Komatsu Environmental & Social Report 2010

Komatsu Ltd.
CSR Department and Environmental Affairs Department
2-3-6, Akasaka, Minato-ku, Tokyo 107-8414, Japan
http://www.komatsu.com/CompanyInfo/csr/
Komatsu welcomes your comments.
E-mail: kankyo@komatsu.co.jp
CSR Department
TEL: +81-3-5561-2799
FAX: +81-3-3505-9662
Environmental Affairs Department
TEL: +81-3-5561-2646
FAX: +81-3-5561-2780
HEER100806 Printed in Japan

Printed on paper made with wood fromforest thinning. “Morino Chonai-Kai”(Forest Neighborhood Association)—
upporting sound forest management.

This report was printed using soy ink.

Environmental & Social Report 2010

HybridMessage from Top Management

Komatsu recognizes that the businessactivities which embody our strength
are in fact CSR activities.
We strive to respond to the demandsof society, through our core business.

Amid the radical changes that the business environment has undergone due to the global economic downturn that started in September, 2008, Komatsu has been steadily implementing structuralreforms to make the company leaner and stronger. During thistime, we have been focusing our efforts on developing the humanresources which will support our global business, through methods
such as building awareness of Komatsu’s universal sense of values
explicitly defined in The KOMATSU Way.
Currently, our market is beginning to show signs of recovery,
spurred on primarily by development in the emerging nations.
Capitalizing on our strong corporate structure, which was achieved
through ongoing structural reforms, Komatsu started a new threeyear Mid-Range Management Plan in April, 2010, under the title“Global Teamwork for Tomorrow,” steering a new strategy for
growth. In this plan, I set forth specific objectives that include enhancing added value of products by applying ICT (Information andCommunication Technology), developing products for global environmental friendliness and safety, and strengthening regional business operations in emerging and resource-rich countries. These
activities will not only advance Komatsu’s business, but will provide
us the opportunity to reduce impact on the global environment,
and contribute to economic development and improvement in thestandard of living through the products and services we provide to
our customers throughout the world.
Today, the definition of CSR (Corporate Social Responsibility) is
shifting away from its original meaning of being merely social contribution, to a broader meaning – asking what value a company
brings to society. Komatsu recognizes that the business activities
which embody our strength are in fact CSR activities that respondto the demands of society, and this is what we are determined topursue.
Environmental Activities
Komatsu has placed environmental activities as one of the highest
management priorities, and set new medium and long-term environmental targets for 2020. To meet these new targets, we are actively pursuing initiatives using measures that are both “proactive”

1

and “protective.”On the “proactive” side, we are emphasizing reduction of CO2
emissions throughout product use, to help mitigate climatechange. We introduced hybrid hydraulic excavators that reduce
fuel consumption by an average of 25% to both Japanese andoverseas (China and U.S.A.) markets. These products have been
well received by the market and we are planning to expand the line
to include 30-ton class hydraulic excavators and wheel loaders.
We are also pursuing initiatives to reduce environmental impact
throughout the product lifecycle by utilization of ICT in our products
and ICT-assisted construction systems, and enhanced performance of AC servo presses. On other fronts, our Biodiesel Fuel
Project is making headway, and we are working to facilitate more
eco-friendly mining operations. Efforts to achieve an across-theboard reduction in CO2 emissions in manufacturing include a transition to high efficiency production lines and the use of heat pumps
in air conditioning systems.
Komatsu has also taken a proactive position on environmental
issues that is more than just measures to mitigate climate change.
We are developing our “Reman” business outside Japan, remaking
components into “remanned” equipment that has the same quality
as newly manufactured components. We are striving for “zeroemissions” in which all waste are recycled. Our efforts to maintainbiodiversity include to cultivate plants typically grown in the region
on a vacant lot which used to be the Komatsu Plant where we plan
to build a new training center. We will make the site available foreducating local school children on the environment, and will installequipment that can be used to do experiments for education inwhen teaching science and Monozukuri (manufacturing competitiveness).
On the “protective” side, we are developing construction equipment that meets the Tier 4 interim (Stage 3B) emission standards
that will take effect in Japan, the U.S.A. and Europe in 2011, andare reducing the use of lead, mercury and other substances of environmental concern.
We will continue to maintain strong cooperation with our overseas affiliates, sales agencies, rental companies, and business as-sociates around the world to bolster our environmental activities,
with even higher objectives in sight.

includes helping remove anti-personnel landmines in war-torn regions and providing recovery assistance in disaster-stricken areas.

Endeavors for Quality and Safety, and Social Initiatives“Quality and Reliability” is the basic stance of Komatsu’s management. This impacts our plants, suppliers and customer sites worldwide, as well as the entire spectrum of the Komatsu Group’s corporate structure, businesses, employees, and management.
By providing products, services and systems that are safe andinnovative from the perspective of the customer, Komatsu is working at becoming “a company that our customers cannot do without” and making this the essence our brand management. For our
employees, who represent a precious resource for Komatsu, weare continuing our efforts to be a company worth working for, toensure health and safety in the workplace, and to implement systems that support these efforts.
To enhance the trust placed in us by society and our stakeholders, we have been thoroughly implementing compliance throughout the Group, based on a variety of principles and rules. These include principles embodied in the United Nations Global Compact,which we signed in 2008, as well as in Komatsu’s Code of Worldwide Business Conduct formulated in 1998. We are continuously
pursuing activities that help fulfill our role as a good corporate citizen who responds to the needs of the regions we operate in. This

At Komatsu, all of our employees share the belief that “our corporate value is measured by the degree of trust placed in us by society and our stakeholders”. As the Komatsu Group develops its
businesses around the world, we will continue to pursue initiatives
that instill the universal guiding principles of The KOMATSU Way in
our employees, the backbone of our global business activities. At
the same time, we continue to strive to be to our customers andsociety as a whole “a company that they cannot do without.”

CO2 Emission Index per Unit of Manufacturing Value
100

Exhaust Emission Regulations(g/kWh)(%)

100Particulates

80.0 or less
70.4

70
0

Restriction starting in 2014
Restriction starting in 2011
Restriction starting in 2006
Restriction starting in 2001

0.4

90

Planned Use of Vacant Lot at the Komatsu Plant

130kW-560kW

Actual measurement value

0.5

80

Kunio Noji
President and CEO

Training Building

Classrooms

0.3
0.2
0.1

2000

2009

Target for
2010

FY

0

1

2

3
4
NOx

5

6

7 (g/kWh)

Memorial Building
Satoyama (Nature area)* The United Nations Global Compact is a voluntary code of conduct in the four areas of human rights, labor, environment, andanti-corruption promoted by the United Nations for adoption by companies.

The Ten Principles of the Global Compact[Human Rights]

Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

[Labour Standards]

Principle 3: Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

[Environment]

Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

[Anti-Corruption]

Principle 10: Businesses should work against corruption in all its forms, including extortion andbribery.

2

2009 Highlights

P.5

Customer Reactions to the Hybrid HydraulicExcavators

P.15

Komatsu has put hybrid
hydraulic excavators on themarket, not only in Japanbut in China and the U.S. as
well. On this occasion, we
decided to ask some of ourcustomers for their reactions.

P.8

Clearing the next emission
standards, which will be implemented in a phasedmanner from 2011, is expected to require technology of the highest level.

Revision of the Komatsu Earth Environment Charter

For the first time in sevenyears, Komatsu has undertaken to completely revise its
measures for meeting what has
been described as one of thebiggest challenges faced
today – mitigating global warming and loss of biodiversity.

Development of Engines Compliant with the Next
Emission Standards

P.21

Reducing CO2 Emissions in Manufacturing Operations andEstablishing New Medium-term and Long-term Targets

Komatsu has designatedFY2015 as the new medium-term target and FY2020
as the new long-term target
for contributing to mitigatingclimate change within the
post-Kyoto Protocol framework.

Komatsu Earth Environment Charter(June 2010 revision)＜Corporate Principles＞
1. Contributions to Realization of
Sustainable Society
2. Simultaneous Realization of Environmental
and Economic Performance
3. Observance of Corporate
Social Responsibility

Medium-termplan 2015

Long-term
plan 2020

Domestic unitof output compared with 1990

▲ 40%

▲ 43%

Overseas unitof output compared with 2005

▲ 41%

▲ 44%

Business/Management Activities and CSR
Stakeholders
Employees
Shareholders
Customers
Global Environment
Regional Development
Social Contributions

Supporting the Flower
Association of Japan Promoting Sports Contributing to Local Communities

Activities as a Socially
Responsible Company

Applying Technology and Know-how
to Meeting the Needs of Society

CSR Initiatives of
Human Resource Suppliers
Development

Governance

Health and Safety

Work Satisfaction andWork-Life Balance (WLB)

Compliance

Removing Anti-Personnel Landmines

Disaster Relief

Globalization

KOMATSU Way

Human Resource
Development

Expanding Local Production

Contributing to
Economic Development
Expanding Parts
and Service Business

KOMTRAX(Komatsu Tracking System)
AHS (Autonomous Haulage System)
Meeting the Needs of Society through ourCore Business (Products and Technology)

ICT* Products

Durability
Reliability
Environmental Performance

DANTOTSU Products Hybrid Construction Equipment
Compliant with the Next Emission Standards
Forestry/Agriculture
Environmental Reman Business
Environmental
ReportActivities
Komatsu EarthEnvironmental
Biodiesel Fuels
Environment Charter
Accounting

‘85

‘90

Appreciation of the
Yen/Globalization*ICT Information and Communication Technology

3

‘95

‘00

Expanding Productionin China‘05‘10
Rise of Greater Asia andResource-rich Countries‘20

Contents
P.23

Autonomous Haulage System

P.34

Assisting with Reconstruction after the Earthquake
in Chile

Special Story 1
Helping Mitigate Climate Change Through Komatsu ........... 5
Pursuing Environmental Management .................................... 7
Mitigating Climate Change ................................................... 13
Creating a Resource Recycling Society................................ 17
Environmental Risk Management ......................................... 20
Biodiversity .......................................................................... 22

Activities for Society ...................................................... 23
Special Story 2
Corporate Social Responsibility andUnmanned Dump Truck Operation System ........................ 23
Special Story 3
Landmine Removal andRegional Reconstruction in Angola ..................................... 25
Developing Together with Employees................................... 26
Communication with Stakeholders....................................... 31
Global CSR Activities ........................................................... 33

Managerial Structure ..................................................... 35

Managerial
Structure

In light of the changing definition of CSR, we can look back on
Komatsu’s activities over the past 20 years and say that wewere able, in some way, to meet the needs of society throughthe initiatives we took. We believe that in striving to be fully socially responsible, we are able to heighten the trust given to us
by all stakeholders.
Today, we face challenges as a global operating company,
such as protecting the global environment and contributing to
the economic and human resource development of emerging
nations. Komatsu, with the support and verification of a third
party, is currently prioritizing CSR issues which bring the mostvalue for society and draw on the company’s core business leveraging its greatest strengths.

Environmental Activities .................................................. 5

Activities
for Society

When an earthquake struck
Chile in February 2010, Komatsu provided assistanceto the disaster area by supplying construction equipment, operators, cash donations and other support.

Message from Top Management.......................................... 1
2009 Highlights .................................................................... 3

Environmental
Activities

This is a new system proposedby Komatsu for controlling
haulage equipment used in themining industry. Through thissystem, the company will contribute to our customers’ sustainability efforts and protecting the global environment.

The Basic Stance of Management ....................................... 35
A Sound Management Framework ...................................... 36
Growing with the Value Chain .............................................. 39
Quality and Reliability ........................................................... 41

from left:
Masao Fuchigami
Director and Senior Executive Officer, Supervising Environment, Research, Design &Development and Quality Assurance
Masakatsu Hioki
Senior Executive Officer, Supervising Compliance, Legal Affairs, Human Resources,
Education and Safety & Health Care
Fusao Seki
Senior Executive Officer, General Manager, CSR, Supervising Corporate Communications and General Affairs

Data

Data ................................................................................. 45
Data on Environmental Impact Resulting
from Business Activities ....................................................... 45
Environmental Management ................................................ 47
Environmental Data by Manufacturing Facility in Japan ........ 49
Environmental Data by Manufacturing Facility
outside Japan ...................................................................... 53
Environmental Impact Indicators by Region ......................... 54
Environmental Accounting ................................................... 55
Environmental and Social Activities to Date &External Commendations .................................................... 56
Company Profile .................................................................. 57
Independent Review on Environmental &Social Report 2010 ............................................................. 58

4

Special Story

1

Helping Mitigate
Climate Change
Through Komatsu

PC200-8
HybridCustomer Opinions
Komatsu led the world in initiating
domestic sale of hybrid construction vehicles in 2008. Sales to customers in China, the U.S.A. andother countries started in 2009.
We collected the opinions of
our PC200-8 hybrid hydraulicexcavator users and present them here in this Special Story.

JAPAN

JAPAN

Tokichiro Yamaguchi

Haruo Asada

Chairman
Fuji Corporation

President
Asadagumi Co. Ltd.

When the PC200 hybrid was introduced, acustomer who operates a Fuji type final disposal site amidst prime agricultural land in
the city of Komoro in Nagano Prefecturecommented: “It didn’t take me long to decide to purchase one. Using environmentfriendly construction equipment is a matterof common sense for us. We, in the waste
treatment business, consider this to be ourduty.”He also strongly advocated the benefits
to the environment deriving from the use of
hybrid equipment: “Our fuel consumption
has dropped dramatically, that’s a fact. But
much more important is that we were able
to achieve a dramatic reduction in CO 2
emissions.”■PC200-8E*
Effect of fuel consumption : ▲ 37%
Fuel consumption per hour: 9.5 l/h
Period: Sep. 2009 – Mar. 2010
Number of hours of operation: 514 h■Fuel consumption of previous machines (PC200LC-8N1): 15.0 l/h* PC200-8E Hybrid

The hybrid equipment at the Shikoku Expressway improvement worksite operates about 8hours a day, consuming 11 liters of fuel per hour.
That is almost 40% less than our previous machines (from other makers). (Machines fromother makers had to be refueled every day,while hybrid equipment was filled up only once
every 2 to 3 days.) The quiet engine gave me astrange feeling at first, but I soon got used to it.
When we bought the equipment, I was
thinking about running costs (reduced fuelconsumption), but I also made the choice inthe hope that we could reduce the burden
on the environment, even if just a little.
Though we are working with large machinery, we are trying to harmonize with the
Earth and the environment, without causing
a major impact on the surroundings. That’s
why I am hoping that hybrid will come into
greater use.
■PC200-8E*
Effect of fuel consumption : ▲ 39%
Fuel consumption per hour: 11.0 l/h
Period: Aug. 2009 – Mar. 2010
Number of hours of operation: 683 h■ Fuel consumption of previous machines (other makers): 18.0 l/h(Operating 19 manufactured by other makers)

Performance Values for the PC200-8 Hybrid Hydraulic Excavator Obtained through User Tests
(%)

100%

30 to 40% reduction

100

Efficiency Comparison

80of the PC200-8 Hybrid

60

Hydraulic Excavator

70%

69%
59%

40
20
0

5

PC200-8
Standard Model

A Company
Waste soil

B Company
Civil engineering

C Company
Sludge disposal

JAPAN

CHINA

CHINA

Toshiyasu Taniguchi

Site: Fogang, Qingyuan,
Guangdong Province, China

Site: Fogang, Qing yuan,
Guangdong Province, China

Li Yang Ming

Huang Rong Ha

Operation site: Ground leveling work for a
restaurant, and workor a resort
villa land development project.
Delivery date: April 1 2010

Operation site: Red soil excavation andtransportation of rocks forconstruction of stone walls
Delivery date: April 9 2010

President
Toshima Co. Ltd.

■PC200-8E*（First model for operation）
Effect of fuel consumption : ▲ 35%
Fuel consumption per hour: 10.8 l/h
Period: Apr. 2009 – Mar. 2010
Number of hours of operation: 1,990 h■PC200-8E*（Second model for operation）
Effect of fuel consumption : ▲ 40%
Fuel consumption per hour: 10.0 l/h
Period: Apr. 2009 – Mar. 2010
Number of hours of operation: 1,242 h■Fuel consumption of previous machines (PC200-8N1): 16.6 l/h

Operating Work Equipment + Starting Swing

Purchase trigger
After an introduction from a sales representative, I saw the actual equipment at an exhibition.
Important performance features that influenced the purchase decision
Fuel efficiency, fuel input/power output ratio,
and environmental protection
Does the performance meet your expectations?
Yes, so far it does.
Other comments
Up to now, I have operated a new 13-tonclass hydraulic excavator and a used 12-tonclass hydraulic excavator. This time I waslooking at a 20-ton class excavator andcompared the PC 200-8 standard and hybrid machines. I ended up buying the PC
200-8 hybrid, because I thought the fuelconsumption is quite low and it has high reliability.

Environmental
Activities

For us, fuel-efficiency is the most importantcriterion when choosing the type of equipment, because our construction equipment
is operating from morning to evening. That’s
why we selected hybrid equipment.
Because of the need for long hours ofoperation, the PC200 hybrid hydraulic excavator was the best choice for us. The equipment causes less physical strain when we
operate it, because the engine runs much
more quietly than the engine on conventional machines. Once you get used to thepower output, there is no problem.
Though addressing environmental problems is taken for granted in any kind of business activity, concrete environmental measures have not yet taken root at construction
sites. I hope that this problem will be overcome using hybrid construction equipment.

Purchase trigger
There was an introduction by a sales representative, but the purchase was triggeredby a recommendation from a friend in thesame line of business (who owns five Komatsu machines, but no hybrid machines).
Important performance features that influenced the purchase decision
Fuel consumption and ease of operation
Does the performance meet your expectations?
I am satisfied with the fuel consumption.
But, I have been using the machine for only
three days, so I can’t say much yet.
Other comments
I tried out two used 12-ton class hydraulicexcavators and was very satisfied with theperformance of the Japan-made construction machine by Komatsu (especially regarding durability). This time I decided to buy
something in a completely different class,namely a hybrid machine, which was also
recommended by a friend.

Operating Work Equipment + Slowing Swing
Engine-driven
Electric-driven
Energy regeneration

6

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

Komatsu’s Relationship with the Environment
In recognition of the fact that our business activities deeply affect theenvironment on a regional and global level, we, at Komatsu, haveplaced the focus on the following four key areas:

Environmental
Activities

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

1) Climate Change
2) Establishment of a Sound Material-Cycle Society3) Conservation of Air, Water and Other Environments as well as
Management of Chemical Substances
4) Biodiversity

Relationship of the Komatsu Group’s Business Activities with the Environment●●

Sales and After-sales Services⬆

●

Activities based on health and safety andenvironmental guidelines

⬆

P.12

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

P.13–15,18

Sales andafter-sales
service agents

Use

Sales and after-sales
service agents

Logistics
CO2 reductions inlogistics● Improvement oftransport efficiency● Improvement ofpacking material●

Komatsu
employee

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

Sales, Rentals, andAfter-sales Services

Products⬆

⬆

Development

Reduction ofenvironmental impacts
during the productusage stage● Provision of solutions forcustomers’
environmental activities● Promotion of
fuel-efficient operation● Product support throughuse of ICT●

Communications satellite

Products

P.16,19

P.17,43●

Reuse of products
Reuse

Local
community

Komatsu
employee

Reuse of parts
Reuse

Customer⬆

P.13–15

ReduceBusiness
associates

Procurement ofMaterials●

Green procurement

CO2

Use

ParticulatematterManufacturing⬆

Remanufacturing of used components(parts) (“Reman” business)

P.12,40⬆

Mitigation of climate change (energy
conservation)● Effective utilization of resources (zeroemissions)● Environmental risk management● Elimination of hazardous chemical
substances● Termination of use of organic
chlorinated cleaning solvents

P.18

Recovery●

Recycling of materials(outsourcing)⬆

P.17

Used vehicles

RecycleKomatsu
employee⬆

P.16,19–20,47–48

Disassembly
Proper disposal ofwaste (outsourcing)

7

NOx

Komatsu Earth Environment Charter (June 2010 revision)
Environmental
Activities＜Corporate Principles＞
1. Contributions to Realization of Sustainable Society
Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of ourplanet earth to future generations in a sound and healthy condition.
We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority management tasks, and endeavor to contribute to the sustainable growth of society by integrating advanced technologies into environmental conservation efforts in all our business activities.
This is represented by our hybrid construction equipment which features a substantial reduction of CO2 emissions while in operation and by our superior manufacturing.

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

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

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

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

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

8

Environmental Management

Environmental Action Plan and Results for FY2009
To promote the Komatsu Earth Environment Charter, the company formulates environmental action plans (implementation policies) for each field,
establishes action targets for each fiscal year, and steadily advances its policies, while following up on their implementation status.

Environmental
Activities

Environmental Management
Implementation policies

Objectives for FY2009

1. Strengthen environmental management systems

Integrated certification of Komatsu NTC Ltd.

2. Environmental education and training: Implement the education plan

Draw up and promote the education plan

3. Environmental communication: Publish an environmental & social report

Formulate a communication
plan and publish the report

●

●

●

Results for FY2009

Medium- and long-term
objectives

Futureinformation

Business units integrated up to last fiscal year underwent inspections to maintain certification; Komatsu NTC achieved
integrated certification

Acquisition of integrated certificationby all Komatsu Group companies

P.11

Held 14 courses with over 6,100 participantsContinue to organize courses andexpand them to overseas locations

P.12

Published the Japanese version in July and the English version in August

Enhance the quality of the content;
release report earlier than in previous years−

Results for FY2009

Medium- and long-term
objectives

Futureinformation

A vehicle compliant with the next emission standards is under development(equipped with compliant engine)

Develop engines and equipment
compliant with the next emission
standards for the U.S.A., Europe,
and Japan, effective 2011

P.15

Achieved vibration exposure standards for all types of equipment destined for EU

Maintain compliance with EU noiseand vibration standards−

Equipment compliant with the next emission standards is under development
Mass production of hybrid hydraulic excavators is underway

Reduce CO2 emissions by 10% by
FY2010 compared to the FY1998
level

P.5
P.6

Equipment compliant with the next emission standards is under development
Chlorine-free hoses were brought into practical use

Achieve recyclability rate of 99.5%
by FY2010

P.17

Equipment compliant with the next emission standards is under development (continued use of aluminum radiators/rigorous management of packing materials for canned counterweights)

Reduce amount of hazardous substances by 75% compared to the1998 level by 2010−

Verified product quality after shifting away from chromatedfastener components and completed the change to standard
components made in-house (all design changes were completed)

Ban chromium (VI) and cadmium
starting in 2010−

System introduced in Japan (survey of substances by product type are underway)
System for EU is under development

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

P.21

Launched more compact AC servo presses

Expand AC servo press sales ratio−

Minor-change model of multi-wire saws for solar cells developed and released to the market

Expand business affiliations for highefficiency wire saws−

Reorganized the “Reman” business globally (concentrate operations into seven Reman Centers in regions with a high demand for remanufactured parts)

Promote reuse and recycling
through further improvements in recycling-related technologies for
parts

P.18

Research and Development
Implementation policies
1. Reduce the environmental impact of construction equipment

Objectives for FY2009

Develop a vehicle compliant
with the next emission standards●

Develop low-emission construction equipment●

Meet noise and vibration standards

Meet EU noise and vibration
standards

Reduce CO2 emissions from construction equipment (improve fuelefficiency of products)

R e d u c e C O2 e m i s s i o n s o fequipment compliant with thenext emission standards (hydraulic excavators: Δ10% compared to existing models) andhybrid equipment (hydraulic excavators: Δ25% compared toordinary models)

Improve the recyclability rate of construction equipment

Achieve 99.5% for equipment
compliant with the next emission standards

●

●

●

●

●

●

●

●

●

Maintain reduction of hazardous
substances at 75%●

Strictly control and reduce substances of environmental concern inconstruction equipment

Achieve the goal of shifting
away from chromium (VI) andcadmium
Introduce a separate hazardous
substances control system foreach product type (to comply
with REACH regulations)

2. Reduce the environmental impact of industrial machinery●

Market high-performance AC servo presses●

Market high-efficiency wire saws for solar cells

3. Promote reuse and recycling●

9

Promote the "Reman" business

Expand business affiliations for
AC servo presses

Develop minor-change model

Expand and promote the "Reman" business

●

●

●

●

●

●

Manufacturing
Implementation policies

Objectives for FY2009

Results for FY2009

Medium- and long-term
objectives

Futureinformation

1. Mitigation of climate change (energy conservation)●

Improve 1% over the previous
fiscal year●

Improved 29.6% from the FY2000 level; attained a 3.2% improvement over the previous fiscal year

Set new targets

P.16

Attained a recycling rate of 99.1% across the Komatsu Group

Strive for further improvements at
Komatsu Group manufacturing facilities in Japan
Set new targets
Attain zero emissions at KomatsuGroup manufacturing facilities outside Japan

P.19

Accomplished a 40.6% reduction in the amount of waste
generated per unit of manufacturing value over the FY2005
level

Set new targets

P.19

Accomplished a 15.9% reduction in the amount of waterused per unit of manufacturing value over the FY2005 levelSet new targets

P.19

Accomplished a 52.4% reduction in the amount of VOCs released per unit of manufacturing value over the FY2005 level

Achieve the reduction target by
FY2010P.48

Cleanup at the Oyama Plant was completed

Complete the cleanup work

P.20

In FY2008, discontinued use of one of the undergroundtanks at Komatsu Cabtec scheduled for shutdown in FY2009

Sequentially address each underground tank that has been in operation for 20 years or more

P.20

Results for FY2009

Medium- and long-term
objectives

Futureinformation

Nine out of ten member companies acquired certification by
mid FY2009

Reinforce linkages with supplier
EMSs

P.12

Oyama and Koriyama Plants increasingly shifting to Japan
Railway containers and domestic vessels to ship containers,
resulting in a 4.5% increase in the ratio of modal shift to total
shipping across the entire company

Continue to promote modal shifts

P.16

Increased the packaging return ratio by 7.7% by making improvements in cardboard containers and large-sized boxes
for shipping containers

Aim at reducing procurement of new
packaging material to zero

P.19

Awazu Plant is making increased use of Kanazawa Port toship construction equipment and freight containers. Shipping
through Kanazawa Port has risen by 13.8% and freight container shipping has increased by 32.6%.
Ibaraki Plant is making increased use of Hitachinaka Port.
Shipping of construction equipment recorded a 31.0% increase

Advance measures, such as increasing the size of shipped units tolarge lots

P.16

2. Effective utilization of resources●●●

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

Attain a recycling rate of 99% or
more

Achieve a reduction of more than 15% by FY2010 in the amount ofwaste generated per unit of manufacturing value compared to the
FY2005 level at the Komatsu Group manufacturing facilities in Japan

Improve 3% over the previous
fiscal year

Achieve a reduction of more than 10% by FY2010 in the amount ofwater used per unit of manufacturing value compared to FY2005 at
the Komatsu Group manufacturing facilities in Japan

Improve 2% over the previous
fiscal year

●

●

●

Environmental
Activities

Make a 20% improvement by FY2010 in the amount of CO2 emissions per unit of manufacturing value compared to the FY2000 levelat the Komatsu Group manufacturing facilities in Japan

3. Environmental risk management
●

●

●

●

Implement voluntary reductions in the release of chemical substances
Substitute reductions in the amount of VOCs released, which account for the majority of chemical substances released
Implement voluntary reductions in VOCs
Achieve reductions of more than 20% and 50% by FY2008 andFY2010, respectively, in the amount of VOCs released per unit ofmanufacturing value compared to the FY2005 level

Establish a control system forchemical substances and reduce the amount of released
chemical substances

Undertake soil and groundwater remediation at the Komatsu Group
manufacturing facilities in Japan

Continue the cleanup

Implement the permanent measures necessary to renovate underground tanks that have been in operation for 20 years or more by
the end of FY2001 at the Komatsu Group manufacturing facilities inJapan

One tank requires renovation

●

●

●

Procurement and Logistics
Implementation policies
1. Green procurement●

Promote improvements at suppliers through the establishment ofenvironmental management systems and by specifying matters that
require environmental consideration

2. Environmental conservation in logistics●●●

Shift to means of shipping with low environmental impact
To save resources, aim at reducing procurement of new packaging
materials to zero and make all shipping containers returnable
Promote reduction in shipping distances and improvements in shipping efficiency

Objectives for FY2009
Provide guidance and support tomember companies of the Komatsu “Midori-kai” for acquiring
integrated certification of theirenvironmental management systems (EMSs)
Promote modal shifts in shipping from trucks to inland ferries
or rail

Increase the packaging return
ratio

●

●

●

●

Encourage use of nearby ports
to shorten shipping distances,and increase the size of shipped
units to large lots

Transfer component production
to the body manufacturing facility to eliminate transport distances●●

Axle production at the Mooka Plant was moved to construction machinery production at the Awazu Plant. This eliminatedthe need to ship axles and return empty pallets, resulting in a
reduction of CO2 emissions equivalent to 97 tons per year−

Sales and After-sales Services
Implementation policies

Objectives for FY2009

1. Encourage Komatsu Group sales agencies and rental companies inJapan to reduce their environmental impact

Enhance awareness of the environment through education andtraining based on the Group's
environmental guidelines●●

Results for FY2009

Medium- and long-term
objectives

Futureinformation

Carried out activities for improvement through guidance provided during onsite visits to 105 sites
Regularly issued the Safety and Environment Newsletter(reached its 100th edition, with 24 editions published yearly)

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

P.12

10

Environmental Management

Environmental Management Structure
Organizational Chart of the Environmental
Management Structure
Environmental
Activities

Board of Directors
The highest executive body to discussand deliberate top-priority mattersand make decisions on management
policies of the Komatsu Group.

