KOMATSU CSR REPORT2016

KOMATSU CSR REPORT 2016
Our Approach to CSR
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Message from Top Management
CSR Theme and Key Business Activities
Incorporating CSR into Management
Comparison with Global Principles
Dialogue with Our Stakeholders
Organization to Promote CSR
Major Achievements and Mid-term Plans
External Evaluations and Activities to Date

CSR Theme 1 Enhancing Quality of Life -Providing Products Required by Society
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Product Safety -Increasing Safety by InnovationQuality and Reliability -Responsible Commitment to Customers Occupational Safety and Health

CSR Theme 2 Developing People
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Personnel Policy and Performance Appraisal System
Special Story Diversity Initiatives
Enhancing Work-Life Balance
The KOMATSU Way
Employee Training Structure
Strengthening Our Gemba Capability
Brand Management Initiatives

CSR Theme 3 Growing with Society
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Compliance
Risk Management
Support for CSR Initiatives of Business Partners
CSR Procurement Guidelines
Communication with Stakeholders

Social Contribution Activities
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Accomplishments and Approaches for Social Contribution Activities

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Special Story Komatsu’s Initiatives for the Social Issues In Various Areas of the World
Developing People Needed by the Community
Collaboration with a Business Partner
Disaster Relief
Clearing Anti-Personnel Landmines and Reconstruction Support
Promoting Sports - The Komatsu Women’s Judo Club -

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Corporate Profile
GRI G4 INDEXWe disclose an “Environmental Report” as a specialized report regarding environmental information as wellas “KOMATSU REPORT” as the comprehensive report which includes information on corporate governance.
In addition, we publish “Komatsu CSR Digest”, a shorter booklet (coming in August, 2016.)■ Environmental Report and CSR Digest http://www.komatsu.com/CompanyInfo/csr/2016/■ KOMATSU REPORT http://www.komatsu.com/CompanyInfo/ir/annual/html/2016/

Message from Top Management

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > Message from Top Management

Our Approach to CSR
Message from Top Management
Making Contributions to Solve Social Problems through ESG-Conscientious Business Operation

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Tetsuji Ohashi
President and CEO

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In April 2016, we announced the new mid-range management plan, ÒTogether We Innovate GEMBA Worldwide: Growth Toward Our

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100th Anniversary (2021) and BeyondÓ. Since the announcement of our previous mid-range management plan, global demand for

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construction and mining equipment has entered an adjustment phase centering on emerging countries, resulting in a drastic change
from our business environment of three years ago. Nevertheless, we have made no change in our assumption that we can expect thatComp

our market will grow in the long range. We are continuing the same basic strategies of ÒGrowth strategies based on innovation,ÓÒGrowth strategies of existing businesses,Ó and ÒStructural reforms designed to reinforce the business foundation,Ó while reviewing

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specific initiatives, redefining them as needed, and implementing them.

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We also recognize the importance of reinforcing ESG (Environmental, Social and Governance) efforts in order for us to ensure our longterm growth and of the indispensable need for us to aggressively promote those efforts. While we have conventionally emphasizedCSR

ESG efforts, we are going to intensify those efforts as one of the targets of the new mid-range management plan. In the following, I
would like to introduce some social issues which we reviewed while developing the mid-range management plan, and how we are goingto respond to them.

Responding to the labor shortage of the construction industry and improving the safety andproductivity of jobsite operations
Japan's construction industry is facing a serious problem of a declining labor force today. At the same time, we see growing needs toimprove the safety and productivity of construction and mining jobsite operations. To strengthen our ability to propose solutions to thesetasks of customers, we are working to accelerate the development of our DANTOTSU (unique and unrivaled) products, services andsolutions, as we also utilize open innovation, in order to fuel our growth based on innovation.
As an example, we are deploying ÒSMARTCONSTRUCTIONÓ designed to achieve the Òfuture of construction jobsitesÓ.
SMARTCONSTRUCTION automates surveying which is conventionally handled by surveyors and requires a considerable amount oftime. Our intelligent Machine Control construction equipment enables operators with a small amount of experience to carry out work at
high-precision levels. In addition to improving safety resulting from automation and labor saving, SMARTCONSTRUCTION enables

KOMATSUCSR asREPORT2016
3 construction
customers to reduce costs, resulting from a shorter
period,well asCO2 emissions. We will continue to advance theÒvisualizationÓ of construction jobsite operations in order to provide total support for customers, as we foster this business as one of ourTo vi
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Adobe Acterm growth and of the indispensable need for us to aggressively promote those efforts. While we have conventionally emphasized
ESG efforts, we are going to intensify those efforts as one of the targets of the new mid-range management plan. In the following, I
KOMATSUCSR
REPORT
Messagefrom
Top Management
would like tointroducesome social issues which we reviewed while developing the mid-range management plan, andhow wearegoing2016
to respond to them.

Responding to the labor shortage of the construction industry and improving the safety andproductivity of jobsite operations

Our Approach to CSRJapan's construction industry is facing a serious problem of a declining labor force today. At the same time, we see growing needs toimprove the safety and productivity of construction and mining jobsite operations. To strengthen our ability to propose solutions to thesetasks of customers, we are working to accelerate the development of our DANTOTSU (unique and unrivaled) products, services andsolutions, as we also utilize open innovation, in order to fuel our growth based on innovation.
As an example, we are deploying ÒSMARTCONSTRUCTIONÓ designed to achieve the Òfuture of construction jobsitesÓ.
SMARTCONSTRUCTION automates surveying which is conventionally handled by surveyors and requires a considerable amount oftime. Our intelligent Machine Control construction equipment enables operators with a small amount of experience to carry out work at
high-precision levels. In addition to improving safety resulting from automation and labor saving, SMARTCONSTRUCTION enables
customers to reduce costs, resulting from a shorter construction period, as well as CO2 emissions. We will continue to advance theÒvisualizationÓ of construction jobsite operations in order to provide total support for customers, as we foster this business as one of ourcore businesses.

Reducing CO2 emissions from our products in use by customers as well as in production
While our products build social infrastructure, improving the lives of people, they also generate an environmental impact throughout
their lifecycle, ranging from manufacturing and use to disassembly for recycling or disposal. We regard our DANTOTSU products andservices, designed to help customers improve their environmental performance, as strategies of differentiation. We are also cutting

down consumption of electricity at our production plants, dynamically improving productivity and leading to the reinforcement of ourcompetitiveness.
In terms of CO2 emissions throughout the life cycle of construction equipment, about 90% is emitted during use by customers.
Accordingly, it is very clear and evident that we must focus our efforts on this stage. In addition to providing products with a highenvironmental performance, such as hybrid models, we are taking an approach to the customers' ways of using our machines by
proposing fuel economy operations based on analyses of KOMTRAX (Komatsu Machine Tracking System) data. As a result, we areworking to reduce CO2 emissions per work load by 25%*1 as the long-range target.
With respect to the reduction of CO2 emissions in manufacturing, we have conventionally set up long-range targets. We are working fora reduction of 57%*2 in Japan and 32%*3 overseas by continuing the power consumption reduction program and making other efforts.
Notes:*1: New equipment to be sold in 2025 as compared to new equipment sold in 2007.
*2: The target figure in 2020 from 2000.
*3: The target figure in 2020 from 2010.

Promoting responses to diversity and a global management drive
In terms of corporate governance, I am convinced that Komatsu needs to become a company where a diverse range of employees candemonstrate their talents to the fullest extent, while fair and high-transparency management is a must, of course.
Concerning diversity, it is important to create workplaces where female employees can demonstrate their talents to the fullest extent,
and we have set the target of increasing the ratio of female managers to 7% by April 2018, and 10% by April 2021. Furthermore, we
introduced the Global Officer system in April, 2016. We have promoted the policy of assigning the posts of Presidents of overseas
subsidiaries to local employees who have worked for Komatsu over the years and who have a thorough understanding of the respective
local markets and business practices. As a result, many overseas subsidiaries are managed by them today. In the Global Officer
system, presidents of major overseas subsidiaries have been assigned as Global Officers, and fourteen of them have been assigned as
Executive Officers of Komatsu Ltd. so that they can participate in important management meetings of Komatsu Ltd. I believe theirinvolvement in management of the Komatsu Group is very important to drive our globally consolidated management into the future.
Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu
believes that its corporate value is the total sum of trust given to it by society and all its stakeholders.
Under this policy, as we are looking into March 2019, the target year of the mid-range management plan, 2021, our 100th anniversary
year, and beyond, we would like to make an innovative contribution to solving customers' problems as well as social problems through

CSR REPORT
2016
our business activities by becoming more acutely4aware ofKOMATSU
the importanceof ESG
than before.

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Adobe AcIn terms of corporate governance, I am convinced that Komatsu needs to become a company where a diverse range of employees candemonstrate their talents to the fullest extent, while fair and high-transparency management is a must, of course.
KOMATSUREPORT 2016
Message
Top itManagement
Concerningfrom
diversity,
is important to create workplaces where female employees can demonstrate their talents to thefullestCSR
extent,and we have set the target of increasing the ratio of female managers to 7% by April 2018, and 10% by April 2021. Furthermore, we
introduced the Global Officer system in April, 2016. We have promoted the policy of assigning the posts of Presidents of overseas
subsidiaries to local employees who have worked for Komatsu over the years and who have a thorough understanding of the respective
local markets and business practices. As a result, many overseas subsidiaries are managed by them today. In the Global Officer

Our Approach to CSR

system, presidents of major overseas subsidiaries have been assigned as Global Officers, and fourteen of them have been assigned as
Executive Officers of Komatsu Ltd. so that they can participate in important management meetings of Komatsu Ltd. I believe theirinvolvement in management of the Komatsu Group is very important to drive our globally consolidated management into the future.
Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu
believes that its corporate value is the total sum of trust given to it by society and all its stakeholders.
Under this policy, as we are looking into March 2019, the target year of the mid-range management plan, 2021, our 100th anniversary
year, and beyond, we would like to make an innovative contribution to solving customers' problems as well as social problems throughour business activities by becoming more acutely aware of the importance of ESG than before.
We are also going to fulfill our corporate responsibilities as a global company, as we aggressively get involved in the United Nations'Global Compact and other initiatives, such as WBCSD.
July 2016
Tetsuji Ohashi
President and CEO

Komatsu participates in the UN Global Compact (UNGC). For more information on therelationship between UNGC's Ten Principles and Komatsu's activities, please see p.9.
this link.

Komatsu participates in the World Business Council for Sustainable Development. Please see
this link.

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KOMATSU CSR REPORT 2016

CSR Theme and Key Business Activities

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > CSR Theme and Key Business Activities

Our Approach to CSR
CSR Theme and Key Business Activities
Komatsu!s CSR Priorities
In the process of organizing the CSR Themes, we selected 16 items of ÒCSR PrioritiesÓ that are important social issues for both
Komatsu!s business and stakeholders that need to be addressed globally.
Products, Services, and Customers

Environment

Products that enhance safety

Environmentally-friendly products

Responsible marketing and customer care

Environmental efficiency (facilities, such as plants, and job sites)
Remanufacturing

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Human resource development

Human Rights

Safety and healthRespecting human rights

Respecting employees

Equal employment

Ethics and Governance

Local Community

Cooperation with stakeholders

Development of local communities

Corporate governance and complianceDisaster relief

Compliance with social norms of business partners

Improving local residents' quality of life

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Formulating CSR Themes and Key Business Activities

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Using the priority issues as a base and after much discussion within the company and BSR, we identified three CSR Themes.

