

2011

Brazil2020

Europe2012

Russia and Czech Republic

2021

China and Europe

2013

United State

2022

Southeast Asia and the UnitedStates2014

United States and Brazil

2023

Europe, China, and North America

2015

Thailand177

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Holding regional environment meetings
At overseas business units, employees in charge of the environment and safety in each region have gathered tohold regional meetings since FY2019. By exchanging information of and discussing common issues in theregion, they aim to improve compliance and the level of the environmental impact reduction activities at eachbusiness unit. In FY2023, meetings were held in Oceania, North America, Latin America, Europe, Southeast Asia,
South Africa, and China. Through activities like this, we would like to further revitalize the environmental activitiesof the Komatsu Group.

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

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

Komatsu Declaration on Biodiversity (Revised June 2023)
Komatsu recognizes that its business activities are dependent on and influence the biodiversity of
ecosystems.
Based on this understanding, Komatsu strives to take actions in accordance with the guiding principles
described below, as it shares a sense of responsibility regarding the biodiversity crisis, and strives toconserve diverse resources and promote their sustainable use.
Ⅰ(Recognition by Management)
Komatsu recognizes that the conservation and maintenance of biodiversity are important managementtasks.
Ⅱ(Initiatives)
Komatsu shall promote its biodiversity activities integrally with those to address climate change issues
from the following two perspectives.
1.

Komatsu shall reduce the environmental impact of its business activities which are affecting
biodiversity.

(1)

Reduction of environmental impact of products(3)

Contribution to sustainable forestry management by promoting mechanization of allprocesses from planting, cultivating, and harvesting trees.

(2)

(4)

Reduction of direct environmental impact from products throughout their lifecycle.

Consideration for biodiversity in land use

In particular, avoid operational activities in areas and near sites of containing globally or
nationally important biodiversity.

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Komatsu shall work for the conservation and maintenance of biodiversity through its social
contribution activities.

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

Nationally important biodiversity can include legally protected areas, habitats, and species.

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

Because the activities also serve as environmental education for the next generation (e.g. the children of theemployees and the community) and are promoted in cooperation with the government and local communities,
the activities have gained the understanding of the community and are also a source of pride for thecommunity.

Recognizing that biodiversity conservation activities are closely associated with the establishment of a society
in harmony with nature, they have set not only goals for the biodiversity conservation activities in a restrictedsense but also improvement goals for CO2 and water consumption and waste reduction in our operations(throughout the life cycle) and are implementing activities to achieve them.
In the future, to expand biodiversity conservation activities to the entire life cycle, we will explain these activities
to the supply chain and motivate them to proactively participate in activities.

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1．Land use consideration

Koriyama Plant: Biotope on the premises

Hensley's Dallas facility︓Bioswale

2．Community contribution

Oyama site: Tide prevention forest restoration volunteer
project in Iwaki

Planting a tree in Inner Mongolia (China)181

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3．Ecosystem conservation

Oyama Plant: Around the Manabi-no Mori

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

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

Improvement of the riparian environment in PT Komatsu Indonesia

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Data
Environmental data

184

Amount of CO2 emissions by Scope3

190

SBT (Science-Based Targets) approved

191

Environmental education

192

Environmental accounting

194

Major environmental achievements in FY2023

198

Scope of environmental data/calculation
standards

202

Independent practitioner's assurance

205

Other CSR data

206

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

FY2019FY2020

FY2021

FY2022

FY2023

Unit

Scope1 CO2 emission

112

104

109

113

93

kt

Scope2 CO2 emission

292

278

352

350

250

kt

Scope1+2 emission

404

382

461

464

342

kt

Scope3 CO2 emission

22,12521,72930,89334,27130,425kt

Energy consumption

8,183

7,838

9,612

9,916

8,291

TJ

Renewable electricity use

76.6

84.7

111.8

145.7

177.5

GWｈ

Renewable electricity ratio

11

13

14

17

25

%

95.6

74.2

92.7

104.0

72.6

kt

-

-

-

11.0

8.7

kt

3,570

3,238

3,140

3,081

2,721

Generated waste(Included) Hazardous waste generated
Water input

thousand m3

Note: The above data show total data for manufacturing sites

2. Manufacturing sites
Independent Practitioner's Assurance

Total of Manufacturing Sites
Item
Purchased electricity

Energy consumption

Actual value
689 GWh

Light oil,Gasoline, et al.

9,273 kℓGas

23,495 thousand m3

LPG

5,420 tDistrict heating

6 GWh

Steam

3,216 tTotal energy consumption

8,291 TJ

CO2

342 kt-CO2

Private Power generation

25 GWhWater input

2,721 thousand m3

Total emissions of waste

72,644 t

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Japan
Item

Actual value

Total CO2 emissions

205 kt-CO2

NOx total amount47 t

SOx total amount

1 t

Total emissions of waste

Environmental impact

19,310 t

BOD emissions

6 t

COD emissions

7 t

Wastewater

1,724 thousand m3

Output of in-house power generation

Item
Purchased
electricity

Energyconsumption

Actualconsumption

12 GWhConverted to calorie equivalents(TJ)

387 GWh

3,669

Heavy oil A

2,464 kℓ

96

Kerosene

1,123 kℓ

41

Light oil

3,928 kℓ

149

City gas

4,786 thousand m3

197

LPG

4,475 t224

124 kℓ4-

107

Gasoline
Biomass, Solar
Total

Groundwater
Water input

Index

contribution

4,487

1,766 thousand m3

Industrial water

0 thousand m3

Supply water

228 thousand m3

Total

1,994 thousand m3*1）Total emissions of waste are expressed as a composite of the amount recycled and the amount disposed.
*2）Output of in-house power generation includes electricity sold.

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Actual value

Purchased electricity

135 GWh

Light oil,Gasoline, et al.

720 kℓGas

9,365 thousand m3

LPG

276 t

District heating

- GWh

Steam

- t

Total energy consumption

1,706 TJ

CO2

30 kt-CO2

Private Power generation

2 GWh

Water input

167 thousand m3

Total emissions of waste

28,059 t

Independent Practitioner's Assurance

EuropeItem

Actual value

Purchased electricity

24 GWhLight oil,Gasoline, et al.

147 kℓGas
Energy consumption

Socialcontribution

Independent Practitioner's Assurance

The Americas

Energy consumption

Data

3,308 thousand m3

LPG

0 t

District heating

6 GWh

Steam

- t

Total energy consumption

390 TJ

CO2

9 kt-CO2

Private Power generation

2 GWh

Water input

54 thousand m3

Total emissions of waste

9,933 t186

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Asia
Item

Actual value

Purchased electricity

143 GWh

Light oil,Gasoline, et al.

768 kℓGas
Energy consumption

6,037 thousand m3

LPG

670 t
- GWh

District heating
Steam

3,216 tTotal energy consumption

1,707 TJ

CO2

98 kt-CO2

Private Power generation

8 GWh

Water input

506 thousand m3

Total emissions of waste

15,343 t*1）Total emissions of waste are expressed as a composite of the amount recycled and the amount disposed.
*2）Output of in-house power generation includes electricity sold.

Independent Practitioner's Assurance
Scope-2 CO2 emissions (Total of production sites)
CO2(kt）

Standard
Location-based

334

Market-based

267

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

FY2023 Komatsu Customer Support Japan Ltd.
Company Name

Environmental performance data

Komatsu Customer Support Japan Ltd.

Location

Shirokane, Minato-ku, Tokyo

Activities

Sale, service and rental of construction equipment and forklift trucks

Number of bases

193

Number of employees
Data of ISO14001 certificationacquisition

4,555
May 2018

Item

Actual value

Total CO2
emissions
Environmental impact

7.1 kt-CO2

Total emissions of
waste

12,597 t

Amount recycled

10,235 t

Recycling rate

81.2 %

Actualconsumption

Item

Energy consumption

Converted to calorie
equivalents (TJ)

Electricity

12.9 GWh

128.5

Heavy oil A

128 kℓ5.0

Kerosene

393 kℓ

14.3

Light oil

78 kℓ

3.0

Gasoline

7 kℓ

0.2

LPG

17 t

0.8

City gas

49 thousand m3

2.0

Total

153.8

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４．Other sites
Independent Practitioner's Assurance
Site data of non-manufacturing divisions

Manufacturing facility
included
Environmental impact

Head Office, Field Testing Department, Techno Center, General Education Center,
Recreation Facilities（5 sites）
Item

Total CO2 emissions
Item

Energy consumption

Actual value

3.0 kt-CO2
Actual consumption

Converted to calorie
equivalents (TJ)

Purchased
electricity

4.4 GWh

41.6

Heavy oil A

37 kℓ

1.5

Light oil

318 kℓ12.1

City gas

7 thousand m3

0.3

LPG

81 t

4.1

Gasoline

2 kℓ

0.1

Total

59.6

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Amount of CO2 emissions by Scope3
Independent Practitioner's Assurance

Category

Rate (%)

Summary Data kt-CO2

Scope3 (1)Manufacturing of Purchasable Goods
Scope3 (2)Capital Goods Construction and others
Scope3 (3)Fuel Procurement
Scope3 (4)Upstream Transportation disposal
Scope3 (5)Waste Transportation
Scope3 (6)Business Trips
Scope3 (7)Commuting
Scope3 (8)Upstream Leased Assets Operation
Scope3 (9)Downstream Transportation
Scope3 (10)Processing Sold Products
Scope3 (11)Customer Use
Scope3 (12)Product disposal
Scope3 (13)Downstream Leased Assets Operation
Scope3 (14)Franchise Member Companies
Scope3 (15)Investment Management

9.6
0.7
0.3
0.3
0.0
0.4
0.2
88.4
0.1
-

2,934
204
93
99
13
134
46
26,88417-

Total CO2Emission Amount (kt-CO2/year)

100.0

30,425Due to the decimal values in each category, the totals may not match.
Category 8 is included in the calculation for Scope 1 and 2.