President and CEO

Research and development divisions
Manufacturing divisions
Corporate level control division (Environmental Affairs Department)
Sales and after-sales services divisions

Strategy Review Committee
The executive body to study andreview basic policies, plans, andstrategies, hold deliberations involved
in top-priority corporate affairs, andput these before the Board of
Directors. This committee consists ofthe standing executive directors.

Earth Environment Committee
This committee has ultimate authority
for approving Komatsu’ s environmental
conservation measures. Its meetings
are held biannually. Its mission includes
formulating specific environmental
action plans based on the Guidelines
for Corporate Activity of the Komatsu
Earth Environment Charter anddetermining Komatsu Group’ s overall
direction in environmental conservation.
Chaired by an executive officer incharge of environmental management,
it consists of executive officers
responsible for individual divisions.

Business units
Affiliated companies
Manufacturing facilities outside Japan
Research：Person in chargeof environmental
management

Environment Management Groups

Environmental Committee
Development
Development Meeting

Environment Technology Working Groups

Manufacturing
Manufacturing Technology Meeting

Environment Management Personnel Liaison Council
Environmental and Energy Saving Working Groups

Logistics Planning Meeting

Logistics Manager Liaison Council

Manufacturing Facility Environment Management Committee

Environment Promotion Team

Global Safety and Environmental Affairs Meeting
Chaired by an executive officer incharge of environmental management,
this meeting consists of officers
responsible for safety and environmental
management in Komatsu manufacturing
facilities both in and outside Japan.
Meeting every two years as a rule, it
provides a platform to implement
policies and measures formulated by the
Earth Environment Committee and to
exchange information related toenvironmental conservation worldwide.

Procurement Division
Procurement Meeting
Sales and after-sales service
Komatsu Japanese Dealer Meeting
Affiliated Companies’ Environmental Management Conference

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

Environmental Management Conference for Manufacturing Facilities outside Japan

Acquiring ISO14001
Komatsu has been engaged in a Group-wide initiative to acquire
ISO14001 certification, an international standard for environmental
management systems, with a view to enhancing management quality
through strengthening systematic steps towards environmental conservation.
Since 1997 the Oyama Plant and other manufacturing facilities
both inside and outside Japan have been certified individually. In
FY2005, Komatsu Ltd.’s (the parent company’s) four plants (theAwazu, Osaka, Mooka, and Oyama Plants) acquired integrated certification managed by the General Manager of manufacturing division.
This represented the first step towards integrated certification for theentire Group. As the second step, in FY2007 Komatsu added its major affiliates in Japan and non-manufacturing facilities not previously
certified—notably the Head office and others—to the above four
plants, with integrated certification attained by the Group in Japan in
May 2008.
Upon completing the April 2010 surveillance audit, Komatsu NTC

11

Procurement Control Manager Meeting

Ltd. (Toyama and Fukuno Plant) was included in the integrated certification. The Group seeks to further expand the scope of its integrated certification in the future to cover its affiliates in Japan.
Meanwhile manufacturing facilities outside Japan that have notobtained certification are being encouraged to do so by FY2011, but
BKI (Bangkok Komatsu Industries
Co., Ltd.), KUI (PT Komatsu Undercarriage Indonesia), Hensley (Hensley
Industries, Inc.), and KIPL (Komatsu
India Pvt.Ltd.) acquired certification
already in 2009.

ISO14001 Integrated Certification

Environmental Education and Training* For example, about 375 employees from all plants joined the Satoyama (Natural Woodlands) Preservation Volunteers and Nature Cleaning Volunteers to
help clean up around local rivers and beaches.

Environmental Inspections of Southeast Asian
Subsidiaries
Komatsu has established environmental protection guidelines basedon the Komatsu Earth Environment Charter in an effort to improve
the level of environmental conservation and reduce environmental
risks in developing countries. After visiting subsidiaries in China in
FY2007, Komatsu representatives visited seven subsidiaries in Thailand and Indonesia in January 2010 to inspect environment-related
facilities and exchange views on environmental matters in line withthe guidelines. The inspections also included the premises of the local waste disposal companies that the subsidiaries deal with. Eachof the business units was found to be practicing energy savings, carrying out air and water quality measurements and waste separation,and there were no indications of serious environmental risks.
Komatsu plans to continue environmental inspections in developing countries into the future and has established medium- and longterm targets for CO2 emissions and waste recycling rates for overseas subsidiaries, to raise the level of environmental protection for
the Komatsu Group as a whole.

Komatsu supports the environmental activities at Group sales agencies and rental companies through education and guidance on ways
to enhance their environmental management.
The Environmental Guidelines distributed in April 2005 compiles
points and standards to be observed concerning environmental issues directly relevant to operations at sales agencies and rental
companies. These include waste treatment, waste oil treatment, oiland grease management, and treatment of wastewater from vehicle
washing.
Komatsu provides assistance in meeting the provisions of the Environmental Guidelines. The company also assists in reviewing the environmental aspects of the operations, conditions, and equipment at
the relevant business sites of agencies and companies, gives on-site
guidance and proposes remedial actions tailored to each site. This isdone through joint visits to each of the sites by persons in charge ofenvironmental management at Komatsu and at the sales agencies
and rental companies. (In FY2009, 105 sites received this assistance.) As a result, awareness of the environment has risen at agencies and companies and various
improvements are underway.
Additionally, the Safety and Environment Newsletter (first published in November 2005), which
serves as a means for providing
agencies and companies withenvironment-related and safetyInspecting the oil-water separator at avehicle washing station (Komatsu related information, has reached
100 editions.
Rental, Koriyama)

Environmental
Activities

The Komatsu Group’s basic education system shares the responsibility for education between the parent company and individual divisions. The parent company develops educational materials and provides educational services on commonly relevant academic issues
for use by Komatsu Group companies. Individual divisions, on theother hand, conduct instruction on more hands-on matters, including
unique features and points particular to individual divisions.
Education and training tailored to different occupational content
also includes lectures on the environment. The FY2009 curriculumfor environmental education was essentially the same as for FY2008.
Among these offerings, the environmental training program for manufacturing engineers was further expanded.
Additionally, the company organized an experience-oriented session that gave employees an opportunity to participate in environmental volunteering*. Komatsu encourages employees to obtain asuitable environment-related certificate that is recognized by public
institutions.

Supporting Environmental Activities at KomatsuGroup Sales Agencies and Rental Companies

Supporting Suppliers in Introducing
Environmental Management Systems
To reinforce environmental management at our suppliers, Komatsu
required the Komatsu “Midori-kai” group, which accounts for 75% of
the value of supplier orders, to acquire EMS certification for all groupcompanies. By FY2008, all 126 business associates in Japan had
acquired EMS certification.
By FY2009, nine out of the ten companies that newly joined thegroup had acquired EMS. The remaining company is planning tocomplete certification in the first half of 2010.
Acquisition of EMS Certification for Major Business Associates inJapan
FY2006

Subcontracting
companies

31

Companies fromwhich Komatsu
procures goods

Guidance in maintenance of a separation tank (Bangkok Komatsu Co., Ltd.)FY2007

FY2009FY2008

33

19

7

41
2
1
1
0

20

40

60

80

100

(Number of companies)

12Mitigating Climate Change
Komatsu works to reduce CO2 emissions generated through its business activities while also delivering fuel-efficient productsthat help customers promote their environmental activities.

Mitigating Climate Change through Products and Services
Full Model Change for the D375A Large-size
Bulldozer
Environmental
Activities

With its new SAA6D170E-5 engine, the D375A large-sized bulldozer
features enhanced rated power output. In addition the high engine
output, it boasts clean exhaust emissions at world-class levels andlowest fuel consumption.
During the most frequent operations, from traveling to dozing, an
automatic locking function routes the engine power directly to thetransmission, bypassing the torque converter, to prevent power loss.
To reduce fuel consumption, the automatic transmission, which eliminates the shocks associated with gear shifting, selects the appropriate transmission speed for the work being undertaken, allowing thedozer to run at its highest efficiency at all times.
Thanks to the Komatsu-developed new shape of the blade, thedozing capacity has increased, boosting the work capacity by 10%
compared to earlier models and raising the overall productivity of themachine. The machine’s digging capability has been also been
boosted through the use of a new end bit.
New Type of End Bit for Deeper Cutting

Full Model Change for the PC78UU HydraulicExcavator
The ultra-small turning radius PC78UU hydraulic excavator isequipped with an engine that meets Tier 3 (Stage 3A) emission standards. Using the latest “ecot3” (ecology & economy - technology 3)
engine technology has brought about a drastic reduction in NOx
emissions.
For better fuel efficiency, the operator can choose between two
operating modes on the monitor touch screen: P-mode, designed
for work where capacity counts and the emphasis is on working
speed and power, and E-mode, designed for fuel savings, where fuelconsumption is optimized for the operation being performed.
An “eco gauge” is displayed on the multi-monitor screen to help
operate the machine in an environmentally aware and energy saving
way, with low CO2 emissions and fuel efficiency improved by 5 to
10%.
To improve fuel efficiency and reduce operating noise, an idlingcaution is displayed on the monitor screen whenever the machine isleft idling for more than 5 minutes. A few seconds after placing theoperation lever in neutral, the automatic deceleration control decreases the engine rpm to prevent unnecessary fuel consumption.
The built-in silencer reduces the noise burden on the surroundings – the machine meets the noise regulation standards for lownoise construction equipment set by of the Ministry of Land, Infrastructure, Transport and Tourism.
Eco gauge

Improved cutting thanks to sharpened tip

Low-resistance shape adopted

Conventional End Bit●

The indication level changes with theengine horsepower (= torque x rpm)●

Fuel consumption is reduced while
operating in the green range

Hydraulic oil temperature gauge
Engine water temperature gauge

The thick tip encounters greater resistance in cutting

The shape offers more resistance tothe flow of soil

Function buttons

PC78UU hydraulic excavatorwith ultra-small turning radius

D375A large-size bulldozer

13

Multi-monitor

Fuel gauge

PC05 Micro Shovel

Biodiesel Fuel Project in Full Swing

PC05 Micro Shovel

Automated Machine Control/Guidance System
Komatsu uses Information and Communication Technology (ICT) tocollect electronic data in the course of manufacturing processes related to construction work such as surveys, design, construction, supervision, inspection and maintenance, and feeds this data back into
these processes to make them more efficient and more accurate. The
system provides for applying the electronic data obtained to other processes as well to improve the productivity of manufacturing processes
as a whole and control product quality.

In November 2009, the Komatsu Group together with theircustomer, the mining company Adaro Energy Tbk, and theirsales agent United Tractors Tbk (UT), reached a basic agreement on promoting a biodiesel fuel (BDF) project in Indonesia. The Adaro Mine in Kalimantan (Indonesian part of Borneo) plans to produce BDFs from jatropha and other plants
and use them to run the Komatsu dump trucks in operation
at the mine.
Substituting BDFs for light oil is considered not to increase the amount of CO2 in the atmosphere, because BDFs
are produced from plants that absorb CO2 during their growing stage. The targeted plant, jatropha, is a nonfood plantand grows even in poor soil.
At the Adaro Mine, Komatsu is building a BDF production
plant and a laboratory where the produced BDFs will be analyzed to maintain quality. Komatsu, as the manufacturer, will
guarantee the quality of the dump trucks running on BDFs at
the Adaro Mine.
As its part of the project, Adaro Energy Tbk will cultivate
the jatropha and other plants for BDF production, produce
BDFs from the harvested seeds and other plant parts, anduse the fuels to run the dump trucks in their mining operation.
As Komatsu’s sales and service agent in Indonesia, UT
will offer product support for the dump trucks.
Cultivation of plants that will become sources of BDFs isalready underway at the Adaro Mine, and work to construct
the BDF plant has also begun. The objective of the project is
to shift 100 dump trucks to BDF operation starting in 2012,
with the goal of achieving a reduction in CO2 emissions ofapproximately 20,000 tons, roughly the equivalent of 10% of
the CO2 emitted by Komatsu manufacturing facilities in Japan in the course of one year. The project also aims at making the mining operations more eco-friendly.

Environmental
Activities

The PC05 Micro Shovel is equipped with an engine that meets theself-regulatory emission standards set by the Japan Land Engine Manufacturers Association. (In Japan, the engine is classified as a small engine to which the regulations do not apply, but European and U.S. regulations cover engines with equivalent performance.)
The micro shovel is an environment-friendly low-noise construction machine. It was designated by the Ministry of Land, Infrastructure, Transport and Tourism as a low-noise construction machine(93dB: measured at a point 4m from the center of the machine body)
generating 6dB less noise than conventional machines.

SurveyProduct design

Product designfor manufacturing
Construction

Enhanced safety
Quality control
Enhanced construction efficiency

Maintenance

Enhanced engineering assessment
Automated
Machine Control/
Guidance System

Reduced environmental impact
Improved construction accuracy

Project members in the jatropha plantation at the Adaro mine

Within these processes, IT-based design of construction machinery makes it possible to localize a machine by comparing its position
information with three-dimensional design data, and allows it to perform automatic operations to facilitate the work of the machine operators.
Incorporating ICT greatly reduces the need for the traditionallyused guides and surveying work during construction and making
subsequent corrections, thereby reducing costs and shortening theconstruction period. Increased productivity and higher operation
rates of construction machinery as a result of shortened construction
periods lead to a reduction of CO2 emissions.
Internal test results have shown that the use of one D65PX-16 will reduce CO2 emissions by 7.7 tons per year compared with previous
Komatsu models.

14

Mitigating Climate Change

Developing Leading-edge Engine Technology

Environmental
Activities

Under the current emission standards for Japan, the U.S.A. and Europe, emissions of nitrogen oxides (NOx) and particulate matter (PM)are subject to strict regulation. However, with the next emission standards to be phased in from 2011, with the last phase in 2014 limiting
NOx and PM emissions to approximately one-tenth of current levels,
clearing these standards is expected to require advanced technology.
To reduce NOx emissions, the combustion temperature must be
lowered. But reducing the combustion temperature generally leads
to an increase in PM emissions and deterioration in fuel efficiency.
Engine developers are therefore expected to find a way to lower both
NOx and PM emissions while reducing fuel consumption at the sametime. In addition, engines for construction equipment that is used in
the most challenging operating environments must demonstrate theirfull capabilities, even when operated continuously at maximum output and maximum torque.
Komatsu’s design process for construction equipment engines
covers the entire range, from development to production. We design
our engines* for displacement classes from 3.3 liters, used on thePC120 medium-sized hydraulic excavator, for example, to 46 liters
for large-sized dump trucks. By designing the engine and the bodyas a complete package, and leveraging Komatsu’s in-house development and production of engines, hydraulic units, control systems
and major components, the company has attained exceptional performance under a variety of operating conditions. Komatsu will continue to complement its proprietary engine technology, developed
over many years, with the latest advances in engine technology,
while striving to strike a balance between increasing economic efficiency and, at the same time, lightening the burden on the environment.

Developing the World’s Most Efficient
Thermoelectric Module
Thermoelectric modules are devices that take advantage of the Seebeck effect, where two dissimilar metals are connected and a temperature difference is created at the connection point, causing a current to flow between the two metals. Marketing of these devices has
started through KELK Ltd., a Komatsu Group company.
Thermoelectricity has attracted a great deal of attention as a next
generation renewable energy source. Using this technology, theenormous amount of waste heat given off by factories, power generation stations, furnaces, and other facilities can be recovered as lowcost electrical energy. In particular, it may be possible to use thewaste heat continuously generated by factories as renewable energy,
a cheaper alternative than solar power.
Since October 2009, Komatsu has been conducting verification
tests with the heat-treating furnace at the Awazu Plant, and is using
the recovered energy for plant lighting. A wide adoption of waste
heat recovery from plants (50% adoption rate) in the future is estimated to bring about a reduction in CO2 emissions in the order of 1
million tons (Electric conversion : 2.9 × 109kWh ) annually in Japanalone.
Basic Principle of Thermoelectric Modules
N elements
P elements
Heat converted
into electricity
Electric
current* Includes some products developed jointly with Cummins Inc.

New Engine Meeting the Next Emission Standards in Japan, U.S.A.
and Europe

Heat applied

Photo created using computer graphics

Thermoelectric module

15

Verification test of the heat-treating
furnace at the Awazu Plant

Mitigating Climate Change in Business Operations
through shipping decreased by 30% compared to the 2006 reduction target base year under the revised Law concerning the Rational
Use of Energy of Japan.

Reducing CO2 Emissions in Manufacturing
Operations

100

86.8
324

300
288
250

239

287

316

78.7

78.4

71.6
66.3

200

80.0 or less
276

58.8
0

FY

1990

2000

70.0 or less72.7 70.4
55.0

300

366

353

366

342

340

327

314

311
254

200
100
0

FY 2006

2007

2008

2009

Target for 2010

Self-propelled Off-road Dump Truck on a Harbor Road

90
82.0

400

70

100
91.8

350

(t-CO2/
million yen)

80

(%)

100

400

Targeted and Actual CO2 Emissions per Unit of Net Sales
Generated though Shipping

Using Nearby Ports to Shorten Shipping Distances
Komatsu has been encouraging the use of nearby ports to shorten
shipping distances, and has also increased the size of shipped units
to large lots.
Use of Kanazawa Port by the Awazu Plant for shipping of construction equipment has risen by 13.8% (11.6%➡ 25.4%), and forshipping of freight containers by 32.6% (48.3%➡80.9%).
The Ibaraki Plant has stepped up use of the port of Hitachinaka,
resulting in a 31.0% increase in shipments of construction equipment(57.3%➡ 88.3%).
These efforts resulted in a reduction of CO2 emissions of 620 tons
per year.

CO2 Emissions(1000t)Environmental
Activities

As part of our efforts to mitigate climate change, Komatsu has adopted an indicator of CO2 emissions per unit of manufacturing value
with respect to the electricity, fuel gas, fuel oil, and any other type ofenergy used in our manufacturing operations. From 2007, the company has established even more stringent medium- and long-termtargets, setting a target of 20% or more reduction in CO2 emissions
by FY2010, compared to the FY2000 level.
In FY2009, Komatsu implemented improvements throughout thecompany, guided primarily by the All Komatsu Energy Saving Working Group. These included starting up of new high-efficiency production lines to cope with production increases, and dismantling of oldlines to improve production efficiency. As a result, CO2 emissions perunit of manufacturing value have decreased by 29.6%, compared to
the FY2000 level. For the fourth year in a row, Komatsu achieved its
medium-term targets ahead of schedule.

60

188

2005 2006 2007 2008 2009

0
Target for 2010

Manufacturing value: Total production cost excluding direct material cost, other facilities’
components, and procured components
Total amount of CO2 emissions of the entire Komatsu Group manufacturing facilities in Japan
CO2 emission index per unit of manufacturing value at Komatsu Group manufacturing
facilities in Japan (compared to FY2000)
CO2 emission index per unit of manufacturing value at Komatsu (non-consolidated)
manufacturing facilities (compared to FY1990)

Main Initiatives in the Manufacturing Division
Demand side

Upgrading from old production lines to high-efficiency production lines
Strict enforcement of cutting power to equipment not in operation
Refining drying processes (shift to low-pressure air blowers)
Introducing inverter-controlled pumps and motors
Adopting high-efficiency lighting to a greater extent

Supply side

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

Reducing CO2 Emissions in Logistics
Improving Shipping for Plants Adjacent to Ports andPromoting Modal Shift
In 2007, Komatsu completed the construction of its Ibaraki Plant adjacent to the port of Hitachinaka in Ibaraki Prefecture, and Kanazawa
Plant No. 1 adjacent to the port of Kanazawa in Ishikawa. In 2008
the company expanded the Rokko Plant and adapted more barges
for inland shipping to transport products shipped from Osaka port,
and in 2009 Kanazawa Plant No. 2 was completed, thereby reducing
CO2 emissions through the shortening of shipping distances within
Japan. At the same time, Komatsu has raised its modal shift ratio toachieve lower energy consumption per transportation unit. As a result, the amount of CO2 emissions per unit of net sales generated

Reducing CO2 Emissions in Non-manufacturing
DivisionsWith the revision of the Act on the Rational Use of Energy, all Komatsu business units are assessing the FY2009 CO2 emissions in an effort to achieve reductions. The energy consumption of non-manufacturing divisions, including the Head Office building, the Research
Division, two business locations conducting tests and demonstrations, four offices and five recreational facilities, is shown in the tablebelow. Komatsu is proactively moving ahead with assessing and reducing CO2 emissions, not limiting these efforts to Komatsu alone,
but expanding them to include the entire supply chain, from partnercompanies, sales agencies and rental companies to business associates.
Energy Consumption of Non-manufacturing Divisions (FY2009)
Main sales and after-sales
services divisions

Komatsu

Production(for reference)

Nonmanufacturing

CO2 (1,000 tons)

131.1

6.8

Crude oil equivalent(1,000 kl)

74.8

3.8

Main partnercompanies*

Sales ofconstruction
equipment

Rental

77.2

5.2

3.2

38.2

3.1

2.0

* 12 companies in Main partner companies, which use the energy more than 1500kl as the crude oil equivalent, as a result of a survey of partner companies

16Creating a Resource Recycling Society
Komatsu contributes to the creation of a resource recycling society by promoting on-site recycling through mobile crushers/recyclers/tub grinders, recovering and remanufacturing used components (parts), and effectively utilizing waste derived frommanufacturing operations.

Providing Solutions for Customers
Promoting On-site Recycling
Environmental
Activities

Komatsu offers high-quality efficient solutions that harmonize with
the nature to address environmental concerns facing society.
Promoting On-site Recycling through Mobile Crushers/
Recyclers/Tub Grinders
Komatsu’s mobile crushers/recyclers/tub grinders process lumps ofconcrete, exhumed earth, discarded wood, and other residuals generated at construction sites there onsite. Reusing these processed
residuals within the construction site has multiple merits. The volume
of waste generated can be reduced, cutting costs for transport anddisposal; fewer new materials need to be purchased, saving costs inresources and materials; and wastes are crushed and reduced involume, curbing CO2 emission and costs during transport.
Komatsu’s mobile crushers/recyclers/tub grinders are now in operation at a large number of construction sites, helping solve the environmental and cost challenges facing customers at one stroke.

Tree felling
Recycling

Tree planting
on slopes
Mulching
materials

Felled trees

Boulders
Unusable soil

Improved soil

Effective Utilization of Resources in the Development of Products
Structure of a Chlorine-free Hose

Adoption of Chlorine-free Hoses to Improve the
Recyclability Rate
The driven section of a hydraulic construction machine is operated
on hydraulic oil supplied to it through rubber hoses. Rubber hoses
account for 0.5 to 1% of the total mass ratio of a construction machine. A problem encountered especially with hydraulic hoses with
sleeve is that it is difficult to separate the sleeve from the rubber
hose, and with the protective cover of the rubber hose being madeof conventional chlorine rubber, the entire hose is treated as being
unsuitable for recycling. These hoses therefore represented a bottleneck in Komatsu’s efforts to raise its recyclability rate from 97% to99.5% (2010 target). (The Japan Construction Equipment Manufacturers Association set the target at 97%, Komatsu’s own target is
99.5%).
After carrying out continual fundamental research on chlorine-freematerials for hydraulic hoses from the beginning of 2000, and withpractical application of the results finally in sight, Komatsu has started to change over to chlorine-free hydraulic hoses in preparation formass production of vehicles meeting the next tier of emission regulations. To bring chlorine-free hoses to a practical level, Komatsu selected a protective hose cover that is resistant to both cold andgrease. Using its proprietary quality verification technology, the company conducted numerous tests, including long-term outdoor exposure tests and composite impulse tests, followed by long-term onboard tests to identify and overcome any problems. As long as nochlorine gets mixed in from other sources during the incineration process of chlorine-free hoses, no dioxin is generated, regardless of theincineration conditions. This means that the hoses can be recycled in
the same way as similar rubber products and metal compounds, using established recycling routes for ordinary tires, and are suitable formaterial recycling or thermal recycling by the same methods. (Chlorine-free hoses will be identified on the hose surface with the marking“CLF” (Chlorine-free).)17

PavingBanking

Roadbedmaterials

Hose sleeve
Rubber hose

Tube rubber

Protective hose cover

Reinforcing liner

Reuse and Recycling Activities
Promoting the Reman Business“Reman,” an abbreviation of “remanufacturing,” offers customers
the following benefits.
● Quality and performance guaranteed to be the same as those of
new components● Lower cost for “remanned” components than new ones
● Reduced construction equipment idle time through proper inventory levels of “remanned” components● Resource conservation and waste reduction through the reuse andrecycling of components
PT Komatsu Reman Indonesia Tbk (KRI), established in 2007 in
Jakarta, Indonesia, has begun to provide “remanned” components
globally, further bolstering the Group’s reuse and recycling activities.
PT Komatsu Reman Indonesia,
established in Jakarta, Indonesia

Reman Process
Inspection upon receipt
High-pressure cleaning
Disassembly

Environmental
Activities

In its “Reman” business, the Komatsu Group remakes used engines,
transmissions, and other key components of construction and mining equipment into “remanned” components (parts) having the same
quality as newly manufactured ones and provides them back to themarket. The Group is promoting the “Reman” business at seven Reman Centers around the world, with those in Indonesia and Chile
serving as global centers.