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Komatsu!s CSR Themes

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! Enhancing Quality of Life -Providing products required by society! Developing People! Growing with Society

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In order to achieve these goals, for each of the three areas, we have determined priority activities that align with the mid-term
management plan as Òactivity through our core businessÓ. Also, in addition to its main business, Komatsu believes it is the
responsibility of a business to engage in Òsocial contribution activitiesÓ in the local community where business is conducted. For thesocial contribution activities, Komatsu is engaging in the following activities that make the most of the know-how developed in our main
business.
CSR Themes

Enhancing Qualityof Life

Key Business Activities
Activities through core businessSocial Contribution Activities" Provide products and services that contribute to- Promoting environmental efficiency & safety

infrastructure development and improving the quality of life

thru initiatives not directly related to business" Improve production/safety as well as promote efficiency- Providing products, services, know-how

CSR REPORT 2016 required by society free of charge
6 throughKOMATSU
and energy conservation
innovation" Improve environmental efficiency at operation sites and

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Enha

Employees-Provi

Human Rights

Human resource development

CSR
Theme
and Key Business Activities
Safetyand healthSocietRespecting human rights

Respecting employees

Equal employment

Ethics and Governance

Local Community

Cooperation with stakeholders

Development of local communities

Corporate governance and complianceDisaster relief

Compliance with social norms of business partners

Improving local residents' quality of life

Our Approach to CSR

KOMATSU CSR REPORT 2016

Deve

Grow

Socia
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Formulating CSR Themes and Key Business Activities

Comp

Using the priority issues as a base and after much discussion within the company and BSR, we identified three CSR Themes.

Koma
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Komatsu!s CSR Themes

Risk
CSR

! Enhancing Quality of Life -Providing products required by society! Developing People! Growing with Society

To vi
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In order to achieve these goals, for each of the three areas, we have determined priority activities that align with the mid-term
management plan as Òactivity through our core businessÓ. Also, in addition to its main business, Komatsu believes it is the
responsibility of a business to engage in Òsocial contribution activitiesÓ in the local community where business is conducted. For thesocial contribution activities, Komatsu is engaging in the following activities that make the most of the know-how developed in our main
business.
Key Business Activities

CSR Themes

Enhancing Qualityof Life-Providing products
required by society-

Activities through core businessSocial Contribution Activities" Provide products and services that contribute to- Promoting environmental efficiency & safety

infrastructure development and improving the quality of life

thru initiatives not directly related to business" Improve production/safety as well as promote efficiency- Providing products, services, know-how

and energy conservation through innovation

required by society free of charge" Improve environmental efficiency at operation sites andfacilities.

" Reduce the environmental load throughout product life
cycle

" Improve safety (for customers, society, employees,
business partners)

Developing People" Human resources development through the KOMATSU- Support for developing people of local

Way (employees, business partners)

community" Human resources development through brand- Development of next generation

management (employees, distributors)" Respect employees, diversity
Growing withSociety" Engage in dialogue with our stakeholders- Disaster Relief" Promote compliance with environmental, labor and social

know-how" Strengthen our corporate governance and compliance- Social Contribution utilizing core strength andnorms within our group and among business partners

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KOMATSU CSR REPORT 2016

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Incorporating CSR into Management

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > Incorporating CSR into Management

Our Approach to CSR
Incorporating CSR into Management
Having clearly defined our CSR themes and key activities, we constantly confirm that Komatsu meets public expectations andrequirements throughout the conduct of our business and we deepen our understanding of material issues through dialogues involving
stakeholders inside and outside the company. Thus, we seek to earn the trust society has placed in us as we pursue sustainablegrowth.
In our social contribution activities, we pay due consideration to prevailing issues in the regions where we operate and think throughhow we can apply our strengths to undertake Òactivities with a human faceÒ that are uniquely associated with Komatsu.

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KOMATSU CSR REPORT 2016

Comparison with Global Principles

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > Comparison with Global Principles

Our Approach to CSR
Comparison with Global Principles
Items Komatsu has identified as being its own CSR priority issues are in line with the international standards such as ISO26000 core
subjects/issues and the United Nations Global Compact. In order to take moreconcrete action, we have incorporated these standards
into our internal guidelines, ÒKomatsu's Worldwide Code of Business ConductÓ and the ÒCSR Procurement Guidelines,Ó which werequest that our businesspartners follow as well.
ISO26000 core
subjects/issues

UNGC 10
Principles

Incorporation into Komatsu's Internal Guidelines
Komatsu's CSR Priorities*: Items of Komatsu's Worldwide Code of Business Conduct**: Items of Komatsu Group CSR Procurement Guidelines

Organizational• Corporate Governance*ÒQuality and ReliabilityÓ of organizational structure, businessGovernance• Compliance

operations, employees and management• Compliance with social*Emphasis on corporate governancenorms including business*Observe business rules

partners
Human Rights

Human• Respecting human rights*Respect each employee's fundamental human rights

Rights• Compliance with social*Achieve a balance between work and personal life

Principle 1

norms including business**Respect human rights

Principle 2

partners
communities

quality of life
Labour• Equal employment*Dialogue with employees or their representatives

Principle 3• Safety and health*Shall not tolerate child labor or forced labor

Principle 4• Human resource*Promote equal opportunities for employment and eliminate

Principle 5

development

discrimination/harassment in the workplace

Principle 6• Compliance with social*Realize a safe and comfortable work environment

norms including business**Never get involved in any child or forced labor

partners**Create a work environment where there is no discrimination orharassment**Build up an occupational health and safety operational
structure**Establish a fair and just personnel system

Fair Operating

Environment • Environment-friendly*Provide products, services and systems that are environment-

Principle 7

products

friendly, safe and innovative

Principle 8• Environmental efficiency*Environment protection

Principle 9(facilities, such as plants,- Komatsu Earth Environmental Charterand operation sites)- Declaration of Biodiversity by Komatsu• Remanufacturing**Reduce environmental impact, manage chemical substances

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• Improving local residents'

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• Disaster relief

The Environment

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• Development of local

Labour Practices

Apprand build up environmental management systems

KOMATSU CSR REPORT 2016

• Corporate governance*Fair competition

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Labour Practices

Labour• Equal employment*Dialogue with employees or their representatives

Principle 3• Safety and health*Shall not tolerate child labor or forced labor• Human resource
Principle
4Comparison with Global
Principles

Risk

CSR REPORT 2016
*Promote equal opportunities for employment KOMATSU
and eliminate

Principle 5

development

discrimination/harassment in the workplace

Principle 6• Compliance with social*Realize a safe and comfortable work environment

norms including business**Never get involved in any child or forced labor

partners**Create a work environment where there is no discrimination or

Our Approach to CSR

harassment**Build up an occupational health and safety operational
structure**Establish a fair and just personnel system

The Environment

Environment • Environment-friendly*Provide products, services and systems that are environment-

Principle 7

products

friendly, safe and innovative

Principle 8• Environmental efficiency*Environment protection

Principle 9(facilities, such as plants,- Komatsu Earth Environmental Charterand operation sites)- Declaration of Biodiversity by Komatsu• Remanufacturing**Reduce environmental impact, manage chemical substancesand build up environmental management systems

Fair Operating

Anti-• Corporate governance*Fair competition

Practices

Corruption• Compliance*Discontinuation of any innappropriate business transactions or

Principle 10• Compliance with social

practices

norms including business*Appropriate sociality

partners*Fair and proper relationship with governmental agencies**Engage in free and fair competition and business transactions**Never accept inappropriate cash, gifts or favors

Consumer Issues• Products that enhance*To always think about the needs of customers and to strive tosafetyprovide products, services and systems that are safe,• Responsible marketing andenvironment-friendly and innovative

customer care

*Environment protection• Environment-friendly**Never accept inappropriate cash, gifts or favors

products• Remanufacturing• Development of local*To realize and fulfill CSR as a corporate citizen

Involvement andcommunities*Groupwide social contribution (5 Principles for social

Development• Disaster relief

contribution)

Community• Improving local residents'
quality of life
• Human resources
development
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10KOMATSU CSR REPORT 2016

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Dialogue with Our Stakeholders

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > Dialogue with Our Stakeholders

Our Approach to CSR
Dialogue with Our Stakeholders
Creating a Variety of Dialogue Opportunities
Engaging in dialogues with our stakeholders is essential for determining the relative effectiveness of Komatsu's management andbusiness in meeting social needs. Every department that has direct contact with our stakeholders is creating opportunities to lay out ourcompany's current situation, receive feedback, and engage in useful discussions.
Stakeholders
Customers

Purposes
Collaborate to realize customers' goals andExamples of Meetings andFrequency

Activities
Brand Management Activities

Daily

fulfill corporate responsibility
Daily

in the regions we operate, participate in local

Partners

policies and strategies

Various meetings for Midori-kai

3 times a year

As needed

Conduct safety patrols and provide
opportunities such as for support of efforts

President explains business performance,

Distributor meetings in each region

policies and strategies(U.S., Europe, China and Southeast

Annually

President explains business performance,
policies and strategies

Meetings with the president

Semiannually

Sharing Q&A session content with

As needed

global employees via the intranet
Dialogue with the labor union and employee

Regular Meetings between

representatives to improve the workplace

Management and Labor Union

As neededenvironment
Local Community

Explanation of initiatives related to

Meetings with residents of the local

operations, the environment and safety

community near the plant

Activities to resolve local issues based on

Voluntary activities by employees

Daily

Komatsu Science and Technology

Biannually

Industry-

Exchange of ideas and opinions between

Academia

representatives such as university professors Collaboration Council

Collaborationand the Chief Technology Officer

As needed

Partners
CEO and CFO explains business

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KOMATSU CSR REPORT 201611
performance, policies and strategies

Japan: Daily U.S. andEurope: Annuallyneed to denvironment

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Dialoguewith Our Explanation
Stakeholders
Local Communityof initiatives related to

Meetings with residents of the local

KOMATSU CSR REPORT 2016
As needed

operations, the environment and safety

community near the plant

Activities to resolve local issues based on

Voluntary activities by employees

Daily

Komatsu Science and Technology

Biannuallyemployee suggestions

Our Approach to CSR

Industry-

Exchange of ideas and opinions between

Academia

representatives such as university professors Collaboration Council

Collaborationand the Chief Technology Officer

Partners
Investors

CEO and CFO explains business

IR Meeting in Japan, U.S. and Europe

performance, policies and strategies

Japan: Daily U.S. andEurope: Annually

Respond to inquiries and SRI surveys

SRI Survey

Daily

Individual

CEO and CFO explains business

Shareholders Meeting2Ñ3 times a year, held

Shareholders

performance, policies and strategies
Plant tours and explanation of operations

in major cities in Japan
Plant tours for shareholders

About twice a year inp
Japan

Exchange of Ideas and Opinions with Industry-Academia Collaboration Partners
Held by Komatsu Science and Technology Collaboration Council

On November 20, 2015, the third ÒKomatsu Industry-Academia Science and Technology Collaboration CouncilÓ was held. This is ameeting where, going beyond the individual relationships of Komatsu and each university with which we have an organizational
collaboration agreement (Yokohama National University, Osaka University, Kanazawa University, The University of Tokyo, Tokyo
Institute of Technology), professors from five universities and representatives of Komatsu Group!s industry collaboration meet together
to exchange information related to the industry collaboration with Komatsu and discuss how to proceed in the future. These councils
have been held every other year since 2011 and this third meeting was a collaboration council with five universities, including Tokyo
Institute of Technology with whom a new organizational collaboration has been established. Proposing themes based on Komatsu!svision for the future, representatives from both Komatsu and the universities passionately discussed how to maintain an environmentthat inspires activities, as well as how management level on both sides can provide accurate evaluations and support.
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KOMATSU CSR REPORT 2016

Organization to Promote CSR

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > Organization to Promote CSR
Home > CSR > Our Approach to CSR > Organization to Promote CSR
Home > CSR > Our Approach to CSR > Organization to Promote CSR
Home > CSR > Our Approach to CSR > Organization to Promote CSR

Our Approach to CSR

Organization to Promote CSR

The CSR Department reports directly to the president, and the CSR Committee chaired by the president provides oOrganization to Promote CSR

management to take part in regular discussions on the direction of Komatsu's CSR strategy. Policies for each activ

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Back to TOP
Until recently, we regularly conducted questionnaires to collect information on the CSR activities wehave undertak

13

KOMATSU CSR REPORT 2016

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Back to TOP
In FY2015, we launched a bulletin board on our corporate intranet to provide daily updates and facilitate
informatio

Major Achievements and Mid-term Plans

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > Major Achievements and Mid-term Plans