Category 9 is included in the calculation for Category 4.

Category 13 is included in the calculation for Category 11.

There are no activities subject to calculation for Categories 14 and 15.

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

Independent Practitioner's Assurance

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SBT (Science-Based Targets) approved

SBT (Science-Based Targets) approved
Komatsu's CO2 reduction objectives have renewed certification by
SBT as of March, 2022.
Science-Based Targets (SBTs) are greenhouse gas emission
reduction targets consistent with the requirement of COP21 (Paris
Agreement).

Komatsu's SBT are as follows
1.
2.

SCOPE1+2: Total -30% (Target Year 2030; Base Year 2019)
SCOPE3: Total -15% (Target Year 2030; Base Year 2019)

Independent Practitioner's Assurance

Progress of SBT
FY2022
Base year(2019)

Scope3Rate ofchange(from baseyear)

EmissionamountRate ofchange(from baseyear)

Emissionamount470 (kt-CO2)524 (kt-CO2)+11%402 (kt-CO2)-15%

Scope1128 (kt-CO2)

128 (kt-CO2)

0%108 (kt-CO2)-16%

Scope2343 (kt-CO2)

396 (kt-CO2)+16%294 (kt-CO2)-14%

20,819 (ktCO2)

30,361 (kt-CO2)+46%

26,884 (kt-CO2)+29%

Scope1+2
Breakdown

FY2023* Scope1+2 includes manufacturing sites and major sales sites etc.
* Scope3 indicates category-11 (customer use)

* Scope 1 and 2 emission amounts may not match exactly due to the use of decimal points.

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Environmental education in FY2023
Komatsu follows a basic educational framework where common knowledge education is overseen by the Head
Office, and specific education tailored to the uniqueness and characteristics of each division is managed by therespective business units. Various vocational training programs include environmental courses to raiseawareness of energy reduction, waste reduction, and water usage reduction.
In FY2023, we focused on online training programs to develop and enhance the skills of internal auditors inenvironmental and safety practices.
Environmental education for newly appointed managerial employees, which has been conducted since FY2014,is also provided through online training.
While we already meet the legally required number of personnel with environment-related certifications, we are
actively promoting planned acquisition to further increase this number.

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

Hosted by

Head officeNo.

Course name1

Newly appointed manager
training

2

TargetParticipants
FY2020

FY2021

FY2022

FY2023

Komatsu Group newly
appointed managers

207

182

213

230

Training new employees

New Employees(Komatsu and affiliates)

318

314

288

321

3

Advanced environmental
education (held every two
years)

Environmental specialists(Komatsu and affiliates)

-

19

-

11

4

Overview of the ISO14000
seriesManagers(Komatsu, affiliates, andbusiness associates)）

98

182

259

352

5

Training of internal auditors /Refresher courses

Environmental auditors(Komatsu, affiliates, andbusiness associates)

80

182

190

163

6

Explanation ofEnvironmental Regulations
and RisksManagers and employees

-

-

-

-

7

Development andmanufacturing(introductory)

Development andmanufacturing staff(for second-year
employees)

208

202

140

167

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Data

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Participants

TargetFY2020

FY2021

FY2022

FY2023

80

218

129

145

8

Environmental training for
manufacturing engineers

Assistant foremen/
foremen/ manufacturing
engineers/ students ofKomatsu Institute ofTechnology

9

Lectures on theenvironment, experienceoriented education

Komatsu Group
employees

645

745

411

1,023

1

Education in the basics ofauditing

Managers and employees

57

57

35

78

2

Overview of the ISO14000
seriesManagers and employees

351

338

175

598

3

Training of internal auditors

Environmental auditors

13

13

5

0

4

Training new employees

New Employees

1,075

1,351

1,605

1,833

5

Regulatory education andpersonnel exchange

Employees (and otherparticipants)

172

123

247

272

Specialist training

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

370

435

581

720

Head office

Divisionsoverseeing
environmental
managementat plants

With business6* In addition to the education and training courses listed above, Komatsu also held courses dealing with environmental issues intended forsales agents.

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

Certificate name

Number of persons with certificate*
FY2020

FY2021

FY2022

FY2023

Pollution control administrators

225（35）206（35）202（35）190（35）

Energy administrators

37（9）

36（9）

34（9）

31（9）

* Figures in parentheses indicate the number of officers required.

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

Environmental costs (investments and expenses)
Independent Practitioner's Assurance
Komatsu and Komatsu Group manufacturing facilities in Japan (except group companies in the facilities),
Field Testing Department

Investment
Category

FY2022

FY2023

Investment*1

Investment*1(millions of yen)

1.Business area cost
(1).
Pollution
prevention
cost

Breakdown(2).
Globalenvironmental
conservation
cost
(3).
Resource
circulationcost

2.Upstream/
downstream cost

3.Administration cost

ExpensesContents(millions of yen)

2,174

342

1,638

195

2

47

FY2022

2,500

Expenses*1(millions of yen)

FY2023
Expenses*1

Contents(millions of yen)

2,291

2,242

356

326

Environmental
measurement
and sludge/soil
treatment costs

245

UpgradingWastewater
Separator
Measurement
Instruments,
etc.

1,999

Introducing
Solar Power
Generation,
etc.

936

867

Biomass boiler
fuel and otherfacilities
maintenancecosts, etc.

255

UpgradingWaste Liquid
Concentration
Equipment,
etc.

999

1,048

Waste material
processing cost

3

Manufacturing
Transport and
Fixation Jigs,
etc.

656

Reduction oftheenvironmental
impact of massproduction
units

50

Introducing aPowerVisualization
System, etc.

194

661

1,146

1,189

Cost of creating
green spaces
and beautifying
manufacturing
sites
Biodiversity
survey costs

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Investment
Category

FY2022
Investment*1(millions of yen)

4.R&D cost

5.Social activity cost

6.Environmental
remediation cost
Total

Expenses

FY2023

Investment*1

4,342

0

FY2022
Contents(millions of yen)

6,490

Index

contribution

Implementing
Measures forFaster Spindle
Break-inOperation, etc.

3

FY2023

Expenses*1(millions of yen)

25,343

Expenses*1

Contents(millions of yen)

27,896Development,
Design, andTesting ofEnvironmentally
Friendly
Solutions
Depreciation of
investment indevelopment
facilities

10

25

0

0

121

234

6,564

9,046

29,572

32,242

Cost ofcommunity
beautification
activities

Membership fee
for local
environmentalgroupsSoilcontamination
remediationcosts*1 All figures are rounded off to the nearest million yen.

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Environmental effects
Independent Practitioner's Assurance

Environmental impact reduction effects
Komatsu and Komatsu Group manufacturing facilities in Japan

Items of environmental impact

Change of amount (t/year)

Rate of year-on-year changes (%)-14,589-7

Water input

-26

-1

Waste materials generation

239

+1

CO2 emissions

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

Tangible benefits
Type

Monetaryvalue*1(millions of

Avoidance benefits ofenvironmental risks*2

Major activities

Contribution to profits*2

yen)Energyconservation

475

Expanding Solar Power
Generation Facilities, etc.

Resource
conservation

65

Reduce heavy oil for heating
and cooling by biomass
utilization

Wastematerials
reduction

93

Control the amount of waste
generated and promotion ofrecycling throughthoroughgoing sorting

Gain on sale ofvaluables

633

Sale of scrap, used paper,
waste oil, etc.

Other

0

-

Total

1,267

* In FY2023, there were no major
accidents or legal infractions thatwould contaminate theenvironment.
* No litigation costs were requiredin Japan during FY2023.

Proceeds from mobile
recycling equipment

Proceeds from value
added due to reduced
environmental impact of
products*1 Figures are rounded off to the nearest million yen.

*2 Komatsu used statements instead of numeral figures to describe the "Avoidance benefits of environmental risks" and the "Contribution to
profits". We will give further consideration to the interpretation and the understanding of efficiency.

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Effects on society *1
Tangible benefits

Environmental impact reduction effects

Reduction of expenses for processing wastematerials

Environmental impact reduction resulting from on-site
recycling methods

Savings in operating and maintenance costs

Environmental impact reduction resulting from productoperation

Reduction of repair costs

Waste components reduction resulting from "Reman"business*1 We are aware of the potential impacts on society that could arise from the use of our products. Qualitative information regarding the mostsignificant effects are referenced here.