The supply of “remanned” components has begun on a global
level, further bolstering the Group’s reuse and recycling activities.
In 2009, a “Reman” plant for hydraulic excavators was established in
Jakarta, Indonesia, where remanufacturing of cylinders for electric
dump trucks and other components is underway. In Shuozhou, China, a “Reman” plant for components used on large-size mining
equipment was established in the same year to supply the needs oflarge mining companies.
Providing Reman-related Information
The Komatsu Group has set up “Reman-Net,” networking Komatsu
Reman Centers around the world. The Group is actively using thisnetwork to develop Reman operations for reusing and recycling components at the global level. IC tags and two-dimensional codes are
employed to manage items’ remanufacturing history and track their
quality and durability information. This important information is provided as feedback to the Group for developing components with appropriate life spans.
Acquiring ISO14001 Certification for Reman Centers
The seven Komatsu “Reman” Centers around the world have been
pursuing ISO14001 certification to further their environmental conservation efforts. Three of the centers have been certified and the remaining centers in South Africa, Indonesia (two centers) and China
are working to attain it. “Reman” centers are advancing environmental conservation through daily operations and inspections for maintaining and renewing their certification.
Future Steps
To further increase the reuse rate of used components (parts), theKomatsu Group is reducing the number of disposed parts by:● expanding the range of items covered under its “Reman” operations (to include engine sub-components, etc.)● developing parts made in suitable sizes and designed exclusively
for future remanufacturing● developing recycling-related technologies, such as thermal spraying technologies● setting up an ICT-based tracking system for remanufactured partsand promoting efficient logistics to reduce energy consumption.
The Group is also undertaking the “Reman” business in China,
Russia, India, and other emerging countries and regions, to further
advance recycling and reuse.

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

18

Creating a Resource Recycling Society

Effective Utilization of Resources in Business Operations
Amount of Water Resources Used by the Komatsu Group
Manufacturing Facilities in Japan

Effective Utilization of Resources in
Manufacturing Operations
Environmental
Activities(million m3)

Waste
In tandem with reducing the amount of waste generated during
manufacturing operations, Komatsu conducts zero emissions*1 activities to use waste materials as resources. The company continued
to achieve zero emissions in FY2009 through strict waste separation
and utilization of waste materials as valuables*2, boasting a recycling
rate of 99.1%. Komatsu achieved a substantial reduction of 40.6%of the amount of waste generated per unit of manufacturing value
compared with FY2005 (a 33.7% reduction compared with the preceding fiscal year), attaining its mid-term target.
This dramatic reduction was due to the fact that the Komatsu
Castex Ltd., Himi Plant sold nearly the same quantity of recycled
products made from waste molding sand as in the preceding fiscal
year, and succeeded in reducing the amount of dust treatment required, with a broad-based reduction in waste material disposal (decreased by approximately 6,000 tons from the preceding fiscal year).
This fiscal year, as well, Komatsu will encourage its Group companies to practice thorough waste separation, with the aim of continuing to achieve the company’s medium-term target.
*1 Komatsu defines“zero emissions”as a waste material recycling rate of 99%
or more.
*2 “Valuables”in this report refers to materials that can be sold to external companies.

Amount of Waste Generated by the Komatsu Group Manufacturing
Facilities in Japan(1,000 t/year)

40

(%)

200

200
33.0
30.4

30

34.1
29.8

29.8

150

113
100

99.8

99.2

99.2

99.2

95.9

99.0

99.1

89.6

59.4

20

85
99.2

10

0

1998

50

14.0

48.5
2004

2005

2006

2007

2008

2009

100

Recycled amountAmount of waste generated

38.2

2010

0

FY

Disposed amount
Recycled amountIndex per unit of manufacturing value
Recycling rate** Recycling rate is calculated by dividing the amount recycled (including valuables) by the amount generated (including valuables).

Water Resources
Since FY2006, Komatsu has taken up a new medium-term target ofachieving by FY2010 a 10% or more reduction in the amount of water used per unit of manufacturing value, compared with the FY2005
level. The company has attained this medium-term target for thesecond year in a row by reducing the amount of water used per unitof manufacturing value by 15.9%, through the reuse of water during
processing and the elimination of wasteful day-to-day practices.
In particular, Komatsu NTC Ltd. cut back on its groundwater consumption through measures such as implementing water recirculation and reducing the number of air conditioner chillers. As a consequence they were able to trim water usage by 6% per unit ofmanufacturing value compared with the previous fiscal year. In theyears to come, Komatsu will make further efforts to reduce theamount of water resources used and to continue to achieve its medium-term target.

19

(%)

100

10

92.4

90.4
82.2

9
8

84.1

90

8.82
8.16

8.18

100
80

8.38
60

7.56

7

40

6

20
5.44

0

2004

2005

2006

2007

2008

2009

0
2010 FY

Coverage of data: Komatsu Ltd. and the Komatsu Group manufacturing facilities in Japan
Supply waterIndustrial water

Groundwater

Index per unit of manufacturing value

Effective Utilization of Resources in Logistics
Packaging
Komatsu is keeping up its efforts to make returnable containers forcomponents and returnable cardboard containers for replacement
parts destined for plants outside of Japan, and has improved its
packaging return ratio by 7.7% (38.3 % ➡46.0%).
The company will continue to aim for a higher return ratio of returnable packaging in its operations and forge ahead with measures
to save resources.

Environmental Risk Management
To minimize environmental risks accompanying manufacturing activities, Komatsu is committed to thoroughly implementing pollution mitigation and prevention measures in strict compliance with the legal requirements of national and local authorities.

Status of Soil and Groundwater Cleanup in Japan

Promoting Compliance and Pollution Mitigation
and Prevention

Managing PCB Waste
Komatsu conducts appropriate storage and management of PCB
waste, such as transformers in accordance with Japan’s Law Concerning Special Measures Against PCB Waste and its Waste Disposal and Public Cleansing Law.
With the Japan Environmental Safety Corporation (JESCO) starting PCB waste treatment in Japan in FY2008, Komatsu entrusted
treatment of its 79 drums of condensers containing PCBs to JESCO.
In FY2009, 16 drums from KCX were submitted for treatment.
The company will arrange for early treatment of the remaining
PCB waste in FY2010 and thereafter at various JESCO locations.
As of March 2010, the Komatsu Group as a whole owned 583
drums of PCB waste, including in-use PCBs and PCBs in low concentrations.
Addressing Soil and Groundwater Contamination
The Earth Environment Committee has established guidelines in Japan for investigating the state of the soil and groundwater at Komatsu business units.
Komatsu performs investigations in accordance with applicablelaws and regulations at business units that are to be sold, closed, or
demolished and, if necessary, takes suitable measures under the supervision of the local authorities concerned. Komatsu also performed
voluntary investigations at currently operating business units to checkfor contamination by organic chlorine-based chemical compounds(VOCs), which had in previous years been used in cleaning solventsand in other applications.
Since 2005, Komatsu has surveyed VOC contamination of soil
and groundwater in Japan at Group manufacturing facilities, as well
as at its Research Division and other non-manufacturing facilities. All
business units where contamination was detected began remediation work. The company usually chooses remedial methods that canclean up the sites in as short a timeframe as possible. Remedial workat the Oyama Plant was completed in FY2009. With the closing of
the plant facilities of a former affiliate in the Shonan Plant, an investigation according to the Soil Contamination Countermeasures Act
was carried out and the result was reported to public authorities. The
site was declared a so-called “designated lot,” because fluorine levels exceeded standard values in some areas, and has been placed
under environmental management, as prescribed by the law.
Komatsu will execute reliable cleanup measures and maintain its
monitoring of site boundaries to ensure that groundwater that does
not meet environmental standards is contained within the premises.

Presence ofcontamination

Cleanup method

CleanupstatusExcavation and removal, soil vapor extraction
Awazu Plant

Yes

Komatsu Plant

Yes

Groundwater withdrawal and aeration,bioremediation
Excavation and removal, groundwater
withdrawal and aeration

In process

In process

Bioremediation
Komatsu Ltd.

Komatsu Utility

Soil vapor extraction, air sparging
Osaka Plant

Yes

Oyama Plant

Yes

Excavation and removal, bioremediation

Completion in
FY2009

Shonan Plant

Yes

Excavation and removal, groundwater
withdrawal and aeration

In process

Tochigi Plant

Yes

Excavation and removal, bioremediation

In process

Groundwater withdrawal and aeration,bioremediation

In process

Environmental
Activities

Komatsu Group companies are responsible for reporting environmental measurement results periodically and archiving them in strict
compliance with applicable laws and regulations of national and local
authorities. In FY2009, the Komatsu Group experienced two minor
environmental infractions in Japan and for all cases corrective measures have been completed. The Group had no major accidents inwhich the environment was polluted in Japan.

Business unit

Surveys revealed no contamination for the Komatsu Mooka Plant, Koriyama Plant, Research Division in Hiratsuka, Techno Center in Izu, and Field Testing Department in Notsu.

Renovating Underground Tanks
Komatsu is systematically replacing underground tanks that havebeen in operation for more than 20 years with double-walled aboveground tanks and eliminating them or consolidating them in Japan.
The underground tank at Komatsu Cabtech Co., Ltd. scheduled to
be decommissioned in FY2009 was actually decommissioned andremoved in FY2008 after a kerosene boiler was converted to a gasfired type. Komatsu will continue to address underground tanks thatpass the 20-year operation mark as new cases come up.

T O PICS
Energy Conservation Grand Prize inthe “Awards for Personnel" Category
Sadao Nozawa, in charge of promoting energy conservationin all Komatsu companies, was awarded the newly-created
Energy Conservation Grand Prize in the “Awards for Personnel” category by the Minister of Economy, Trade and Industry
at the 2009 Energy Conservation Monthly Awards Ceremony.
The prize was awarded in recognition of his contribution
to energy conservation in the industry. In addition to the numerous improvements he made at various business units, heproactively participates in an expert capacity in energy conservation activities outside the company, acts as adviser at JICA and asa member of energy conservationgroups, is involved in more than 100
activities, including seeking out business units of excellence and carrying out screenings, guidance andlectures.

20

Environmental Risk Management

Reducing the Use of Substances of Environmental Concern and Complying with the EU REACH Regulation

Environmental
Activities

Responding to the increase in environmental conservation awareness around the world, Komatsu has been making efforts from anearly stage to reduce the use of asbestos, lead, and other substances of environmental concern.
In FY1999, Komatsu stipulated its own list of banned substancesand substances approved for use only in limited circumstances (seechart left), using as its base the chemical substances banned underJapan’s Law Concerning the Examination and Regulation of Manufacture of Chemical Substances Control, as well as other regulationsin individual countries. At the same time, Komatsu began comprehensive control of substances of environmental concern. The com-pany has already reduced its dependence on substances approved
for limited use, in keeping with its medium- and long-term targets fordeveloping environmental technology.
In response to the enactment of the EU regulation addressing
Registration, Evaluation, Authorization and Restriction of Chemicals(REACH) in 2007, Komatsu reviewed the list of substances approved
for limited use and revised the designation of certain substances to“reduced” or “banned,” as appropriate. Through cooperation with
suppliers, the company has initiated a system to strengthen controlof substances of environmental concern in products. The systemcame into effect in Japan in FY2009.

Substances of Environmental Concern Banned or to Be Reducedfor Use in Products

Control System for Substances of Environmental Concern

Designation
BannedNumber of
substances
10

Name of substance
PCBs Asbestos Specified chlorofluorocarbons/ hydro chlorofluorocarbons(HCFCs) Trichloroethylene Triethanolamine Chromium (VI) *2 Cadmium *2
Polybrominated biphenyl (PBB)/ polybrominated diphenyl ether (PBDE) *1
●

●

●

●

●

●

●

●

To be reduced(subject to limited use)

16

●
●
●
●
●
●
●
●
●

Substances ofVery High Concern (SVHC)
under the EU
REACH regulation(30)

Lead Mercury Arsenic Selenium
Hydrofluorocarbons (HFCs)
Methanol Hexachlorobenzene
Specified phthalate ester (DEHP/DBP/BBP *4, DIBP *3 *5)
Hexabromocyclododecane (HBCDD) *1
Specified polycyclic aromatic hydrocarbons
Perfluorooctanesulfonic acid (PFOS)
Organotin compounds
Short chain chlorinated paraffins●●

Design●Inputting specifications of substances ofenvironmental concern contained in products

●

●

●

Komatsu is currently examining whether to designate the following substances,which might be used in Komatsu products, as substances to be reduced.
Lead arsenate/ diarsenic pentaoxide/ diarsenic trioxide
Triethyl arsenate
DEHP/ DBP/ BBP *4, DIBP *3 *5
Short chain chlorinated paraffins
Bis (tributyltin) oxide

●

●

●
●

Sending informationon technical

CAD systemdrawings(technical drawings)●●

Control system for
substances ofenvironmental concern

Procurement

Checking for targeted
substances upon releaseof technical drawings
Checking for targeted
substances upon parts
registration
Responding to survey
results
Summarizing information
on targeted substances●

Sendingsurvey forms

Database forparts subjected
to surveys●

Supplier survey
management

Table listing
substances ofenvironmental
concern●●*1: Specified brominated fire retardants*2: Substances completely banned starting January 2010
*3: Substances newly banned or to be reduced*4: Diethylhexyl phthalate, dibutyl phthalate, benzyl butyl phthalate*5: Diisobutyl phthalate

New Medium- and Long-term Targets
Set to Reduce CO2 Emissions of
Manufacturing Facilities– Striving for Still Greater Reductions –Komatsu had initially adopted the energy consumption per unitof manufacturing value (converted to calorie equivalent) as an indicator in its activities to save energy in its manufacturing facilities, working toward its own self-imposed target of a 25% reduction from the 1990 level by 2010*.
In FY2005, the indicator was changed to CO2 emissions perunit of manufacturing value in an effort to mitigate climatechange, and the 2010 target of a 25% reduction compared withthe 1990 level was reached ahead of time, namely in 2006.
From FY2007, the company established still more stringent
medium- and long-term targets, setting a target of a 20% reduction from the FY2000 level by FY 2010* (equivalent to a 30% reduction compared to 1990), and adopted this target for all manufacturing facilities in Japan. This target has already been reached,
and future results are also expected to fall within the target range.
To bring about improvements, Komatsu has promoted activities such as search, evaluation and adoption of new proposals for
improvement, horizontal development of valid proposals, and21

Generating summary formodel under development

Supplier A

BOM

SupplierB
Sendingcompletedsurveysstandardization of proposed improvements at the All Komatsu
Energy Saving Working Group, mainly through the energy administrator in each plant, and at the same time has proactively pursued the exchange of views on technologies with other companies.
This year, Komatsu has established new medium- and longterm targets (see chart below) to contribute to climate control in
anticipation of the post-Kyoto Protocol global framework. The
new target is to reduce CO2 emissions in the medium-term(FY2015) and in the long-term (FY2020) not only in Japan but in
Komatsu manufacturing facilities worldwide. The long-term targets for 2020, providing for a reduction of CO2 emissions of 43%
compared to the FY1990 level in Japan and a reduction of 44%
compared to the FY2005 level outside Japan, were set at very
ambitious levels.
To achieve these targets, the All Komatsu Energy Saving
Working Group will step up its activities, and the results achieved
and the know-how gained at the working group meetings will
also be passed on to New Medium- and Long-term Targets (CO2
manufacturing facilities Emissions per Unit of Manufacturing Value)
outside Japan.
Medium-term Long-term*: FY 2010 target
Average for FT2008 to
FY2012plan FY2015

plan FY2020

Domestic Group companies
as compared to FY1990

▲40%

▲43%

Overseas Group companies
as compared to FY2005

▲41%

▲44%

Biodiversity
Komatsu’s will maintain its commitment to protecting biodiversity in its business activities, recognizing their impact on the ecosystem.

Initiatives of Business Sites to Promote Biodiversity
Planting Trees in Indonesia
Joint research since 1991 between Komatsu and Indonesia’s Forest
Research and Development Agency (FORDA) has yielded the world’s
first successful mass-production of Dipterocarpaceae tree saplings
from cuttings.

Environmental
Activities

On the earth, there are the forests, grasslands, mountains and rivers
forming the habitat for a large variety of creatures, each one forming
part of ecosystems specific to their geographic location and climate.
Human well-being depends to a large extent on ecosystem services based on biodiversity. It is said that unless effective measures
are taken to stop the continuing loss of biodiversity, the future of
mankind will be in danger.
While Komatsu had until recently left activities in this field up to individual business sites, amidst calls for protecting biodiversity, the issue came to be perceived as another pressing management issue,
leading to a Guideline being drawn up in FY2010 which to serve as
the basis for measures to be taken by all business sites.

The Oyama Plant’s Activities to Protect the
Ecosystem
Several decades ago, the Oyama Plant built an unlined pond toserve as rainwater reservoir. While the site was managed to prevent
accidents due to unauthorized access, it became a haven for fish
and birds.
By now the 10,000-ton natural pond has become the home ofvarious fish species, wild ducks, kingfishers, blue herons and, seasonally, cormorants.
In summer, wild hawks have been seen at the site.
The surroundings of the site are inhabited by Japanese pheasants that are raised at the plant, and people come to enjoy the 47year old weeping cherry tree in bloom.

Cultivating saplings

Current state

Planned Use of Vacant Lot at the Komatsu Plant
Plans for a vacant lot at the Komatsu Plant include using it to cultivate
plants typically grown in the region, making the site available for local
people to relax and for environmental education of local school students, and installing equipment for scientific experiments.
Training Building

Classrooms

Memorial Building

February 2010: Swans pay their firstvisit

Wild ducks swimming in the pondthat has been left to revert to nature

Satoyama (Nature area)
Vacant lot at the Komatsu Plant

Japanese pheasant raised at the plant

The 47-year old weeping cherry tree,
which is as old as the Oyama Plant

22

Special Story

2

Corporate Social Responsibility andUnmanned Dump Truck Operation System
Autonomous Haulage System(AHS) is a completely new
mining system solution offered by Komatsu. Consistingof a fleet of mainly autonom o u s s u p e r- l a r g e d u m p
trucks, the system is designed to help our customers
optimize their entire mining
operation. AHS is our contribution both to the environment and to our customers.

Social Mission and Contribution to Customers
Automation has been a long-time dream for the mining industry, and AHS will help realize this dream.
AHS allows unmanned operation of multiple super-large
dump trucks at mining sites, enabling customers to manage
their fleets with fewer drivers. This helps protect employees
from hostile working conditions and, at the same time, reduces operating costs.
It also helps improve safety, by significantly reducing accidents caused by driver error. AHS also optimizes driving performance, which improves productivity and reduces fuel andtire costs.
A large portion of the digging costs come from the running and hauling of the dump truck fleet. Not only does AHS
optimize this part of the operation, by coordinating the fleet
with other manned vehicles, it optimizes the entire mining operation and makes it more visible.
The demand for mining companies to develop mineral resources is increasing year on year. New mines must be developed, but up to now, developing new mines in remote andunfavorable locations was not economical, because of theharsh working conditions, high labor cost, and large expenses for transportation and suitable worker accommodations.
Automation helps mining customers operate with a minimum
number of workers, whose main duty is to monitor dump
trucks from a fleet control center. This system not only reduc-23

es running costs, it also increases productivity and creates
jobs in remote areas.
AHS also helps our customers realize their social mission,by helping to protect the environment, conserve energy andpromote efficiency. With AHS, the dump trucks run at a
specified speed; there is no unnecessary acceleration or deceleration, which leads to better fuel efficiency and lower CO2
emissions.
Enhancing Joint Development Efforts with Customers
and Distributors
We pursue the development of AHS together with our customers and distributors as one integrated effort. We listen to
the needs of customers directly at the job site, and use thisknowledge for creating real solutions that meet our customer's needs. For this purpose, Komatsu and our distributors
have established offices at the mining sites, so that we areable to work side-by-side with our customers and immediately respond to any requests.
Komatsu is committed to partnering with our customers
through close collaboration on AHS, and form a strong relationship through ongoing dialogue.

AHS Contribution to Customer’s Mining

Efficiency
・Optimal operation through autonomous running・Decrease in overall costs
・Facilitation of new mine development

Environment

Safety・Lower CO2 emissions(Greater fuel efficiency
and longer tire life)

・Eliminates driving
accidents caused byhuman error

VOICE[ From the Distributor ]AHS System Configuration
AHS consists of unmanned dump trucks, manned non-truck
vehicles, and an operation management system that manages
the entire mining operation.
Unmanned Dump Trucks
T h e 9 3 0 E s u p e r- l a r g e d u m p
trucks are used as the base model, and are equipped with various
devices that make unmanned operation possible. This onboard
equipment helps realize safe andprecise unmanned dump truck
operation.
Manned Vehicles
Various manned vehicles operate together with the unmanned
dump trucks. The operation management control room isequipped with GPS to monitor the location of the manned vehicles. It also has an AHS control panel, equipped with an emergency stop button for the unmanned dump trucks, for the rarecase where the trucks may need to be suddenly stopped.

Activities
for Society

Jeffrey Dawes
President,
Komatsu Cummins Chile Ltda.

The main focus of the Chilean mining industry is on sustainability.
Within this broad goal, Komatsu is striving to develop andapply state-of-the-art technology to help our mining clients
meet and exceed safety and environmental standards. The
Komatsu Autonomous Haulage System (AHS) trucks are an
important step in this direction.
Our customers want their suppliers to add value by being
part of their value chain. Offering products and services that
support sustainable mining is considered strategic for reducing the "social and environmental accident rate" that is connected with mining activities. For this reason, the Komatsu
AHS is considered ultimate innovative transportation andloading alternatives in Chile. In terms of safety, the AHS truck
does not require an on-board operator, so complex or potentially hazardous tasks can be carried out without placing personnel at risk. The computer system that controls the autonomous truck can run continuously, without get stressed or
tired, like its human counterparts. Day or night, good weatherof bad, the AHS truck works in exactly the same way, all thetime. That's the AHS.
In December 2005, 5 unmanned dump truck fleet wascommissioned on trial at Codelco Norte's Radomiro Tomicmine in Northern Chile. Codelco subsequently deployed a fullfleet of 11 units at the start-up of the Gabriela Mistral Mine
(formerly the Gaby Mine), approximately 120 km south fromCalama in the north.
There are numerous advantages to using the Komatsu
AHS: a continuous load transport process (every miner's
dream), higher productivity, lower transportation costs, reduced accident risk, and lower overhead – all of which resultin less impact on the environment.

(1) Loader(2) Patrol vehicle(3) Motor grader(4) Bulldozer

Operation Management System
The operation management system is operated out of the operation management control room. It comprehensively controls
the unmanned dump trucks and the manned vehicles through a
network. The system provides the latest course data and running condition settings for the unmanned dump trucks and position information on all vehicles. Together with movement control, the system helps support mining production and work
efficiency.

Operation management control
room (external view)Operation management control
room (internal view)24Special Story

3

Landmine Removal andRegional Reconstruction in Angola
A 2008 project for regional reconstruction that Komatsu jointly commenced with the Japan Mine Action Service (JMAS), a non-profit organization registered in Japan, is making steady progress in the African countryof Angola.
The civil war that followed Angola’s independence from Portugal in 1975, and that continued until 2002, is said to haveleft 6 to 15 millions of landmines still buried throughout thecountry. Following similar activities in Cambodia, a KomatsuJMAS landmine removal and regional reconstruction project
is now underway on Angolan soil, taking the form of a government-private sector joint project supported by the Japanese and Angolan governments with Sumitomo Corporation
and Toyota Tsusho Corporation also participating in the project.
Regional Reconstruction Combined with Human
Resource Development through Technology Transfer
The project site in Angola is located 70 kilometers northeastof the capital of Luanda, in the Mabubas district of Bengo
Province. The objective of the project is to demine 100 hectares of minefields around rural communities and to improve

the living environment. Measures such as developing vegetable plots and securing water resources for domestic use arebeing taken to help the local villagers become self-reliant.
An opening ceremony held on April 20, 2009 signaled theofficial start of the project. As in Cambodia, Komatsu provided a demining machine for anti-personnel mines, together
with other related equipment, such as a hydraulic excavatorand a bulldozer for work on the site. The staff of JMAS and
the Angola National Institute for Demining (INAD) are playing
a key role in the demining work, which is being performed in
extreme 50-degree Celsius summer heat and under scarcewater conditions.
The machines are subject to intense wear on the slopesof the wooded, stony minefields, making the job of replacing
consumable parts and resolving technical breakdowns a critical one. That is why it is very important to transfer the technology that the INAD staff needs to handle this job on theirown. In the meantime, steady efforts are underway to overcome the language barrier and to motivate and inspire people
with the will to work.

VOICE

Yoshinao Doi
Angola Site Representative, Mine Disposal Expert
Japan Mine Action Service (JMAS)
NPO registered in JapanOne thing that has concerned me during the year that I havespent at the Angola site is that there is land, but hardly any farmers, and that there are people, but no human resources.
We are currently working on transferring technology that will
enable the local population to use machines in their agriculturaloperations.

Luis de Assuncao Pombal Filho
Mechanical Demining Squad Leader,
INAD/JMAS Joint Project
Angola National Institute for Demining (INAD)

Mine disposal work started in April of last year. During the one
year since then, I was able to learn a lot – from JMAS-style andKomatsu-style operation and maintenance technology, to safety
management and operating a PC.
Komatsu machines can handle demining even on the most25

We are also helping with community reconstruction, while atthe same time stepping up efforts to make the local people feel
more self-confident.
I think the country has been largely prevented from developing its human resources. Together with its historical and cultural
background, Angola has undergone a 27-year civil war that has
made it difficult for people to get a proper education.
We JMAS members enjoy the sweat and hard work that thissevere environment demands of us, forgetting our age and using
the skills we learned when we were young. And, we also remember the poverty we experienced ourselves as youngsters. I am
grateful for the opportunity to be here.

difficult terrain, or when confronted with rocks, large trees, andsloping land. I think the job they do is superior to what can beachieved with the methods that the squad members use or withthe machines INAD has. We have been selected as the skilled
squad members using this high-performance machine.
I hope that Komatsu will continue to lend its full support tothis mine disposal activity. In the future, I would like to apply for
additional training in electrical engineering related to these machines.
Thanks to everyone at Komatsu. When I get my salary every
month, I turn to the Japanese flag and greet it with “Obrigado”(Thank you).

Developing Together with Employees
Komatsu endeavors to foster a safe and comfortable work environment by implementing measures to reduce workplace risks
and administering a personnel system that accurately reflects the abilities and achievements of employees, an extremely important corporate asset.

Komatsu’s Relationship with Employees
Enhancing the Quality and Reliability of
Employees
For a business, it is said that people, goods, money, information, andtime are valuable assets and resources. Even if the other elements
remain constant, if “people” change, the results will be different.
Thus, people—the employees of Komatsu Group companies— arean irreplaceable asset for the Group. Komatsu recognizes the role ofthe personnel system in enhancing the quality and reliability of thecompany’s human resources. It therefore endeavors to foster a work
environment with opportunities for challenges and creativity. The
company works to maximize the sum of trust given to it by its employees.

Personnel systems reflect the history and culture of each particularregion. It is therefore important to recognize and correctly understand those differences. At the Komatsu Group, the basic policies for
personnel systems common to all Group companies around theworld are found in Komatsu’s Code of Worldwide Business Conduct
as stated below. Each region uses these policies to formulate a personnel system that has a competitive edge over other companies.
Chapter 5 of Komatsu’s Code of Worldwide Business Conduct(1) The uniqueness, character and privacy of individual employees
shall be respected.
(2) Employees shall be fairly appraised and treated. They will not be
unjustly discriminated against for reason of national origin, race, religion, age, sex, disability or other factors. Should any form of violation be discovered, such as sexual harassment or any other unlawful employment practices, it will be investigated and appropriate
actions will be taken.
(3) In developing and implementing personnel policies, accordancewith the understanding of employees must be ensured. Human resource policies and procedures shall be disclosed to the employees as appropriately and fully as possible.
(4) In each region, the Komatsu Group will comply with the ordinances
concerning the rights of employees.