Our Approach to CSR
Major Achievements and Mid-term Plans
Komatsu's CSR themes, concrete initiatives of key business activities, and mid-range issues and targets are as follows.
!Contributing to Society through Core Business

Enhancing Quality of Life

Developing People

Growing with Society!Social Contribution Activities

Enhancing Quality of Life

Developing People

Growing with Society

1. Contributing to Society through Core Business
Enhancing Quality of LifeÑProviding Products Required by Society
Key Activities

Major Achievements for FY2015! Providing products and services thatAppr
Mid-range Issues and Targets

Our A

・Introduction of cloud-based service

・Fostering the growth of SMARTCO

contribute to infrastructure developm

and stereo camera into SMARTCONNSTRUCTION as a core businessEnha

ent and improve quality of life

STRUCTION business (September)! Improving productivity, safety and ef
ficiency, and enhancing energy cons
ervation through innovation

Reference-ProviSocietDeve

・Introduction of construction equipm

・Sales expansion of ICT intensive m

ent that responds to comprehensive

achines in Japan, the US and Europ

applications of ICT "i-Construction" aedvocated by Japan's MLIT (April, 201
6)

Grow

Socia
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・Achieved cumulative factory shipme

・Expansion of AHS business and en

nt of 100 AHS (Autonomous Haulage

hancement of its solution business

Systems) trucks.
・Embarking on production reforms b

・Cost reduction of JPY 50 bn for 3 yy implementing "connectivity" with Ioears (FY2015-2017)

T (June)

Corp

Comp

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・Development of EUV light source fo
r next-generation lithography
・Reinforcement of global presence i
n quarry and cement production sectors
! Improving environmental efficiency

・Expand the line-up of hybrid excava

・Expand the line-up of hybrid excava

at operation sites and plants

tors (January, 2016)

tors and global sales expansion! Reducing environmental impact thro・Development and Launch of Tier4 F

ughout the product life cycle

inal (exhaust emissions regulation) M
odels (year-round)・25% of CO2 reduction per work volu

14

KOMATSU CSR REPORT 2016

me (New models to be sold in 2025 a
s compared to 2007)

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To vievie
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Adobe Acr
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global presence
presence ii
KOMATSU CSR REPORT 2016n quarryquarry andand cement
cement production
production sectsectnMajor Achievements and Mid-term Plans

ors
ors

!
! Improving
Improving environmental
environmental efficiency
efficiency
atoperationsites
andplantsat operation sites and plants

・Expand・Expand thethe line-up
line-up ofof hybridhybrid excava
excavators(January,
2016)
tors (January, 2016)!
! Reducing
Reducing environmental
environmental impact
impact thro
throughouttheproductlife
cycle
ughout the product life cycle

・Development
・Development andand Launch
Launch ofof Tier4
Tier4 FF
inal
(exhaust
emissions
regulation)Minal (exhaust emissions regulation) M

Our Approach to CSR・Expand・Expand thethe line-up
line-up ofof hybridhybrid excava
excavators
andglobalsales
expansion
tors and global sales expansion

odels
odels (year-round)(year-round)・25% ofof CO
CO22 reduction
reduction per
per work
work voluvolu
・25%
me (New(New models
models to
to bebe sold
sold inin 20252025 aame
compared toto 2007)2007)
ss compared・Expand thethe line-up
line-up ofof next-generati
next-generati
・Expandon electric
electric forklifts
forklifts (September)(September)on・Expand・Expand thethe line-up
line-up ofof products
products andandglobal sales
sales expansion
expansion
global・Reduction
・Reduction ofof CO
CO22 emissions
emissions inin manman
ufacturing in;in;ufacturing

・Japan・Japan -57%
-57% (in(in FY2020
FY2020 compared
compared tt
o FY2000)
FY2000)o

Japan
Japan -43%
-43% (compared(compared to
to FY2000)
FY2000)Overseas -18%
-18% (compared(compared to
to FY201
FY201
Overseas0)0)・Overseas・Overseas -32%
-32% (in(in FY2020
FY2020 compar
compared
to
FY2010)ed to FY2010)

・Reduction
・Reduction ofof electric
electric power
power consum
consumption
volume:-50%(non-consolidate
ption volume: -50% (non-consolidatedd base,base, compared
compared to
to FY2010)
FY2010)・Reduction
・Reduction ofof waterwater consumption
consumption ininJapan:-63%(comparedto
FY2005)
Japan: -63% (compared to FY2005)

・Japan・Japan -40%
-40% (in(in FY2020
FY2020 compared
compared tt
oo FY2010)
FY2010)・Overseas・Overseas -10%
-10% (in(in FY2020
FY2020 compar
compared
to
FY2010)ed to FY2010)

・Implemented
・Implemented halving
halving electricity
electricity usa
usa
ge
project
tosuppliers(97
companie
ge project to suppliers (97 companies)s)・Follow-up
・Follow-up action
action toto suppliers
suppliers thatthat cocouldn'tachievetargetuldn't achieve target

・Offered・Offered energy
energy savingsaving training
training toto susu
ppliers (5(5 times,
times, 182
182 companies)
companies)
ppliers!
! Enhancing
Enhancing safety
safety forfor society,society, custo
custo
mers, employees
employees andand businessbusiness partn
partn
mers,
ers
ers

・Implemented
・Implemented special
special safety
safety activitie
activities after
after serious
serious accidents
accidentss・Implemented
・Implemented thethe "Never"Never Serious
Serious Ac
Accidents Again"
Again" activities
activities
cidents

・Promoting
・Promoting thethe Five-Year
Five-Year Health
Health Dev
Dev
elopment Plan
Plan inin JapanJapan (Lifestyle(Lifestyle dis
diselopment・Continuation
・Continuation ofof thethe Five-Year
Five-Year Healt
Healt
h Development
Development Plan
Planh・Safety・Safety patrol
patrol inin suppliers'
suppliers' sites
sites (97
(97 ccompanies)
ompanies)

・Continuation
・Continuation ofof safety
safety patrol
patrol inin suppsupp
liers'
liers' sites
sites

eases,
eases, cancer,
cancer, Tabaco
Tabaco andand mental
mental hhealth)
ealth)

15

KOMATSU CSR REPORT 2016

Major Achievements and Mid-term Plans

KOMATSU CSR REPORT 2016

Our Approach to CSR
Developing People
Key Activities

Major Achievements for FY2015

Reference

Mid-range Issues and Targets! Enhancing our employees and suppl ・Employee training (non-consolidate
iers through the KOMATSU Wayd);Average hours per FTE: 96 hours
Average spent per FTE: JPY 244 thousand・Offered QC instructor training to ove

・Developing national employees as irsea subsidiaries (September)n-house KOMATSU Way instructors
・Conduct surveys on understandingof The KOMATSU Way

・Opened Oyama Technical Center to・Continuation of enhancement of ma

foster manufacturing skills (Septemb

nufacturing skill globallyer)・Took place skill competitions;
Manufacturing skill competition (October, 257 participants from 12 countries)
QC circle competition (November, 120 cases from 13 countries)! Enhancing our employees and distri
butors through brand management

・Improvement and expanding of Bra

・Continuation of Improvement and end Management activities

xpanding of Brand Management acti
vities・Opened Model Training Center for J

・Launch of service training center inapanese distributors (October)

Asia・Service Technical Competition (Oct・Support to oversea training centersober, 41 participants)

・Support for distributors' developme
nt of managers! Respect for employees

・Enhancement of employee's work-lif

・Continuation of enhancement of em

e balance (Average days of paid vac

ployee's work-life balance (2,100 or lation taken per year: 18.4 days)

ess working hours per year, and at least 17 days of paid vacation taken per year)・Development of self action plan to p

・Promoting female employees (Ratio

romote female employees (April, 201

of employees in management positio

6)

ns: 7% in FY2018, 10% in FY2021)

16

KOMATSU CSR REPORT 2016

apanese distributors (October)

Asia・Service Technical Competition (Oct・Support to oversea training centers
KOMATSU CSR REPORT 2016
・Support for distributors' developme

Major Achievements and Mid-term Plans
ober, 41 participants)

nt of managers! Respect for employees

・Enhancement of employee's work-lif

・Continuation of enhancement of em

e balance (Average days of paid vac

ployee's work-life balance (2,100 or lation taken per year: 18.4 days)

ess working hours per year, and at leOur Approach to CSR

ast 17 days of paid vacation taken per year)・Development of self action plan to p

・Promoting female employees (Ratio

romote female employees (April, 201

of employees in management positio

6)

ns: 7% in FY2018, 10% in FY2021)

・Career plan training for female empl
oyees・Promoting employment of persons

・Continuation of creating workplaces

with disabilities (Employment ratio : 2

that provide a sense of fulfillment suc.63%, non-consolidated, as of April 2

h as activity of Business Creation Ce

016)

nter
・Employment ratio : 2.3%, Group Co
mpanies in Japan, as of April 2018

Growing with Society
Key Activities

Major Achievements for FY2015! Engaging in dialogue with our stake・Shareholders' meeting (December,・Continuation of communication acti

800 participants)

vitiesholders

Reference

Mid-range Issues and Targets

・Plant tours for shareholders (Octob
er and March, 2016, 350 participants)・Techno Center tours (August, 130 p
articipants)
・Meetings for Individual Investors (11cities in Japan, 1000 participants)
・Plant Fairs (5 plants in Japan, 43,70
0 visitors)
・Komatsu Science and Technology
Collaboration Council (November)・President meeting with employees and sharing Q&A session contents wit
h global employees! Strengthening our corporate govern
ance and compliance

・Chairman resigned from the positio

・Continuation of enhancement corpo

n of representative of the Board (Aprirate governancel 2016)・Appointment of Global Officers (April 2016)

17

KOMATSU CSR REPORT 2016

・New stricture of the International Ad

・Meetings for Individual Investors (11cities in Japan, 1000 participants)

Major Achievements and Mid-term Plans

KOMATSU CSR REPORT 2016

・Plant Fairs (5 plants in Japan, 43,70
0 visitors)
・Komatsu Science and Technology
Collaboration Council (November)

Our Approach to CSR・President meeting with employees and sharing Q&A session contents wit
h global employees! Strengthening our corporate govern
ance and compliance

・Chairman resigned from the positio

・Continuation of enhancement corpo

n of representative of the Board (Aprirate governancel 2016)・Appointment of Global Officers (April 2016)
・New stricture of the International Ad
visory Board (December)・"Visualization" research of potential

・Development a system of mutual su

risks (July)rveillance and continuation of individ
ual activities

・Conduct compliance and risk audit (352 offices)
・Conduct compliance training (24,00
0 employees)
・Information provision through "Everybody!s Compliance" (124 issues, cu
mulative total)! Promoting compliance with environ

mental, labor, human rights and social norms within the Group and among business partners

・Conducting safety patrol (97 supplie

・Continuation of individual activities

rs)

based on "CSR procurement guideline"・Implementation of power consumpti
on reduction activities (97 suppliers)
・CSR training (23 suppliers), Subcon
tracting Charges Law Training (311 p
articipants from 217 suppliers)
・Information provision through "CSR
Bulletin" (118 issues, cumulative total)

2. Social Contribution Activities
Enhancing Quality of LifeÑProviding Products Required by Society
Key Activities

Major Achievements for FY2015! Support for Agriculture with ICT・Soil improvement and direct seedin

Referenceg by intelligent Machine Control dozers (40% cost reduction in verification
test)

Developing People

18

KOMATSU CSR REPORT 2016

Mid-range Issues and Targets
・Expansion of ITC intensive method
・Verification test in large area

al norms within the Group and among business partnerse"・Implementation of power consumpti
on reduction activities (97 suppliers)

Major Achievements and Mid-term Plans

KOMATSU CSR REPORT 2016

・CSR training (23 suppliers), Subcon
tracting Charges Law Training (311 p
articipants from 217 suppliers)
・Information provision through "CSR

Our Approach to CSR

Bulletin" (118 issues, cumulative total)

2. Social Contribution Activities
Enhancing Quality of LifeÑProviding Products Required by Society
Key Activities

Major Achievements for FY2015! Support for Agriculture with ICT・Soil improvement and direct seedin