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Major environmental achievements in FY2023
Environmental management
Theme

Index

Referenceyear

FY2023Goal

FY2023
Achievement

Public relations ofenvironmental activities

CDP evaluation-

Climate : A
Water : A

Climate : A
Water : A

Public relations ofenvironmental activities

Publication of ESG
Data Book-

Publishing

Published(August）

Remarks

Research & Development
Theme

Index

Referenceyear

FY2023 Goal

FY2023 Achievement

Development of lowemission construction
machinery andindustrial vehicles(Compliance withemission control
regulations)- Development ofTier 4 regulationcompliant vehicles- Development ofStage V regulationcompliant vehicles- Continued development- Continued development

Reduction of CO2
emissions fromproducts(Promotion of fuelefficiency improvement
during productoperation)- Reduction of CO2
emissions from useof products(construction
machinery, mining
machines)
Goal: 22% reduction- Continued development
Achievement: 22% reduction

Reduction of CO2
emissions fromconstruction machineryand industrial vehicles(changing to BDF
biofuel)- Use of B50compliant mixed
light oil

- Continued development

Improvement ofrecycling percentage of
construction machineryand industrial vehicles- Achieve 99% ormore in the next
developed vehicle- Achieved in developed
vehicles (for production andsales in Japan)

CO2emissions
reduction(unit: %)

2010

198

Remarks

Goal for2030: 50%
reduction

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Thorough management
and reduction ofmaterials withenvironmental burdens
in construction
machinery andindustrial vehicles

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FY2023 Goal

FY2023 Achievement

Remarks- Reduction of thevolume ofhazardous
substances in thenext vehicle to be
developed(Maintaining a 90%
reduction compared
to 1998)- Operating asystem thatmanages hazardous
substances per part
(REACH Compliant)- Maintained 90% reduction oflead usage compared to 1998
- Added new SVHC, which are
specified in REACH andmanaged use statuses of
SVHC. Used the system torecord data of the models for
the EU and the models massproduced or developed in theEU(Investigated substances
contained in each part)

Production
Theme

Index

CO2 emissions

Improvement of basic
unit

Recyclable energy
usage

Percentage ofelectricity consumed

Water input
volumeImprovement of basic
unit

Discharged waste
volumeImprovement of basic
unit

Referenceyear

FY2023 Goal

FY2023
Achievement

Remarks

47％ or more
reduction

51％ reduction

Goal for 2030: 50%
reduction

18％ or more

25％

Goal for 2030: 50%

2010

68％ or more
reduction

67％ reduction

Goal for 2024: 70%
reduction

2010

27％ or more
reduction

54％ reduction

Goal for 2030: 40%
reduction

2010

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Logistics
Theme
Shift to transportation means
with a low environmental
burdenIncrease use of domestic
vessels and JR
Improvement of CO2
emissions per cargo weight(basic unit) fromtransportation of products
and parts

Reference
year

Index

FY2023Goal

FY2023
Achievement

Remarks

-

66%

67%

Himi, Tochigi, and Koriyama
plants achieved theirtargets by expanding theuse of JR and coastal
shipping.

Improvement
per basic unit

2006

66

59

Goal for 2030: 39%
reduction (Basic Unit 61)

Improvement
per basic unit

2011

86

86

Goal for 2030: 22%
reduction (Basic Unit 78)

Modal shift rate
per 500km

Domestic transportation
Improvement of CO2
emissions per cargo weight(basic unit) fromtransportation of products
and parts
Overseas transportation

Procurement
Theme

Index

Referenceyear

FY2023 Goal

FY2023 Achievement

Horizontal expansion of Komatsu's
activities to cut electricity
consumption by half--

Expand to 93 Midorikai member
companies

Continued to expand to
all 93 member
companies

Implementation of environmental
regulations audit--

Implementing on 38
high-risk facilities

All 38 facilities already
implemented

Activities to reduce water
consumption (10 companies)--

Reduce clean water
use 15% or more

15% reduction

200

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Sales & Services
Theme
Implementationof measures toprevent oilleakage

Index-

Introduction ofwaste
management
systems-

Provision ofenvironmental
education

Number ofbases whereon-siteinstruction
workshops
were held

Reference year

FY2023 Goal

FY2023
Achievement

Remarks-

All KCSJ bases

All KCSJ bases

Installation of sandbags, drainage
route diagrams, and emergency
contact networks-

All KCSJ
companies(7 companies)
Komatsu Group
sales
companies(6 companies)

Implemented at
13 companies-

62 bases

59 bases

Sales expansionofenvironmental
products-Salesexpansion
activities forTier4 models-Salesexpansion
activities for FE--Sales plan
criteria for FY
2023-Sales plan
criteria for FY
2023-86.1% of thecriteria-81.0% of thecriteria

Promotion of
Smart
Construction
work

Number of
Smart
Construction
sites

-

BP for FY 2023

79.4% of thecriteria

201

Conducted on-site instruction
workshops (three locations not yet
completed due to distributor
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Scope of environmental data/calculation standards
Komatsu Group manufacturing facilities in Japan
Komatsu Group manufacturing facilities in Japan, with a focus on the follo wing 11 plants
Awazu Plant, Kanazawa Plant [including K anazawa-Daiichi Plant and K anazawa-Daini Plant ], Osaka Plant[including Rokko Plant], Ibaraki Plant, O yama Plant [including K omatsu Cummins Engine Co ., Ltd., Industrial Power
Alliance Ltd. and GIGAPHOTON, Inc.], Koriyama Plant, Shonan Plant [including KE LK Ltd.], Tochigi Plant, Himi
Plant, Shiga Plant, Komatsu NTC Ltd.
Logistics offices in Japan: the following 16 plants and centers
Awazu Plant, Osaka Plant, Rokko Plant, Ibaraki Plant, T ochigi Plant, Kanazawa Plant, Shonan Plant, Oyama Plant,
Koriyama Plant, Himi Plant, Shiga Plant, Komatsu Logistics Corp. (Kanto Hokyu Center , Kansai Hokyu Center,
Awazu Hokyu Center, Hokkaido Center and Kyushu Center)

Komatsu Group manufacturing facilities outside Japan

Komatsu Group manufacturing facilities outside Japan, specifically the 19 business units appearing on theworld map below.

Overseas logistics offices: the following 10 companies
Komatsu Americas Corp. [Chattanooga][Peoria], Komatsu do Brasil Ltda., Komatsu UK Ltd., Komatsu Germany
GmbH [Düsseldorf], Komatsu (Changzhou) Construction Machinery Co., Ltd., Komatsu Shantui Construction
Machinery Co., Ltd., PT Komatsu Indonesia, Bangkok Komatsu Co., Ltd. and Komatsu India Pvt. Ltd
Komatsu Group manufacturing facilities including overseas: All 30 facilities listed above (11 in Japan and 19
overseas).

Guidelines“Environmental Report Guidelines 2018” (Ministry of the Environment of Japan)

Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver 2.5(Ministry of the Environment and Ministry of the Economy, Trade and Industry of Japan)

Database on Emissions Intensities for Calculating Greenhouse Gas Emissions, etc. through a Supply Chain Ver.
3.3 (Ministry of the Environment and Ministry of the Economy, Trade and Industry of Japan)

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GRI Standards
See the GRI content index
GRI Standards INDEXPeriod covered
Primarily, this report covers data acquired from April 2023 to the end of March 2024, with a portion of
information that involves data acquired after April 2024.

Calculation base of typical environmental data
Classification

Item

Calculation Method

EnergyEnergy = (fuel, electric energy, etc.) x energy conversion factor
Fuels (other than biomass), conversion coefficient of electric power: standard heating
value of the Agency for Natural Resources and Energy (2013 value revised in August
2018)
Biomass fuel: National Woodchips Industry Association (Japan)
Regional heat: site reported value (1.54 GJ / MWh)

GHG

Energy originated CO2 = (fuel quantity, electricity quantity) x CO2 emission factor
Non-energy originated GHG = Gas emissions x Global warming potential (GWP)
CO2emission factor
Electricity: 2010 value of IEA CO2 EMISSIONS FROM FUEL COMBUSTION 2012
Fuel: Japan,Overseas;Ministry of the Environment, Ministry of Economy, Trade andIndustry, Greenhouse gas emissions calculation and report manual Ver4.7
GWP: Value of greenhouse gas emissions calculation, reporting and publication
systemEnergy, CO2 emission inbasic unit

Basic unit for each plant = (energy, CO2) / (Internal manufacturing value), index is a value
with base year 100.
Base year: 2010
Total basic unit index = weighted average of the percentage improvement in basic unitsof each plant from the base year by the energy consumption ratio or the CO2 emissions
ratio in the base year.