In addition to these policies, the Group also prohibits the use ofchild labor, which is a problem in certain regions around the world.
Komatsu has set forth Komatsu’s Five Principles for Hiring, namely:(1) the company does not consider age or gender in hiring decisions;(2) the company does not consider national or regional origins in hiring decisions; (3) the company does not consider religious affiliation
or beliefs in hiring decisions; (4) the company does not consider the
existence of disabilities that are not job performance related in hiring
decisions; and (5) the company gives significant consideration towork experience at other companies or in other industries in hiring
decisions. Komatsu conducts its hiring practices based on these fiveprinciples, which are disclosed on its website.

Personnel System that Accurately Reflects Employee
Abilities and Achievements
Personnel systems in Japan are typically based on the assumptionthat employees will work for a single company for many years.
Therefore, when designing a system, a company must keep in mind
the degree to which continuous employment should be considered.
Komatsu believes that personnel systems emphasizing length of service do not necessarily reflect employees’ abilities and achievements
fairly. Instead, Komatsu has always strived to accurately evaluate theperformance of employees as individuals, incorporating employees’
achievements and abilities into its personnel system as the basis forfair evaluations.
Developing Human Resources Globally
The development of global human resources is an ongoing theme forthe Komatsu Group. To maximize corporate value, while growing together with its employees, Komatsu is setting the following policy inan effort toward further developing its human resources.

Activities
for Society

Basic Policy on Global Human Resources

Komatsu’s Initiatives

Basic Policy on Education and Training◆ Each employee should set high goals, be self-reliant and self-motivated in acquiring knowledge and skills.
◆ The Company should support employee career development
through the implementation of necessary education for both thecompany and employees in a focused manner.
◆ The objective of the education policy is "education", facilitating theongoing growth of the company and its employees.

While fulfilling basic and specialized education in fields such as
research and development, production, and sales and after-sales
service, the Company is also supporting the acquisition of the necessary attitudes that go with knowledge and skills, at every level in thecompany, from new hires to management. Furthermore, we intend topromote human resource development on a global, Group-wide basis, including the training of employees outside Japan, as well as theemployees of our business associates.
Formulating the KOMATSU Way and Extending TQM
Training Company-wide
In Komatsu's history of growth and development, there has emergeda clear sense of the corporate strengths that are “quintessentially
Komatsu.” The basic attitudes, values and convictions that support
those strengths and the style by which the company puts them into
practice were set down in writing in 2006 as The KOMATSU Way.
Komatsu wants all Group companies, including those outside Japan,
to share these guiding principles. The KOMATSU Way highlights thecontinuous reforms towards greater Quality and Reliability, the importance of the individual workplace (Genba), and the ability of employees at each level to swiftly implement management policies andtransfer them into practice. Komatsu has long utilized Total Quality
Management (TQM) training to support employees in improving
these capacities. While sharing The KOMATSU Way, the company
will extend TQM training to all employees globally, with the aim ofstimulating continual improvement and increasing the vitality of theorganization.

26

Developing Together with Employees

Efforts toward Nurturing the Next Generation of LeadersSince 1996, Komatsu has a system in place for selecting and nurturing business leaders, to train the next-generation leaders who willtake an active role on the global scene. Every year we continue thisprocess of nurturing leaders that not only possess knowledge, but
are also an embodiment of The KOMATSU Way. Komatsu's president as well as many other directors have participated as lecturers inthis program, for the purpose of developing their successors.
We have been holding Global Management Seminars since 2006
to increase the management capabilities of employees in our overseas subsidiaries. The purpose of the seminars is to deepen the understanding of Komatsu’s corporate strategy, The KOMATSU Way,and of leadership in general, and provide opportunities to engage ingroup discussions. On the last day of training, participants are given
the opportunity to submit proposals to top management.
In 2009, seminars to train middle level managers from overseas
were inaugrated, with the first seminar being held in Shanghai, China.

Creating a Comfortable Work Environment
For a company to create a safe and comfortable work environment,
it must treat employees fairly. Komatsu has already changed its personnel system to the kind described earlier that better incorporates
abilities and achievements. To ensure fair and appropriate evaluations for each individual employee, in April 2004 the company organized refresher training for all managers on how to conduct evaluations. Since then, evaluation training has been given to newly
appointed managers, backed by e-Learning based follow-up education. An evaluation committee has been established jointly with thelabor union at each business unit to confirm that evaluations are conducted properly. Komatsu has provided individual feedback on evaluations to managers since 1998 and to non-managerial employees
since 2001. The company has also set up a consultation officethrough which employees can express complaints and concerns.

Activities
for Society
In December 2009, 21 people from 9 Komatsu Group companies in China
took part, discussing the meaning and practice of The KOMATSU Way and thedevelopment of human resources.

Efforts to Strengthen Manufacturing (Monozukuri), andWorkplace (Genba) Capabilities
Globalization of Komatsu's production organization is progressing,and the manufacturing workplace is requiring a high level of technicalcapability. We designated the third Saturday of every October as"Technical Capability Day" and hold all-Komatsu technical competitions on this day. Participants include employees from overseas subsidiaries and business associates; whose aim is to maintain and improve Komatsu Group's technical capabilities by mutually dedicating
themselves to their studies. In FY2009, 37 participants from 10
countries overseas attended.

Komatsu established the Meister system for passing down technical capabilities from the production site in FY2006. Techniques andskills that merit handing down are divided into 9 fields of 15 capabilities, and a First Meister is certified for each capability. Certified Meisters (there are 37 as of April 2010, and are authorized by each factory), who are certified for their high-level of proficiency for a particulartechnical capability, dedicate all of their time to guiding and nurturing
young employees.

27

T O PICS
Sharing the Joys of"Business Trip Work"
Currently (as of April 2010) there are 13 mentally disabled
persons working at Komatsu's Human Resources Business
Creation Center. Their work includes sorting mail in the mailroom at the head office, collecting and delivering mail to eachdepartment, as well as "business trip work", going to various
departments and supporting their work activities according
to the department's needs.
In addition to helping improve the efficiency of the work
activities in the particular departments, the employees also
enjoy the benefit of a wider variety of places to work andtypes of work to do, making their job more worthwhile andrewarding. Komatsu is striving to increase not only the proportion of such employees, but also the quality of their work
experience.

Mr. Yoshiyuki Ishii (right) of the Business Creation Center works threedays a week, outside of his daily routine activities at the corporate
communications department. He organizes newspapers and inputs
data on PCs, and handles any work that comes up unexpectedly.

Further Enhancing Diversity in the Workplace

Enhancing Work-Life Balance
Reducing the total number of actual working hours is one of the key
aspects in achieving a healthy work-life balance for employees. Komatsu has worked in coordination with labor unions on this issue toformulate numerical targets, which are now set at 2,100 or lessworking hours per year, and at least 15 days of paid vacation taken
per year. The company has brought down to an average level theworkload of divisions that are chronically shouldering intense levels of
operations by hiring more employees, both newly graduated and experienced, and investing in necessary facilities and equipment. Komatsu has each workplace formulate concrete Action Plan for seriously addressing working hours management. These plans enforce
appropriate numbers of working hours by reducing overtime and encouraging employees to take more paid annual leave.
Employing Persons with Disabilities
As of April 2010, 1.9% of employees at Komatsu were persons withdisabilities. Recognizing the need to enhance its hiring rate of persons with disabilities, in April 2008 Komatsu established the Business Creation Center within the Human Resources Department. The
Center is designed exclusively for increasing the hiring of persons
with mental disabilities. As of April 2010, 13 people with such disabilities were employed by Komatsu, raising the rate of employment
for persons with disabilities compared to the previous year. In thesame month, we also established a branch office of the Center in
Ishikawa. Komatsu is determined to make an effort to employ moredisabled persons in the years to come.
Eco-commuting Allowance System Trial
The Eco-commuting Allowance System was introduced on a trial basis in April 2010. Eco-commuting means environmentally friendly
commuting, where employees leave their car at home and walk, ridea bicycle or use public transport, such as the bus or train, to com-T O PICSCollaborating with Educational
Institutions
Industry-Academia Collaboration
Komatsu has concluded industry-academia collaborationagreements to pursue leading-edge technologies collaboratively with four universities in China and Japan, namely Shandong University in China and Yokohama National University,
The Graduate School of Engineering of Osaka University, andKanazawa University Graduate School of Natural Science &Technology in Japan. The company also held the Osaka University-Komatsu Joint Research Symposium in cooperation
with The Graduate School of Engineering of Osaka University
and a series called Lectures in Cooperation with Society
jointly with the School of Engineering of The University of Tokyo. In convening these fora, Komatsu aims to researchtechnologies for an increasingly diverse society, while also
nurturing human resources who will advance academic andsocietal developments.
Scholarship Program for China
Komatsu's Chinese subsidiaries, Komatsu (China) Ltd. andKomatsu (Shantui) Construction Machinery Co, Ltd. have established the Komatsu China/Japan Scholarship Fund scholarship program for students of Shandong University. The objective of this program is to contribute to the development of
talented individuals in China, primarily in the area of technological development. Komatsu (China) Ltd. contributes
60,000 yuan (approx. 800,000 yen) per year to the fund, witha long-term collaboration to developing skilled individuals,
whom they are employing locally.
The scholarship award ceremony was held in Shandongon November 19, 2009, in conjunction with the KomatsuGroup company briefing.

Activities
for Society

Gender-equal Opportunity
Currently, the number of women in managerial positions is low compared with the number of men, and Komatsu recognizes this as an
issue to be addressed. Childcare leave and shorter working hours
are among the working conditions that would contribute to an environment that facilitates productive careers, particularly for women. In
2007, Komatsu acquired the Japanese Ministry of Health, Labourand Welfare mark designating companies that assist in the growth of
the next generation. Since then, the company has advanced discussions on working conditions through the appointment of seven female employees to a newly launched Panel on Fostering Future Generations. The four major recommendations from the Panel wereincorporated into labor agreement revisions for FY2007, further improving the company‘s approach in this area. These recommendations were: (1) allocating five days of special leave for cases of employee pregnancy, delivery by the employee’s wife, and childcare by
the employee (such as to take care of a sick baby or toddler); (2) extending the eligibility period for shorter working hours from March 31
after the child turns age four to the child’s completion of the third
grade at elementary school; (3) providing monetary allowances forchildcare leave beyond the amount required under the law; and (4)providing financial support to offset the costs of nursery schools andbabysitters.
The number of female managers increased from 20 in March2010 to 23 as of April 2010, and the number of employees taking
advantage of the system for childcare leave increased from 31 in
FY2008 to 34 (including one male) in FY2009. Komatsu will continue
its efforst to establish working conditions that take into account theneeds of working parents.

mute to work, in an effort to reduce CO2 emissions. Every personthat uses eco-commuting can reduce CO2 emissions by 1.4 tons ayear, equivalent to the amount absorbed by 100 cedar trees (of50–year-old).
This activity is also endorsed by the labor union, as part of an initiative for contributing to society through activities that are "close tohome" for our employees.

Commemorative photo of the recipients of the Komatsu China/Japan
Scholarship Fund scholarships

28

Developing Together with Employees

T O P IC S
Accelerating Pace of Global Human Resource Development
Komatsu is focusing on developing after-sales service personnel of distributors in emerging nations and our strategic markets. This
contributes to local community development as well as job creation.

Activities
for Society

Developing After-sales Service Personnel Leaders at Service Support Centers
It is imperative that Komatsu provide adequate product support
that is fully embedded in the region, to ensure that customers
world-wide can use Komatsu construction and mining equipment with confidence and peace of mind.
By developing leaders from among our distributor’s service
personnel, we strive to raise the level of product support. We
have established Service Support Centers at our distributors
worldwide and have permanently stationed one service employee from Japan to provide one-on-one guidance to the distributor’s service employees. In the future, these local service employees will become leaders, thereby raising the overall level of the
distributor. Since this initiative started in 2006, to date, we haveestablished Service Support Centers in 18 locations, with another 15 locations already planned.

Developing Human Resources in the Emerging African
MarketIn recent years, with increasing demand in West Africa due to improvements in infrastructure and mining development, the allocation of equipment is dramatically increasing. Because there is limited local industry, securing personnel with technical service skills
is difficult, so the hiring and training of high-quality service personnel is an urgent matter.
With this in mind, Komatsu established the Komatsu Dakar
Training Center in May 2009 at its West Africa regional distributor
BiA in the Republic of Senegal, to concentrate efforts on training
personnel on basic service technology. We are taking service
employees from distributors within the region and grouping theminto six-person teams, providing them with a nine month training
curriculum -- three rounds of one month of group training together plus two months of training in their local area.
With aid from the Japanese Government, the Vocational andTechnical Center of Senegal/Japan was established in 1984.
Many of the graduates of this center are now working at Komatsu distributors. The possibility of holding specialized training for
the Vocational and Technical Center at the Komatsu Dakar Training Center is being considered, as well as interaction in the areaof equipment and instructors.

A Service Support Center has been established in Tanzania, where newgold mining development is actively underway. Staff from Japan are onsite, guiding the service personnel of the local distributor, Panafrican Ltd.

Service Support Centers Expanding Worldwide★
★
★

View of the Dakar Training Center. There is one class of six people perterm. The structure of a hydraulic valve is explained using a cutawaymodel.

★

★

★
★
★

Service Support Centers for Mining Equipment (11 sites)
Service Support Centers for Construction Equipment (7 sites)★ Local Distributors

29★

Health and Safety
Message from the Komatsu President Regarding
Health and Safety
Komatsu has been disseminating the Message from the Komatsu
President regarding Health and Safety throughout the entire KomatsuGroup.
President and CEO Kunio Noji delivered the message that, for the
Komatsu Group to foster companies and workplaces with no safetyincidents or illness, all employees must cooperate, managing healthand safety proactively and responding to relevant issues in a prioritized and timely fashion. The major points of his address were as follows.

Group Activities
The Group as a whole has been conducting compliance and risk audits on safety to confirm the state of compliance with relevant laws
and regulations.
Efforts to eradicate occupational accidents throughout the entire
Group will continue based on intensified management-labor cooperation.
Incidence Rate of Occupational Accidents (Frequency Rate of Lost
Worktime)(Freguency
rate)

2.0

1.78

1.85

Overview of Health and Safety System
The Komatsu Group strives to thoroughly implement health andsafety using the following system.
Overview of Health and Safety System
Komatsu Head Office●●

Organization●●

Meetings●●

Safety and Health Administration Department
Health Promotion Center
Human Resources Department

Group Health and Safety Committee
Group Safety Supervisor MeetingGroup Safety and Health ConferenceGroup companies and Komatsu divisions●●

Business unit managers, division heads, managers in charge of general affairs and humanresources, industrial health medical advisers,
industrial health care staff, managers/staff incharge of health and safety, employees
Health and Safety Committee

Occupational Safety
Efforts on Health and Safety Management by
Manufacturing Subsidiaries
In FY2009 the Oyama and Ibaraki Plants acquired Occupational
Safety & Health Management System (OSHMS) certification, which
followed the certification of the Awazu and Osaka Plants. The Komatsu Group has carried out assessments to anticipate risks mainly
through small-group workplace activities on safety aiming at “zeroaccidents.”
In FY2010, the Group will steadily implement OSHMS at alreadycertified plants, and promote acquisition of OSHMS certification atother Komatsu plants. At the same time the Group will foster occupational safety mainly through small-group “zero accidents” activities
and by upgrading safety-related education and training using the disaster simulators installed at the main plants, which allow employees
to experience a simulated disaster.
Health and Safety Management at Komatsu Group Sales
Agencies and Rental Companies in Japan
Komatsu supports the safety activities at Group sales agencies andrental companies in Japan through training and guidance on ways toenhance their safety management. Persons overseeing occupational

1.90
1.43

1.5
1.0

1.95

0.99

1.11
0.81

0.81

0.5

0.40

0.43

0.50

0

0.33
2003

0.33
2004

0.40
2005

1.83

1.54
0.89
0.68*
0.66

0.78
2006

1.75

0.44

0.64*

2007

2008

1.62
0.74
0.15
0.13
2009

Activities
for Society(1) The Komatsu Group shall, first of all, strive to “ensure a safe andcomfortable work environment” and “maintain and promote employees’ health.”(2) The Komatsu Group shall promote “proactive occupational safety
and health activities” in order for all employees to achieve the above
conditions by working together as one team.
(3) Each and every person in a senior management position of the Komatsu Group shall acknowledge as top priority tasks the above twomatters and shall take the initiative in demonstrating the execution ofdaily duties accordingly.

health and safety at Komatsu, and at its agencies and companies,
provide guidance on areas for improvement through visits to relevant
offices, factories, and rental business shops (a total of 105 sites visited in 2009) to verify firsthand the state of safety management at thesite.
At agencies and companies where occupational accidents had
occurred, Komatsu gave assistance in determining the causes andformulating countermeasures, and applied these measures to otheragencies and companies across Japan.
The Komatsu Group further strives to reduce occupational accidents by promoting risk anticipation.

All industries
Construction andmining equipment
manufacturing industry
Komatsu(non-consolidated)
Komatsu Group
manufacturing
facilities in Japan

FY*Changes in the frequency rate of Komatsu (non-consolidated) and KomatsuGroup manufacturing facilities in FY2008
One person involved in an accident not accompanied by lost worktime that
occurred in FY2008 was certified for a disability in FY2009, and therefore wasretroactively included in accidents not accompanied by lost worktime.

Health Care
Physical Health CareIn addition to the health checks for lifestyle-related diseases thecompany has been providing up to now, Komatsu has been taking
additional steps since FY2007 to prevent these diseases by launching computer-based diagnostic interviews and expanding the rangeof health checks.
Since FY2008, Komatsu has been working to improve the healthof employees in cooperation with its health insurance association todeliver health-related guidance and awareness education, andthrough the use of external specialized institutions.
Mental Health Care
Over the years, the Komatsu Group has introduced mental healtheducation and awareness-raising programs, while also providing
counseling from mental health professionals and the Employee Assistance Program (EAP). The EAP makes use of external specialized
institutions to advise employees and their families throughout theGroup on matters of mental health. Since FY2009, Komatsu has
been revamping the EAP system, launching the Komatsu Health
Consultation Hotline to provide all-encompassing support by unifying
physical and mental health care services. The company has continued its stress diagnoses and stress awareness education for selfrecognition, which began in FY2007. In FY2009 Komatsu intends toutilize the results of stress diagnoses to further improve the work environment and promote mental health.

30

Communication with Stakeholders
Komatsu takes advantage of various opportunities to communicate with stakeholders. As a responsible corporate citizen, thecompany has undertaken social contribution programs to help bring about an enriched society.

Communication with Stakeholders

Activities
for Society

Communication with Shareholders
Along with striving for high managerial transparency, Komatsu discloses information in a proper and timely manner through constructive approaches to investor relations (IR) around the world. On thesame day that quarterly business results are announced, the company holds explanatory sessions in Japan for institutional investors andsecurities analysts and also releases this information on its website.
Corporate representatives visit institutional investors outside Japan,
primarily in the U.S. and Europe, to explain recent business performance and other critical information.
Shareholders’ Meetings
To furnish an opportunity to communicate with individual shareholders, Komatsu convenes shareholders’ meetings in major cities in Japan two to three times annually, with top management explaining thecompany’s performance and management strategy. In 2009, shareholders’ meetings were held in November in Hitachinaka City in Ibaraki Prefecture and in December in Takamatsu City in Kagawa Prefecture, with a combined total of some 300 shareholders attending.
A wide range of questions was answered, covering such topics as
the business environment surrounding Komatsu and the company’sbusiness performance and social contribution activities. Since theirlaunch in 1997, these meetings have been convened 29 times, withover 9,300 shareholders participating to date.

Communication with the Local Community
Each of the business units of Komatsu tries to harmonize its interests
with the local community and make itself open to society as a responsible corporate citizen. They host regular opportunities to interact with representatives of residents’ associations from the surrounding community. For the community to gain a better understanding of
their business activities, business units welcome representatives fromthe city and prefecture to plant tours and meetings.
Communication with Employees
Two or three times a year, the President and CEO convenes a “Meeting with the President” at each business unit in Japan. Komatsu top
management explains the state of the company to all employees at
the unit, employing an active question and answer format. Thesemeetings are opportunities for top management and employees tointeract with each other directly. The content of these meetings heldat the Head Office in Tokyo is simultaneously transmitted by TV
broadcast to other business units in Japan and later published on
the company Intranet in English to share it with Komatsu Group employees around the world.

Meeting with the President held at the Head Office in April 2010 on the day after the announcement of term-end business results

Social Contributions

Shareholders’ meeting convened in Takamatsu in December 2009

Plant Tours for Shareholders
Komatsu held plant tours in Japan for individual shareholders at the
Ibaraki Plant (Ibaraki Prefecture) in November 2009 and the Osaka
Plant in Osaka Prefecture in March 2010, drawing about 70 and 90
participants, respectively. Attendees deepened their understandingof Komatsu by touring assembly plants for dump trucks, wheel loaders, hydraulic excavators, and other types of equipment and watching demonstrations at the testing areas.

Plant tour for shareholders held in Osaka in March 201031

Basic Stance on Social Contributions
Komatsu holds the firm conviction that contributing to society leads
to raising its corporate value over the long term and the Group as awhole proactively engages in social contribution activities on a continuing basis to fulfill one part of its corporate social responsibilities.
Komatsu’s basic stance on social contributions (the purpose andthe five basic principles concerning social contributions) is as follows.
PurposeThe Komatsu Group and its employees will contribute to society as
members of the local community.
Basic Principles
Contributions shall be:◆ Consistent◆ In the public interest◆ Voluntary◆ Acceptable by employees◆ Not aimed at advertisement

Major Areas of Activity
Komatsu’s main activities for social contributions are in the following
areas.
● Supporting the Flower Association of Japan (Public Interest Incorporated Foundation)● Promoting culture and education and local community development● Promoting sports● Providing humanitarian assistance and recovery from disasters

Promoting Sports
The Komatsu Women’s Judo Club was founded in April 1991 tocommemorate the company’s 70th anniversary. The club has won
four consecutive championships of the All Japan Company JudoClub Competition eight times to date. Members of the club have also
demonstrated a record of excellence in individual competitions, bothin and outside of Japan. The club gladly offers non-Japanese teams
opportunities to practice with its members, thereby contributing to
the spread and development of judo around the world.
In April 2009, Mina Watanabe (70 kg class), Tomomi Okamura (78kg class), Mika Sugimoto (78 kg class) all won their respective classes at the All Japan Selected Judo Championships. Mina Watanabe
went on to win a Bronze medal at the World Judo Championships inRotterdam, Holland.
In addition to regular training, we hold children’s judo classes every Wednesday and Friday, to help raise the next generation of Judochampions.

* Designated as an organization serving the public good by approval of thePrime Minister as of December 2009.

Creating Venues Renowned for Cherry Blossoms andRevitalizing Famous Sites
The Association supports those entrusted with developing venues
for viewing cherry blossoms and including them in urban planning,and supplies them with free cherry saplings. It provides advice on
how to plant and raise the saplings and offers follow-up care after
the saplings are delivered. The Association is also active in preserving and revitalizing existing cherry blossom viewing venues. Whentrees at old noted sites become diseased or weakened due to environmental changes, the organization uses its accumulated expertiseto provide advice on how to restore the trees to vigor.

Activities
for Society

Contributing to Local Communities
Making Business Units Open to the Public
In addition to opening up its gymnasium, field, tennis courts, andvarious other recreational facilities, Komatsu hosts various events so
as to foster harmony and a spirit of coexistence with local communities.
Holding “Open House” Day
Komatsu convenes “open house” days at its business units on aregular basis, taking advantage of various events to enhance the local community’s understanding of its business operations.
Running Kids’ Tour of Working Vehicles at the Komatsu
Techno Center
Twice a year, the Komatsu Techno Center in the city of Izu in Shizuoka Prefecture, Japan runs a Kids’ Tour of Working Vehicles, which allows the children to come into direct contact with large construction
equipment.
Through this tour Komatsu
hopes to foster children’s
dreams and furnish an opportunity for parents andchildren to play together,
thereby encouraging deeper understanding towards
construction equipment
Kids’ Tour of Working Vehicles at the Ko- and Komatsu’s corporate
matsu Techno Center
ideal.

Supporting the Flower Association of Japan
As one of its contributions to society, Komatsu has been supporting
the Flower Association of Japan* since it was established in 1962, anorganization that develops venues for viewing cherry blossoms andcultivates local environments rich in flowers, to thereby foster areasof beauty and abundant greenery. The activities of the Flower Association of Japan center on supporting both its members throughout
Japan, as well as local residents associations, to create spaces filledwith flowers and greenery.

Cherry trees blooming around
Kameyama Castle in the City of
Ono in Fukui Prefecture. The Fukui chapter of the Flower Association of Japan succeeded in revitalizing diseased cherry trees atthis site.

The Yuki Farm, a Major Venue for Cherry Blossom Viewing
The Yuki Farm in the city of Yuki in Ibaraki Prefecture, Japan is abase for tree doctors and experts in tissue culturing who support theactivities of members and local residents of various regions. This is amajor location for fostering the creation of venues for cherry blossom
viewing. The farm produces some 30,000 cherry saplings annuallyand boasts one of the largest cherry tree collections in the world,with 1,000 trees of 350 varieties under cultivation in its onsite exhibition garden. Research is also underway to produce cherry saplings
from tissue cultures.
Cities in Bloom
The National Competition of Japan in Bloom was initially proposed
by Japan’s Ministry of Agriculture, Forestry and Fisheries and theMinistry of Land, Infrastructure, Transport and Tourism as a way toestablish a nationwide civic movement to develop local environmentsin bloom. It was inaugurated in 1991. The competition will be held forthe 20th time in 2010, providing ample proof that it has spread nationwide. The Flower Association of Japan, in its capacity as secretariat for the competition, is fostering familiar flowers and greenery,
and is encouraging the creation of spaces that are rich in flowers andgreenery, while supporting residents associations and local authorities in these activities.

The Komatsu Women’s Judo Club32

Global CSR Activities
Komatsu’s CSR activities are taking to the global stage as the company’s business expands throughout the world.
Komatsu will work to be of assistance to society in ways practicable for the company in communities around the world by reflecting local circumstances and listening to voices of our stakeholders.

PT Komatsu Indonesia (Jakarta, Indonesia)
Local Human Resource Development Throughthe Welding Vocational Training Program

Activities
for Society

Indonesia is rich in coal resources, and coal mining, together withpublic works projects, forestry, and agriculture, as prospering industries. It is the largest market in Southeast Asia for construction andmining equipment, and is therefore a very important region for Komatsu.
Since establishing PT Komatsu Indonesia (KI) in 1982, Komatsu
has set up numerous production bases in Indonesia. As we have localized our operations over the years, we have also devoted efforts
to activities as a good corporate citizen.
A special fund for KI’s social contribution activities was established in 2006, and is actively serving the local communities of theregion. One recent initiative is the Welding Vocational Training Program, which benefits both the company and the local community.
Started in 2006, this program offers a place where members ofcommunities in the surrounding region can obtain welding certification.
The objective of this program is to provide an opportunity for as many
residents as possible to get employment in the local industrial area.

Win-Win Initiative Through Apprenticeship Opportunities
The first group to graduate the vocational training program which
took place in 2006 had 13 members. An additional 10 have graduated from the second program offered in 2008. Participants were able
to acquire necessary skills by going through the welding training andthen an apprenticeship program. The global economic downturn
forced KI to temporarily suspend the training in 2008, but by mid
2009 the situation improved and the apprenticeship program for thesecond training was revived and is underway in this first half of 2010.
This initiative is a win-win situation for both Komatsu and its
stakeholders. The company not only fulfills its social responsibility
through this program which is open to the general public, but it also
secures the potential for new human resources to fulfill the company’s manpower needs. From the perspective of local residents, they
benefit from the opportunity to receive training in the factory, whichbroadens their future chances of employment. We hope to continue
this win-win initiative into the future.