Reference

Mid-range Issues and Targets
・Expansion of ITC intensive method

g by intelligent Machine Control doze・Verification test in large arears (40% cost reduction in verification
test)
Developing People
Key Activities

Major Achievements for FY2015

Reference

Mid-range Issues and Targets! Local HR education in the area

・Supporting HR development project・Continued support for the second teof construction equipment andin Liberia (School reopened in April 2

rm and providing service skill training

manufacturing015, graduated 149 students in August)・Sign agreement with Cummins Inc. t・Launch of program in each area (Ao promote local HR development.

ustralia, South Africa, the US and Peru)! Komatsu-no-mori (scienceclass and flower fostering

provided by retired employees)

・Plan of 5th anniversary event

・Amounted to 274,000 visitors (cumu
lative total)

・Continuation of growing flowers wit

・Teaching how to grow flowers to kin

h 2 kindergartensdergarten students (96 pupils from 2

・Launch of "Waku-Waku Komatsu W

kindergartens, donated flowers to 2

orkshop" (July)

welfare facilities)! Support to university research

related to Komatsu's innovation

・Visiting lectures to universities (to In

・Continuation of supporting to univer

donesia and Thailand)sities・Hosting of instructors and providing
lectures (from Indonesia)
Growing with Society
Key Activities

Major Achievements for FY2015! Disaster relief

・Dam break accident in Brazil (Nove・Quick support mainly with equipmember): Rental 2 wheel loaders free ofnt and goods required by disaster ar

19

Reference

KOMATSU CSR REPORT 2016

Mid-range Issues and Targets

class and flower fostering
provided by retired employees)

lative total)

・Continuation of growing flowers wit

・Teaching how to grow flowers to kin

h 2 kindergartens

Major Achievements and Mid-term Plans
dergarten students (96 pupils from 2

KOMATSU CSR REPORT 2016
・Launch of "Waku-Waku Komatsu W

kindergartens, donated flowers to 2

orkshop" (July)

welfare facilities)! Support to university research・Visiting lectures to universities (to In

・Continuation of supporting to univer

donesia and Thailand)sitiesOur Approach to CSR

related to Komatsu's innovation

・Hosting of instructors and providing
lectures (from Indonesia)
Growing with Society
Key Activities

Major Achievements for FY2015

Reference

Mid-range Issues and Targets! Disaster relief

・Dam break accident in Brazil (Nove・Quick support mainly with equipmember): Rental 2 wheel loaders free ofnt and goods required by disaster ar

chargeea

・Kumamoto earthquake (April 2016):
Rental container houses to Mashiki t
own free of charge! Clearing anti-personnel land

・Cambodia; Demined area 1,218ha,

・Continuous activities in Cambodia amines and reconstruction

Road construction 39.5km, Ponds cond Angorasupportnstructed 45, Schools constructed 7 (cumulative total). Donated temporary
container houses for workers' residen
ce.

・Launch of project for demining clust
er submunitions in Laos (August)・Continuation of visiting lectures

・Angola; Demined area 180ha (cumu
lative total)・Development of demining machine for cluster submunitions
・Visiting lectures in Japan (6 times)! Supporting Flower Associationof Japan・Technical support to fostering flower

・Continuous support to growing flows in Komatsu Green Parkers in Komatsu-no-mori・Donation of young cherry trees to di・Inspection of health degree of cherrsaster area of the Great East Japany trees and consultation (Ina city and

Earthquake (more than 4000 trees, c

Koganei city)umulative total)

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20

KOMATSU CSR REPORT 2016

External Evaluations and Activities to Date

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > External Evaluations and Activities to Date

Our Approach to CSR
External Evaluations and Activities to Date
Commendations from Assessment Bodies• Selected for inclusion in the Dow Jones Sustainability World Indices (DJSI World and
DJSI Asia Pacific), SRI indexes developed by S&P Dow Jones Indices (U.S.) andRobecoSAM (Switzerland)• Selected for inclusion in the MSCI Global Sustainability Indexes, SRI indexes
developed by Morgan Stanley Capital International (U.S.)
THE INCLUSION OF KOMATSU LTD IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS,SERVICE MARKS OR INDEX NAMES HERIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT ORPROMOTION OF KOMATSU LTD BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKSOR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

• Selected for inclusion in the index of companies recognized for their contribution tosustainable development by NYSE Euronext and Vigeo (As of June, 2016)

Appr

Our A

Enha

-ProviSociet

Deve

Grow

Socia
Activ

Ge
• Selected for inclusion in the listing of SRI issues developed by Morningstar (As of June,
2016)

Corp

Comp

• Rated as “Prime” among 35 machinery companies in the December 2015 social
responsibility ratings by Oekom, a Germany-based independent CSR assessment
company

Koma
Code
Risk
CSR

To vi
need to d• Selected as a leading company of the Climate Disclosure Leadership Index (CDLI) by
CDP• Selected as one of 40 “2016 Nadeshiko Brand” companies by Japan's Ministry of
Economy, Trade and Industry and the Tokyo Stock Exchange• Selected as one of 15 companies excelling in ESG by the Tokyo Stock Exchange as

21

KOMATSU CSR REPORT 2016

part of its “+YOU” project supporting Japanese economic growth

Adobe Ac• Selected as a leading company of the Climate Disclosure Leadership Index (CDLI) by
CDP
External Evaluations and Activities to Date

KOMATSU CSR REPORT 2016

Our Approach to CSR• Selected as one of 40 “2016 Nadeshiko Brand” companies by Japan's Ministry of
Economy, Trade and Industry and the Tokyo Stock Exchange• Selected as one of 15 companies excelling in ESG by the Tokyo Stock Exchange aspart of its “+YOU” project supporting Japanese economic growth

External Evaluations for CSR Activities (FY2015)
April

Awarded the “FY2015 JSME Medal for New Technology” by the Japan Society of Mechanical Engineers (JSME)

for the development of the ICT Bulldozer and ICT Hydraulic Excavator which revolutionizes the work
configuration of construction sites

May

July
2015

September

Selected as “Competitive IT Strategy Company” by Ministry of Economy, Trade and Industry as a company
proactively utilizing IT for management innovation and strengthening competitiveness.
Awazu Plant awarded the “Good Factory Award - Manufacturing CSR Contribution Award” of Japan
Management Association
Komatsu's activity to install portable toilets for women awarded the “Japan Toilet Award -- Award of Minister incharge of Women's Empowerment and Minister of State for Gender Equality”

September Selected for inclusion in the Dow Jones Sustainability Indices (World and Asia Pacific)
NovemberNovember
DecemberJanuary

January
February
February
2016

February
February

Selected by CDP as “Leading Company for Climate Change Information Disclosure”
Ranked 17th overall (out of 535 companies) under the “NICES FY2015” company rating system by Nihon Keizai
Shimbun, Inc.
Selected as “Prime” by “oekom Research” as ESG Excelling Company within the industry
Smart Construction, Komatsu's support service for construction job sites awarded the “Nikkei Superior Products
and Services Awards -- Nikkei Awards for Excellence ”
Ranked 10th (out of 705 companies) in the Manufacturing Sector in Nihon Keizai Shimbun's 19th Environmental
Management Survey
Selected for inclusion in listing of “Thomson Reuter!s Top 100 Global Innovators 2015”
Defense Systems Division awarded the Energy Conservation Center, Japan's “Energy Conservation Prize(Case Category) Energy Conservation Center Chairman's Award”
Awarded as a winner in “Corporate Governance of the Year 2015” by Japan Association of Corporate Directors
Komatsu Environmental Report Digest 2015 awarded the “19th Environmental Communication Award -Excellence Award” from the Global Environment Forum of the Ministry of the Environment

February

Ranked 3rd overall (out of 1,325 companies) in Toyo Keizai's 10th “CSR Company Ranking”

March

Selected for “Nadeshiko Brand 2016” as a business that excels in promoting career development for women

March

Received “CSR Award from Governor of West Java” (Komatsu Undercarridge Indonesia)

May

Selected for inclusion in the “Euronext Vigeo World 120” index

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KOMATSU CSR REPORT 2016

Management Survey
February

Selected for inclusion in listing of “Thomson Reuter!s Top 100 Global Innovators 2015”

External Evaluations and Activities to Date
February
2016

February

KOMATSU CSR REPORT 2016

Defense Systems Division awarded the Energy Conservation Center, Japan's “Energy Conservation Prize(Case Category) Energy Conservation Center Chairman's Award”
Awarded as a winner in “Corporate Governance of the Year 2015” by Japan Association of Corporate Directors

Our Approach to CSR
February

Komatsu Environmental Report Digest 2015 awarded the “19th Environmental Communication Award -Excellence Award” from the Global Environment Forum of the Ministry of the Environment

February

Ranked 3rd overall (out of 1,325 companies) in Toyo Keizai's 10th “CSR Company Ranking”

March

Selected for “Nadeshiko Brand 2016” as a business that excels in promoting career development for women

March

Received “CSR Award from Governor of West Java” (Komatsu Undercarridge Indonesia)

May

Selected for inclusion in the “Euronext Vigeo World 120” index

CSR Activities to Date (FY2015)
April
2015

December

March

2016

April

April

Started “Hanaiku” at Komatsu-no-Mori in Komatsu City, Ishikawa Prefecture for the local kindergarteners
New administration of “International Advisory Board (IAB)” (Start of the 7th Management of IAB andestablishment of “IAB for High Technology & Innovation”)
Osaka plant concluded the “Osaka Biodiversity Partner Agreement” with Osaka Prefecture, Osaka Prefecture
University, the Research Institute of Environment, Agriculture and Fisheries of Osaka Prefecture, and Osaka City
Continued to support the second period of the human resources development project in Liberia promoted by theJapanese government and UNIDO (United Nations Industrial Development Organization)
Concluded an agreement with Cummins Inc. of the United States to collaborate in global social contribution
activities
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KOMATSU CSR REPORT 2016

Product Safety -Increasing Safety by Innovation-

KOMATSU CSR REPORT 2016

Home > CSR > Enhancing Quality of Life ÑProviding Products Required by Society > Product Safety -Increasing Safety by Innovation-

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

Product Safety -Increasing Safety by InnovationInnovation brings about a variety of valuable ideas such as environmental design and economic efficiencies. Out of these, our highest
priority is ÒSafety.Ó
Starting with providing safe products, and including the ultimate safety of automatic operational systems, we are making full use ofinnovation in terms of safety to find ways of bringing the best value to our customers.

On-site Operational Safety
Providing a very safe product is a manufacturer's most basic responsibility. On top of meeting all of the latest international standards
and regulations, we deliver products with exceptional safety features that are unsurpassed by other competitors to our customers.
At the same time, our goal is to improve safety through innovation to such a level that we can help our customers realize on-site
operations as they should be.

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Komatsu introduced the ICT Bulldozer (2013) and ICT Hydraulic Excavator (2014) to the market that made possible automatic control of
blades and buckets. No matter the level of experience of the operator, ICT construction equipment makes possible the high precision
construction work of a skilled worker. As a result, supplementary workers needed in the past are no longer necessary and the guideprocess which is done by people becomes unnecessary, saving labor on the work site and improving safety.
The ultimate safety feature to be realized is the "Automatic Operational System." At some major mines in Australia and Chile, theAutonomous Haulage System (AHS) is in full-scale operation. This is the system where giant dump trucks automatically drive
themselves, carrying over 300 tons of soil and minerals. Customers must pay most careful attention when they have several
construction machinery and vehicles operating 24 hours in the harsh environment of mines. AHS is there to help with this process. The
combination of the cutting edge technologies such as satellite communication and various radars and sensors creates a system that
responds to the customer's diverse safety needs, and by continuing to work on further evolution of such safety systems, we arecontributing to the realization of making our customers' on-site operational safety as it should be.