Location-based Scope 2CO2 emission = purchased electricity quantity x CO2 emission factor
CO2 emission factor:
Japan; Ministry of the Environment, Ministry of Economy, Trade and Industry Emission
Factor by Electric Utility Substitution Value
Overseas; 2010 value of IEA CO2 EMISSIONS FROM FUEL COMBUSTION 2012

Market-based Scope 2CO2 emission = purchased electricity quantity x CO2 emission factor
CO2 emission factor:
Japan;Emission Factor by Electric Power Company
Overseas; 2010 value of IEA CO2 EMISSIONS FROM FUEL COMBUSTION 2012
However, the electricity generated from renewable energy source has zero emission
factors

GHG Energy

Scope3

C1

Purchased product service: Product weight x emission factor + cooperating company
CO2 emission amounts

C2

Capital goods: capital investment amount x emission factor

C3

Fuels and energy related activities not included in Scope 1 and 2: fuel quantity purchased
x emission factor on the upstream side + purchased electric energy amount x upstreamside emission factor

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Calculation Method

C4Transportation, Delivery (upstream): Fuel consumption (amount) x Emission factor(coefficient according to Komatsu actual result survey)

C5

Waste from project: Waste volume x Emission factor (coefficient according to Komatsu
performance survey)

C6

Business trip: travel expenses x emission factor

C7

Employer commuting: commuting expenses x emission factor

C11

Use of products sold: Σ (Production volume per product model x Fuel consumption(L/h) x
Product life(h) x Emission factor)

C12

Disposal of products sold: Product weight x Emission factor
Emission factor
C1, C2, C3, C6, C7, C11, C12: Emission basic unit database (Ver 3.3) for calculating
greenhouse gas emissions of organizations through the supply chain of the Ministry of
the Environment
C3 Fuel: Carbon Footprint Communication Program Basic Database (Ver 1.01)

ExhaustDrainage

Water

Waste

PRTR materials

CO2 emissions index
during product operation

CO2 emissions index estimated based on changes in product fuel consumption
reduction, etc. in the aggregate year, with 2010 as the base year and no change inproduct composition from the base year.

Sox Emissions

Total for heavy oil, kerosene, light oil and coke:Calculated from fuel quantity x sulfur content in fuelNOx Emissions

Total for heavy oil, kerosene, light oil, city gas, and LPG:
Calculated from Exhaust gas quantity x NOx concentration

BOD Emissions

Calculated from Wastewater x BOD Average Concentration Measurement Value

COD Emissions

Calculated from Wastewater x COD average concentration measured value

Amount of water used

Total amount of water intake, including clean water, industrial water and groundwater

Intensity of water input

Intensity at a plant = (amount of water used) / (internal manufacturing value); the baseyear of the index is 100.
Base year: 2010
Total basic unit index = weighted average of percentage improvement in basic units ofeach plant from the base year by the ratio of water input in the base year.

Amount of waste

Total amount of waste excluding valuables

Waste intensity

Intensity at a plant = (amount of waste) / (internal manufacturing value); the base year of
the index is 100.
Base year: 2010
Total basic unit index = weighted average of percentage improvement in basic units ofeach plant from the base year by the ratio of waste amount in the base year.

Amount of thesematerials emitted or
moved

Multiply the number of secondary materials used by the content of specified chemical
substances and the rate of emissions and movement in accordance with the Act on
Confirmation, etc. of Release Amounts of Specific Chemical Substances in theEnvironment and Promotion of Improvements to the Management Thereof (PRTR Act).

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

Data coverage rate at production sites: 96%

2. ISO 14001 certification acquisition coverage

ISO 14001 certification acquisition coverage rate at production sites: 94% (If KMC is not included : 100%)

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Independent practitioner's assurance

Komatsu views an independent practitioner's assurance process as crucial for ensuring the reliability of thequantitative environmental information and occupational safety and health information for the 2023 fiscal year
described on its "Sustainability webpage". For this reason, Komatsu has received an independent practitioner's
assurance from Deloitte Tohmatsu Sustainability Co., Ltd., an affiliate of the Deloitte Touche Tohmatsu LLC.
Deloitte Tohmatsu Sustainability Co., Ltd.

Independent Assurance Report (PDF︓124KB）

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

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Other CSR data
Political contributions
Our political contributions in FY2023 totalled 8 million yen.** Described in the Income and Expenditure Reports on Political Funds released on November 24, 2023 (on the website of the Ministry ofInternal Affairs and Communications)

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

Collaboration with external organizations
Komatsu is a member of the Japan Business Council in Europe (JBCE), which aims to contribute to thedevelopment of European policies aligned with the Paris Agreement and other agreements.

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Social Contribution Activities
Accomplishments and approaches for social
contribution activities

208

Nurturing the next generation

211

Developing people needed by the community

214

Clearing anti-personnel landmines andcommunity development support

218

Disaster relief

225

Komatsu's initiatives for the social issues

227

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

230

Promoting sports̶
the Komatsu women's judo club

234

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

Materiality

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

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

5 Basic principles for social contribution (from "Komatsu's worldwide codeof business conduct")Aims:
To clarify the responsibilities of Komatsu Group and its employees as members of the local community andguide their activities for social contribution accordingly.

Principles: Activities for social contribution should:
have continuity;
be reasonable to employees; andcontribute to the advancement ofpublic welfare;be voluntary (not forced);

not be designed to advertise our
products or services.

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Social contribution expenditures of the Komatsu group in FY2023
We have divided and summarized the results of our social contributions into 6 general categories. These can befound in the infographic below:

Type of social contribution expenditure(Millions of yen)

Cash contributions

2,296

Time contributions

531

In-kind support (such as facility access and vehicle loans)

321

Management overheads

296
3,444

Total

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Nurturing the next generation
The Komatsu Group acknowledges that a company, as a good corporate citizen, should live up to the
expectations of the society by promoting harmonious relations with, and contributing to the benefit of, thecommunity in which it operates. Accordingly, we shall be proactively and continuously engaged in reginalactivities for social contribution. Nurturing the next generation of children is one of these initiatives.

Efforts for nurturing children and environmental conservation at Komatsu no Mori
Komatsu no Mori was established on May 13, 2011, in Komatsu City, Ishikawa Prefecture, to commemorate
Komatsu's 90th anniversary. It aims to foster the healthy development of children in local communities andpreserve the natural environment through activities such as nature observation in the satoyama (undeveloped
woodland near populated area), science and manufacturing classes at the Waku-Waku Komatsu Kan, and social
studies field trips for elementary schools. The Waku-Waku Komatsu Kan and the NPO Midori-no-Komatsu
Sukusuku-kai jointly operate Komatsu no Mori, with over 290 volunteers, including former employees of theKomatsu Awazu Plant, participating in these activities.
Satoyama event committee
This committee plans and executes events that allow children to experience the joy of playing in nature throughactivities such as observing plants and animals in the satoyama and rice cultivation in the fields.

Sweet potato planting

Rice seedling planting

Leaf bookmark making

Satoyama green committee
This committee assists in maintaining the satoyama by cleaning up lawns, collecting fallen leaves, tending toflower beds, and planting seasonal flowers in the Satoyama, Plaza, and Stream Zone. They also conduct floral
education activities in collaboration with local preschool and daycare center children.

Education through flowers (Potting)

Education through flowers (Garden
Making)211

Garden Maintenance

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Sukusuku classroom committee
At the Waku-Waku Komatsu Future Pavilion, we organize and implement curriculums for elementary school
children that inspire interest in science and manufacturing through learning, crafting, and experiments.

Crafting at Science Class

Science Class in Cambodia

Lecture at Komatsu Tutoring Class

Support committee
This committee supports the operation of Komatsu no Mori and Waku-Waku Komatsu Kan by organizing
activities such as rides on the ultra-large mining machines 930E and PC4000, and operating the electric mini
shovel, as well as assisting visitors and events.

Online Tours (broadcast)

Online Tours (screen)

212

Waku-Waku Autumn Festival

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Komatsu Australia: Science and Engineering Challenge 2023
In May 2023, Komatsu Australia (KAL) volunteered in the Science and Engineering Challenge (SEC) held in New
South Wales, Australia. The SEC is a nationwide STEM* outreach program presented by the University of
Newcastle in partnership with communities, Rotary clubs, universities and sponsors. Through the SEC, students
experience aspects of science and engineering which they would not usually see in their school environment.
This is the second year KAL sponsored the event and KAL employees volunteered to assist students with the
Bridge Challenge for Year 10 students and the Get Over It Challenge for Year 6 students. This event not only
provided learning opportunity for the students but also offered significant fulfillment for the supporters. One of
the KAL employees commented, "I feel fortunate to be working for an organisation that is dedicated to guiding
future students towards STEM. It's inspiring to see the passion and commitment of our team!"* STEM: "Science, Technology, Engineering and Mathematics," a term that collectively refers to these educational fields.

Bridge Challenge

SEC participants group photo213

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

Various areas and forms of support

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

Support for ⅾeveloping human resources

Dispatching instructors

Providing educational
materials and equipment

Providing facilities andsupporting operations

214

Accepting apprentices

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Komatsu Philippines: Support of training for university students majoring inenginerrring
At many universities in the Philippines, practical training experience with private companies is a mandatory
requirement for graduation from the engineering faculty. To meet the need for accepting trainees from those
universities and to secure excellent talent for Komatsu Philippines Corporation (KPC), KPC has developed theStudent Traineeship Program (STP).
KPC is an important hub to train "Global Engineers" who are involved in product support at operational sites
worldwide. Since 2011, a total of 216 university students have participated in the STP at KPC, with 38 of themjoining KPC after graduation. The students selected from each university to participate in the STP are generally
highly motivated. On the final day of the approximately 260-hour training period, they deliver highly specialized
presentations on the structure and functions of construction and mining equipment.
Many of the 16 students (mainly junior students) who participated in the STP in FY2023 have expressed theirintention to join KPC in 2025. Through the STP, Komatsu will continue to contribute to the development of local
human resources.