Welding Vocational Training period (November 2008)

Apprenticeship training at the KI plant (January 2010)

Komatsu Manufacturing Rus. LLC (Yaroslavl, Russia)
Developing People in a City of History andTechnology
Komatsu completed the Komatsu Manufacturing Rus. LLC (KMR)
plant in June 2010, its first assembly plant in Russia. The location of
the plant, the city of Yaroslavl, has a population of approximately
600,000, is a city of culture, with a long history and is located 280
km northeast of Moscow on the banks of the Volga River.

The factory is located in Yaroslavl, a city of history and culture, as well as oneof Russia’s preeminent industrial cities.

33

Students and mini excavator supplied to the Yaroslavl State Technical University

Top-level graduates of the Training Center starting work at KMR

Activities
for Society

Training Center Opened at the Local Technical University
KMR established a Training Center inside the Yaroslavl State Technical University. In addition to providing manufacturing equipment(welding robot) and construction machinery (mini excavator), Komatsu established two courses, one on assembly technology and one
on welding technology.
These courses consist of two classes, one general class intended
for students of Yaroslavl State Technical University, and one specialclass for Komatsu in-house technology. The contents of the generalclass can be applicable to a broad range of areas, with students
having an opportunity to train on the latest manufacturing equipment.
With the already high level of education at the university, the opportunity to learn not only theory, but also practical skills, is helping todevelop highly talented graduates.
Already many of the top-level graduates of the Technical Centerare being employed at KMR, putting their skills into practice in theworkplace.
Komatsu, having become a new corporate citizen of this city thatis deeply rooted in history and technology, would like to continue tocontribute to the region.

Komatsu Cummins Chile Ltda. (Santiago, Chile)
Helping with Disaster Relief in the Region
In February 2010, an 8.8-magnitude earthquake and subsequenttsunamis devastated the south central region of Chile, making thisthe worst domestic natural disaster of the last half-century. Even now
people are still living in tents and require basic assistance, as relief
efforts that united the country in solidarity of action are continuing.
Immediately following the quake, top management of Komatsu
Cummins Chile Ltda. (KCC), Komatsu's Chilean subsidiary and distributor, visited Concepcion and confirmed the extensive damage
sustained by the area. They immediately decided to offer aid asquickly as possible.
First, during the "Chile helps Chile" fund raising telethon* held immediately after the disaster, KCC employees donated US$50,000,
which was matched by the company, for a total of a US$100,000
donation.

Loading rubble into a dump truck

Concentrated Relief Efforts for Pelluhue on the Southern
Coast
Komatsu Cummins Chile concentrated its relief efforts on Pelluhue, atown on the southern coast, where the earthquake and tsunami
damage was particularly severe. Together with a local customer, thecompany provided excavators and dump trucks along with operators for the equipment, to be used to help clear rubble and build aheliport, worth an estimated US$150,000 dollars.
In addition, the company donated five fishing boats (estimated at
US$110,000) to local fishing industry officials in an effort to help reestablish the fishing industry, a primary industry for the region.
*Telethon: Long-duration television program for raising donations

Excavator demolishing a damaged building in Concepcion

34

The Basic Stance of Management
As the cornerstone of its management, the Komatsu Group has been committed to enhancing Quality and Reliability throughstrengthening corporate governance and Monozukuri, or manufacturing competitiveness, in order to maximize corporate value.

The Basic Stance of Management
As the cornerstone of its management, the Komatsu Group is committed to enhancing Quality and Reliability in order to maximize corporate value. Komatsu considers corporate value to be the total sumof trust given to it by society and all corporate stakeholders.
This principle of Quality and Reliability not only applies to the Komatsu Group’s products and services that bring satisfaction to customers, but also extends to all other aspects of the Group, includingorganizations, businesses, employees, and management.

Enhancing Quality and Reliability
In particular, the Komatsu Group has been working to strengthen
corporate governance and Monozukuri to enhance Reliability, asource of Komatsu’s strength.

Managerial
Structure

Strengthening Corporate GovernanceTo increase its corporate value to the greatest possible extent, it isimportant for the Komatsu Group to design a framework in which theGroup can enhance its corporate value in a steadfast manner. Thistask calls for maximizing the total market value of Komatsu sharesand working to expand sales and profits as the company strives tofully satisfy a broad range of stakeholders, especially customers.
Top managers of Komatsu Group companies are expected toprovide, through full awareness of corporate social responsibility(CSR), solid management that avoids risk while continuously ensuring Quality and Reliability in management. Moreover, managers are
stepping up the revitalization of the Board of Directors—the core
body for corporate governance—and the establishment of an internal
control system while enhancing the transparency and soundness ofmanagement.
All employees of Komatsu Group companies are expected not topostpone but to promptly work on solutions and corrections when
they discover issues and/or problems related to the rules in all business areas and domains.
Strengthening Monozukuri
It is critical for Komatsu as a manufacturer to promote reform basedon the Monozukuri concept in order to enhance its competitiveness.
Monozukuri means that the Komatsu Group has to rise to every
challenge in creating safe and innovative products in the spirit of unified teamwork. This teamwork incorporates every division and partner related to the value chain—the chain of entities through which
added value emerges—spanning from research, development, procurement, manufacturing, sales, and after-sales service divisions to
the management division as well as to business associates and sales
agents. The Group also emphasizes environmental friendliness in all
activities throughout the product lifecycle.

35

The KOMATSU Way
The KOMATSU Way is a statement of values that all workers in the
Komatsu Group, including those at every level of management,
should pass down in a lasting way at their workplaces and worksites.
By holding these values in common, the Group can build global
teamwork that transcends nationalities and generations to amass
and fortify the Komatsu Group’s “workplace (genba) capabilities”—
the dynamism of all workers and the entire organization, plus theability to improve their own workplaces and worksites. This in turnfurther enhances Quality and Reliability, heightening the trust given to
the Group by society and all stakeholders.
Disseminating The KOMATSU Way and Developing Human
Resources
The Komatsu Group has been disseminating The KOMATSU Way
and incorporating it into human resources development in eachGroup company around the world, with The KOMATSU Way Division
spearheading these activities.
To deepen employee consideration and cultivate a better understanding of The KOMATSU Way at each level of the company hierarchy, regular sessions are convened at Group companies for deployment, guidance and group debate on the topic. Throughexplanations of this way of thinking and having employees relate stories of their own experiences, communication is stimulated with theyounger generation to hand down this knowledge and make it partof them. In addition, this information is made available on-line forGroup employees around the world to view.
The KOMATSU Way is based on the corporate strengths that Komatsu Ltd., a Japanese company, has cultivated over time. To promote The KOMATSU Way at Group companies outside Japan andhelp this foundation take root, Komatsu makes The KOMATSU Way
easy to understand and relevant to local conditions, while being
mindful of the differences among customs and cultures. Our plan is
to incorporate the established values and way of thinking of eachcountry’s affiliate into The KOMATSU Way, as well as to include Komatsu’s “Brand Management”.
To strengthen the ability of employees worldwide to improve theirperformance, the Komatsu Group uses Total Quality Management(TQM), cultivated within the Group over the years, along with education and training to raise the level of professional capabilities, such as
specific technological or specialist skills and managerial ability. Debriefing sessions are held at each employee rank, with participants
reporting on the skills they have improved and receiving practicalguidance. Such sessions help employees more fully acquire knowledge and skills from their education and training and help them utilize
these newly acquired skills during operations. In this way, the Group
continues to promote the enhancement of the individual abilities ofthe employee, as well as their ability to organize and integrate
through teamwork. This results in a corporate structure capable ofresponding rapidly to changes in the operational environment.

A Sound Management Framework
Komatsu is strengthening corporate governance Group-wide to become a company that enjoys even greater trust from all its
stakeholders. Under the principle of “compliance comes first,” the company has established a framework to ensure thoroughcompliance with best practices in business.

Corporate Governance
Organizational Profile
In 1999 Komatsu Ltd. introduced the Executive Officer System andhas been working to separate management decision-making andsupervisory functions from executive functions within the confines ofthe law. At the same time, the Company has maintained the Boardof Directors with a small number of members and appointed outside
directors and auditors. To improve the effectiveness of discussions inBoard meetings, we have promoted reforms in the operational aspect of Board meetings to ensure fulfilling discussions of importantmanagement agendas and quick decision-making.
Corporate Governance of Komatsu

Shareholders’ Meeting
Elect/Dismiss

Board ofCorporate Auditors

Audit

Standing: 2
Outside: 3

Office ofAssistants
to Auditors

Elect/Dismiss

Internal: 7External: 3

Recommend

Compensation
Advisory Committee

Audit Dept.

Elect/Dismiss/Supervise

ReportAdvise/Suggest

ReportAffiliated companies
Komatsu sends
external directors
and auditors.

Independent
PublicAccounting
Firm

Board ofDirectors

Collaboration
Internal audit

Internal
auditElect/Dismiss

Auditreports

Compliance
Committee, etc

Executive
Functions（

31 Executive Officers,incl. 6 Directors）

International
Advisory Board

International Advisory Board
Komatsu established the International Advisory Board (IAB) in 1995
as a means to supplement executive functions and receive objective
advice and suggestions through exchange of opinions and discussions with a group of domestic and overseas experts on what Komatsu should work for as a global company.
International Advisory Board (IAB)

Report audit results

Board of Directors
The Board of Directors meets every month. (The Board met 15 times
in the fiscal year ending March 31, 2010.) In Board meetings, directors make decisions on management policies of the Komatsu Group,
review and resolve important management matters, and strictly control and supervise the execution of management duties by all executive management personnel, including the representative directors.
At present, of the 10 directors on the Board, there are 3 outside directors. When performing their duties, outside directors offer opinions and suggestions from an independent position, based on theirinsight and rich experience helping to ensure that management istransparent and sound through their active participation in discussions.
Board of Corporate Auditors
The Board of Corporate Auditors makes decisions concerning audit
policies, duty assignments and other relevant matters. Each corporate auditor attends Board of Directors meetings and other important
meetings, and audits the execution of duties by directors. The Board
meets every month, hears the conditions of execution of management duties from the directors, and conducts appropriate audits.
(The Board of Corporate Auditors met 15 times in the fiscal year ending March 31, 2010.) We have also established the Office of Auditors’ Staff to exclusively assist auditors.

Managerial
Structure

Collaboration
Agree with the selection/Decide the dismissal or the rejection of re-appointment/Confirm suitability or
independency of the independent public accounting firm.

Remuneration for Directors and Corporate Auditors
In an effort to maintain an objective and transparent remuneration
system, the policy and levels of remuneration for Directors and Corporate Auditors are deliberated by the Compensation Council, which
consists of four external members and one internal member. Taking
the Council’s recommendations into consideration, the remuneration
for Directors is determined by the Board of Directors, and the remuneration for Corporate Auditors is determined by the Corporate Auditors. Both levels must be within the range resolved by the General
Shareholders Meeting.
The remuneration for Directors is composed of a fixed, monthly
remuneration and a variable remuneration linked to Komatsu’s consolidated performance and stock price fluctuations. The variable remuneration is made up of the annual bonus, which reflects businessresults, and stock options, granted to give Directors the same perspective on earnings as shareholders, both of which have the purpose of motivating them to manage with the aim of enhancing corporate value. When business results are good, the performancebased component makes up approximately 60% of the remuneration.
The remuneration for Corporate Auditors only consists of a fixed,
monthly remuneration, designed to support their independent position of authority to audit the execution of duties by the Directors
without being fettered by the movements of the corporate performance of the Company.

Members of the fifth session IAB (front row)
Outside Advisors for the Fifth Session of the IAB
Name

Title

Mr. Yukio Okamoto

Specialist in international affairs, and President, Okamoto Associates, Inc.

Dr. Lawrence J. Lau

Vice Chancellor and President, and Ralph
and Claire Landau Professor of Economics,
The Chinese University of Hong Kong

Dr. Juergen M. Geissinger

President and CEO, INA-Holding Schaeffler
KG

Mr. Travis Engen

Former President and CEO, Alcan Inc.

36

A Sound Management Framework

Improvement of Internal Controls
System for Ensuring Directors’ Execution of Duties
To ensure that Directors efficiently execute their duties, we have implemented the following system:① The Board of Directors meets every month and more often as
needed. The Board strives to maintain transparency and soundness of management through the participation of outside directors. We have also established the Regulations for the Board of
Directors and the Standards for the Board Meeting Agenda toclarify the matters upon which the Board of Directors shouldmake decisions.
② Together with the introduction of the Executive Officer System, we
have defined the separation of duties for directors, executive officers and senior managers, and set up internal rules, including theRegulations on Decision-Making Authority, to ensure appropriate
and effective execution of duties.
③ To promote efficient management by the Board of Directors, weestablished the Strategy Review Committee, consisting of senior
executive officers and senior managers. Based on the reviews of
the Committee, executive officers and senior managers execute
their duties within the authority delegated by the Board of Directors.

Managerial
Structure

Framework for Ensuring Appropriateness of Business
Operations of the Komatsu Group① We have established the Regulations for Affiliated Companies andrelevant rules to contribute to proper and efficient operation ofGroup management, while respecting the independence of the
management of affiliated companies. Each affiliated company isassigned to a division at Komatsu that is in charge of managing
and supporting the affiliate. We have also positioned the Komatsu
Code of Worldwide Business Conduct as the code applicable toall companies affiliated with the Company. Based on these regulations and the Code, each company of the Komatsu Group stipulates various regulations for the proper promotion of duties.
② To strengthen governance of the Group as a whole and monitor
management, the Company will dispatch a Director or Corporate
Auditor, as needed, to Komatsu’s main affiliated companies.

③ Important committees of the Company, including the Compliance
Committee, Risk Management Committee and Export Control
Committee, take actions with the entire Group in view, and allow
representatives of affiliated companies to take part in their meetings, as needed.
④ Particularly important affiliated companies are required to regularly
report to the Board of Directors of the Company on the status of
their business, including risks and compliance.
⑤ The Internal Audit Department of the Company audits each division of the Company and implements or supervises auditing ofmajor affiliated companies that belong to the Komatsu Group. It
also monitors and instructs each affiliated company, so that theaffiliate will build its structure in conformity with the Company’s internal controls and operate it correctly. In addition, the Department will report to the Board of Corporate Auditors regarding internal controls, as needed.
Basic Policy Pertaining to the Elimination of Antisocial
Forces
It is the basic policy of the Company to prohibit the Komatsu Group
from having any relationship whatsoever with antisocial movements
or groups that threaten the order and security of civil society from theperspectives of social justice and corporate social responsibility.
① This policy is provided in the Komatsu Code of Worldwide Business Conduct and disseminated throughout the Company, as wellas throughout each company of the Komatsu Group.
② In keeping with the basic policy, the Company–primarily the General Affairs Departments of the Head Office, main business operations, and Group companies–works with police and other relevant
external organizations to prevent the involvement of antisocial
movements or groups in its management and quell any harmful
effects they may bring about.
③ The Company is doing its utmost to collect information and receive education/training from the above external organizations,and share the information throughout the Komatsu Group.

Compliance and Risk Management
Promoting Compliance
Frameworks for Promoting ComplianceTo make certain that the entire Komatsu Group complies with therules of the business community, Komatsu has appointed at the
Head Office an executive officer in charge of compliance and established the Compliance Department to handle this issue exclusively.
The Compliance Committee, chaired by the President and CEO, deliberates the Group’s action policies and important issues, while regularly reporting the state of compliance related activities to the Boardof Directors.
Komatsu’s Code of Worldwide Business Conduct
The company has formulated Komatsu’s Code of Worldwide BusinessConduct (established in 1998 and revised six times to date) as a compilation of best business practices to be observed by officers and employees of Komatsu Group companies all around the globe. The code
addresses fair business practices, non-discriminatory personnel systems, endeavors for the global environment, appropriate information

37

management, internal control structure, and other topics. The text ofthe code has been released to the public in its entirety.
Upholding Thorough Compliance
In order to achieve continual awareness among employees aboutcompliance, the Group is working to raise their consciousness of best
business practices by displaying in every Komatsu Group business
unit posters listing The Five Principles of Compliance, a condensed
version of Komatsu’s Code of Worldwide Business Conduct. The
Group fully engages in awareness- raising initiatives through a permanent web page dedicated to compliance on its intranet along withwell-developed compliance-related education and training tailored to
employees’ ranks and the types of operations for which they are responsible. The Group pursues early detection of risks and reforms at
Komatsu business units and Group companies through monitoring
during the course of financial audits and compliance and risk audits.
This monitoring covers areas ranging from compliance with best practices in business to safety and environmental practices.

Internal Reporting System
Komatsu has established consultation offices both internally at Komatsu Group companies and externally at law firms, collectively
known as the Business Rule Consultation Offices, to respond to consultations or reporting from Group company employees pertaining tobest business practices or questionable actions. The Group fosters
active consultations and reporting by clearly stating in Komatsu’s
Code of Worldwide Business Conduct and Group companies’ workplace rules that employees using the reporting system will not be penalized.

Consolidating Information Security
With the Information Security Committee established in 2005 at thecore, Komatsu is developing a structure for information security forthe entire Group and implementing various control measures. The
company distributes an Information Security Guidebook to all employees with a view to raising their consciousness of thorough compliance with rules. The company has also inaugurated explanatory
sessions, education and training (e-Learning), and similar awarenessraising activities at its business units. Komatsu revised its policy for
personal information protection in February 2008, reinforcing its appropriate handling of such information.

The State of Compliance in FY2009
During FY2009, the Komatsu Group experienced no substantial
compliance-related infractions or incidents.

Implementing Risk Management

Implementing a Business Continuity Plan for Komatsu
Komatsu has formulated a Business Continuity Plan (BCP) to carryout major operations without suspension, or restore them after only ashort suspension, should a disaster or accident occur. The company
conducted training drills at the Head Office, assuming an earthquake
occurring directly beneath the Greater Tokyo Metropolitan area.
These drills aimed to empower employees to take appropriate actions in the event of an actual emergency. Komatsu’s manufacturing
plants have used their BCPs to strengthen the ability of buildings andequipment to withstand earthquakes and step up measures to copewith concentrated torrential rain falls. Komatsu has established acommittee to respond to the incidence and spread of pandemic influenza. To help employees cope with the disease, an action manual
has been developed covering prevention and outbreak periods, witheducation and training also underway to ensure more thorough understanding.
Promoting Risk Management throughout the GroupTo reinforce the risk management structure across the Group, Komatsu is establishing a route for risk reporting, creating a risk management manual, as well as refining the level of risk management at
each Group company through explanatory meetings and study sessions on risk management and BCPs. Additionally, Komatsu is
strengthening its Group-wide system for communications in times of
emergency by introducing emergency contact and safety confirmation systems, broad-area wireless devices, and other useful tools.

T O PICS
Global Expansion of Komatsu’s
Code of Worldwide BusinessConduct
Komatsu’s Code of Worldwide Business Conduct is expanding globally together with the businesses Komatsu
operates worldwide. We operate in accordance with thespirit and the basic way of thinking of this Code throughour local subsidiaries, while at the same time recognizing
the differences in the laws and regulations of each country
and region.

Managerial
Structure

Basic Principles and Structure for Risk Management
As Komatsu continues to make efforts to increase its corporate value, it recognizes as major risks those risk factors that could threaten
the company’s sustained growth, particularly compliance issues, environmental issues, product quality concerns, accidents, and information security problems.
The company has adopted the following measures to counter theserisks.
● Komatsu has established Risk Management Rules to correctly recognize and manage risks. The company has appointed personnel
to oversee individual risks, further promoting the build-up of a solid
foundation for risk management.
● Komatsu has established a Risk Management Committee to devise relevant policies for the entire Komatsu Group, evaluate andimprove upon risk measures in place, and take control of risks
when they arise. The Risk Management Committee regularly reports on its deliberations and activities to the Board of Directors.
● Komatsu will establish an emergency headquarters when serious
risks occur and implement appropriate measures to minimize
damage.

The Komatsu (China) Ltd. Initiative as an Example
At Komatsu (China) Ltd., the company has posted guidelines
on compliance inside the company and established a suggestion box to give employees an opportunity to report oncompliance issues. In particular, the company is publishing
the Compliance Quarterly magazine directed toward employees, where a variety of case examples relating to complianceare presented. Regarding dealings with business associates,
Komatsu instructs employees on which companies adhere tocompliance requirements and are appropriate to have business dealings with, as well as which companies not to havebusiness dealings with because of compliance issues.
Guidelines on Compliance in ChineseCompliance Quarterly magazine distributed to
all Group companies in China. The magazine
presents a variety of case examples relating tocompliance38

Growing with the Value Chain
Komatsu believes that growth with the value chain, which includes our customers, as well as our sales and service distributors
and business associates (suppliers), is essential to increasing corporate value.

Working Together with Customers andDistributors
At Komatsu, our aim is to increase corporate value by providing
products and after-sales service that satisfy our customers and becoming an indispensable business partner for our customers. One
concrete measure to this aim is the KOMTRAX (vehicle management
system).

Adding Value to the Customer Through KOMTRAX
KOMTRAX is a remote management system that uses on-board
Global Positioning System (GPS) and wireless communications technology to monitor the operational state and “health” of Komatsu construction equipment operating anywhere in the world. The system
can collect information on the equipment, such as how many hours
the machine operates in a day and the amount of fuel it consumes,
regardless of the equipment model or its location. By utilizing this information, Komatsu aims to increase the quality of the service it offers to its customers.

VOICE
From the Customer Sites in China

Zhou Chuan Yu
General Manager, KOMTRAXIT Promotion Division, Komatsu (China) Ltd.

Managerial
Structure

39

In China, individual owners make up a large percentage of construction equipment purchasers. Many cases involve hiring operators to perform the construction work, so the main concern forthese customers is to know how they can operate their equipment efficiently and how they can make management of theequipment easier. The service Komatsu offers based on
KOMTRAX is ideally suited to meet this kind of customer’s needs.
And, there are also customers for whom KOMTRAX offers a newkind of lifestyle.
KOMTRAX Widens the Scope of Business Opportunities for
Customers
The following case is about Mr. Li, a customer from Tianjin. Mr. Li
had been successful in various businesses, and when a coalshortage for thermal power generation occurred in 2009, he recognized a new business opportunity. Mr. Li purchased two
PC360 Hydraulic Excavators and contracted to mine coal in an
Inner Mongolian coal mine. From among the many equipment
makers in the market, he chose Komatsu because he was impressed with the KOMTRAX system. With this extremely convenient system, he is able to see at a glance the operating condition and “health” of his equipment without having to travel the
500 or more kilometers from Tianjin to Inner Mongolia. And, forthe most part, he can deal with any issues with one phone call.
Komatsu (China) is also developing and offering a variety of
convenient ICT tools to meet the various needs of its customers.
A fleet management system that manages multiple vehicles at
one time is one such system. This convenient service allows theuser to simultaneously check and compare the condition of multiple vehicles through a mobile phone-based platform, whichuses WAP, and SMS to notify the user of vehicle information.
Mr. Wongfu, a customer from Guangxi, jointly invested in amini excavator with an acquaintance. Although he leaves the
management of the equipment up to his friend, the monthly

KOMTRAX reports he receives help put his mind at ease. Thesemonthly reports provide him with a clear indication of the data,such as the operating hours, and working days and off-days, andhe is very satisfied with this service.
With the spread of mobile phone and 3G networks, it is very
easy to access the system through the Internet from a mobile
phone. The KOMTRAX-WAP system, also developed by Komatsu (China), adds to the large selection of ICT tools available to ourcustomers. When I visited Xian, I introduced this system to a person in charge of a mid-range state-owned enterprise. He showed
great interest and immediately instructed his people in charge ofequipment management to learn about how to use the system.
According to this customer, the company has been computerizing its management, and a feature that quickly provides vehicle
information to the equipment manager is extremely useful.
Improving Service by Distributors
Komatsu (China) distributors are also using KOMTRAX to manage the vehicles they sell. By using KOMTRAX data, they are able
to offer more proactive service as compared to the past, andhave thus greatly improved the trust that their customers put inthem. And, by riding on the large wave of the computerizationage, Komatsu (China) has developed application of KOMTRAX
data even further, by combining the accumulated vehicle datawith the location data of the distributor’s service vehicle, and isusing this in its service activities. This lets service personnel
quickly receive information on which of the customer’s vehicles
need service. Currently all distributors are making use of this newfeature to improve their service activities (which we call SOK (Service Operation Kaizen)).
At Komatsu (China), a major revolution is being brought about
by computerization, albeit quietly, but with certainty. And thesource of this revolution is, quite simply, KOMTRAX.

In the same way that automobiles require regular engine oil and oil
filter replacement, construction equipment also require periodic
maintenance. However, because construction equipment operates
under much harsher conditions, maintenance must be extremely efficient, to ensure that the productivity of the equipment is stable. Ideally, inspections and part replacements should happen according to
the number of operating hours logged on the equipment. However,
because conventional equipment servicing has required service personnel to travel to the customer’s site to confirm the number of operating hours, parts are often replaced too early, or sometimes too late,resulting in higher maintenance costs.
KOMTRAX makes equipment information, such as the operating
hours, the last date a part was replaced, and the next replacement
period, available in real time. This allows service personnel to plan
timely inspections and part replacements, as well as to take preventative maintenance measures. As a result, maintenance-related
waste is for the customer steadily reduced, together with the maintenance costs that are associated with this waste.
It is also possible to use the information obtained from KOMTRAX
to propose more efficient ways of using the equipment based on thecharacteristics of the customer’s worksite. Selecting more appropriate equipment models and using the equipment more efficiently
leads to a decrease in fuel consumption and less environmental impact for the customer.

KOMTRAXvehicle management system

Customer
Construction management(operating hours)● Construction cost
(fuel consumption)● Fleet management(location information)●

Equipment operating
information

Distributor
Optimized maintenanceproposal● Service reports
for the customer●

Work site

Development and Expansion to China
There are now over 160,000 KOMTRAX-equipped machines worldwide, with more than 55,000 operating in China (as the end of March
2010). With the strong growth of the Chinese economy from 2002 to
2003, the Chinese government introduced monetary tightening measures to prevent the economy from overheating. KOMTRAX has ananti-theft locking feature that can remotely prevent the engine of amachine from being started. At the time, many of the banks in China
were trying to implement credit controls, and were not providing financing for construction equipment unless a device such as
KOMTRAX was installed. It was because of this that KOMTRAX began drawing attention in China, and then became standard equipment on Komatsu’s main construction equipment models sold in
China.
In the face of the continuing world economic recession, the construction equipment market in China was one of the first to recover,due to the effect of the government’s economic stimulus policy. Currently, construction of roads, railways and other construction projects
are proceeding at a furious pace. Starting with China, Komatsu intends to contribute to the efficient development of infrastructure
through the application of ICT technology and the advancement of
the services it provides its customers.

Partnerships with Business Associates
Relationships of trust with business associates (suppliers) form thefoundation of the Komatsu Group’s manufacturing operations. Komatsu considers its business associates to be equal partners.
Throughout a long history of collaboration, the company and its business associates have overcome various difficulties by jointly addressing issues to realize solutions.
Organizations Facilitating Collaboration
The Komatsu“Midori-kai”group, an association of the company’sbusiness associates in Japan, has 162 member companies, which
supply roughly 70% of Komatsu’s total procurement in Japan.
Komatsu holds various events to foster communication with
Midori-kai group members, convening general conferences, roundtable discussions for managers, and informal New Year’s business
functions. These three annual meetings are attended by representatives from each Midori-kai group company, as well as Komatsu’s top
management, providing a forum for interaction and exchanges of
opinions. In addition to the Komatsu Shantui Midori-kai group in China that is already active, European and North American Midori-kai
groups have been launched, bringing total participation to more than
115 companies outside Japan. Komatsu intends to establish an association of business associates in Asia (other than Japan and China)
and strengthen global partnerships with business associates.
*The Komatsu "Midori-kai” is divided into a global and a Japanese chapter.
Because the activities of local Midori-kai members are hard to keep track of
and were therefore excluded from the count, total membership is lower thanlast year.