Example of Safety Activities
Improving Product Safety: Entire perimeter monitoring ÒKom VisionÓ
KOMATSU CSR REPORT 201624
To ensure safety in every direction from the driver's seat of theTo vineed to d

Adobe Acblades and buckets. No matter the level of experience of the operator, ICT construction equipment makes possible the high precision
construction work of a skilled worker. As a result, supplementary workers needed in the past are no longer necessary and the guideprocess which
is doneby people
becomes
unnecessary, saving labor on the work site and improving safety.
Product
Safety-Increasing
Safetyby Innovation-

Autonomous Haulage System (AHS) is in full-scale operation. This is the system where giant dump trucks automatically drive
themselves, carrying over 300 tons of soil and minerals. Customers must pay most careful attention when they have several

CSR Theme 1

construction machinery and vehicles operating 24 hours in the harsh environment of mines. AHS is there to help with this process. The

Enhancing Quality of Life

combination of the cutting edge technologies such as satellite communication and various radars and sensors creates a system that
responds
to the customer's
diverse safety
needs, and by continuing to work on further evolution of such safety systems, we are-Providing
Products Required
by Society
contributing to the realization of making our customers' on-site operational safety as it should be.

Example of Safety Activities
Improving Product Safety: Entire perimeter monitoring ÒKom VisionÓ
To ensure safety in every direction from the driver's seat of the
dump truck, a composite image of the perimeter is shown on themonitor. Contact and collision within blind spots is prevented byhaving a bird's eye view of the vehicle to check the surroundingarea.

ICT-Intensive Construction: Construction using the ICT Bulldozer
When working on sloped surfaces (like dikes and rice fields thathave hardened at an angle), operators do not have to operate
the working function of the machine, and instead canconcentrate on moving the position of the vehicle. Foreseeing
slips that occur due to carrying too much soil, the machine works
with the optimal volume of soil for efficient construction, to help
minimize the burden on the operator. Supplementary workers
that give instructions from near the construction equipment
become unnecessary and the risk of accidents is reduced.

Automatic Operation System: the Autonomous Haulage System (AHS)
Fully automated transportation is realized by operating andmanaging dump trucks with various ICT functions installed froma centralized control room. The dump truck uses GPS tocommunicate its position and drives itself according to thecourse and speed information transmitted from the control room.

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KOMATSU CSR REPORT 2016

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KOMATSU CSR REPORT 2016

The ultimate safety feature to be realized is the "Automatic Operational System." At some major mines in Australia and Chile, the

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KOMATSU CSR REPORT 2016

Home > CSR > Enhancing Quality of Life ÑProviding Products Required by Society > Quality and Reliability

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

Quality and ReliabilityÑResponsible Commitment to Customers
The fundamental principle of Monozukuri (manufacturing competitiveness) lies in Komatsu's commitment to quality and reliability inorder to provide productsÑboth hardware and softwareÑthat customers are happy to own. To achieve this, Komatsu puts the customer
first as one of its Basic Managerial Policies, with the pursuit of maximum customer satisfaction at the foundation. The company carries
out a continuous process of reform and refinement with all divisions responsible for putting this policy into practice, whether indevelopment, manufacturing, sales, after-sales service, or administration. In practical implications, Komatsu includes the global
environment, quality assurance, and the education and training of human resources within the scope of its quality management anduses indices to promote such management.

Our Principles (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

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The company has a responsibility to take actions that will ensure it is able to provide products and services that the customer canpurchase and use with a sense of assurance and satisfaction and use for many years to come.

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Principles Governing Quality Assurance

Corp(1) Putting customers first, being receptive to the views of the customer, and responding appropriately to the customer, thereby earningCompthe 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, andproviding products and services that, from the perspective of the customer, 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.

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(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 a sourceof happiness for every employee.

Mechanisms for Quality Assurance
At Komatsu, all employees in each division, from product planning to development, manufacturing, sales, and after-sales service, sharea sense of working as a single unit to continually develop products that are safe, innovative, and of high quality. Through astrengthening of Komatsu's unique Monozukuri system, the company is able to introduce competitive DANTOTSU products to themarket 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 product's
suitability is then assessed and enhanced until the ultimate goal is attained. In this way, the company conducts quality assurance
activities that ensure quality and reliability is fully achieved.

KOMATSUREPORTand
2016
Through such approaches the company is able to26strengthen
safetyCSR
assurance
satisfaction for customers while simultaneously
providing products and services that take the global environment into account and comply with both international specifications and theTo vi
need to d

Adobe Ac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 constitutethe responsibility of every employee.
Qualityand Reliability—Responsible Commitment to Customers

KOMATSU CSR REPORT 2016Adobe Ac(5) Giving the customer a sense of safety, assurance, satisfaction, and the ability to use the product for many years to come is a sourceof happiness for every employee.

CSR Theme 1

Mechanisms for Quality Assurance

Enhancing Quality of LifeAt Komatsu, all employees in each division, from product planning to development, manufacturing, sales, and after-sales service, share-Providing
Products
RequiredSociety develop products that are safe, innovative, and of high quality. Through aa senseof working
as a single
unit tobycontinuallystrengthening of Komatsu's unique Monozukuri system, the company is able to introduce competitive DANTOTSU products to themarket 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 product's
suitability is then assessed and enhanced until the ultimate goal is attained. In this way, the company conducts quality assurance
activities that ensure quality and reliability is fully achieved.
Through such approaches the company is able to strengthen safety assurance and satisfaction for customers while simultaneously
providing products and services that take the global environment into account and comply with both international specifications and theregulatory requirements of individual countries.

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Structure for Quality Assurance
The majority of Komatsu!s productsÑ construction and mining equipment, presses, and forkliftsÑ are used as manufacturing
equipment at customers! sites of operation. These products are expected to contribute to customers through a higher rate of operationand productivity over long hours every day. In reflection of these product characteristics, sales and after-sales service personnel at
Komatsu visit customers to give detailed recommendations on products and their usage and conduct maintenance activities. They thenprovide feedback to relevant divisions regarding the views and requirements that the customers have for these products. The company
has created a system to increase customer satisfaction through rapid responses to such information.
Moreover, Komatsu maintains a database on product quality in the market so that the company can respond rapidly upon discovering aquality-related problem and have all the company!s sales and after sales service divisions able to access the information they need tohelp remedy the issue.

Increasing the Degree of Customer Satisfaction
In accordance with 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 a27

KOMATSU CSR REPORT 2016

To vi
need to dcontinuous basis. Consequently, the company conducts regular customer satisfaction surveys, including post-launch field surveys.

Structure for Quality Assurance
The majority of Komatsu!s productsÑ construction and mining equipment, presses, and forkliftsÑ are used as manufacturing

KOMATSU CSR REPORT 2016
QualityandReliabilitysites—Responsible
Commitment
to Customers
equipment
at customers!
of operation.
These products
are expected to contribute to customers through a higher rate of operationand productivity over long hours every day. In reflection of these product characteristics, sales and after-sales service personnel at
Komatsu visit customers to give detailed recommendations on products and their usage and conduct maintenance activities. They thenprovide feedback to relevant divisions regarding the views and requirements that the customers have for these products. The company

CSR Theme 1

has created a system to increase customer satisfaction through rapid responses to such information.

Enhancing Quality of Life

Moreover, Komatsu maintains a database on product quality in the market so that the company can respond rapidly upon discovering a-Providingproblem
Products
Requiredquality-related
andhave all by
theSociety
company!s sales and after sales service divisions able to access the information they need tohelp remedy the issue.

Increasing the Degree of Customer Satisfaction
In accordance with 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 acontinuous 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 the structure promoting quality assurance. The surveys help
furnish new value to customers as the company develops DANTOTSU products that anticipate customer needs in advance and delivers
services with distinct features.
Komatsu is able to raise the level of customer satisfaction through these approaches.

Post-launch Field Surveys and Feedback of Results

Komatsu's post-launch field survey is part of its system for comprehensively assessing customers' degrees of satis
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 sa

quality and reliability of its products. The company pays careful attention to the evaluations, views, and requests c

and after-sales service and replacement parts. Komatsu processes and analyzes the gathered data to decide upo

improvement. The resulting information
acrossthe company,
notably with top management, and provide
KOMATSUCSR REPORT
2016
28 is shareddivisions at every step in the process, including development, manufacturing, and sales and after-sales service. WQuality and Reliability—Responsible Commitment to Customers

KOMATSU CSR REPORT 2016

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

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Post-launch Field Surveys and Feedback of Results
Komatsu's post-launch field survey is part of its system for comprehensively assessing customers' degrees of satisfaction, withcompany 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 toward thequality and reliability of its products. The company pays careful attention 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 todivisions at every step in the process, including development, manufacturing, and sales and after-sales service. With the means toimprove upon problems and revise the quality assurance system, the company can deliver products and services that satisfy
customers.

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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 forextended hours. This allows the company to provide products that satisfy the customer and consume fewer resources. Most recently,
confirmation of equipment operating conditions has been made possible by the utilization of an ICT remote management system called
KOMTRAX Plus. With the information provided by KOMTRAX Plus, we are able to confirm and analyze the status of the machine interms of durability, efficiency and functionality. The company assesses whether or not the results satisfy customers' expectations andthe degree to which their demands match product quality objectives at Komatsu. The company designs proposals to rectify areas notachieving the desired quality levels, later integrating these proposals into product revisions or the development of new products. This

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KOMATSU CSR REPORT 2016

Quality and Reliability—Responsible Commitment to Customers

KOMATSU CSR REPORT 2016

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

zoom

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 forextended hours. This allows the company to provide products that satisfy the customer and consume fewer resources. Most recently,
confirmation of equipment operating conditions has been made possible by the utilization of an ICT remote management system called
KOMTRAX Plus. With the information provided by KOMTRAX Plus, we are able to confirm and analyze the status of the machine interms of durability, efficiency and functionality. The company assesses whether or not the results satisfy customers' expectations andthe degree to which their demands match product quality objectives at Komatsu. The company designs proposals to rectify areas notachieving the 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, leading to greater customer satisfaction and lessresource consumption and waste.
*Defined as vehicles with an operating history of 5,000 hours or more

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 a vehicle's Òhealth,Ó its operating
status, and other key information.

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 Òmother plantsÓ certain global manufacturing locations with product development capabilities. These plants serve at
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.

Standards for Product Safety
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 asense of assurance, and can be used for many years.

Information System for Product Safety and Services
In seeking to obtain information on problems with product safety as early as possible, Komatsu has established an information systemfor product safety and promptly deals with issues.
It continuously strives to make improvements so that the company, including top management, can respond quickly throughcoordinated actions, including (1) assessing the cause of the incident and procedures to be taken, (2) contacting the relevant governing
authorities, and (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 isfundamental to the job of every employee and30constitutes
the responsibility
every employee.
KOMATSUCSR REPORTof2016(3) Security regarding accidents

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
KOMATSU CSR REPORT 2016sense of assurance, and can be used for many years.

Quality and Reliability—Responsible Commitment to Customers
Information System for Product Safety and Services

In seeking
to obtain
CSR Theme
1 information on problems with product safety as early as possible, Komatsu has established an information system

Enhancing Quality of Lifefor product safety and promptly deals with issues.

It continuously strives to make improvements so that the company, including top management, can respond quickly through-Providing
Products
Requiredby Society
coordinatedactions,
including(1) assessing
the cause of the incident and procedures to be taken, (2) contacting the relevant governing
authorities, and (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 isfundamental to the job of every employee and constitutes the responsibility of every employee.
(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 is emphasized, the standardization of the safety management systemand safety techniques as well as ongoing efforts to improve them are at all times fundamental to the job of every employee andconstitute the responsibility of every employee.

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Providing Product Safety Information to Customers
Komatsu meets legal requirements for providing safety information to customers through (1) direct indication on products or in user

31

KOMATSU CSR REPORT 2016

manuals, (2) direct explanations by sales and after-sales service personnel, and (3) telephone consultations with sales and after-sales

Quality and Reliability—Responsible Commitment to Customers

KOMATSU CSR REPORT 2016

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

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Providing Product Safety Information to Customers
Komatsu meets legal requirements for providing safety information to customers through (1) direct indication on products or in user
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 particular situation with, for example, engineers or top management
visiting customers as the situation might require.