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Komatsu America Corp.: Pre-apprenticeship program at Chattanooga
Manufacturing Operation
Chattanooga Manufacturing Operation (CMO) and Chattanooga State College's Polytech partnered to create thearea's first state-certified pre-apprenticeship program, which coexists with conventional classes. Under thisprogram, participants develop valuable skills under the guidance of seasoned technicians and earn income byworking 4 hours a day, 5 days a week.
The course covers safety and health hazards in different industries, workers' rights and employers' obligations.
The rigorous requirements ensure that participants are well-prepared for the demands of the manufacturingindustry.
What makes this program truly special is its long-term outlook. Graduates of this program are eligible to kickstart
their careers through full-time apprenticeships in industrial maintenance or welding at Chattanooga State after
they graduate from high school. This seamless transition from pre-apprenticeship to apprenticeship gives
students a clear path to pursuing a career in the manufacturing industry.
The program addresses the immediate talent needs of local businesses while laying the foundations for longterm economic growth. Moreover, it offers young adults the unique opportunity to learn from experienced
professionals in a structured and supportive environment.
By bridging the gap between education and industry, it is not only shaping a skilled workforce but also
empowering a new generation of workers to thrive in the manufacturing sector. Through CMO's visionary
commitment to local talent, they are contributing to the economic prosperity of the region while inspiring young
minds to reach new heights.

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

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

South Africa

Salt Lake City, USA

Peru

Cummins Profile
Corporate name

Cummins Inc.

Established

1919

Headquarters

Columbus, Indiana, U.S.

Businesssegments

Engine, Power systems, Components, Distribution

URL

http://www.cummins.com/

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Clearing anti-personnel landmines andcommunity development support

In the areas afflicted by anti-personnel landmines, Komatsu has engaged in activities to support community
development throughout the process from demining to reconstruction. Utilizing Komatsu’s demining
machines and construction equipment, developed by combining its technical expertise, knowledge andexperience in manufacturing, Komatsu started its project in Cambodia in 2008 partnering with the authorized
NPO "Japan Mine Action Service" (JMAS) and another project in Laos in 2016.
From a land contaminated with dangerous landmines to a land where people can live in safety and security,and further on to a land with added value through the construction of roads and elementary schools. Komatsu
will continue to promote activities that contribute to the independent reconstruction of the entire community
by providing support through construction equipment, which is our core business.

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Index- Cambodia -Demining dozer
Clear landmines from the vast tracts of land. In the aftermath of war and civil war, landmines and unexploded
ordinance remain in many areas in Cambodia. Still today citizens continue to suffer severe injuries and evendeath from landmines. Buried in the vast tracts of land near the Thai border in the northwestern part of thecountry are countless anti-personnel landmines, preventing restoration and development. In order for people
to return to the abandoned farmlands and deserted villages, our clearing of the landmines and making theland safe to live and walk upon must be our first task.
Visit our specialised webpage to learn more at

Demining dozer

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

Farmland & Infrastructure-reconstruction

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

School construction

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News: Scholarship program launched
Komatsu has been involved in the construction of a total of 10
elementary schools in Cambodia, as of April 2024. All of theseelementary schools were built on former minefields, and many of thestudents are from economically disadvantaged families. However,after graduating from elementary school, some students have begun
to pursue higher education. Therefore, Komatsu launched a newscholarship program in FY2022 for students graduated from these
Komatsu-built elementary schools. In FY2023, six students utilized
the program, and in FY2024, fourteen students are benefiting from it.

University students attending
school on scholarships

News: Second study tour conducted

In May 2024, a study tour was conducted to visit demining sites and reconstruction areas, targeting
Komatsu Group employees and their families. The tour, focused mainly on employee-participation CSR
activities, and a total of 45 employees and their families participated. In addition to observing Komatsu
construction machinery at work in minefields, agricultural lands, and infrastructure development sites,
the group visited elementary schools built with Komatsu's support. At the schools, participants engagedin activities such as painting, repairing desks, and interacting with students through science experiments
and crafting paper planes.

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

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Visiting lectures in Japan
As part of the "Visiting Lecture" initiative, Komatsu employees visit schools in Japan to introduce the activitiesof the demining project to a wide range of young people, from elementary school students to university
students. To date, we have conducted approximately 115 lectures, reaching about 10,000 students (including
online sessions).
Feedback from high school students included comments like, "I learned that Komatsu, a construction
machinery company, is extending its support to regions such as Cambodia by collaborating with thegovernment and JMAS. I realized that many fields hold great potential. Working with various people can
expand possibilities in many directions, which is something I want to keep in mind moving forward," and "Evenwhen we talk about 'social contribution' or 'international contribution,' I realized there are countless issues andmany organizations and people striving to solve these issues. I have a big dream of being involved ininternational contribution in the future, and I now understand that there are many paths besides the one I am
currently thinking of pursuing."
Komatsu will continue to provide visiting lectures to inspire children, who will lead the future, to think about
world peace, their future, and their lives.

Visiting lectures at junior high schools in Japan

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

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

In consideration of the topics discussed in the lectures, we do not approve applications from students intheir 4th year of elementary school or younger.

Your application may not be approved if we receive too many applications or for our own business reasons.
If this happens, we will contact you before the lecture.
Please note that lectures may be postponed or cancelled due to other unforeseen circumstances.

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History of demining activities (international treaties,
Japanese government and Komatsu)
Year

Activity (international treaties and activities of the Japanese government are underlined)

1998

Komatsu develops old timber removal machine for demining in Cambodia

1999

The Ottawa Treaty is enacted (the Mine Ban Convention)

2002

The Japanese government states it would exclude antipersonnel demining machine from the Three
Principles on Arms Exports

2003

A subsidized project by the Ministry of Economy, Trade and Industry and NEDO* develops demining
machine (Figure (1) below)

2004

With support from the Ministry of Foreign Affairs of Japan, Komatsu conducts on-site testing in
Afghanistan

2006

With support from the Ministry of Foreign Affairs of Japan, Komatsu conducts on-site testing in
Cambodia

2007

The first machine is introduced in Afghanistan (Japanese government ODA)

2008

Komatsu begins the Cambodia reconstruction project jointly with the JMAS, an incorporated NPO

2009

Komatsu begins the Angola reconstruction project jointly with the JMAS, an incorporated NPO

2010

The Oslo Treaty is enacted (the treaty banning Cluster Munitions)2015

Komatsu develops demining machine (Figure (2) below)

2016

Komatsu begins the Laos reconstruction project jointly with the JMAS, an incorporated NPO

2017

Komatsu completes the Angola reconstruction project

2019

Komatsu constructs its 9th elementary school in Cambodia, and 1st in Laos.

2020

Komatsu begins the agriculture CSR project in Cambodia

2022

Komatsu constructs its 10th elementary school in Cambodia(2) Demining Machine for processing unexploded
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Disaster relief
Many of Komatsu's products (especially construction equipment) are vital for recovery and reconstruction in thewake of a natural disaster.
In the event of an emergency, we promptly grasp the local situation and support disaster recovery in a
substantial way, such as providing equipment needed by the disaster area. The latest activities are as follows:

Assistance for people affected by the Noto Peninsula Earthquake in 2024
In January 2024, an earthquake centered in the Noto Peninsula of Ishikawa Prefecture caused significant
damage to the community.
In consideration of the extensive damage caused, Komatsu made a total donation of totaling JPY600 million(JPY500 million for Ishikawa Prefecture and JPY100 million for Toyama Prefecture) to provide emergency aid forthe affected areas and people. In addition, in line with requests from the affected areas, we have been
continuously providing support, including free-of-charge lending of equipment such as construction machinery,
forklifts and generators, as well as personnel support to our suppliers that have been affected by the disaster.
Furthermore, Komatsu and the Federation of All Komatsu Workers' Unions jointly solicited donations from
Komatsu Group employees and made a "matching donation" in which Komatsu donated an amountcorresponding to the amount of the donation by the employees.
Komatsu was established in May 1921 in Komatsu City, Ishikawa Prefecture. Today, we operate in a total of four
production bases in Ishikawa and Toyama Prefectures. We have also been actively engaged in business activities
deeply rooted in the local community, collaborating with numerous local suppliers and distributors. Our pursuitof coexistence with local communities has been handed down through generations, and our basic stance is tocontribute to society through business activities.
Moving forward, we will continue to provide the necessary support to contribute to the prompt restoration of theaffected areas.

© Image courtesy : The Nippon Foundation / Japan Platform

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Assistance for people affected by the Moroccan earthquakes and flooding
in Libya
In September 2023, a strong earthquake centered inland occurred in Morocco, and a large-scale flood caused
by a storm hit Libya.
To support the recovery of the affected areas, Komatsu decided to provide a total of EUR 70,000 worth ofassistance through its wholly owned subsidiary, Komatsu Europe International N. V., for the purpose ofreconstruction of the affected areas.
To the affected area in Morocco, Komatsu donated construction equipment to the Ministry of Equipment andWater through its local distributor, Stokvis Engins S. A. To Libya, we made a financial donation through the
Belgian Red Cross.
We express our deepest sympathies to all those affected by the disasters.

Cooperation with pro bono workers** Pro bono: Initiatives and organizations to apply specialized job experiences and knowledge in volunteer activities.