Supporting Suppliers in Introducing Environmental
Management Systems
Komatsu’s support for
suppliers in introducing
environmental management systems is covered
in detail on P. 12.

Managerial
Structure

Accurate servicing

Working Together with Business Associates

Representatives of the European and North
American Midori-kai groups participated in theround-table discussions for managers held in
November 2009.

Compliance, Health, and Safety
Komatsu’s commitment to thorough implementation of CSR procurement throughout the supply chain leads the company to ask all business associates to comply with Komatsu’s Code of Worldwide Business Conduct. Komatsu is continually working to assess the state ofsafety and quality at business associates through visits and othermeans for careful fact-finding and close communication, and providing recommendations as necessary.
Nurturing Business Associates
Komatsu holds goals in common with its business associates, together aiming to achieve ever-higher levels of quality, cost, and delivery (QCD) through tireless endeavors for improvement. The company
provides education and training in quality control (QC) activities andmanufacturing technologies. It also allows employees of Midorikaigroup companies to participate in the technical training provided to
Komatsu’s own employees, assisting these companies in fostering
future management. In taking a long-term perspective rather thanseeking temporary results, Komatsu takes an “agricultural” approachto procurement, nurturing companies of excellence much the waythat farmers raise crops. Ultimately, this will give rise to stability inproduct quality at Komatsu.

40

Quality and Reliability
To enhance Quality and Reliability, Komatsu has established a structure for providing high-quality products and services that are
innovative and safe, taking to heart the opinions of customers.

Enhancing Quality and Reliability
The fundamental principle of Monozukuri (manufacturing competitiveness) lies in Komatsu’s commitment to Quality and Reliability in orderto provide products—both hardware and software—that customers
are happy to own. To achieve this, Komatsu puts the customer firstas one of its Basic Managerial Policies, with the pursuit of maximum
customer satisfaction at the foundation. The company carries out acontinuous process of reform and refinement with all divisions responsible for putting this policy into practice, whether in development, manufacturing, sales, after-sales service, or administration.
In practical implications, Komatsu includes the global environment, quality assurance, and the education and training of humanresources within the scope of its quality management and uses indices to promote such management.
Komatsu’s Principles Governing Quality Assurance
Komatsu has established the following principles on quality in its
products and services, which all subsidiaries and employees are responsible for putting into practice.
Principles that Increase Quality and Reliability
Provide products, services, and systems that are environment friendly, safe, and innovative from the perspective of the customer.
Definition of Quality Assurance
The company has a responsibility to take actions that will ensure it isable to provide products and services that the customer can purchase and use with a sense of assurance and satisfaction and use
for many years to come.

Managerial
Structure

Principles Governing Quality Assurance(1) Putting customers first, being receptive to the views of the customer, and responding appropriately to the customer, thereby
earning the customer’s satisfaction, are fundamental to the job of
every employee and constitute the responsibility of every employee.
(2) Complying with international standards and the legal requirements
particular to individual countries as a matter of course, and providing products and services that, from the perspective of thecustomer, have incorporated proper regard for safety and a senseof assurance and that do not easily malfunction, are fundamental
to the job of every employee and constitute the responsibility of
every employee.
(3) Providing products and services that incorporate proper regard
for global environmental conservation is fundamental to the job of
every employee and constitute the responsibility of every employee.
(4) Providing products and services that are creative and provide
benefits to the customer is fundamental to the job of every employee and constitute the responsibility of every employee.
(5) Giving the customer a sense of safety, assurance, satisfaction,and the ability to use the product for many years to come is asource of happiness for every employee.
Mechanisms for Quality Assurance
At Komatsu, all employees in each division, from product planning todevelopment, manufacturing, sales, and after-sales service, share asense of working as a single unit to continually develop products thatare safe, innovative, and of high quality. Through a strengthening ofKomatsu’s unique Monozukuri system, the company is able to introduce competitive DANTOTSU products to the market and provide
services and systems with substantial features.
At each step of the development and manufacturing system,
meetings are held to consider and evaluate the product. The prod-41

uct’s suitability is then assessedand enhanced until the ultimate
goal is attained. In this way, thecompany conducts quality assurance activities that firmly ensure Quality and Reliability.
Through such approaches
the company is able to strengthen safety assurance and satisfaction for customers while
simultaneously providing products and services that take theglobal environment into accountand comply with both international specifications and theregulatory requirements of individual countries.

Komatsu's Mechanisms for
Quality AssuranceMarket trends● Assessing market trends

Product planning● Clarification of desired levelof quality● Formulation of productobjectives

Evaluation meeting
Development● Product planning and design
Structure for Quality● Creation of a prototype,
Assurance
testing to confirm quality
T h e m a j o r i t y o f K o m a t s u ’s
products— construction andmining equipment, presses,
Evaluation meetingand forklifts— are used as
manufacturing equipment at
Manufacturing
customers’ sites of operation.
These products are expected● Mass production prospects● Mass production
to contribute to customers
through a higher rate of operation and productivity over long
Customer support
hours every day. In reflection ofthese product characteristics,● Sales ● After-sales service
sales and after-sales service
personnel at Komatsu visit customers to give detailed recomCustomer satisfaction
mendations on products and● Collection of information on
their usage and conduct mainproduct quality in the market
tenance activities. They then● Customer satisfaction surveys
provide feedback to relevant divisions regarding the views andrequirements that the customers have for these products. The company has created a system to increase customer satisfaction throughrapid responses to such information.
Moreover, Komatsu maintains a database on product quality inthe market so that the company can respond rapidly upon discovering a quality-related problem and have all the company’s sales andafter sales service divisions able to access the information they needto help remedy the issue.

Increasing the Degree of Customer Satisfaction
Based on its Principles Governing Quality Assurance, Komatsu has
piloted a variety of initiatives to increase customer satisfaction.
First, Komatsu believes it is extremely important to give serious
consideration to customers’ views and examine them on a continuous basis. Consequently the company conducts regular customer
satisfaction surveys, including post-launch field surveys. Komatsu
uses the results to improve both the products themselves and thestructure promoting quality assurance. The surveys help furnish newvalue to customers as the company develops DANTOTSU productsthat anticipate customer needs in advance and delivers services with
distinct features.
Komatsu is able to raise the level of customer satisfaction throughthese approaches.

Komatsu's Structure for Quality Assurance
Customers

Sales agencies

KomatsuPresident and CEO

Organization

Customers

Sales
agencies

Sales andafter-sales
servicedivisions

Quality Meeting

Quality Assurance Division
Development division

Manufacturing division

Product Safety
Committee

Anticipating customer needs

Analysis of data
Visiting customers

Product
qualityissues● Customer
needs

●

Meetings with customers to exchange views on technologies

Objectives regarding
product quality

Surveys tracking vehicles in operation for extended hours
Solving problems appearing in information
regarding product quality in the market

Flow ofinformation

Principles for attaining
product quality

Customer satisfaction surveys

Fulfillment of requirements

Database on productquality in the market

Information regarding complaints
Sales and after-sales service information●

A sense ofassuranceandsatisfaction

Vehicle operation information●

Providing products appropriate forcustomer needs
Compliance with safety andregulatory stipulations

System for Assessing the Degree of Customer Satisfaction●

Providing products appropriate for customer needs
Planning, development

Mass production●

Customer support activities

Sales

Purchase and use of
products by customers

After-sales service

SurveysManagerial
Structure

Surveys Tracking Vehicles in Operation for Extended
Hours*
Komatsu pursues improvements in product durability and reliability
through a system of surveys tracking vehicles in operation for extended hours. This allows the company to provide products satisfying the customer and consuming fewer resources. Most recently,
confirmation of equipment operating conditions is made possible by
the utilization of a ICT remote management system called KOMTRAX
Plus. Based on the information provided by KOMTRAX Plus, we areable to confirm and analyze the status of the machine in terms of durability, efficiency and functionality. The company assesses whether
or not the results satisfy customers’ expectations and the degree towhich their demands match product quality objectives at Komatsu.
The company designs proposals to rectify areas not achieving desired quality levels, later integrating these proposals into product revisions or the development of new products. This process increases
product durability and reliability and thus extends product lifecycles,

Revision of processes●(Feedback)Post-launch Field Surveys and Feedback of Results
Komatsu’s post-launch field survey is part of its system for comprehensively assessing customers’ degree of satisfaction, with company
personnel visiting purchasers of newly launched products to request
product evaluations.
In concrete terms, these personnel listen to customers’ feedback
on a day-to-day basis regarding the degree of satisfaction towards
the quality and reliability of its products. The company pays carefulattention to the evaluations, views, and requests concerning its sales
and after-sales service and replacement parts. Komatsu processes
and analyzes the gathered data to decide upon objectives for improvement. The resulting information is shared across the company,
notably with top management, and provided as feedback to divisions
at every step in the process, including development, manufacturing,and sales and after-sales service. With the means to improve upon
problems and revise the quality assurance system, the company candeliver products and services that satisfy customers.

Development/manufacturing
KOMTRAX(Komatsu Tracking
System for construction
equipment)

Post-launch field surveys
1.Survey targets

4.Survey items

・Customers who have purchased newly
launched products or vehicles withrecent model changes(1)Degree of customer satisfaction(evaluations by owners and operators)
・Operator survey on capabilities andfunctions・Ease of maintenance, serviceability
・Situation regarding replacement parts(2)Surveys of sales representatives(at sales agents)(3)Surveys of service representatives(at sales agents)

2.Survey periods
・Periods of between approx. 6 and 12
months after product launches

3.Methods of conducting thesurveys・Visits to customers, interviews

Evaluation of degree of customer satisfaction (Quality Meeting)leading to greater customer satisfaction and less resource consumption and waste.
*Defined as vehicles with an operating history of 5,000 hours or more

42

Quality and Reliability

Using ICT to Support Customers throughout the Product
Life Cycle
Komatsu uses ICT-based remote vehicle management systems
known as the Komatsu Tracking System (KOMTRAX) for conventional construction equipment and KOMTRAX Plus for large mining
equipment to indicate the current state of the vehicle’s “health,” itsoperating status, and other key information.
Using this information to improve vehicle quality or assess customer
needs for after-sales services, Komatsu provides customers support
throughout the product lifecycle by increasing vehicles’ rates of operation while decreasing their maintenance costs.
Quality Assurance Activities at the Global Level
Komatsu provides products of the highest quality at every location
throughout the world by fully implementing quality assurance activities globally. For this purpose, the company aims for uniform technical drawings, manufacturing systems, inspection methods, information collection, and quality management across the globe.
Komatsu labels as “mother plants” certain global manufacturinglocations with product development capabilities. These plants serveat the center of worldwide development and manufacturing activities,
with their leading-edge technologies and techniques then transferred
to other manufacturing locations around the world. This improves
technology and enhances product quality, making them uniform
throughout the company.

Komatsu puts safety and assurance at the forefront in its quality assurance activities. The company has formulated Standards for Product Safety and associated Principles and has all employees comply
with them in order to deliver products that are safe, provide a senseof assurance, and can be used for many years.
Information System for Product Safety and Services
In seeking to get information on problems with product safety as
early as possible, Komatsu has established an information system forproduct safety and promptly deals with issues.
It continuously strives to make improvements so that the company, including top management, can respond quickly through coordinated actions, including (1) assessing the cause of the incident andprocedures to be taken, (2) contacting the relevant governing authorities, (3) deciding to take remedial measures such as a recall of products still on the market.
Standards for Product Safety(1) Compliance
The provision of products and services that comply with international standards and the legal requirements particular to individual
countries is fundamental to the job of every employee and constitutes the responsibility of every employee.
(2) Safety via prevention
The provision of products and services that are safe and provide
a sense of assurance, and do no harm to the customer is fundamental to the job of every employee and constitutes the responsibility of every employee.

Managerial
Structure

The Komatsu Information System for Product Safety
Customers, sales agentsInternal proceedings (analysis, formulation of response measures)●●

Quality assurance
division at each plant

Product development
・Performance,
reliability●

Safety mastersystem●Confirmation
Evaluation

・Development-related
evaluations of
product safety,
regulation value, etc.

Information on accidents
occurring with customers● General information
received from customers●●

・Product quality●

Quality assurance
division at Head Office

Incorporation ofquality into products●

Confirmation

Evaluation
System featuringpersons responsible
for vehicle inspection
and safety

Responses toregulatory issues
via manufacturing,
sales

●

Legally required
registrations/applications●

Annual report covering
defective vehicle issues

Confirmation
Evaluation

・Regulatory
materials

・Evaluation of
appropriateness ofsafety, safety
standards, etc.

Information analysis
Analysis, verification● Consideration of response
measures●●Direct indication on
products● Modification of productmanuals, etc.
● Informing customers(via sealed letter)● Product recalls, repair

Relevant governing authorities,
relevant organizations

Safety and regulatory affairs
Research division

Information regarding productquality in the market● Audits of regulatory affairs● Remedial activities●

Quality Assurance Meeting●

43

Promoting Product Safety to Ensure Customer
Safety and Assurance●●●

Determination of response
measures●Reporting to relevant divisions

Prevention of recurrence, standardization
Implementation of response measures

Reporting and submitting
information to relevant
authorities as provided under
the law● Reporting to relevantorganizations●

(3) Security regarding accidents
The provision of products and services that minimize any injury
that might occur to a customer who has an accident is fundamental to the job of every employee and constitutes the responsibility of every employee.
(4) Transparency
The ongoing provision of advance safety warnings after receiving
information from the customer and, in the case of a defect arisingin a product or service, prompt response measures and the provision of information, are fundamental to the job of every employee
and constitute the responsibility of every employee.
(5) Improvement of organizational climate
In order to create a corporate climate in which product safety isemphasized, the standardization of the safety management system and safety techniques as well as ongoing efforts to improvethem are at all times fundamental to the job of every employee
and constitute the responsibility of every employee.

Number of Incidents with Recall Notices Filed
Komatsu strictly oversees compliance with legal requirements.
Should a defect somehow be found in its products or services, thecompany initiates prompt correction measures and moves forwardwith proactive information disclosure. The graph below indicates thenumber of incidents in which recall notices were filed. The company
will continue to pursue safety to the greatest extent possible in theyears to come.
Number of Incidents with Recall Notices Filed(for construction
equipment sold in Japan)(Incidents)

21*

20

15
11
10

Providing Product Safety Information to Customers
Komatsu meets legal requirements for providing safety information tocustomers through (1) direct indication on products or in user’s manuals, (2) direct explanations by sales and after-sales service personnel, and (3) telephone consultations with sales and after-sales service
divisions at plants. The company seeks to address each particularsituation, with, for example, engineers or top management visiting
customers as the situation might require.

Procedure Governing Recalls(1) Proposal for rectification of the situation based on information regarding the defect; decision regarding what measures the company will take towards the market(2) File notice with relevant authorities as provided under the law(3) Inform customers by appropriate means(4) Take appropriate corrective measures, including, for example, repair, replacement, or refund

8
6

5

0

3

2004

2005

2006

2007

2008

2009

FY

* The number of incidents shows an increase in FY2005, when Komatsu thoroughly investigated product quality information from the previous five years anddecided voluntarily to file notices and take remedial action for ensuring thesafety of vehicles for transporting goods by road.

Managerial
Structure

System for Dealing with Recalls
In recent years, customers have become more concerned about
product safety in general and product recalls in particular. To help
ensure product safety in the market, Komatsu is reinforcing its recall
related organizational strength, comprehensive response capabilities,
procedures for prompt corrective measures, and proactive information disclosure while employing increasingly rigorous monitoring.

8

Means for Preventing Recalls(1) Strengthening of system for collecting information on productquality in the market(2) Promotion of technical verification of the problem involved in therecall and timely decision-making(3) Strengthening of check system that features persons responsible
for vehicle inspection and safety(4) Regular auditing of recall-related operations

44

Data on Environmental Impact Resulting from Business Activities

Relationship between Business Activities andthe Environment
The Komatsu Group procures various parts and materials and,through the manufacturing process, utilizes the earth’s resources,
including raw materials, water, energy, and chemical substances,among others, to provide products to customers. Such businessactivities impact the environment at each stage in the process.
The Komatsu Group will continue to provide more highly valueadded products and services while assessing the environmental
impacts resulting from its business activities, formulating mediumand long-term objectives, and introducing measures to reduce suchimpacts.

Environmental Impact Resulting from Business Activities of Komatsu Group Companies, including Facilities outside Japan (FY2009)
EnergyInput

Electricity
Heavy oil A
Kerosene
Light oil
Natural gas

Direct Materials
Steel487,135t

LPG

Indirect Materials
PaintsLubricants

*1

751t
6,907kℓ *1

Development

Procurement of Materials

Ecology & Economy

Green procurement

Gasoline
Coke
Other

514GWh8,000kℓ
4,000kℓ
7,000kℓ
16 million Nm3
4,000t
400kℓ
300t
4MWh

Water Resources
Groundwater 5.2 million m3
Industrial water 0.3 million m3
Supply water 0.7 million m3

Manufacturing (27 Komatsu Group Manufacturing Facilities in and outside Japan)
Mitigation of climate change (energy conservation)

LCA design

Effective utilization of resources (zero emissions)

Medium-term targets fordevelopment ofenvironmental technology

Environmental risk management*1

Elimination of hazardous chemical substances

Termination of use of organic chlorinated cleaning solvents*2
Environmental Risks(Air, soil, and groundwater pollution)

Product
Product weight(construction, mining
and Industrial equipment)

950kt

Number of products(construction, mining
and Industrial equipment)

43,284vehicles

Measures for underground oil tanks Completed*2
Storage for PCB transformers

583units*2

Groundwater observation wells

114wells*2

Company on-site landfills

ClosedOutputData

Waste

Atmospheric Discharges

80kt
Total amount generated
Substances under the Pollutant Release andTransfer Register (PRTR) Law
44.3t*2(Waste furnaces
Completed)

CO2
328kt-CO2
SOx
38t
185t*2NOx
Substances under the PRTR Law 403.3t*2

Noise andvibration

Waste Recycling

69kt

Recycling amountHazardous waste manifests
Use in otherindustrial sectors

Waste Disposal
Waste materials disposed by subcontractor 11kt
(Company on-site landfill of waste materials 0kt)

Coverage of Data

Water-based Discharges

6.0 million m3*2
Wastewater
BOD emissions
13t*2
COD emissions
16t*2
Substances under the PRTR Law(public water areas)
0t*2
Substances under the PRTR Law(sewerage)
0t*2*1 8 Komatsu manufacturing facilities in Japan*2 13 Komatsu Group manufacturing facilities in Japan*3 Logistics from procurement to sales related to construction equipment in Japan*4 From 2009 sales agencies and rental companies in Japan (Komatsu Construction Machinery Sales, Komatsu Rental) were added45

CO2 emissions: Calculated by multiplying the electric power, heavy oil, etc. consumed (see Energy section of Input column) by the CO2 emission
coefficient (according to the calculation guidelines of the Ministry of the Environment (FY1999) based on the Act on Promotion of Global
Warming Countermeasures)
SOx emissions: Calculated by multiplying the “S content by percentage” (based on element tables of suppliers) by the amounts of heavy oil, kerosene,light oil, and coke used.
NOx emissions: Calculated by multiplying the “nitrogen oxide emissions units” (obtained at each Komatsu facility) by the amounts of heavy oil, kerosene,light oil, natural gas, and LPG used.
Emissions and transfer of substances covered by the PRTR Law: Calculated by the “content ratio of specific chemical substances” contained in indirectmaterials multiplied by the “discharge or transfer rate.” This calculation is based on the PRTR Law, which was designed to mandate the disclosure of theamount of specific chemical substances released into the environment to promote the management of such substances.

EnergyLight oil

703kℓ *3

Packaging

Energy1,525t*3
Steel
15t*3
ResinsWood, cardboard
2,391t*3

Electricity
fuel

Logistics

Energy16.4GWh*4
500kℓ *4

FuelEnergyIndirect Materials, Oils

Indirect Materials, Oils

Fuel, electricity

Sales and After-sales Services

Use

Recovery and Disassembly

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

Provision of environmentfriendly products and services

Reduction of environmental impact
during the product usage stage

Creation and operation of atransaction network for usedcomponents (parts), information
on “Reman” sales, etc.

Provision of solutions for customers’
environmental activities

Promotion of “Reman,” inwhich used components(parts) are recovered,remanufactured, andsupplied back to the market

Promotion of fuel-efficient
operation

Reuse of products
Reuse of parts
Recycling of materials(outsourcing)Atmospheric Discharges

Atmospheric Discharges

29.4kt-CO2*3

CO2

Atmospheric Discharges

8.4kt-CO2*4

Data

CO2

CO2, NOx,diesel particulate matter

Atmospheric Discharges

CO2
Returnable
pallets

Waste oilproducts

Noise andvibration

Hazardous waste manifests

Waste
disposal
Recycling conducted
at oil manufacturers

Use in otherindustrial sectors

46

Environmental Management

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

No.

Head Office

Divisionsoverseeing
environmental managem e n t a tplantsCourse name

Target1

Advanced environmental education (held every two years)

Environmental specialists (Komatsu and affiliates)

2

Overview of the ISO14000 series

34Participants
FY2006

FY2007

FY2008FY2009

−

19

−

16

Administrators (Komatsu, affiliates, and business associates)

29

36

32

55

Training of internal auditors / Refresher courses

Environmental auditors (Komatsu, affiliates, and business associates)

60

51

41

40

Development and manufacturing (introductory)

Development and manufacturing staff (for second-year employees)

73

97

139

182

5

Environmental training for manufacturing engineers

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

50

50

66

91

6

Training new employees

New Employees (Komatsu and affiliates)

125

186

227

115

7

Lectures on the environment, experience-oriented education

Komatsu Group managers and employees

468

308

1,329

398

8

Education for enhanced environmental understanding (e-Learning)

Komatsu Group managers

767

−

−

−

9

Education to refresh environmental understanding (e-Learning)

Komatsu Group managers and employees

4,675

191

164

237

1

Education in the basics of auditing

Managers and employees

241

371

153

98

2

Overview of the ISO14000 series

Managers and employees

0

2,138

302

836

3

Training of internal auditors

Environmental auditors

76

30

59

7

4

Training new employees

New Employees

418

666

675

1,116

5

Regulatory education and personnel exchange

Employees

1,084

788

1,276

517

6

Specialist training

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

277

113

1,776

2,466

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

Number of Persons Having Environment-related Certificate
Certificate name

Number of persons with certificate*
FY2006

FY2007

FY2008FY2009Pollution control administrators

209 (53)

192 (51)

195 (49)

177 (39)

Energy administrators

42 (14)39 (14)40 (13)48 (13)

Environmental management system auditors

7

8

8

7

*Figures in parentheses indicate the number of officers required.

Chemical Substance Control and Pollution Mitigation and Prevention
Under the PRTR Law*1, companies are required to disclose and file
notices every year regarding Class I Designated Chemical Substances and the amounts released and transferred (when handling one ton
or more). Komatsu has made it a policy to also include chemical
substances handled in amounts of less than one ton and control
them accordingly. The company also has faithfully complied with thechanges that occurred to the designations of controlled chemical
substances when the law was revised in 2008.

Data

Reduction of Substances under the PRTR Law
Three substances under the PRTR Law, xylene, ethyl benzene andtoluene, account for approximately 99% of the chemicals released by
the manufacturing facilities of Komatsu and the Komatsu Group. Of
the total amount, most is released into the air. Komatsu is making efforts to reduce the amounts of such substances, by shifting to indirect materials that contain chemicals that have less impact on humans, animals and plants. Two companies that joined the Group in2009 were included in the initiative, and have begun managing theirchemical use. This fiscal year, the amount of chemicals released
dropped to approximately one-half of the level of the preceding year,
partially by curtailing the production and use of High Solid Paint. Komatsu will continue its endeavor to reduce its impact on the environment with appropriate measures that emphasize a reduction in therelease of chemicals.
Komatsu Guidelines for the Control of Chemical
Substances
Komatsu has a comprehensive management system in place basedon the Komatsu Guidelines for the Control of Chemical Substances

47

that aims at developing environment-friendly products and reducing
environmental risks. In other words, to manage the amounts of controlled chemical substances that are released and transferred, thesesubstances were stratified, based on risk assessment and selection
criteria, into banned substances (1,809), substances to be reduced(2,364) and substances to be properly controlled (other than thosebanned or to be reduced). The Komatsu Group introduced a comprehensive management system for chemical substances in 2003,
and since then has made constant efforts to improve the level of its
preventive management of environmental pollution, by conducting
advance environmental impact assessments.
Reducing the Amount of VOCs Released
In the current fiscal year, Komatsu succeeded in achieving its goal of
reducing the use of VOCs*2 contained in paint, which account for
more than 90% of the chemical substances released by Komatsu, by
measures such as shifting to paints with fewer volatile compounds
and improving the Paint-adherance efficiency. With the target ofachieving a more than 50% reduction in VOCs released per unit manufacturing value in 2005 by 2010, the company was able to meet thistarget one year ahead of schedule through the above measures. Efforts to achieve further reductions will continue in the future.
*1 PRTR - Law designed to mandate the disclosure of the amount of specificchemical substances released into the environment to promote the management of such substances*2 VOC (Volatile Organic Compounds) - Organic chemical compounds, referring mainly to paint solvents.