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 conducting increasingly rigorous
monitoring.
Procedure regarding recalls:(1) Proposal for rectification of the situation based on information regarding the defect; decision regarding what measures the company
will take toward the market(2) File a notice with relevant authorities as provided under the law(3) Inform customers by appropriate means(4) Take appropriate corrective measures including, for example, repair, replacement, or refund
Means for preventing recalls:(1) Strengthening of system for collecting information on product quality in the market(2) Promotion of technical verification of the problem involved in the recall and timely decision making(3) Regular auditing of recall-related operations
Komatsu strictly oversees compliance with legal requirements. Should a defect be found in its products or services, the company
initiates prompt correction measures and moves forward with proactive information disclosure. The graph below indicates the number ofincidents in which recall notices were filed. The company will continue to pursue safety to the greatest extent possible in the years to
come.

Number of Incidents with Recall Notices Filed (for construction equipment and utility equipment products sold inJapan)

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KOMATSU CSR REPORT 2016

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Occupational Safety and Health

KOMATSU CSR REPORT 2016

Home > CSR > Enhancing Quality of Life ÑProviding Products Required by Society > Occupational Safety and Health

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

Occupational Safety and Health
Komatsu communicates the message of "Safety First" to Komatsu Group and addresses occupational safety and works on mental andphysical health care to create a safe and comfortable work environment.

Our Approach to Safety and Health at the Workplace
Komatsu communicates the message of ÒSafety FirstÓ to Komatsu Group and addresses occupational safety and works on mental andphysical health care to create a safe and comfortable work environment.

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Message from the President Concerning Occupational Safety and Health

Our A(1) The Komatsu Group shall, first of all, strive to ensure a safe and comfortable work environment and maintain and promoteEnhaemployee health.
(2) The Komatsu Group shall promote proactive occupational safety and health activities in order for all employees to achieve theabove conditions by working together as one team.
(3) Each and every person in a senior management position of the Komatsu Group shall acknowledge the above two matters as
top priority tasks and shall take the initiative in demonstrating the execution of daily duties accordingly.

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The company has established this occupational safety and health guideline: All Komatsu Group companies, together with all top
managers and employees, shall promote occupational safety and health activities so that employees can work in a safe andcomfortable work environment in accordance with the policies described below.

Occupational Safety and Health Policies(Released as a part of the Komatsu Code of Business Conduct on April 1, 2011)(1) Observe the laws and regulations concerning occupational safety and health as well as internal rules, key items common to the

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Komatsu Group about occupational safety and health, and particularly items agreed as a result of labor-management

Risk

consultations in each workplace.

CSR(2) Set up targets for activities based on occupational safety and health policies, review their progress, and endeavor tocontinuously improve and enhance occupational safety and health activities.
(3) Carry out occupational safety and health activities in management-and-labor partnership on a full participation basis and keep
good communication with stakeholders with regard to occupational safety and health.
(4) Identify and evaluate the risk for occupational safety and health of a workplace and take appropriate actions accordingly.
(5) Actively promote employees' healthcare management and support the maintenance and promotion of employees' health.
(6) Actively promote education, training and qualification acquisition necessary for employees' occupational safety and healthactivities, and endeavor to develop human resources for safely carrying out their responsibilities in the workplace.
(7) Subject to appropriate protection of personal information, publicly offer the knowledge and information about occupationalsafety and health activities obtained through the business activities in order to secure safety and health in society.
Excerpted from ÒKomatsu's Code of Worldwide Business ConductÓ

In addition to our existing health management programs, the Komatsu Group is striving to create its corporate Health Culture after thelaunch of the Five-Year Health Development Plan in FY2014. The goal of the Health Culture is: to look after one's own health and thehealth of one's colleagues and to consider and take action on what is necessary for leading a better life. The president announced theÒKomatsu Health DeclarationÓ in June 2014 to effectively
promotegoal.
KOMATSUthis
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REPORT 2016
33

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Adobe Accontinuously improve and enhance occupational safety and health activities.
(3) Carry out occupational safety and health activities in management-and-labor partnership on a full participation basis and keep
good communication with stakeholders with regard to occupational safety and health.
Occupational
Safety and HealthTo vineed to d

KOMATSU CSR REPORT 2016Adobe Ac(4) Identify and evaluate the risk for occupational safety and health of a workplace and take appropriate actions accordingly.

(5) Actively promote employees' healthcare management and support the maintenance and promotion of employees' health.
(6) Actively promote education, training and qualification acquisition necessary for employees' occupational safety and health

CSR
Themeand1 endeavor to develop human resources for safely carrying out their responsibilities in the workplace.
activities,

Enhancing Quality of Life

(7) Subject to appropriate protection of personal information, publicly offer the knowledge and information about occupationalsafety and health activities obtained through the business activities in order to secure safety and health in society.

-Providing Products Required by Society

Excerpted from ÒKomatsu's Code of Worldwide Business ConductÓ

In addition to our existing health management programs, the Komatsu Group is striving to create its corporate Health Culture after thelaunch of the Five-Year Health Development Plan in FY2014. The goal of the Health Culture is: to look after one's own health and thehealth of one's colleagues and to consider and take action on what is necessary for leading a better life. The president announced theÒKomatsu Health DeclarationÓ in June 2014 to effectively promote this goal.

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

Organization

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Meeting Committee Structure

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KOMATSU CSR REPORT 2016

Occupational Safety and Health

KOMATSU CSR REPORT 2016

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

zoom

Meeting Committee Structure

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afety and Health Activities
Raising of management level by implementing the Labor Safety and Health Management System
Elimination of disaster elements through risk assessment
Stimulating voluntary improvement activities through the small group ÒZero AccidentsÓ
Hazard simulation training at the ÒSafety Training HallÓ
Enhancing the quintessential safety of equipment
KOMATSUCSR related
REPORT 201635
Building physical health (health supervision for preventing
diseases
to lifestyle, a diabetes management program, support

Occupational Safety and Health

KOMATSU CSR REPORT 2016

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

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Safety and Health Activities(1) Raising of management level by implementing the Labor Safety and Health Management System(2) Elimination of disaster elements through risk assessment(3) Stimulating voluntary improvement activities through the small group ÒZero AccidentsÓ
(4) Hazard simulation training at the ÒSafety Training HallÓ
(5) Enhancing the quintessential safety of equipment(6) Building physical health (health supervision for preventing diseases related to lifestyle, a diabetes management program, support forsmokers who would like to quit, etc.)(7) Attaining mental health (diagnosing stress, implementing activities to improve the work environment, mental health training,establishing consultation services inside and outside of the company, support for returning to work)(8) Improving and maintaining an appropriate work environment(9) Prevention of second-hand smoke(10) Global and Group-wide activity support for overseas subsidiaries and Japanese business partners

Main Themes of the Five-Year Health Development Plan
(1) Addressing lifestyle diseases and cancer: Prevent lifestyle-related diseases and reduce the number of patients, and reduce theseverity of diseases(2) Addressing tobacco-related diseases: Reduce smoking and prevent passive exposure to smoking(3) Addressing mental health: Reduce the number of individuals with mental disorders, provide early response and support return toappropriate workplaces, and create a happy and vigorous workplace(4) Addressing risks of impaired health: Eliminate and reduce the risks of impaired health associated with the work environment andoperations(5) Response for small domestic worksites: Support health development at small worksites (such as sales and service sites)(6) Global response: Formulate and promote global measures for occupational safety and health management

Supporting Supplier's Safety Activities
Komatsu is conducting the following safety activities for the ÒKomatsu Midori-kaiÓ, which is an organization of Komatsu's businesses
partners (suppliers) in Japan.
(1) Support for the introduction of Japan Industrial Safety and Health Association (JISHA)'s Workplace Safety Health Impact Project forsmall and medium-sized businesses (2015)
For our 97 business partnersÑsuppliers of outsourced itemsÑKomatsu introduced JISHA's Workplace Safety Health Impact Project,paying for the inspection fees, and asking each company to improve their safety level in 2015.
(2)Conduct Safety Patrols
Komatsu conducts paperwork inspections and patrols the workplace, checking especially the legal compliance status (such as
notifications and inspections) and unsafe places in the workplace and the possibility of unsafe conduct. For findings, we request thesubmission of a report listing preventative measures, and follow up accordingly.
(3)Participation of business partners in the Komatsu Group Safety and Health Conference.
The heads of business partners are invited to participate in the Komatsu Group Safety and Health Conference that is held every year in
June.
(4)Focused guidance for companies that have repeated accidents
For cooperating businesses that have repeated accidents, Komatsu requests a submission of a "Special Safety Activity Chart", andbased on the situation of each company, guidance and support is provided by the district procurement department.
(5)Implementation of Mutual Safety Patrol

36

KOMATSU CSR REPORT 2016

Patrols are conducted between cooperating businesses from their similar business standpoint, and in cases where there are findings,

Occupational Safety and Health

KOMATSU CSR REPORT 2016

paying for the inspection fees, and asking each company to improve their safety level in 2015.
(2)Conduct Safety Patrols
Komatsu
CSR conducts
Theme 1 paperwork inspections and patrols the workplace, checking especially the legal compliance status (such as

Enhancing Quality of Life

notifications and inspections) and unsafe places in the workplace and the possibility of unsafe conduct. For findings, we request thesubmission of a report listing preventative measures, and follow up accordingly.

-Providing of
Products
RequiredSociety(3)Participation
business
partners byin theKomatsu Group Safety and Health Conference.
The heads of business partners are invited to participate in the Komatsu Group Safety and Health Conference that is held every year in
June.
(4)Focused guidance for companies that have repeated accidents
For cooperating businesses that have repeated accidents, Komatsu requests a submission of a "Special Safety Activity Chart", andbased on the situation of each company, guidance and support is provided by the district procurement department.
(5)Implementation of Mutual Safety Patrol
Patrols are conducted between cooperating businesses from their similar business standpoint, and in cases where there are findings,
we request a submission of a report listing preventative measures and follow up accordingly.

Status in FY2015
Our Response to an Industrial Accident at Parts Operation in Komatsu Europe International N.V.
On September 8, 2015, at Parts Operation in Komatsu Europe International N.V. in Brussels, Belgium, two order pickers (high-place
work vehicle) collided. One vehicle was overturned and the operator riding on it fell to the ground with the vehicle, sustained serious
injuries including skull fracture and brain contusion, and died on September 25.
The local and Japan's safety representative and production engineers worked together to determine the cause of the accident andproposed an accident countermeasure, and a special safety activity was held at Komatsu Europe.
Causes:- Both rules of not parking within the work lane and no more than 2 vehicles entering the same lane at
one time had been broken.
- There was no visual check of the front/back/left/right before moving the vehicle.

Interim Measures:- Implement reminders and re-education for operators- Inspection/maintenance of work environment (Example: internal lights always on)

Permanent Measures: - Prevent work vehicles from contacting or colliding with each other by using sensor alarms.
- Prevent overturning of work vehicles by using guide rails.
These measures were notified across the domestic and overseas work places that similarly use high-place work vehicles in handlingparts.
In order to prevent such a tragic accident from ever occurring again, we will continue to be even more diligent and proactive in working
on safety and health activities.

Educational Training for Labor Safety and Health (in Japan)
Items

Contents

FY2015 Practice-Stress assessment/awarenesstraining implemented in 31

Education regarding
Mental Health

Based on the rules of the Industrial Safety and Health Act,companies, with approximately

educational training for mental health is conducted. Stress

24,000 employees

assessments were started in FY2006, and stress awareness-"Support Letter for the Heart", which

training were started in 2007 and is being held for theis motivational material for

employees of all group companies in Japan.

management personnel, is distributed
every other month to management
personnel within the Group.
New Employees

Education by Job Levels

Safety, health and mental health education is provided to each

Assistant Managers

level of the company including new employees

Foremen/Senior Foremen

37

KOMATSU CSR REPORT 2016

New Managers

one time had been broken.
- There was no visual check of the front/back/left/right before moving the vehicle.
Interim Measures: - Implement reminders and re-education for operators
Occupational
Safety and Health

KOMATSU CSR REPORT 2016

- Inspection/maintenance of work environment (Example: internal lights always on)

Permanent Measures: - Prevent work vehicles from contacting or colliding with each other by using sensor alarms.
- Prevent overturning of work vehicles by using guide rails.