In Japan, Komatsu has mainly assisted in areas affected by earthquakes.
For wind and flood damage, which have increased in recent years, thedamage is concentrated in limited areas or villages in many cases, andthus, we could not provide assistance in a more detailed manner in somecases.
Komatsu is providing the following support, including the provision ofequipment and supplies.
Supporting Areas Stricken by Typhoon
No. 19 in 2019: Donating a used
PC30MR to OPENJAPANSupport for OPENJAPAN, a construction skill NPO providing grassroots
support in affected areas
OPENJAPAN (head office: Miyagi prefecture) is a group of volunteers who have expertise in construction andcivil engineering. They quickly rush to affected areas around Japan to clean up affected houses as well as
conduct recovery and reconstruction work. Though many of the volunteers possess a great deal of skill tooperate construction vehicles, recovery from disasters also requires the relevant expertise. Through daily
training, they aim to carry out safe and effective recovery and reconstruction operations.
In response to a request from the Marumori-machi government in Miyagi prefecture, which suffered extensive
damage, and after hearing from the people on-site about their needs, Komatsu donated a used compact
excavator PC30MR, as well as rental costs for heavy equipment, fuel, and materials (e.g. blue tarps and cranetools) that were necessary for the OPENJAPAN activities in Marumori-machi so that they can be used for not
only the reconstruction support activities in Marumori-machi, but also future training.

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

Komatsu South Africa: Extending compassion for those in needOn the 18th of July 2023, Mandela Day, employees of Komatsu South Africa (KSA) actively engaged in different
acts of kindness such as donating clothes and food to "Little Eden" which is one of the homes that provide a safe
haven for people with profound intellectual disability.
KSA believes that in today's fast-paced world, it is important to remember those in our society who arevulnerable and in need of our support, and promotes the spirit of contributing and uplifting others. This creates asense of purpose and belonging within the people of KSA and creates a sense of gratitude.
Not only was it emotional for some members of the Komatsu family but it was also an eye-opener for all of us.
The gratitude felt within the Komatsu family not only helped us see the blessings in front of us but also
strengthened our relationship with each other.

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Komatsu Mining Corp.: A fall filled with giving
Employees of Komatsu Mining Corp. (KMC) continued their spirit of giving into the fall with several activities
serving the local Milwaukee community. Highlights from November 2023 included:

Stew Crew
Since 2008, KMC has volunteered to help keep our community beautiful by hosting a "Stew Crew," short for
Stewardship Crew. Volunteers meet at the front lobby at 11:30 a.m. and head out to a local park called Harbor
View Plaza and along the access road to the campus to pick up trash in the neighborhood. This casual volunteer
experience allows employees to participate as their schedule allows.

Hunger Task Force
During the fall harvest season, employees working out of the Milwaukee Distribution Center volunteered morethan 140 hours over the course of three days harvesting broccoli, peppers, apples, and corn at the Hunger Task
Force (HTF) farm. HTF is a nonprofit organization dedicated to providing a steady supply of healthy and nutritious
food to hungry children, families, and seniors in the Milwaukee area.
Support for HTF continued in a variety of ways throughout November. A group of 25 Komatsu employees, family
and friends visited HTF to pack stockboxes for low-income seniors. The stockboxes included things like beef
stew, peanut butter, spaghetti, fruit, vegetables, cereal, boxed milk and more. In total 600 stockboxes were
packed and employees also donated 89 lbs. of food.

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Komatsu India: New community center for the society
Komatsu India Private Limited (KIPL) is actively engaged in new initiatives through Corporate Social
Responsibility (CSR), aimed at social welfare activities, contribute to the overall development of communities
continuously.
In February 2024, KIPL built a new community center in Kancheepuram district to serve as a hub for various
activities and programs for the village people that will benefit the surrounding communities. This community
center was built based on the request of the Council Chair of this region, and many KIPL representatives wereinvited to the opening ceremony.
During the inaugural session, the Council Chair received the keys on behalf of the village administration,
symbolized the collaborative effort between Komatsu and local goverment to uplift the community by creating
value together. Such initiatives showcase the commitment of KIPL to bring positive impact towards building
better nation.

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An employee-participatory social contribution program"One World One Komatsu"
Komatsu positions CSR as "activities to respond to societal demands through our core business" and strives toachieve sustainable growth together with society by resolving ESG issues. In 2021, the year we celebrate our100th anniversary, Komatsu launched "One World One Komatsu" employee-participation social contribution
project as the Komatsu Group's first global initiative in which allows all Komatsu Group employees to participate.
The theme of "One World One Komatsu" is "Environment and Sustainability," which is a common issue around theworld and has a high affinity with our business, and each and every employee will take part in activities that arefamiliar to them in their daily lives, such as "reducing water consumption" and "turning off lights in unused rooms.
In order to promote these activities, we have set up a dedicated platform that allows the entire group to
consolidate the activities of each individual. This new platform can be easily logged in from a PC or smartphone.
Komatsu will continue to promote activities for a sustainable planet by fostering a sense of unity among
Komatsu Group employees around the world, transcending differences in countries and languages, and working
toward a common goal.

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

Komatsu Global Watch Party on June 2024
In support of the United Nations' Earth Day (April 22), as we had done the previous year, we held a "Global Watch
Party" in June 2024, where employees from around the world engaged in volunteer activities that were reported
in video format and shared on our website.
This event can be seen in the video (in multiple languages).
Komatsu 2024 Earth Day global watch party - YouTube230

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

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

○Rex Ronter G. Ruiz, Philippines, Komatsu Ltd, Manila representative officeAward Category︓Educator
Rex’s project centers on the climate change issues faced by the islands of Tubigon,
Bohol – his birthplace in the Philippines. He is working to educate islanders about theircurrent vulnerabilities and equip them with right tools to adapt to the challenges ofclimate change. He seeks to reduce disaster deaths, waste, and CO2/methane
emissions through his educational and research activities.。

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

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

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

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

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

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

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

○Rakhi Sharma, Komatsu India Pvt Ltd
Award Category︓Habit Changer
Rakhi not only actively engages in projects to help the environment and community,
but she also educates others as well. She’s participated in projects to clean up publicareas near her home, helped distribute used items for re-use by others, and helped
educate community members about personal hygiene and the importance of personal
health.

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Index○Nayana Jaqueline Costa Maia
Award Category︓Platform Pioneer
Nayana felt so strongly about the importance of the One World One Komatsu platformthat she planned a campaign strategy to promote the platform, then spent her own
money to buy and make all the campaign materials. She used her lunch break to print
and cut brochures, came work early to talk to people about the program, andpromoted it regularly through meetings and employee communications.

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Promoting sports—the Komatsu women's judo club
Founded in 1991 as part of social contribution activities during the 70th anniversary of the company founding,the Komatsu Women's Judo Club is celebrating its 33rd year. Over this period, including alumnae, about 90
athletes have competed in tournaments worldwide. The club has actively engaged in promoting and developing
judo by welcoming foreign athletes and providing judo instruction both domestically and internationally.

Results of club activities in FY 2023
In 2023, fierce competition continued in domestic and international tournaments to earn a spot in the Paris
Olympics. Miku Takaichi, in the 63 kg weight class, represented Japan at the World Judo Championships in Doha,
Qatar, in May 2023 but was eliminated in the third round. In August, she won a silver medal at the Masters
Tournament by defeating Tokyo Olympic gold medalist Clarisse Agbegnenou of France. However, thecompetition for the 63 kg Olympic spot continued until the Grand Slam Tokyo in December. At the Grand Slam
Tokyo, Takaichi secured her place in the Paris Olympics by winning crucial matches, including the quarterfinals
and finals, through her strong groundwork. As a result, two athletes represented their countries at the 2024 Paris
Olympics: Lien Chen-ling in the 57 kg weight class representing Taiwan and Miku Takaichi in the 63 kg weightclass representing Japan, both for their third Olympic appearance.
At the Asian Games, Lien Chen-ling won a historic gold medal as the first Taiwanese judoka to achieve this feat.
Additionally, Wakaba Tomita secured her fourth consecutive victory in the over 78 kg class at the All-Japan JudoChampionships by Weight Category.

Miku Takaichi winning her second
consecutive title in the 63 kg category
at the Grand Slam Tokyo

Miku Takaichi responding to cheerswith a smile

Miku Takaichi winning gold at the AsianGames

Wakaba Tomita winning her fourthconsecutive title at the All-Japan JudoChampionships

Lien Chen-ling winning Taiwan's firstgold medal at the Asian Games

Komatsu Women’s Judo Club234

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Social contribution activities through judo
The Komatsu Women’s Judo Club continues to coach the Komatsu Kids Judo Club locally and hosts judoclasses worldwide, including in Japan, to promote judo and foster the next generation of judoka.
Due to societal conditions and the COVID-19 pandemic, judo classes could not be held for a while. However, in
October 2023, we were able to resume these classes at the Shonan Plant Fair. Children with no prior experience
participated with their siblings and families, enjoying judo enthusiastically with our athletes. In November, we also
held a judo class in Shika Town, Ishikawa Prefecture, where we built strong bonds with local children throughjudo. We will continue our efforts to promote judo in the future.