Names of Class I Designated Chemical Substances and the Amounts Released and Transferred by Group Manufacturing Facilities in Japan(handling 1 ton or more, or 0.5 ton or more for Class I Specified Chemical Substances)(Unit: tons)
Numberunder the
PRTR Law

Name

AmounthandledAmount released
Air

Chemicallytransformed
or eliminated

Amount transferred

Water

Soil

BuriedAmountcontained in
products

Sewerage

Disposed

311

Manganese and its compounds

393.4

0.6

−

−

−

−

7.3

0.0

385.5

43

Ethylene glycol

283.7

0.1

−

−

−

−

4.1

−

279.6

63

Xylene

253.3

185.7

−

−

−

−

10.3

55.7

1.7

40

Ethylbenzene

145.3

129.6

−

−

−

−

6.7

8.7

0.3

68

Chromium and chromium (III) compounds

116.1

0.0

−

−

−

−

1.0

−

115.1

227

Toluene

103.3

83.3

−

−

−

−

9.7

7.6

2.7

346

Molybdenum and its compounds

20.3

0.0

−

−

−

−

0.0

−

20.3

231

Nickel

13.4

−

−

−

−

−

0.4

−

13.1

224

1,3,5-trimethylbenzene

9.2

2.9

−

−

−

−

0.3

2.2

3.7

266

Phenol

6.7

0.0

−

−

−

−

0.0

3.9

2.9

69

Chromium (VI) compounds*1 *2

6.6

0.0

−

−

−

−

1.6

−

−

243

Barium and its water-soluble compounds

4.2

−

−

−

−

−

0.3

−

3.9

100

Cobalt and its compounds

2.9

−

−

−

−

−

0.3

−

2.6

30

Bisphenol A type epoxy resin (liquid)

2.4

−

−

−

−

−

0.6

−

1.8

299

Benzene*2

0.96

0.02

−

−

−

−

−

0.42

0.52

*1 During chrome plating, chromium (VI) compounds become chromium (III) compounds. Therefore, the amount transferred and the amount contained in products are entered under “chromium and chromium (III) compounds.”*2 PRTR Class I Specified Chemical Substances

Breakdown of the Amount of PRTR-related Substances Released
and Transferred at Group Manufacturing Facilities in Japan
Xylene 13.7%

Other 1.5%

Changes in the Amounts of PRTR-related Substances Released*
at Group Manufacturing Facilities in Japan(kg/million
yen)

（t）

Nickel 1.0%

1,400

Molybdenum andits compounds 1.5%
Chromium andits compounds
8.5%

Ethylbenzene 9.6%

Remainattached to
products
61.4%

Ethylene glycol
20.6%

Chemicallyeliminated
5.8%

Manganese andits compounds
28.4%

Released
into the air
29.7%
Amounttransferred(waste)3.1%

Toluene 6.1%
Other 0.3%

Toluene 0.7%

Other 0.6%

Ethylbenzene 0.6%

Xylene 4.1%
Note: Substances handled in quantities of 1 ton or more

（t）

（％）

120

2,000
1,500

1,453

1,626

78.8
50 or less

FY

2005

2006

2007

2008

2009

Amount of VOCs released
Index per unit of manufacturing value (compared to FY2005)

4.0
4
3

800

2.3
2

600

402

400
0

2005

Target for 2010

2008

0

2009

Index per unit of manufacturing value

Renovation of Underground Tanks in Operation More Than 20 Years
at Group Manufacturing Facilities in Japan(Numberof tanks)

（％）

99

60

99

99

100 100 100 100 100 100

87

100

75
45

60

30

0

2007

1

*Substances handled in quantities of 1 ton or more

90

30

2006

Amount released

75

61

50

20

564

500
0

47.6

5

977

51

1,321

1,000

5.0

1,000

95.4
1,693

1,214

6

Data

Amount of VOCs Released by Group Manufacturing Facilities in
Japan

101.4

1,288

Xylene 0.8%

Toluene 0.6%

100

1,200

5.2

1,036

Manganese andits compounds
0.5%
Ethylbenzene 0.5%

Other 0.5%

4.9

17

16
25

15
0

0

0

2

0

0

0

1

0

FY 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Number of tanks renovated
Percentage of tanks renovatedNumber of tanks more than 20 years in operation: 143

048

Environmental Data by Manufacturing Facility in Japan
Overview

Manufacturing facility

Awazu Plant (established in 1921)

Osaka Plant (established in 1952)

Ibaraki Plant (established in 2007)

Location

Komatsu, Ishikawa Prefecture

Hirakata, Osaka Prefecture

Hitachinaka, Ibaraki Prefecture

Main products

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

Large bulldozers, medium-sized and large hydraulic excavators, mobile crushers/recyclers/tub grinders (crushers, soil stabilizers, tub grinders, etc.)

Large wheel loaders, dump trucks,axle

1,027/231

545/121

3,764

2,212

707

September 1997

July 1997

May 2007

Site/building area (1,000 m2)
Number of employees
Date of ISO14001 certification acquisition

553/46*The number of employees includes those working for Komatsu affiliates on the premises.
*Number of employees as of end of March 2010.
Major Performance

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

Actual value

Air

Compliance Conditions to Major Regulations

Item
Nitrogen oxides (NOx)Actual value

Item

Actual value

34,744 t-CO2

Total CO2 emissions

24,683 t-CO2

Total CO2 emissions

8,703 t-CO2

NOx total amount

15,066 kg

NOx total amount

1,839 kgNOx total amount73,709 kg

SOx total amount

2,833 kg

SOx total amount

Total emissions of waste

1,415 tTotal emissions of waste

1,387 tAmount recycled

1,406 tAmount recycled

1,386 tAmount recycled

563 t

Recycling rate

99.5 %

Recycling rate

100 %Recycling rate

100 %BOD emissions

4,354 kg

BOD emissions

123 kg

BOD emissions

62 kg

COD emissions

7,077 kg

COD emissions

498 kg

COD emissions

163 kgWastewater

Energy consumption*The heat energy conversion factor is calculated
in keeping with the guidelines for calculation
stipulated by the Ministry of the Environment ofJapan in FY1999, which are based on the Act
on Promotion of Global Warming Countermeasures.

Item

Total CO2 emissions

Item

Actual consumption

0 kg

3,160,270 m3/year

Wastewater

Converted to calorie
equivalents (GJ)

Item

Actual consumption

SOx total amount

637 kgTotal emissions of waste

563 t

130,098 m3/year

Wastewater

Converted to calorie
equivalents (GJ)

Item

Actual consumption

24,524 m3/year
Converted to calorie
equivalents (GJ)Electricity

62,848 MWh

611,859

Electricity

48,484 MWh

471,526

Electricity

16,961 MWh

165,286

Heavy oil A

2,476 kℓ

96,812

Heavy oil A

125 kℓ

4,888

Heavy oil A

308 kℓ

12,043

Kerosene

14 kℓ

502

Kerosene

49 kℓ

1,798

Kerosene

10 kℓ

367

Light oil

228 kℓ

8,692Light oil

223 kℓ

8,519

Light oil

460 kℓ17,572

LPG, et al.

54,448

LPG, et al.

104,553

LPG, et al.

Total

772,313

Total

591,284

Total

Unit

Regulated
value

Facility

Actualvalue

Facility

Regulatedvalue

Actualvalue

2,068
197,336

Regulated
value

Facility

Actualvalue

ppm

Boiler180

97

Boiler150

14.7

Boiler

180

57

ppm

Diesel engine

950

560

Metal furnace

180

40

Diesel engine

950

460

Paint drying furnace

230

8

ppm
ppm
Sulfur oxides (SOx)−

K-value regulation

17.5

0.81

Regulation of total emissions (Nm3/h)

1.573

0.002

Soot and dust

g/m3N

Boiler0.3

0.002

Boiler

0.03

0.001 or lessg/m3N

Diesel engine

0.1

0.018

Metal furnace

0.1

0.018

Paint drying furnace

0.1

0.018

g/m3N

K-value regulation

8.0

1.85

Boiler0.3

0.008

Diesel engine

0.1

0.044

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

Data

Regulated value
according to the Water
Pollution Control Law Unit

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

AveragepH

5.8–8.6

5.8–8.6

7.6

6.5

7.1

5.8–8.6

7.7

7.0

7.5

5.8–8.6

7.4

6.5

7.1

BOD (Biochemical oxygen demand)

160mg/ℓ

80

2.1

ND

1.0

25

1.9

0.4

0.9

25

7.6

ND

2.5

COD (Chemical Oxygen Demand)

160mg/ℓ

80

5.6

ND

2.5

25

5.2

2.3

3.8

120

11.0

2.3

6.7

Suspended solids (SS)

200mg/ℓ

120

4.4

ND

1.5

80

3.6

0.8

2.0

50

ND

ND

ND

Mineral oils

5mg/ℓ

5

0.8

ND

0.5

3

2.5

ND

0.5

5

ND

ND

ND

Copper

3mg/ℓ

3

ND

ND

ND

3

0.04

ND

0.025

3

ND

ND

ND

Zinc

2mg/ℓ

2

ND

ND

ND

2

0.05

ND

0.05

2

0.2

ND

0.1

Item

Actual value

Actual value

Nitrogen

120mg/ℓ

120

5.0

1.1

3.0

120

2.4

2.4

−

120

22.0

5.4

13.7

Phosphorus

16mg/ℓ

16

0.23

0.03

0.11

16

0.06

0.06

−

16

3.9

2.7

3.3

Cadmium

0.1mg/ℓ

0.1

ND

ND

ND

0.01

ND

ND

ND

0.1

ND

ND

ND

Lead

0.1mg/ℓ

0.1

ND

ND

ND

0.01

ND

ND

ND

0.1

ND

ND

ND

Chromium (VI)

0.5mg/ℓ

0.5

ND

ND

ND

0.05

ND

ND

ND

0.1

ND

ND

ND

Trichloroethylene

0.3mg/ℓ

0.3

0.005

ND

0.003

0.03

ND

ND

ND

0.3

ND

ND

ND

Tetrachloroethylene

0.1mg/ℓ

0.1

ND

ND

ND

0.01

0.00160.00060.0011

0.1

ND

ND

ND

Dichloromethane

0.2mg/ℓ

0.2

ND

ND

ND

0.02

ND

ND

ND

0.2

ND

ND

ND

1,1,1-trichloroethane

3mg/ℓ

3

ND

ND

ND

1

ND

ND

ND

3

ND

ND

ND

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

49

Actual value*Data for the Awazu Plant include data for the Komatsu
and Kanazawa Plants and Komatsu Engineering Corp.
(Awazu).

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

*Data for the Ibaraki Plant include data for the Mooka
Plant.

Oyama Plant (established in 1962)

Koriyama Plant (established in 1995)

Shonan Plant (established in 1966)

Research Division (established in 1985)

Oyama, Tochigi Prefecture

Koriyama, Fukushima Prefecture

Hiratsuka, Kanagawa Prefecture

Hiratsuka, Kanagawa Prefecture

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

Hydraulic cylinders, swivel joints, gear pumps

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

R&D on business fields of the Komatsu Group585/143

297/19

40/2

2,800

348

703

211

May 1997

July 2002

March 2000

May 2008

Item

Actual value

Item

Actual value

195/0

Item

Actual value

Item

Actual value

Total CO2 emissions

55,184 t-CO2

Total CO2 emissions

8,013 t-CO2

Total CO2 emissions

2,139 t-CO2

Total CO2 emissions

2,067 t-CO2

NOx total amount

27,684 kg

NOx total amount

52,522 kg

NOx total amount

0 kg

NOx total amount409 kgSOx total amount

67 kg

SOx total amount

2,859 kg

SOx total amount

0 kg

SOx total amount

29 kg

Total emissions of waste

171 t

Total emissions of waste

3,745 tTotal emissions of waste

742 t

Total emissions of waste

121 tAmount recycled

3,745 tAmount recycled

742 t

Amount recycled

121 tAmount recycled

165 t

Recycling rate

100 %Recycling rate

100 %Recycling rate

100 %Recycling rate

96.6 %

BOD emissions

4,176 kg

BOD emissions

28 kg

BOD emissions

2,467 kg

BOD emissions

10 kg

COD emissions

5,949 kg

COD emissions

124 kg

COD emissions−

COD emissions

16 kg

540,000 m3/year

Wastewater

Converted to calorie
equivalents (GJ)

Item

Wastewater
Item

Actual consumption

Actual consumption

11,745 m3/year

Wastewater

Converted to calorie
equivalents (GJ)

Item

Actual consumption

28,888 m3/year

Wastewater

Converted to calorie
equivalents (GJ)

Item

Actual consumption

Electricity

73,448 MWh

715,471

Electricity

7,072 MWh

70,508

Electricity

5,499 MWh

Electricity

4,454 MWh

Heavy oil A

198 kℓ

7,742

Heavy oil A

1,708 kℓ

66,783Heavy oil A

0 kℓ

0

Heavy oil A

20 kℓ

798

Kerosene

2,946 kℓ

108,118

Kerosene

0 kℓ

0Kerosene

0 kℓ

0Kerosene

76 kℓ

2,789

Light oil

2,530 kℓ

96,646

Light oil

0 kℓ0Light oil

0 kℓ0Light oil

36 kℓ

1,375

259,012

LPG, et al.

11,194

LPG, et al.

578

LPG, et al.

Total

148,485

Total

LPG, et al.
Total

1,186,989

Facility

Regulatedvalue

Actualvalue

Facility

Actual
value

760

730

Diesel engine

950

800

Gas turbine

70

17

Boiler180

85

Annealing furnace

200

40

K-value regulation

7.0

3.13

K-value regulation

11.5

0.17

Diesel engine

0.1

0.017

Tempering (electric) furnace

0.2

less than 0.003

Boiler0.3

0.003

Baking (electric) furnace

0.2

less than 0.003

Annealing furnace

0.25

0.001

Cogeneration engine

0.2

0.046

Electric furnace

0.2

0.003

Actual value

Cogeneration engine

Regulatedvalue

Actual value

54,825

4,188 m3/year
Converted to calorie
equivalents (GJ)

55,403

Facility
N/A

N/A

299

Total

48,284

Regulatedvalue

Actualvalue

Facility

−

−

−

−

Actual value

43,023

Regulatedvalue

Actualvalue

Service generator

303

180

Cold/hot water generator

390

46

K-value regulation

11.5

0.1

Service generator

0.1

0.015

Cold/hot water generator

0.2

0.003

Actual value

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

5.8–8.6

7.3

6.9

7.2

5.8–8.6

7.4

6.7

7.0

5–9

8.3

6.2

7.5

5.8–8.6

7.6

7.0

7.4

25

14.6

4.0

7.7

25

6.5

0.7

2.4

600

160

ND

53.0

10

3.0

2.0

2.5

25

19.9

6.2

11.0

40

14.0

8.5

10.6

−

−

−

−

25

6.0

2.0

4.3

50

19.6

3.2

12.9

50

6.2

1.3

3.4

600

200

ND

27.0

65

14.0

ND

5.0

5

0.7

ND

0.5

1

ND

ND

ND

5

2.0

ND

1.0

5

1.0

1.0

1.0

3

ND

ND

ND

2

ND

ND

−

3

ND

ND

ND

1

ND

ND

ND

2

0.11

ND

0.06

2

ND

ND

−

2

0.06

0.02

0.04

1

ND

ND

ND

20

7.3

2.0

3.6

120

21.0

21.0

−

−

−

−

−

120

−

−

−

2

0.4

0.1

0.2

16

2.6

2.6

−

−

−

−

−

16

−

−

−

0.1

ND

ND

ND

0.1

ND

ND

−

0.1

ND

ND

ND

0.1

0.01

ND

0.01

0.1

ND

ND

ND

0.1

ND

ND

ND

0.1

ND

ND

ND

0.1

0.05

0.05

0.05

0.1

ND

ND

ND

0.1

ND

ND

ND

0.5

ND

ND

ND

0.5

0.05

0.05

0.05

0.3

ND

ND

ND

0.3

ND

ND

−

0.3

ND

ND

ND

0.3

ND

ND

ND

0.1

ND

ND

ND

0.1

ND

ND

−

0.1

ND

ND

ND

0.1

0.002

0.002

0.002

−

−

−

−

0.2

ND

ND

−

0.2

0.002

ND

0.002

0.2

ND

ND

ND

3

ND

ND

ND

3

ND

ND

−

3

ND

ND

ND

3

0.002

0.002

0.002

Data

Regulated
value*Data for the Shonan Plant include data for KELK Ltd.

50

Environmental Data by Manufacturing Facility in Japan

Overview

Manufacturing facility

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

Komatsu Castex Ltd. Himi Plant (established in 1952)

Location

Oyama, Tochigi Prefecture

Himi, Toyama Prefecture

Nanto, Toyama Prefecture

Main products

Forklift trucks, mini wheel loaders

Iron castings, steel castings, molds for casting, etc.

Machine tools, sheet-metal machines, semiconductor
manufacturing equipment

Site/building area (1,000 m2)

245/48428/71

Number of employees

1,089

799

663

February 1998

January 2000

June 1999

Date of ISO14001 certification acquisition*The number of employees includes those working
for Komatsu affiliates on the premises.
*Number of employees as of end of March 2010.
Major Performance

Air

Compliance Conditions to Major Regulations

Item
Nitrogen oxides (NOx)Actual value

Item

Actual value

Item

Actual value

Total CO2 emissions

4,494 t-CO2

Total CO2 emissions

39,598 t-CO2

Total CO2 emissions

6,724 t-CO2

NOx total amount

1,588 kgNOx total amount

12,324 kg

NOx total amount− kg

SOx total amount

1,164 kg

SOx total amount

1,270 kg

SOx total amount

Total emissions of waste

4,029 tTotal emissions of waste

Total emissions of waste

668 t

0 kg
998 t

Amount recycled

667 t

Amount recycled

3,884 tAmount recycled

927 t

Recycling rate

99.9 %

Recycling rate

99.3 %

Recycling rate

95.1 %

BOD emissions

504 kg

BOD emissions

649 kg

BOD emissions

665 kg

COD emissions

637 kg

COD emissions

1,222 kg

COD emissions− kg

Wastewater

97,906 m3/year

Item

Actual consumption

Converted to calorie
equivalents (GJ)

Wastewater

393,605 m3/year

Wastewater

Item

Actual consumption

Converted to calorie
equivalents (GJ)

1,437,941 m3/year

Item

Actual consumption
16,890 MWh

Converted to calorie
equivalents (GJ)Electricity

7,176 MWh69,927

Electricity

74,347 MWh

725,118

Electricity

Heavy oil A

464 kℓ18,142

Heavy oil A

1,552 kℓ

60,683Heavy oil A

0 kℓ

0

Kerosene

2 kℓ

73

Kerosene

817 kℓ29,984

Kerosene

6 kℓ

213

Light oil

38 kℓ

170 kℓ

39 kℓ

1,452

Light oil

6,494Light oil

LPG, et al.

6,243

LPG, et al.

72,810

LPG, et al.

Total

95,837

Total

895,089

Total

Unit
ppm

182/89*Komatsu Castex Ltd. is the successor company of theformer Komatsu Ltd. Himi Plant established in 1952.

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

Energy consumption*The heat energy conversion factor is calculated
in keeping with the guidelines for calculation
stipulated by the Ministry of the Environment ofJapan in FY1999, which are based on the Act
on Promotion of Global Warming Countermeasures.

Facility
Small boilers*

Regulatedvalue

Actual
value

(260)

56

Regulated
value

Facility

Actualvalue

Annealing furnace

200

48

ppm

Annealing furnace (small)

180

37

ppm

Calciners

220

14

166,043

1,497
2,012
169,765

Regulatedvalue

Actual
value

N/A

−

−

N/A

−

−

Facilityppm
Sulfur oxides (SOx)−

K-value regulation

7.0

0.10

K-value regulation

17.5

0.19

Soot and dust

g/m3N

Small boilers*

(0.5)

0.004

Annealing furnace

0.25

0.01

g/m3N

Annealing furnace (small)

0.2

0.01 or less

g/m3N

Calciners

0.15

0.01 or lessg/m3N

Arch furnace

0.1

0.01 or less

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

*Regulated values of NOx, soot and dust are inaccordance with self-regulatory measures, because
these boilers are small.

Wastewater

Data

Regulated value
according to the Water
Pollution Control Law Unit

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

Regulatedvalue

Maximum

MinimumpH

5.8–8.6

5.8–8.6

7.3

7.0

7.1

5.8–8.6

8.4

6.9

7.6

5.8–8.6

7.3

6.4

6.8

BOD (Biochemical oxygen demand)

160mg/ℓ

25

13.3

1.9

5.2

25

3.4

0.7

1.7

160

1.0

ND

0.5

COD (Chemical Oxygen Demand)

160mg/ℓ

25

13.7

2.9

6.5

160

6.3

1

3.1

−

−

−

−

Suspended solids (SS)

200mg/ℓ

50

10.8

2.4

6.9

90

18.0

ND

5.4

200

5.0

ND

2.1

Mineral oils

5mg/ℓ

5

ND

ND

ND

5

0.6

ND

0.5

−

−

−

−

Copper

3mg/ℓ

3

ND

ND

ND

1

ND

ND

ND

−

−

−

−

Zinc

2mg/ℓ

2

0.12

ND

0.06

2

ND

ND

ND

−

−

−

−

Nitrogen

120mg/ℓ

20

1.5

1.3

1.4

120

13.0

2.2

7.1

−

−

−

−

Phosphorus

16mg/ℓ

2

0.20

0.12

0.16

16

0.58

0.05

0.20

−

−

−

−

Cadmium

0.1mg/ℓ

0.1

ND

ND

ND

0.1

ND

ND

ND

−

−

−

−

Lead

0.1mg/ℓ

0.1

ND

ND

ND

0.1

ND

ND

ND

−

−

−

−

Chromium (VI)

0.5mg/ℓ

0.1

ND

ND

ND

0.5

ND

ND

ND

−

−

−

−

Trichloroethylene

0.3mg/ℓ

0.3

ND

ND

ND

0.3

ND

ND

ND

−

−

−

−

Tetrachloroethylene

0.1mg/ℓ

0.1

ND

ND

ND

0.1

ND

ND

ND

−

−

−

−

Dichloromethane

0.2mg/ℓ

0.2

ND

ND

ND

0.2

ND

ND

ND

−

−

−

−

1,1,1-trichloroethane

3mg/ℓ

3

ND

ND

ND

3

ND

ND

ND

−

−

−

−

Item

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

51

Komatsu NTC Ltd. (established in 1945)

Actual value

Actual value

Actual value
Average*Data for Komatsu NTC Ltd. include data for the
Toyama Plant, Fukuno Plant.

Overview

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

Komatsu House Ltd. (established in 1971)

Ryuou-cho, Gamou, Shiga Prefecture

Shinshiro, Aichi Prefecture

Cabs for construction equipment

Prefabricated structures for businesses

52/22

31/10

366

41

December 2007

March 2002

Manufacturing facility

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

Location

Sagamihara, Kanagawa Prefecture (Head office)Activities

Sales and service for construction machinery

Number of bases

116 sites

Number of employees

1,958

Date of ISO14001 certificationacquisition−*The number of bases and employees as of end of March 2010.

Actual value

Item

Actual value

Total CO2 emissions

2,781 t-CO2

Total CO2 emissions

714 t-CO2

NOx total amount− kg

NOx total amount

284 kgSOx total amount

0 kg

SOx total amount

128 kg265 t

Total emissions of waste

36 t

Amount recycled

143 t

Amount recycled

36 t

Recycling rate

97.2 %

Recycling rate

100 %BOD emissions

409 kg

BOD emissions

58 kg

Total emissions of waste

COD emissions

526 kgItem

Actual consumption

Electricity

5,716 MWh

Heavy oil A

0 kℓ

COD emissions

Converted to calorie
equivalents (GJ)

Item

Actual consumption

Electricity

592 MWh

5,902

Heavy oil A

72 kℓ

2,815

0

6,471 m3/year
Converted to calorie
equivalents (GJ)

Kerosene

14 kℓ

503

Kerosene

0 kℓ

0Light oil

35 kℓ

1,341

Light oil

5 kℓ

195

LPG, et al.

7,701

LPG, et al.

4,654

Total

65,754

Total

13,566

N/A

Regulatedvalue

Actualvalue−−

Facility
BoilerItem

Regulatedvalue

Actual
value

250

59

Actual value

Total CO2 emissions

5,163 t-CO2

Total emissions of waste

2,943 tAmount recycled

2,431 tRecycling rate

82.6 %

Actual consumption
9,662 MWh

Heavy oil A

45 kℓ

1,760

Kerosene

382 kℓ

14,005Light oil

89 kℓ

3,404

LPG

26 t

1,305

−

−

118,069

Manufacturing facility

Komatsu Rental Ltd. (established in Oct. 2006)

Location

Yokohama, Kanagawa Prefecture (Head office)Activities

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

1,252
−

K-value regulation

17.5

0.51

Boiler0.3

0.003*The number of bases and employees as of end of March 2010.

Major Performance

Actual value

177 sites

Number of employees
Date of ISO14001 certificationacquisition

Actual value

Maximum

Minimum

Average

Regulatedvalue

Maximum

Minimum

Average

5.8–8.6

7.2

7.0

7.1

5.8–8.6

7.5

6.4

6.8

20

7.0

1.0

3.3

160

58.0

1.2

9.0

20

8.7

1.5

4.3

160

25.0

0.5

9.0

20

14.0

0.5

5.1

200

8.0

ND

2.5

−

−

−

−

5

1.0

ND

1.0

0.1

0.02

ND

0.01

−

−

−

−

0.5

0.18

0.02

0.06

−

−

−

−

8

5.9

1.0

3.6

120

60.0

1.7

17.0

0.6

0.5

ND

0.2

16

15.0

0.3

4.0

−

−

−

−

−

−

−

−

0.03

ND

ND

ND

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

Environmental impact*Total waste emissions are equal
to the amount disposed + theamount recycled (including
valuables)*Recycling rate is calculated by
dividing the amount recycled(including valuables) by theamount generated (including
valuables.)Item

3,200 t-CO2

Total emissions of waste

2,262 tAmount recycled

1,319 tRecycling rate

Item
Energy consumption*The heat energy conversion
factor is calculated in keepingwith the guidelines for calculation stipulated by the Ministryof the Environment of Japan in
FY1999, which are based on
the Act on Promotion of Global
Warming Countermeasures.

Actual value

Total CO2 emissions

58.3 %

Actual consumption

Converted tocalorieequivalents (GJ)Electricity

6,742 MWh

Heavy oil A

0 kℓ

0

Kerosene

112 kℓ4,114Light oil

107 kℓ

4,080

8t

382

LPG
Town gas, et al.
Total

Data

Regulatedvalue

96,332

1,263

Total

Number of bases

N/A

Converted tocalorieequivalents (GJ)Electricity

Town gas, et al.

Overview

Facility

Energy consumption*The heat energy conversion
factor is calculated in keepingwith the guidelines for calculation stipulated by the Ministryof the Environment of Japan in
FY1999, which are based on
the Act on Promotion of Global
Warming Countermeasures.

58 kg

Wastewater

56,210

Environmental impact*Total waste emissions are equal
to the amount disposed + theamount recycled (including
valuables)*Recycling rate is calculated by
dividing the amount recycled(including valuables) by theamount generated (including
valuables.)Item122,627 m3/year

Wastewater

Major Performance

Item67,222

440
76,23852

Environmental Data by Manufacturing Facility outside Japan
The Americas

EuropeOverview

CMO

PEORIA

NMO

Chattanooga Manufacturing Operation

Peoria Manufacturing Operation

Newberry Manufacturing Operation

Location

Tennessee,
U.S.A.

Illinois,
U.S.A.

Main products

Hydraulic excavators,
motor graders

Large wheel loaders,large dump trucks

Manufacturing
facilities

Hensley

KUK

KOHAG

Komatsu America Corp.

Number of employees
Energy consumption

Electricity

KDB

(MWh)

Komatsu do Brasil Ltda.

Hensley Industries, Inc.

Komatsu UK Ltd.

Komatsu Hanomag GmbHSouth Carolina,
U.S.A.

São Paulo,
BrazilTexas,U.S.A.

Birtley,
United Kingdom

Hannover,
Germany

Utility equipment(small construction equipment)

Hydraulic excavators,
bulldozers

Buckets, teeth and edges

Hydraulic excavators

Wheel loaders,compactors

283

502

136

640

432

297

568

4,760

16,1902,495

13,66029,892

3,445

3,453

Heavy oil, light oil, et al. (kℓ)

58

13

−

284

86

133

2

Natural gas (thousand m3)

1,012

2,743

22

−

3

667

611

LPG, et al.

(t)

−

25
(LPG)

23
(LPG)

183
(LPG)

98
(LPG)

−

−

Total energy consumption (GJ)

88,575249,330

26,61185,370302,596

57,55755,138(t-CO2)

4,677

20,207

1,470

1,896

16,780

2,779

3,136

5,977

41,614

3,875

27,091

77,070

3,932

3,918

CO2

Water consumption(t)Total emissions of waste (t)

233

2,641

138

3,070

30,427279

299

Date of ISO14001 certification acquisition

April 1998

March 2002

March 2004

January 2002

November 2009

December 1998

September 2000

KMG

KUE

KFAB

KUI

KOFI

BKC

Komatsu Mining
Germany GmbH

Komatsu Utility
Europe S.p.A.

Komatsu Forest AB

PT Komatsu Indonesia

PT Komatsu
Undercarriage Indonesia

PT KOMATSU FORGINGINDONESIA

Bangkok Komatsu Co., Ltd.