CSR
Theme were1
These
measuresnotified across the domestic and overseas work places that similarly use high-place work vehicles in handling

Enhancing Quality of Life

parts.

In orderto prevent
such a Required
tragic accident
from ever occurring again, we will continue to be even more diligent and proactive in working-Providing
Products
by Society
on safety and health activities.

Educational Training for Labor Safety and Health (in Japan)
Items

Contents

FY2015 Practice-Stress assessment/awarenesstraining implemented in 31

Education regarding
Mental Health

Based on the rules of the Industrial Safety and Health Act,companies, with approximately

educational training for mental health is conducted. Stress

24,000 employees

assessments were started in FY2006, and stress awareness-"Support Letter for the Heart", which

training were started in 2007 and is being held for theis motivational material for

employees of all group companies in Japan.

management personnel, is distributed
every other month to management
personnel within the Group.
New Employees

Education by Job Levels

Safety, health and mental health education is provided to each

Assistant Managers

level of the company including new employees

Foremen/Senior Foremen
New Managers

Holding a Global Safety and Health Conference
On June 9, 2015, a Global Safety and Health Conference was held with 42 participants from 29 overseas subsidiaries. The following
agenda items were explained and discussed, and information was shared.
(1) The vitalization of Zero Accidents Circle activities (6 domestic and overseas businesses/local companies)(2) Safety and Health Activities with special characteristics (3 domestic and overseas businesses/local companies)(3) Management of Hazardous WorkDATA
Incidence Rate of Occupational Accidents (Frequency Rate of Lost Worktime)38

KOMATSU CSR REPORT 2016

Occupational Safety and Health

KOMATSU CSR REPORT 2016

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

DATA
Incidence Rate of Occupational Accidents (Frequency Rate of Lost Worktime)zoom
1. The data for all industries (Japan) and construction and mining equipment manufacturing industry (Japan) are provided by the
Ministry of Health, Labour and Welfare.
2. The scope of the Komatsu Group (Japan) includes Komatsu Ltd. and group companies in Japan.
3. The scope of the Komatsu Group (global) includes "Komatsu Group (Japan)" and overseas production plants.

39

KOMATSU CSR REPORT 2016

Occupational Safety and Health

KOMATSU CSR REPORT 2016

CSR Theme 1

Enhancing Quality of Life
-Providing Products Required by Society

zoom
OHSMS: Occupational safety and health management systems
OHSAS 18001: Occupational safety and health assessment series
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40

KOMATSU CSR REPORT 2016

Personnel Policy and Performance Appraisal System

KOMATSU CSR REPORT 2016

Home > CSR > Developing People > Personnel Policy and Performance Appraisal System

CSR Theme 2

Developing People
Personnel Policy and Performance Appraisal System
For a business, it is said that people, goods, money, information and time are valuable assets and resources. Even if the otherelements remain constant, if people change, the results will be different. Thus, peopleÑthe employees of Komatsu Group companiesÑ
are an irreplaceable asset for the Group. Komatsu recognizes the role of the personnel system in enhancing the quality and reliability of
the company'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.

Global Personnel Policy

Appr

Personnel systems reflect the history and culture of each particular region. It is therefore important to recognize and understand thosedifferences.
In accordance with the basic policy outlined below, the members of the Komatsu Group are creating a personnel system tailored to theneeds and reflecting the circumstances of each particular region.

Our A

Enha

-ProviSocietDeve(1) We shall respect each employee's fundamental human rights, inherent personality, individuality, and legally protected privacy.
(2) We shall treat and appraise each individual employee in a fair and impartial manner. We shall not discriminate against any
employee on the basis of nationality, race, religion, age, gender, physical or mental disability or other legally protected
attributes that are irrelevant to his or her performance. We shall vigorously endeavor to promote equal opportunities for
employment and eliminate harassment in the workplace.
(3) We shall endeavor to provide employees with workplaces where they can seek a good balance between their private andprofessional lives, while effectively accomplishing their respective tasks with satisfaction and pride.
(4) We shall endeavor to design and administer the system of human resource management in a manner that is most reasonable
and persuasive to the employees. We shall make such systems open and clearly explain them to the employees to the
maximum extent practicable.
(5) Komatsu Group companies shall comply with all applicable laws and regulations governing employee rights in the jurisdictions
in which they operate, and faithfully accommodate, wherever applicable, conversations or discussions with employees or theirrepresentatives.

Grow

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Comp

Koma
Code
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CSR

(6) We shall not tolerate child labor or forced labor.
(7) Komatsu Group companies shall endeavor to offer to their respective employees those terms and conditions for employmentthat are sufficiently competitive in their respective regions.

To vineed to d

Adobe Ac

Personnel System that Accurately Reflects Employee Abilities and Achievements
Personnel systems in Japan are typically based on the assumption that 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 andachievements fairly. Instead, Komatsu has always strived to accurately evaluate the performance of employees as individuals,
incorporating employees' achievements and abilities into its personnel system as the basis for fair evaluations.

Fair and Appropriate Evaluation
For a company to create a workplace environment where employees can work without undue worries, it must treat employees fairly. As
described above, Komatsu's personnel system now takes into account employee abilities and achievement. Therefore, our challenge is

41

KOMATSU CSR REPORT 2016

to ensure that employee evaluations are fair and appropriate for each employee. For this purpose, in April 2004 the company organizedthat are sufficiently competitive in their respective regions.

To vineed to d

Personnel Policy and Performance Appraisal System

KOMATSU CSR REPORT 2016

Adobe Ac

Personnel System that Accurately Reflects Employee Abilities and Achievements
Personnel systems in Japan are typically based on the assumption that employees will work for a single company for many years.

CSR Theme 2

Therefore, when designing a system, a company must keep in mind the degree to which continuous employment should be considered.

Developing People

Komatsu believes that personnel systems emphasizing length of service do not necessarily reflect employees' abilities andachievements fairly. Instead, Komatsu has always strived to accurately evaluate the performance of employees as individuals,
incorporating employees' achievements and abilities into its personnel system as the basis for fair evaluations.

Fair and Appropriate Evaluation
For a company to create a workplace environment where employees can work without undue worries, it must treat employees fairly. As
described above, Komatsu's personnel system now takes into account employee abilities and achievement. Therefore, our challenge isto ensure that employee evaluations are fair and appropriate for each employee. For this purpose, in April 2004 the company organizedrefresher 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 the labor unionat each business unit to confirm that evaluations are conducted properly. Komatsu has provided individual feedback on evaluations tomanagers since 1998 and to non-managerial employees since 2001. The company has also set up a consultation office through which
employees can express complaints and concerns.

Condition of the Labor Union
Komatsu has a labor contract with the Komatsu Labor Union, which is organized by approximately 9,500 employees and 7 branches inJapan. The Komatsu Labor Union is a member of ÒAll Komatsu Workers UnionÓ and ÒJapanese Association of Metal, Machinery and
Manufacturing Workers.Ó Each of 18 consolidated subsidiaries and affiliated companies in Japan has a labor contract with its each labor
union joining ÒAll Komatsu Workers Union.Ó They are organized by approximately 7,300 employees of subsidiaries and affiliatedcompanies. The relationships between Komatsu Ltd., subsidiaries, affiliated companies and these labor unions are stable.
Also, in each country, Komatsu complies with laws related to the rights of laborers and responds with integrity to dialogue anddiscussions with individual employees and their representatives.

DATA
All data except for (5) Number of employees (Komatsu Group) is data for Komatsu Ltd.
Numbers of employees for (11) are as of April 1 and all other numbers shown are as of the end of the year, except as otherwise noted.
(1) Number of employees
FY2013

FY2014FY2015

Total

10,217

10,416

10,449

Male

9,167

9,325

9,295

Female

1,050

1,091

1,154

(2) Average age
FY2013

FY2014FY2015

Total

38.0

38.3

38.5

Male

38.1

38.4

38.5

Female

37.4

38.0

38.5

(3) Years of continuous employment
FY2013Total
Male

FY2014
13.8

42

KOMATSU CSR REPORT 2016
14.2

FY2015
14.1

14.3

14.4

14.6

Female

1,050

1,091

Personnel Policy and Performance Appraisal System

1,154
KOMATSU CSR REPORT 2016

(2) Average age
FY2013

FY2014

CSR Theme 2

FY2015

Total

38.0

38.3

38.5

Male

38.1

38.4

38.5

Female

37.4

38.0

38.5

Developing People(3)(3) Years
Years ofof continuous
continuous employment
employment
FY2013
FY2013

FY2014FY2014FY2015FY2015

Total
Total

13.8
13.8

14.1
14.1

14.3
14.3

Male
Male

14.2
14.2

14.4
14.4

14.6
14.6

FemaleFemale

11.0
11.0

11.4
11.4

12.0
12.0

(4)
(4) Annual total remuneration (average)

(JPY)
(JPY)

FY2013Total

FY2014FY2014
6,963,233

FY2015FY2015
7,191,383
7,191,383

7,111,071
7,111,071(5) Number of employees (Komatsu Group)
FY2013

FY2014FY2014FY2015FY2015

Consolidated

47,20847,20847,41747,41747,01747,017

Temporary

1,264
1,264

1,175
1,175

1,057
1,057

56
56

59
59

72
72

29,162
29,162

28,94528,94528,561
28,561

Non-Japanese(non-consolidated)
Non-Japanese(consolidated)(6) Number of employees by age
Total

Male
Male

FemaleFemaleUnder 30

2,547

2,235
2,235

312
312

30Ð39

3,226

2,972
2,972

254
254

40Ð49

2,646

2,271

375

50Ð59

2,030

1,817

213

Total

10,449

9,295

1,154

(7) New graduates employment
College graduate

Junior college graduate

High-school graduate

Total

Male

Total

Total

2014

213

181

2015

183

163

2016

158

129

Year (April)

Female

43

32

24

97

20

42

71

29

26

52

KOMATSU CSR REPORT 2016

Personnel Policy and Performance Appraisal System

40Ð49
CSR Theme 2
40–49
40Ð49
50Ð59
40Ð49
50–59
40–49
50Ð59
50Ð59
50–59
Total
Total
Total
Total
Total

Developing People(7) New graduates employment(7) New graduates employment(7) New graduates employment(7)(7) New
New graduates
graduates employment
employment
College graduate
College graduate
College graduate
College
graduate
graduateFemale
Year (April)
Total College
Male
Year (April)
Total
Male
FemaleYear (April)
Total
Male
FemaleYear(April)Total
Male
FemaleYear (April)
Total
Male
Female32
2014
213
181
2014
223
188
35
2014
213
181
32
2014
213
181
32
2014
223
188
35
2015
183
163
20
2015
195
174
21
2015
183
163
20
2015
183
163
20
2015
195
174
21
2016
158
129
29
2016
161
133
28
2016
158
129
29
2016
158
129
29
2016
161
133
28

(8) Mid-career employment(8) Mid-career employment(8) Mid-career employment(8)(8) Mid-career
Mid-career employment
employment

April 2013ÐMarch 2014
April 2013–March 2014
April 2013ÐMarch 2014
April
2013ÐMarch 2014
April
April 2013–March2014ÐMarch 2014
2015
April 2014–March 2015
April 2014ÐMarch 2015
April
2014ÐMarch 2015
April
2015
April 2014–March
2015-March 2016
April 2015-March 2016
April 2015-March 2016
April
April 2015-March
2015-March 2016
2016

Total
Total
Total
Total
Total

(9) Employee turnover (April 2015ÐMarch 2016)(9) Employee turnover (April 2015–March 2016)(9) Employee turnover (April 2015ÐMarch 2016)(9) Employee
Employee turnoverturnover (April(April 2015–March2015ÐMarch 2016)
2016)
(9)

143
143
143
143
143
125
125
125
125
125
25
25
25
25
25

KOMATSU CSR REPORT 2016

2,646
2,646
2,646
2,030
2,646
2,030
2,646
2,030
2,030
2,030
10,44910,44910,44910,44910,449Junior college graduate
Junior college graduate
Junior college graduate
Juniorgraduate
Junior college
college
Total graduate
Total
Total
Total
Total