Children playing tug-of-war withathletes at the Shonan Plant Fair

Many children participated

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Index
GRI content index

237

SASB content index

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Statement of use

Komatsu has reported the information cited in this GRI content index for the period April 1, 2023 to March 31,
2024 with reference to the GRI Standards.

GRI 1 used

GRI 1: Foundation 2021

GRI STANDARDDISCLOSURE

LOCATION
Company info

Global locations

2-1 Organizational details

Industries we support
Innovation

Annual Securities Report Overview of Subsidiaries and Affiliates

2-2 Entities included in theorganization’s sustainability reporting

Global locations
ESG Databook: Editorial policy

2-3 Reporting period, frequency andcontact point

Contact for inquiries

2-4 Restatements of information
2-5 External assurance

ESG Databook: Independent practitioner's assurance
Company info

Industries we support
Innovation

2-6 Activities, value chain and otherbusiness relationships

Global locations

Performance by business division / region (full year)

GRI 2: General
Disclosures 2021

ESG Databook: Outline of procurement policy and supply chain
Company info

2-7 Employees
2-8 Workers who are not employees

ESG Databook: The Komatsu Way and policy on human resource
development－
Articles of incorporation

Komatsu Report (Corporate governance)
Corporate Governance Report

2-9 Governance structure andcomposition

ESG Databook: Corporate governance

ESG Databook: Corporate governance indicators

ESG Databook: Structure for promoting sustainability

ESG Databook: Organizational chart of the environmental
management structure
Articles of incorporation

Corporate Governance Report2-10 Nomination and selection of thehighest governance body

Notice of convocation

Results of the Exercise of Voting Rights(Extraordinary Report)

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LOCATIONManagement team

Komatsu Report (Corporate governance)

2-11 Chair of the highest governancebody

Corporate Governance Report

ESG Databook: Corporate governance
ESG Databook: Dialogue with our stakeholders
ESG Databook: Materiality analysis

Komatsu Report (Corporate governance)

2-12 Role of the highest governancebody in overseeing the management of
impacts

ESG Databook: Structure for promoting sustainability

ESG Databook: Organizational chart of the environmental
management structure
Komatsu Report (TCFD)

ESG Databook: Structure for promoting sustainability

2-13 Delegation of responsibility for
managing impacts

ESG Databook: Organizational chart of the environmental
management structure

2-14 Role of the highest governancebody in sustainability reportingESG Databook: Structure for promoting sustainability
Komatsu's Worldwide Code of Business Conduct

2-15 Conflicts of interest

Corporate Governance Report2-16 Communication of criticalconcerns

GRI 2: General
Disclosures 2021

ESG Databook: Risk management

2-17 Collective knowledge of thehighest governance body

Notice of convocation

2-18 Evaluation of the performance ofthe highest governance body

Komatsu Report (Corporate governance)

Komatsu Report (Corporate governance)
Corporate Governance Report

Annual Securities Report : Compensation

Notice of Convocation
Policy, etc. regarding the determination remuneration, etc. forindividual Directors

2-19 Remuneration policies

Annual Securities Report : Compensation

2-20 Process to determine
remuneration
2-21 Annual total compensation ratio

Notice of Convocation
Policy, etc. regarding the determination remuneration, etc. forindividual Directorsー
Komatsu Report(Message from the President)

2-22 Statement on sustainable
development strategy

Investor Relations: President interview
Corporate Governance Report

ESG Databook: Risk management
ESG Databook: Compliance

ESG Databook: Promoting legal compliance, and pollution
mitigation and prevention

2-23 Policy commitments

ESG Databook: Management of chemical substances andpollution prevention
Komatsu's Worldwide Code of Business Conduct

ESG Databook: The Komatsu Way and policy on human resource
development238

ESG Date Book 2024

Sustainability policy

Management ofsustainability

GRI STANDARD

With people

With businessWith the planet

DISCLOSURE

activities

Komatsu's Worldwide Code of Business Conduct
CSR procurement guidelines

2-25 Processes to remediate negative
impacts

ESG Databook: Materiality analysis

2-26 Mechanisms for seeking advice
and raising concerns

ESG Databook: Compliance2-27 Compliance with laws andregulations

ESG Databook: Environmental risk management

2-28 Membership associations

GRI 3: Material
Topics 2021

Index

contribution

LOCATION

2-24 Embedding policy commitments

GRI 2: General
Disclosures 2021

SocialDataー2-29 Approach to stakeholder
engagement

ESG Databook: Dialogue with our stakeholders

2-30 Collective bargaining agreements

ESG Databook: Condition of labor unions

3-1 Process to determine material
topicsESG Databook: Materiality analysis

Investor Relations: Shareholder events (Japanese)

ESG Databook: Materiality analysis

3-2 List of material topics

Komatsu Report (TCFD)

3-3 Management of material topics

ESG Databook: Materiality analysis
ESG Databook: The Komatsu way and policy on human resource
development (remuneration data)
ESG Databook: Promoting diversity and inclusion (Work-lifebalance data)

201-1 Direct economic value
generated and distributed

Annual Securities Report: Income TaxesESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues

GRI 201: Economic
Performance 2016

ESG Databook: Disaster relief
Komatsu Report (TCFD)

ESG Databook: Mitigating climate change through products andservices201-2 Financial implications and otherrisks and opportunities due to climatechangeESG Databook: Reducing CO2 emissions in manufacturing
operations

201-3 Defined benefit plan obligations
and other retirement plans

GRI 202: Market
Presence 2016

Annual Securities Report: Pension and Retirement Benefits

201-4 Financial assistance received
from governmentー202-1 Ratios of standard entry level
wage by gender compared to local
minimum wageー202-2 Proportion of senior
management hired from the local
community

ESG Databook: Promoting diversity and inclusion

239

ESG Date Book 2024

Sustainability policy

Management ofsustainability

GRI STANDARD

With people

With businessWith the planet

DISCLOSURE

Index

contribution
activities

LOCATIONESG Databook: Komatsu's initiatives for social issues

203-1 Infrastructure investments andservices supported
GRI 203: Indirect
Economic Impacts 2016

SocialData

ESG Databook: Disaster relief

Smart construction (Japanese)

Investor Relations: President interview

203-2 Significant indirect economic
impacts

ESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief

GRI 204: Procurement
Practices 2016

204-1 Proportion of spending on local
suppliers

ESG Databook: Outline of procurement policy and supply chain

205-1 Operations assessed for risks
related to corruption
GRI 205: Anti-corruption
2016

GRI 206: Anticompetitive Behavior
2016

GRI 207: Tax 2019

GRI 301: Materials 2016ー

205-2 Communication and training
about anti-corruption policies andprocedures

ESG Databook: Compliance

205-3 Confirmed incidents ofcorruption and actions taken

ESG Databook: Compliance

206-1 Legal actions for anticompetitive behavior, anti-trust, andmonopoly practices(None for FY2023)

207-1 Approach to tax

Annual Securities Report: Financial Information

207-2 Tax governance, control, and risk
management

Annual Securities Report: Financial Information

207-3 Stakeholder engagement andmanagement of concerns related to tax

Annual Securities Report: Financial Information

207-4 Country-by-country reporting

Annual Securities Report: Financial Information

301-1 Materials used by weight orvolumeESG Databook: Inputs and outputs in the product life cycle

301-2 Recycled input materials used

ESG Databook: Activities to effectively utilize resources in
production

301-3 Reclaimed products and theirpackaging materials

ESG Databook: Activities to effectively utilize resources in
production

302-1 Energy consumption within theorganization

ESG Databook: Inputs and outputs in the product life cycle
Scope of environmental data/calculation standards

302-2 Energy consumption outside of
the organization
GRI 302: Energy 2016

ーESG Databook, Environmental data

302-3 Energy intensity

ESG Databook: Inputs and outputs in the product life cycle

302-4 Reduction of energy
consumption

ESG Databook, Environmental data

302-5 Reductions in energy
requirements of products and services

ESG Databook: Mitigating climate change through products andservices

ESG Databook: Inputs and outputs in the product life cycle

240

ESG Date Book 2024

Sustainability policy

Management ofsustainability

GRI STANDARD

GRI 303: Water andEffluents 2018

GRI 304: Biodiversity
2016

With people

With businessWith the planet

DISCLOSURE

Index

activities

303-1 Interactions with water as ashared resource

ESG Databook, Komatsu's efforts regarding water

303-2 Management of water
discharge-related impacts

ESG Databook, Komatsu's efforts regarding water
ESG Databook, Environmental impact indicators

303-3 Water withdrawal

ESG Databook, Komatsu's efforts regarding water

303-4 Water discharge

ESG Databook, Komatsu's efforts regarding water

303-5 Water consumption

ESG Databook: Inputs and outputs in the product life cycle

304-1 Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversity
value outside protected areasー304-2 Significant impacts of activities,
products and services on biodiversityー304-3 Habitats protected or restoredー

304-4 IUCN Red List species andnational conservation list species with
habitats in areas affected by operationsーESG Databook, Environmental impact indicators
ESG Databook, Calculation standards

ESG Databook, Environmental impact indicators

305-2 Energy indirect (Scope 2) GHG
emissionsESG Databook, Calculation standards
Amount of CO2 emissions by scope 3