Location

Düsseldorf,
Germany

Este (PD),
Italy

Umeå,
SwedenJakarta,Indonesia

West Java,
Indonesia

West Java,
Indonesia

Chonburi,
Thailand

Main products

Ultra-large hydraulicexcavators

Utility equipment(small construction equipment)

Forestry equipment

Hydraulic excavators,
bulldozers,
wheel loaders

Crawler type forconstruction machinery,rollers

Parts for construction
machineryHydraulic excavators

EuropeOverview

Manufacturing
facilities

Asia

Number of employees

KI

Energy consumption

433

438

284

951

126

326

450

6,769

2,889

2,064

19,796

4,173

19,2606,148

Heavy oil, light oil, et al. (kℓ)

9

−

−

435

134

472

400

Natural gas (thousand m3)

1,113

614

−

898

−

−

−

LPG, et al.

(t)

−

−

−

102
(LPG)

91
(LPG)

−

95
(LPG)

Total energy consumption (GJ)

105,591

41,082

10,553248,950

49,701203,083

86,129

6,023

2,783

216

14,043

2,894

11,739

5,892

9,784

11,843

4,611

84,67636,82434,42932,635

Electricity

CO2

(MWh)

(t-CO2)

Water consumption(t)Total emissions of waste (t)

5,411

822

143

3,618

329

3,620

594

Date of ISO14001 certification acquisition

July 2002

November 2001

October 2003

June 2000

July 2009

October 2008

September 2001

Asia

Data

Overview

BKI
Manufacturing
facilities

LTK

KIPL

Bangkok Komatsu
Industries Co., Ltd.

L&T-Komatsu Limited

Location

Chonburi.
ThailandBangalore,
India

Main products

Forklift trucks,
Castiron parts forconstruction machinery

Hydraulic excavators

Number of employees

KSC

KCCM

KCF

Komatsu India Pvt. Ltd.

Komatsu Shantui Construction
Machinery Co., Ltd.

Komatsu (Changzhou)
Construction Machinery Corp.

Komatsu (Changzhou)
Foundry Corp.

Chennai,
India

Shandong,
China

Jiangsu,
China

Jiangsu,
China

Dump trucks

Hydraulic excavators

Wheel loaders, hydraulicexcavators, motor graders

Iron castings and foundrymolds for construction
and mining equipment

Energy consumption

242

677

178

546

423

295

(MWh)

12,915

7,051

565

9,839

2,585

26,755

Heavy oil, light oil, et al. (kℓ)

34

362

34

856

1,242

60

Natural gas (thousand m3)

0

−

−

124

−

−

(t)

79
(LPG)

188
(LPG)

−

−

12
(LPG)

374
(Coal, LPG)

Total energy consumption (GJ)

143,870

89,805

6,614

88,77570,059328,112

9,886

4,231

304

7,001

5,069

19,23927,12453,371

31,032

116,755

60,36961,540Electricity

LPG, et al.

CO2(t-CO2)

Water consumption(t)Total emissions of waste (t)

3,315

1,852

96

1,016

930

7,622

Date of ISO14001 certification acquisition

December 2009

June 1999

January 2010

December 2000

September 2000

December 1999

Notes
1. All data, except the number of employees, were derived from performances of all manufacturing facilities during FY2009. The number of employees was based on the companies' data as of March 31,
2010.
2. Conversion to CO2 and total energy consumption were based on statistical data of each region, country, and that of IEA for 2000.
3. Total emissions of waste are expressed as a composite of the amount recycled and the amount disposed.

53Environmental Impact Indicators by Region

Environmental Impact Indicators and Environmental Accounting, Broken Down by Region
EnergyWater Resources(million GJ)(million m3)

4.5

6

4.2

4.0
3.0

4

2.5

3

2.0
1.5

2

1.3

1.0

0.8

0.5

0.3
Japan

Asia
The Americas(excluding Japan)

EuropeWaste(1,000 t)

40

1
0

0.54
Japan

Recycled amount
Disposal amount

0.03
Europe

187.8

80.3
45.0
14.9
Japan

Asia
The Americas(excluding Japan)

Europe(million yen)

20,00036.5

16,40030

15,000

25

23.0

20

10,000
14.0

10

7.0

5,000

5
0

0.16

Asia
The Americas(excluding Japan)

200
180
160
140
120
100
80
60
40
20
0

Environmental Accounting (Expenses)

35

15(1,000 t)

5.44

5

3.5

0

CO2

Japan

Asia
The Americas(excluding Japan)

Europe

0

1,100

800

Asia
The Americas(excluding Japan)

Europe200
Japan

CO2 Emissions by Scope
Scope1: CO2 emitted directly by
manufacturing facilities(by using generators, boilers, etc.)(1,000 t)

70

Scope2: CO2 emitted indirectly by
manufacturing facilities (bypurchasing electricity)(1,000 t)

140

65.3

60

120

50

100

40

80

30

60

20

13.2

10

122.5

67.1
35.6

40
9.4

5.8

20

9.1

Japan

Asia

The Americas

Europe

Japan

Asia

The Americas

Data

0

0

Europe54

Environmental Accounting
Environmental Costs (Investments and expenses)
Top figure: Komatsu and Komatsu Group manufacturing facilities in Japan (excluding Komatsu NTC Ltd. and Komatsu Cabtec Co., Ltd.)
Bottom figure: Manufacturing facilities outside Japan (excluding KIPL, BKI, KUI, KOFI, and LTK)
Category

Investment

Expenses

FY2008FY2009Investment*(millions of yen)

Investment*(millions of yen)

(1) Business area costContents

FY2008FY2009

Expenses*(millions of yen)

Expenses*(millions of yen)Contents

1,793

1,228

4,158

2,671

809

295

2,004

611

785

871

● Investment for installation and conversion of

935

700

333

226

pollution mitigation/prevention facilities(installation of effluent processing facilities,
conversion of painting booths, etc.)

540

277

2. Global environmental
conservation cost

877

337

● Investment for implementing energy conservation

1.344

866

466

54

688

83

3. Resource circulation cost

132

20

● Investment for reducing the volume of waste ma-

1,880

1,105

9

15

terials(conversion of recycling facilities, introduction ofequipment for separating waste, etc.)

776

250

● Waste material processing cost

● Reduction of the environmental impact of components,

1. Pollution prevention cost(2) Upstream/downstream costmeasures(installation of new ventilation systems, etc.)

1

0

226

218

17

3

955

3

18

2

630

702

0

5

308

201

349

295

18,444

12,039

14

4

873

1,177

0

0

8

11

0

0

13

5

0

0

1,722

746

0

0

49

62

2,162

1,526

25,18816,387

840

307

4,202

2,058

● Cost of maintaining equipment for mitigation/preventionof air and water pollution and for noise and vibration
prevention (labor and depreciation costs)● Cost of maintaining energy conservation facilities, suchas cogeneration systems (labor and depreciation costs)

etc. shipped outside Japan● Reduction of the environmental impact of mass-production

units(3) Administration cost(4) R&D cost

● Investment for beautifying manufacturing sites● Investment in research facilities for reduction ofenvironmental impact● Cost of maintaining environmental management systems● Cost of creating green spaces and beautifying manufac-

turing sites● Cost of R&D activities to reduce the environmental im-

pact of products● Cost of R&D activities to develop environmentally-friendly

construction equipment(5) Social activity cost(6) Environmental remediation cost

Total

● Cost of conducting surveys and remedial countermea-

sures related to soil and groundwater contamination*All figures are rounded off to the nearest million yen.

Environmental Effects
Top figure: Komatsu and Komatsu Group manufacturing facilities in Japan (excluding Komatsu NTC Ltd. and Komatsu Cabtec Co., Ltd.)
Bottom figure: Manufacturing facilities outside Japan (excluding KIPL, BKI, KUI, KOFI, and LTK)- (minus) means reduction.
Environmental impact reduction effects
Items ofenvironmental
impactCO2 emissions

Reductionamount (t/year)

Economic benefits
Rate ofyear-on-yearchanges (%)-89,122-33.1-7,025-5.9

Tangible benefits
Type
Energyconservation
Resource
conservation

Water consumption-1,105,141-89,686

Data

Waste materials
generation

-22.1
-14.1

-14,698-53.3-22,064-27.8

Monetary value*(millions of yen)
1,365

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

48
0
27

Waste materials
reduction

408

Gain on sale ofvaluables

120

Other

Avoidance benefits ofenvironmental risks(see Note below)

Major activities● Promotion of recycling through thoroughgoingsorting

35● Reuse of furnace slag for roadbed materials

118● There were no accidents or

pollution in Japan during
FY2009 that led to violationsof the law.
● No litigation costs were required in Japan during
FY2009.

● Proceeds from mobile recycling

equipment● Proceeds from value added

due to reduced environmental
impact of products (engines)● Proceeds from Reman business

2
2

Total

1,895
230

*Figures are rounded off to the nearest million yen.
Note: Komatsu used statements instead of numeral figures to describe the “Avoidance benefits ofenvironmental risks” and the “Contribution to profits.” The company will further develop concepts andways to understand effects in these categories. The sales amounts of businesses for content presented
in “Contributions to profits” in FY2009 are as follows:
Mobile recycling equipment business: 1.7 billion yen
Engine business: 66.4 billion yen (Total for intra-Group sales from the Engine Business Division)“Reman” business: 28.0 billion yen (Worldwide Reman business sales from April 2009 to March 2010)

Effects on Society during the Product Use Stage*
Environmental impact reduction effects
Environmental impact reduction resulting fromon-site recycling methods
Environmental impact reduction resulting fromproduct operation
Waste components reduction resulting from
“Reman” businessTangible benefits
Reduction of expenses for processing wastematerials
Savings in operating and maintenance costs
Reduction of repair costs*Concerning the effects on society derived from product use by customers, the major items of qualitative information are shown here as a reference.

55

Environmental and Social Activities to Date & External Commendations

Overview of Komatsu’s Environmental and Social Activities to Date
1962

2003

Began continuous support for the Flower Association ofJapan since its founding

Environmental Affairs Department established
Komatsu Earth Environment Charter revised

1990

Annual Directors’ Caravan for Inter-office Communication launched

2004

Corporate Social Responsibility Department established

1991

Earth Environment Committee established2005

First European Health, Safety, and Environment Meeting convened

2006

GALEO series environment-friendly construction equipment put on the market,

Company name changed in Japanese public relations to“Komatsu,” with new corporate brand logotype

satisfying Tier 3 (Stage 3A) emission standards, which became effective that

1992

Komatsu Earth Environment Charter and Environmental Action Plan formulated

1994

First Environmental Report publishedyear
All Komatsu Group manufacturing facilities in Japan attain zero emissions
The KOMATSU Way explicitly defined and promotion activities launched

Board of Corporate Auditors established

1997

2007

Oyama Plant becomes first in Japanese construction
equipment industry to acquire ISO14001 certification

1998

2008

Ethics Committee established

2000

2001

Development of PC200-8 hybrid hydraulic excavator announced

Executive Officer system established; Board of Directors reorganizedCompensation Council established

Signed the United Nations Global Compact

2009Completed Cambodia local reconstruction project with JMAS
Started Angola local reconstruction project with JMAS

All four Komatsu manufacturing facilities acquire ISO14001 certification
First Global Environmental Affairs Meeting convened

PBZ and PAS series of press brakes acquire MF eco machine* certification

Environmental Report again published; published annually thereafter

Basic agreement reached between Komatsu, Adaro and UT
on the biodiesel project in Indonesia

Compliance Department established; Ethics Committee renamed as*The MF Eco machine Certification System is an eco-label established by the Japan
Forming Machinery Association.

Compliance Committee

2002

Agreement concluded with Japanese NPO Japan Mine Action Service (JMAS)The Komatsu Group in Japan acquire ISO14001 integrated certification

First edition of Komatsu’s Code of Worldwide Business Conduct published1999

Seventh edition of Komatsu’s Code of Worldwide Business Conduct publishedFB15HB-12 hybrid electric forklift truck put on the market

All seven Komatsu Group manufacturing facilities in Japan2010

Production at Komatsu Cummins Engine Co. Ltd. reaches 500,000 engines

acquire ISO14001 certification

Komatsu developed leading-edge engine technology meeting

All four Komatsu manufacturing facilities attain zero emissions

Japanese, U.S. and European next emission standards

External Commendations and Evaluations on Komatsu’s Environmental Conservation and Social Activities
2009

Jan.

Ranked 17th among 100 companies in Japan in Nikkan Kogyo Shimbun Ltd.’s Fifth Annual Corporate Performance Rankings

Sadao Nozawa, Manager of the Environment and Energy Conservation Group in the General Affairs Department at the Oyama Plant, received the Energy Conservation
Feb. Grand Prize “Awards for Personnel" Category from the Minister of Economy, Trade and Industry at the 2008 Energy Conservation Monthly Awards Ceremony
PC200-8 hybrid hydraulic excavator received the Nikkei Business Daily Award for Excellence in the 2008 Nikkei Superior Products and Services Awards, sponsored by Nikkei Inc.

Oct.

Ranked 17th among 1,900 companies in Japan in the Nippon Foundation’s Annual Corporate Performance Rankings

Jan.

Maronnier ECO business site received citation from Tochigi Prefecture(1) Komatsu Oyama Plant recognized with the Top Award for ECO Keeper Business(2) Company cafeteria at Komatsu’s Oyama Plant run by Yuki Nutritional Foods Center received an outstanding performance award for "food mileage"(3) Komatsu Utility’s hybrid electric forklift truck received the Products of Exceptional Environmental Value Award by the e-Technology Division of Tochigi Prefecture

Jan.

Chairman of the Board Masahiro Sakane received the 2009 Leadership Award from the business media magazine Zaikai

2010

Data

Mar. Received the Seventh Annual Award for Broadening of Individual Shareholder Base in the Tokyo Stock Exchange, Inc.’s 2008 TSE Awards for Listed Companies

Mar. Received the 15th Annual Award for Disclosure under the Tokyo Stock Exchange’s 2009 TSE Awards for Listed Companies
May. Received the 2010 Chairman’s Award of the Japan Construction Mechanization Association for development of the PC200-8E0 Hybrid Hydraulic Excavator

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

(As of September 2009)56

Company Profile
Company name

Komatsu Ltd.

Number of employees: (as of March 31, 2010)

EstablishedMay 13, 1921

Consolidated

38,518Head Office

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

Non-consolidated

8,142

Representative

President and Chief Executive Officer Kunio Noji

Consolidated subsidiaries
in Japan

10,404

CapitalConsolidated

Consolidated subsidiaries
outside Japan

19,972¥67,870 million (US$730 million*) as of March 31, 2010

Consolidated
Non-consolidated

Net sales¥1,431,500 million (US$15,392 million*)¥457,600 million (US$4,920 million*)*U.S. dollar amounts are converted at the rate of ¥93=US$1.00, the prevailing rate announced by the Federal Reserve Bank of
New York on March 31, 2010.
**Komatsu’s fiscal years end on March 31. “FY2000,” for example, means from April 1, 2000 to March 31, 2001.

(for the fiscal year** ended March 31, 2010)

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

Main lines of business (Komatsu Group)
Komatsu Group profile

Number of companies (consolidated subsidiaries) 184(as of March 31, 2010)

Changes in Consolidated Sales(billion yen)

Sales by Operation (FY2009)

2,000

2,021.7

1,893.3

Japan

18,546The Americas

8,111

Europe and CIS

3,072

China

3,316

Asia (excluding Japanand China) and Oceania

4,470

The Middle East and Africa

1,003

Sales by Region (FY2009)
Asia(excluding Japan and China)
and Oceania
299.8

Industrial machinery,
vehicles, and others
162.9

2,243.0

Number of employees by region: (as of March 31, 2010)

11%

1,612.1

China
270.8

89%

500

Construction andmining equipment
1,268.5

0
2006

2007

2008

Japan 323.8(billion yen)

1,431.5(billion yen)

2005

23%
1,431.5

1,000

FY

6%

21%

1,431.5

1,500

The Middle East
and Africa
85.6

2009

23%

19%
9%

The Americas
323.9

Europe and CIS
127.3
Note: The sales ratio by region has been rounded off to the closest whole number.

Scope of This Report● Komatsu (parent company) manufacturing facilities, specifically the following eight plants

The Awazu Plant [including the Komatsu Plant, the Komatsu Machinery Corporation and Komatsu Engineering Corp (Awazu Plant).], the Kanazawa Plant [including Komatsu
Industries Corporation], the Osaka Plant [including the Rokko Plant], the Ibaraki Plant, the Mooka Plant and the Oyama Plant [including Komatsu Cummins Engine Co., Ltd.,
Industrial Power Alliance Ltd., Komatsu Castex Ltd. (Oyama Plant), and GIGAPHOTON, Inc.], the Koriyama Plant, and the Shonan Plant [including KELK Ltd.].
● Komatsu Group manufacturing facilities in Japan, specifically the above eight plants and the following five business units
Komatsu Castex Ltd. (Himi Plant), Komatsu Utility Co., Ltd. (Tochigi Plant), Komatsu NTC Ltd. [including Lossev Technology Corporation, Toyama Kiko Corporation, and
D.S.K. Co., Ltd.], Komatsu Cabtec Co., Ltd.,, and Komatsu House Ltd.
● Komatsu Group manufacturing facilities outside Japan, specifically the 20 business units appearing on the world map below.

Komatsu Forest AB

Komatsu America Corp.,
Peoria Manufacturing Operation
Komatsu UK Ltd.

Komatsu Shantui
Construction
Machinery Co., Ltd.

Komatsu Hanomag GmbH
Komatsu Mining Germany GmbH

Data

Komatsu (Changzhou) Construction Machinery Corporation
Komatsu (Changzhou) Foundry Corporation

Komatsu Group manufacturing facilities in Japan
Komatsu (parent company) manufacturing facilities

Komatsu Utility
Europe S.p.A.

Komatsu India Pvt. Ltd.

L&T-Komatsu Limited

Bangkok Komatsu Co., Ltd.
Bangkok Komatsu Industries Co., Ltd.

Komatsu America Corp.,
Chattanooga Manufacturing Operation

Hensley Industries, Inc.

Komatsu America Corp.,
Newberry Manufacturing Operation

PT Komatsu Undercarriage Indonesia
PT Komatsu Forging Indonesia

PT Komatsu Indonesia Tbk
Komatsu do Brasil Ltda.

Major Changes since the 2009 Edition● Komatsu Utility Co., Ltd.’s Kawagoe Plant, Komatsu America Corp.’s CANDIAC Plant, and Komatsu Mexicana S.A. de C.V. have been closed.
● Data on Bangkok Komatsu Industries Co.,Ltd., PT Komatsu Undercarriage Indonesia, and PT Komatsu Forging Indonesia have been covered, starting with FY2009.

57

Independent Review on Environmental & Social Report 2010
Message from Top Management

Regarding the Independent Review（TRANSLATION）

Komatsu views the independent review process as crucial for ensuring the integrity andobjectivity of its Environmental & Social Report. For that reason, Komatsu has received
an independent review from Deloitte Tohmatsu Evaluation and Certification Organization Co., Ltd., a member of the Deloitte Touche Tohmatsu Group. The results are as
represented below with regard to the information appearing in the Environmental &Social Report 2010.

Komatsu recognizes that the businessactivities which embody our strength
are in fact CSR activities.
We strive to respond to the demandsof society, through our core business.

Independent Review Report

Mr. Kunio Noji
President and CEO, Komatsu Ltd.

June 21, 2010

Deloitte Tohmatsu Evaluation andCertification Organization Co., Ltd.
Chief Executive Officer Hiroshi Inanaga

１．Scope of the Review

We have reviewed the “Environmental & Social Report 2010” prepared by Komatsu Ltd. (“the Company”). The purpose of our review was to provide limited
assurance from an independent practitioner about whether the quantitative environmental information for the period from April 1, 2009 to March 31, 2010
included in p1-2, p5-22, and p45-57 of “Environmental & Social Report 2010” (hereinafter refer to as the“Quantitative Environmental Information”) was
accurately measured and calculated, referring to the Environmental Reporting Guidelines - Year 2007 version (issued by the Japanese Ministry of theEnvironment) and GRI Sustainability Reporting Guidelines 2006, in accordance with calculation methods adopted by the Company.

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

２．Responsibility of the Management

The “Environmental & Social Report 2010” is the responsibility of the Company’s management. Our responsibility is to provide our limited assurance withrespect to the review performed on the Quantitative Environmental Information from an independent practitioner.

３．Summary of Review

To obtain an adequate and valid standard of basis for providing limited assurance with respect to our conclusions, we performed our review with reference tothe International Standard on Assurance Engagements (ISAE) 3000 (issued by the International Federation of Accountants in December 2003) and the
Proposed Environmental Report Review Standard (issued by the Japanese Ministry of the Environment in March 2004).
The review procedures performed for the Quantitative Environmental Information consisted of: 1) agreeing information to summary tables and supporting
documents on a sample basis; 2) interviewing the responsible personnel and the persons in charge; 3) reviewing and agreeing information to the relevant
minutes, the Company’s regulations, and ISO related documents; 4) site visits; and 5) comparing information with other available supporting internal andexternal materials.

４．Conclusions
On the basis of the review procedures described in the preceding paragraph, nothing has come to our attention that caused us to believe the Quantitative
Environmental Information was not accurately measured or calculated, referring to the Environmental Reporting Guidelines - Year 2007 version (issued by theJapanese Ministry of the Environment) and GRI Sustainability Reporting Guidelines 2006, in accordance with calculation methods adopted by the Company.

Supplementary Explanation regarding the Conducting of Independent Review Procedures
As a supplementary explanation, the following provides an overview of the review procedures conducted during an independent review.
Amid the radical changes that the business environment has undergone due to the global economic downturn that started in September, 2008, Komatsu has been steadily implementing structuralreforms to make the company leaner and stronger. During thistime, we have been focusing our efforts on developing the humanresources which will support our global business, through methods
such as building awareness of Komatsu’s universal sense of values
explicitly defined in The KOMATSU Way.
Currently, our market is beginning to show signs of recovery,
spurred on primarily by development in the emerging nations.
Capitalizing on our strong corporate structure, which was achieved
through ongoing structural reforms, Komatsu started a new threeyear Mid-Range Management Plan in April, 2010, under the title“Global Teamwork for Tomorrow,” steering a new strategy for
growth. In this plan, I set forth specific objectives that include enhancing added value of products by applying ICT (Information andCommunication Technology), developing products for global environmental friendliness and safety, and strengthening regional business operations in emerging and resource-rich countries. These
activities will not only advance Komatsu’s business, but will provide
us the opportunity to reduce impact on the global environment,
and contribute to economic development and improvement in thestandard of living through the products and services we provide to
our customers throughout the world.
Today, the definition of CSR (Corporate Social Responsibility) is
shifting away from its original meaning of being merely social contribution, to a broader meaning – asking what value a company
brings to society. Komatsu recognizes that the business activities
which embody our strength are in fact CSR activities that respondto the demands of society, and this is what we are determined topursue.
Environmental Activities
Komatsu has placed environmental activities as one of the highest
management priorities, and set new medium and long-term environmental targets for 2020. To meet these new targets, we are actively pursuing initiatives using measures that are both “proactive”

and “protective.”On the “proactive” side, we are emphasizing reduction of CO2
emissions throughout product use, to help mitigate climatechange. We introduced hybrid hydraulic excavators that reduce
fuel consumption by an average of 25% to both Japanese andoverseas (China and U.S.A.) markets. These products have been
well received by the market and we are planning to expand the line
to include 30-ton class hydraulic excavators and wheel loaders.
We are also pursuing initiatives to reduce environmental impact
throughout the product lifecycle by utilization of ICT in our products
and ICT-assisted construction systems, and enhanced performance of AC servo presses. On other fronts, our Biodiesel Fuel
Project is making headway, and we are working to facilitate more
eco-friendly mining operations. Efforts to achieve an across-theboard reduction in CO2 emissions in manufacturing include a transition to high efficiency production lines and the use of heat pumps
in air conditioning systems.
Komatsu has also taken a proactive position on environmental
issues that is more than just measures to mitigate climate change.
We are developing our “Reman” business outside Japan, remaking
components into “remanned” equipment that has the same quality
as newly manufactured components. We are striving for “zeroemissions” in which all waste are recycled. Our efforts to maintainbiodiversity include to cultivate plants typically grown in the region
on a vacant lot which used to be the Komatsu Plant where we plan
to build a new training center. We will make the site available foreducating local school children on the environment, and will installequipment that can be used to do experiments for education inwhen teaching science and Monozukuri (manufacturing competitiveness).
On the “protective” side, we are developing construction equipment that meets the Tier 4 interim (Stage 3B) emission standards
that will take effect in Japan, the U.S.A. and Europe in 2011, andare reducing the use of lead, mercury and other substances of environmental concern.
We will continue to maintain strong cooperation with our overseas affiliates, sales agencies, rental companies, and business as-

Supplementary explanation regarding independent review procedures
Step 1

Step 2

Step 3

Step 4

Step 5

Formation of plan
for review process

Execution of review

Reporting on review
results

Check of final versionof report

Submission of
independent review
report● Confirmation of items to

be included in the report(1) Scope of information(2) Information collection
process(3) Information collection
method(4) Level of importanceof individual pieces of
information

persons in charge● Inspections of● Reporting results ofreview (revisions andsuggestions)● Follow-up on issues● Submission ofidentified during Step 3

independent review
report1. Business units visited inthis review:
・Komatsu Ltd. Head Office・Oyama Plant
・Komatsu Castex Ltd

2. Visits to business units
take place in a planned

business units

rotation. Records forbusiness units not visited
during this review werereviewed at the KomatsuLtd. Head Office.

● Finalization of items to bereviewed and review
methodology

Executing a review at the
Head Office (with persons incharge of CSR in photo)Notes from the Editor

Executing a review at the
Oyama Plant

Editorial Policy for the FY2010 Report
Coinciding with the announcement of the medium-term management
plan, a long-term plan for environmental activities was also formulated and included in the Environmental Report 2010. In addition, theKomatsu Earth Environment Charter was revised for the first time inseven years. Especially noteworthy is the inclusion of measures tomitigate climate change, maintain biodiversity, and improve environmental communication.
Komatsu made an effort to give a unified feel throughout the report, by adopting the four key terms of “CO2,” “global,” “corporatesocial responsibility” and “social contributions.”

Executing a review at
Komatsu Castex Ltd.

Period Covered
This report in principle covers the data for the period from April 1,2009 to March 31, 2010, though information for the period after April
1, 2010 is also included.
Guidelines Used

● “Environmental Report Guidelines 2007” (Ministry of the Environ-ment of Japan)● “The 2006 Sustainability Reporting Guidelines” (Global Reporting

Initiative [GRI])
Subsequent Reporting Schedule● Japanese version: Expected July, 2011
● English version: Expected July, 2011

1

Eコマツ̲巻頭.indd 1● Review of offices andSupplementary explanation
regarding site visits tobusiness units58

10.7.28 4:11:13 PM

Eコマツ̲H2-H3.indd 58

10.7.28 6:24:10 PMKomatsu Environmental & Social Report 2010

Komatsu Ltd.
CSR Department and Environmental Affairs Department
2-3-6, Akasaka, Minato-ku, Tokyo 107-8414, Japan
http://www.komatsu.com/CompanyInfo/csr/
Komatsu welcomes your comments.
E-mail: kankyo@komatsu.co.jp
CSR Department
TEL: +81-3-5561-2799
FAX: +81-3-3505-9662
Environmental Affairs Department
TEL: +81-3-5561-2646
FAX: +81-3-5561-2780
HEER100806 Printed in Japan

Printed on paper made with wood fromforest thinning. “Morino Chonai-Kai”(Forest Neighborhood Association)—
upporting sound forest management.

This report was printed using soy ink.

Environmental & Social Report 2010

Hybrid