305-3 Other indirect (Scope 3) GHG
emissions

Amount of CO2 emissions by scope3

Scope of environmental data/calculation standards
ESG Databook: Reducing CO2 emissions in manufacturing
operations

305-4 GHG emissions intensity
305-5 Reduction of GHG emissionsー305-6 Emissions of ozone-depleting
substances (ODS)ー305-7 Nitrogen oxides (NOx), sulfur
oxides (SOx), and other significant air
emissionsESG Databook: Inputs and outputs in the product life cycle
Scope of environmental data/calculation standards

306-1 Waste generation and significant
waste-related impacts

ESG Databook: Inputs and outputs in the product life cycle
ESG Databook: Development of our “Reman” remanufacturingbusiness306-2 Management of significant
waste-related impacts
GRI 306: Waste 2020

Socialcontribution

LOCATION

305-1 Direct (Scope 1) GHG emissions

GRI 305: Emissions 2016

Data

ESG Databook: Green procurement guidelines

ESG Databook: Activities to effectively utilize resources in
production (1. waste)306-3 Waste generated
306-4 Waste diverted from disposal

ESG Databook: Inputs and outputs in the product life cycleー
ESG Databook: Activities to effectively utilize resources in
production (1. waste)306-5 Waste directed to disposal

ESG Databook: Inputs and outputs in the product life cycle

241

ESG Date Book 2024

Sustainability policy

Management ofsustainability

GRI STANDARD
GRI 308: Supplier
Environmental
Assessment 2016

With people

With businessWith the planet

DISCLOSURE
308-1 New suppliers that werescreened using environmental criteriaー308-2 Negative environmental impacts
in the supply chain and actions takenー

GRI 403: Occupational
Health and Safety 2018

GRI 404: Training and
Education 2016

Index

activities

ESG Databook: The Komatsu Way and policy on human resource
development (Data on employment and turnover)

401-2 Benefits provided to full-time
employees that are not provided totemporary or part-time employeesー
ESG Databook: Promoting diversity and inclusion (Data on
pregnancy and childcare leaves)401-3 Parental leave
GRI 402: Labor/
Management Relations
2016

Socialcontribution

LOCATION

401-1 New employee hires andemployee turnover
GRI 401: Employment
2016

Data

402-1 Minimum notice periods
regarding operational changes
403-1 Occupational health and safety
management system

ESG Databook: Occupational safety and health403-2 Hazard identification, risk
assessment, and incident investigation

ESG Databook: Occupational safety and health403-3 Occupational health services

ESG Databook: Occupational safety and health403-4 Worker participation,
consultation, and communication on
occupational health and safety

ESG Databook: Occupational safety and health403-5 Worker training on occupational
health and safety

ESG Databook: Occupational safety and health403-6 Promotion of worker health

ESG Databook: Occupational safety and health403-7 Prevention and mitigation ofoccupational health and safety impacts
directly linked by business
relationships

ESG Databook: Occupational safety and health403-8 Workers covered by an
occupational health and safety
management system

ESG Databook: Occupational safety and health403-9 Work-related injuries

ESG Databook: Occupational safety and health403-10 Work-related ill health

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

ESG Databook: Offering of a variety of talent development
opportunities and improvement of employee engagement (Dataon employee training)
ESG Databook: Develop digital and open innovation promotion
human resources404-2 Programs for upgrading
employee skills and transition
assistance programs

ESG Databook: Offering of a variety of talent development
opportunities and improvement of employee engagement404-3 Percentage of employees
receiving regular performance andcareer development reviews

ESG Databook: Offering of a variety of talent development
opportunities and improvement of employee engagement242

ESG Date Book 2024

Sustainability policy

Management ofsustainability

GRI STANDARD
GRI 405: Diversity andEqual Opportunity 2016
GRI 406: Nondiscrimination 2016

With people

With businessWith the planet

Data

DISCLOSURE

SocialIndex

contribution
activities

LOCATION

405-1 Diversity of governance bodies
and employees

ESG Databook: Promoting diversity and inclusion

405-2 Ratio of basic salary andremuneration of women to men

ESG Databook: The Komatsu way and policy on human resource
development（Annual total reｍuneration）

406-1 Incidents of discrimination andcorrective actions taken(None for FY2023)

ESG Databook: Human rights policy
GRI 407: Freedom of
Association andCollective Bargaining
2016

ESG Databook: Business and human rights

407-1 Operations and suppliers inwhich the right to freedom of
association and collective bargaining
may be at risk

ESG Databook: CSR procurement guidelines

ESG Databook: Komatsu group's supply chain management andpromotion of CSR procurement
ESG Databook: Offering of a variety of talent development
opprtunities and improvement of employee engagement(Condition of labor unions)ESG Databook: Human rights policy

GRI 408: Child Labor
2016

ESG Databook: Business and human rights

408-1 Operations and suppliers at
significant risk for incidents of childlabor

ESG Databook: CSR procurement guidelines

ESG Databook: Komatsu group's supply chain management andpromotion of CSR procurement
ESG Databook: Human rights policy

GRI 409: Forced orCompulsory Labor 2016409-1 Operations and suppliers at
significant risk for incidents of forced
or compulsory labor

ESG Databook: Business and human rights

GRI 410: Security
Practices 2016

410-1 Security personnel trained inhuman rights policies or procedures

ESG Databook: Human rights policy

GRI 411: Rights ofIndigenous Peoples 2016

411-1 Incidents of violations involving
rights of indigenous peoples

GRI 413: Local
Communities 2016

ESG Databook: CSR procurement guidelines

ESG Databook: Komatsu group's supply chain management andpromotion of CSR procurement
ESG Databook: Business and human rights(None for FY2023)

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

ESG Databook: Business and human rights

EESG Databook: Developing people needed by the community
ESG Databook: Komatsu's initiatives for social issues
ESG Databook: Disaster relief

ESG Databook: Developing people needed by the community
ESG Databook: Human rights policy

ESG Databook: Business and human rights

414-1 New suppliers that werescreened using social criteria

ESG Databook: CSR procurement guidelines

ESG Databook: Komatsu group's supply chain management andpromotion of CSR procurement

GRI 414: Supplier Social
Assessment 2016

ESG Databook: Human rights policy

ESG Databook: Business and human rights

414-2 Negative social impacts in the
supply chain and actions taken

GRI 415: Public Policy
2016

ESG Databook: CSR procurement guidelines

ESG Databook: Komatsu group's supply chain management andpromotion of CSR procurement415-1 Political contributions

Political contributions

243

ESG Date Book 2024

Sustainability policy

Management ofsustainability

GRI STANDARD

GRI 416: Customer
Health and Safety 2016

GRI 417: Marketing andLabeling 2016

GRI 418: Customer
Privacy 2016

With people

With businessWith the planet

Data

DISCLOSURE

Socialcontribution
activities

Index

LOCATION

416-1 Assessment of the health andsafety impacts of product and service
categories

ESG Databook: Improving safety of products and solutions

416-2 Incidents of non-complianceconcerning the health and safety
impacts of products and services(None for FY2023)

417-1 Requirements for product andservice information and labelingー417-2 Incidents of non-complianceconcerning product and service
information and labeling(None for FY2023)

417-3 Incidents of non-complianceconcerning marketing communications(None for FY2023)

418-1 Substantiated complaints
concerning breaches of customer
privacy and losses of customer data

(None for FY2023)

244

ESG Date Book 2024

Sustainability policy

Management ofsustainability

With people

With businessWith the planetSocialData

contribution
activities

Index

SASB content index
Topic

Energymanagement

Employee health& safety

Accounting metric

Reference(1) Total energy consumed

Environmental impact resulting frombusiness activities(2) Percentage gridelectricity

Environmental impact resulting frombusiness activities(3) Percentage renewable

Reducing CO2 emissions in
manufacturing operations(1) Total recordable incident rate (TRIR)

Occupational safety and health(2) Employee fatality rate

Occupational safety and health(3) Near miss frequency rate (NMFR)

Code

RT-IG-130a.1

RT-IG-320a.1-(1) Sales-weighted fleet fuel efficiency
for medium- and heavy-duty vehicles

N/A

RT-IG-410a.1(2) Sales-weighted fuel efficiency for
non-road equipment

Reducing CO2 emissions from productoperation

RT-IG-410a.2(3) Sales-weighted fuel efficiency forstationary generators

N/A

RT-IG-410a.3

NOx、PM Sales-weighted emissions of:(1) nitrogen oxides (NOx) and (2)particulate matter (PM) for: (a) marine
diesel engines, (b) locomotive diesel
engines, (c) on-road medium- andheavy-duty engines, and (d) other nonroad diesel engines

NOx and PM emitted from products

RT-IG-410a.4

Materials
sourcing

Description of the management of risks
associated with the use of criticalmaterials

Effective use of critical materials in
products

RT-IG-440a.1

Remanufacturing
design &services

Revenue from remanufactured products
and remanufacturing services

Development of our “reman”
remanufacturing business

RT-IG-440b.1

Topic

Accounting metric

Fuel economy &emissions in
use-phase

Activity metric

Reference

Code

Number of units produced by productcategory

Environmental impact resulting frombusiness activities

RT-IG-000.A

Number of employees

Company info

RT-IG-000.B

245

ESG Date Book 2024