CollegeCollegeCollegemaleCollegeCollege
male
male
male
male 54
54
54
54
54
58
58
58
58
58
10
10
10
10
10

2,271
2,271
2,271
1,817
2,271
1,817
2,271
1,817
1,817
1,817
9,295
9,295
9,295
9,295
9,295

375
375
375
213
375
213
375
213
213
213
1,154
1,154
1,154
1,154
1,154

24
25
24
24
25
42
31
42
42
31
26
21
26
26
21

High-school graduate
High-school graduate
High-school graduate
High-school
graduate
High-school
Totalgraduate
Total
Total
Total
Total
97
87
97
97
87
71
71
71
71
71
52
52
52
52
52

CollegeCollegeCollegefemaleCollegeCollegefemalefemalefemalefemale 11
11
11
11
11
12
12
12
12
12
4
4
4
4
4
Total
Total
Total
Total
Total

Other
Other
Other
male
Other
Other
male
male
male
male 55
55
55
55
55
37
37
37
37
37
6
6
6
6
6
Male
Male
Male
Male
Male

Other
Other
Other
femaleOther
Other
femalefemalefemalefemale 23
23
23
23
23
18
18
18
18
18
5
5
5
5
5
FemaleFemaleFemaleFemaleFemaleNumber of employee turnover
77
58
19
Number of employee turnover
77
58
19
Number of employee turnover
77
58
19
Numberemployeeturnover77
58
19
Numberofemployeewho
turnover77 in non-managerial
58 positions and 45 years
19or
Numberof ofemployees
received monetary assistance for job change (50 years or older
Number of employees who received monetary assistance for job change (50 years or older in non-managerial positions and 45 years or
Numberofemployees who received monetary assistance for job change (50 years or older in non-managerial positions and 45 years or
older
for ofmanagers):
Numberemployees17who
who received
received monetary
monetary assistanceassistance forfor job
job changechange (50(50 years
years oror olderolder inin non-managerial
non-managerial positions
positions andand 4545 years
years oror
Numberemployees
older
for ofmanagers):
17
older for managers): 17
older forfor managers):
managers): 17
17
older(10) Retention of new employees(10) Retention of new employees(10) Retention of new employees(10) Retention
Retention ofof new
new employees
employees(10)
MaleFemaleMale
FemaleMale
FemaleMale
FemaleMale
FemaleNew employees (April 2013)
356
60
New employees (April 2013)356
61
New employees (April 2013)
356
60
New employees
employees (April 2013)
2013)
356
60
New
356
61
Enrollment (April(April
2015)
347
58
Enrollment (April 2015)
347
59
Enrollment (April 2015)
347
58
Enrollment(April2015)
347
58
Enrollment
2015)
347
59
Turnoverrate:(April
2.6%;
9 males, 2 females
Turnover rate: 2.6%; 9 males, 2 females
Turnover rate: 2.6%; 9 males, 2 females
Turnover rate:
rate: 2.6%;
2.6%; 99 males,males, 2
2 females
females
Turnover(11) Diversity of management(11) Diversity of management(11) Diversity of management(11) Diversity
Diversity ofof management
management(11)
FemaleMale% of females
Non-Japanese
FemaleMale% of females
Non-Japanese
FemaleMale% of females
Non-Japanese
FemaleMale% ofof females
females
Non-Japanese
FemaleMale%
Non-JapaneseManagement position
78
1,595
4.6%
8
Management position
78
1,595
4.6%
8
Management position
78
1,595
4.6%
8
Management position
position
78
1,595
4.6%
8
Management
78
1,595
4.6%
8
General managers
6
344
1.7%
0
General managers
6
344
1.7%
0
General managers
6
344
1.7%
0
General managers
managers
6
344
1.7%
0
General
6
344
1.7%
0
Directors and officers
2
55
3.6%
5
Directors and officers
2
55
3.6%
5
Directors and officers
2
55
3.6%
5
Directors andand officers
officers
2
55
3.6%
5
Directors
2
55
3.6%
5
Executive officers
2
46
4.2%
5
Executive officers
2
46
4.2%
5
Executive officers
2
46
4.2%
5
Executive
officers
2
46
4.2%
5
Executive
2
46
4.2%
5
Managers,officers
directors and officers
80
1,650
4.6%
13
Managers, directors and officers
80
1,650
4.6%
13
Managers, directors and officers
80
1,650
4.6%
13
Managers, directors
directors andand officers
officers
80
1,650
4.6%
13
Managers,
80
1,650
4.6%
13

44

KOMATSU CSR REPORT 2016

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Diversity Initiatives

KOMATSU CSR REPORT 2016

Home > CSR > Developing People > Diversity Initiatives

CSR Theme 2

Developing People

Diversity Initiatives
Komatsu recognizes diversity as a significant corporate advantage, Komatsu respects the basic human rights of every employee andstrives to offer career development opportunities that enable each individual to fully demonstrate their abilities with a sense of fulfillment
and pride.

Appr

Our A

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-ProviSociet

Deve

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Interview

Socia
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Kuniko Urano
Senior Executive Officer,

Risk

General Manager, Human Resources Department

CSRÑ Please tell us the background to Komatsu!s initiatives regarding diversity.
Urano:For example, in the B to C model of business Òproducts that make the most of the viewpoint of womenÓ could be part ofdiversity. But products like construction equipment are used in specific types of work sites, and in general many of thecustomers and operators are men. This makes it more difficult to bring out the concept of gender diversity in such a way.
However, for Komatsu that recognizes Òpeople are an irreplaceable assetsÓ, diversity is an issue that needs to becontinually addressedÑunrelated to business performanceÑand this was made clear in last year!s CSR report. The thingthat I most want is for Komatsu!s employees to think, ÒI am glad to be working for KomatsuÓ, not just from a financial
standpoint but also from the aspect of general well-being. In order to achieve this, we have worked on various measures tosupport the work-life balance of employees and for fair employment. We want to be a company that can respond in a
flexible way by not getting caught up in stereotypes but by taking into consideration social change and individual
circumstances.
However, a company cannot survive by merely being a ÒGood CompanyÓ. In order to be a ÒStrong CompanyÓ, in otherwords, a company that is able to maintain competitiveness and continued development, we want to make diversity ourstrength.

Koma
Code

45

KOMATSU CSR REPORT 2016

Ñ What does it actually look like to make diversity a strength?

To vi
need to d

Adobe AcÑ Please
Please tell
tell usus thethe backgroundbackground to Komatsu!s initiatives regarding diversity.
ÑUrano:
Urano:

To
To vi
vi

For example,
example, inin the
the B
B to
to C
C modelmodel ofof businessbusiness Òproducts that make the most of the viewpoint of womenÓ could be part ofFor
need
need toto ddDiversity diversity.
Initiatives
diversity. But
But products
products like
like construction
construction equipment
equipment are used in specific types of work sites, and in generalKOMATSU
many ofCSR
theREPORT 2016
customers andand operators
operators areare men.
men. This
This makes
makes it more difficult to bring out the concept of gender diversity in such a way.
customers

However,
However, for
for Komatsu
Komatsu thatthat recognizes
recognizes ÒpeopleÒpeople areare anan irreplaceable
irreplaceable assetsÓ,assetsÓ, diversity
diversity is
is an
an issue
issue thatthat needs
needs toto bebecontinually
addressedÑunrelatedtobusiness
performanceÑand
this
was
made
clear
in
last
year!sCSR
report.
continually addressedÑunrelated to business performanceÑand this was made clear in last year!s CSR report. The
The thingthing

CSR Theme 2thatthat II most
most want
want isis forfor Komatsu!sKomatsu!s employees
employees to think, ÒI am glad to be working for KomatsuÓ, not just from a financial
standpoint
standpoint but
but also
also fromfrom thethe aspectaspect ofof generalgeneral well-being. In order to achieve this, we have worked on various measures toDeveloping People

supportsupport thethe work-lifework-life balancebalance ofof employees
employees and for fair employment. We want to be a company that can respond in a
flexible
flexible way
way byby notnot getting
getting caught
caught up
up inin stereotypes
stereotypes but by taking into consideration social change and individual
circumstances.
circumstances.

However,
However, aa company
company cannot
cannot survive
survive byby merely
merely being a ÒGood CompanyÓ. In order to be a ÒStrong CompanyÓ, in otherwords,
words, aa company
company thatthat isis ableable toto maintain
maintain competitiveness and continued development, we want to make diversity ourstrength.
strength.

ÑÑ WhatWhat does
does itit actuallyactually look
look like
like to make diversity a strength?
Urano:
Urano:

Current
Current technology
technology andand values
values areare changing
changing at an amazing speed. This means you cannot respond to change by doing

businessbusiness with
with only
only certain
certain people
people within
within thethe company or a special category of people as in the past. In order to pick up on
thethe needs
needs thatthat thethe customers
customers themselves
themselves haven!thaven!t yet realized and connect it to the next business idea, it is necessary to

thinkthink differently
differently than
than before.
before. This
This isis where
where diversity becomes necessary. This is the same reason Komatsu is proactively
workingworking on
on openopen innovation,
innovation, andand here
here also
also it becomes necessary to work with people who have unique ideas andcharacteristics
conflictÓ and there certainly are conflicts that rise from having
characteristics. There
There areare somesome who
who saysay ÒDiversityÒDiversity
characteristics.
Diversity is conflict
differences inin values.
values. However,
However, thatthat isis where
where active debates occur, which in turn produces the ÒDantotsu (unique anddifferences
unrivaled)Ópower.
unrivaled)Ópower.

Ñ In
In viewview ofof incorporating
incorporating various
various values, from this year the 5 national heads of the overseas subsidiaries
Ñ(non-Japanese executives)
executives) became
became Komatsu!s executive officers and 17 national heads (of which 5 serve(non-Japanese
concurrently as
as executive
executive officers)
officers) became global officers.
concurrently

Urano:
Urano:

Komatsu!s globalization
globalization has
has moved
moved fromfrom thethe localization of sales and manufacturing to the localization of management
Komatsu!ssince thethe 90s.
90s. WeWe havehave promoted
promoted many
many ofof our full-fledged locally hired employees who understand the values of thesince
KOMATSU Way
Way toto toptop management
management positions,
positions, and currently all of our major overseas subsidiaries except Russia, Brazil
KOMATSUand India
India have
have local
local nationals
nationals as
as toptop executives.
executives. It can be said that the localization of management has progressed.
andIn orderorder forfor Komatsu
Komatsu toto go
go oneone step
step further
further as a global business, I think it is necessary to emphasize diversity inInmanagement andand execution
execution ofof operations.
operations. This time, we will have executive officers and global officers from overseas tomanagement
think about
about notnot only
only thethe operations
operations inin theirtheir own countries but of Komatsu Group as a whole. In this way we hope to bring
think
global values
values into
into decision-making
decision-making forfor businessbusiness strategies and human resources strategy, and promote diversity in the
globalmanagement levels
levels byby emphasizing
emphasizing thethe training
training of locally-hired employees who have the potential to lead the nextmanagement
generation forfor upper
upper levels
levels ofof management.
management.
generation

Ñ NextNext tell
tell usus about
about women
women empowerment
empowerment that was legislated in Japan in April of this year.
ÑUrano:
Urano:We havehave worked
worked towards
towards thethe goal
goal ofof having
having 5% of management be women (Komatsu Ltd.) by April 2016. The actual resultWe
was 4.6%
4.6% andand did
did not
not reachreach thethe goal,
goal, but
but setting
setting a number and aiming high is what makes it possible to work on even thewasmost detailed
detailed policies.
policies. Going
Going forward,
forward, targets
targets will be set for employee ratio, hiring ratio, and management ratio to aim for an
mostincrease inin thethe ratio
ratio ofof women.
women.
increase

For example,
example, inin looking
looking at
at thethe new
new graduate
graduate hires for engineers, until now it was mainly from mechanical fields where maleFor
students dominate
dominate inin numbers.
numbers. However,
However, with
with products and services becoming increasingly ICT based in Komatsu,
students

personnel fromfrom thethe sciencescience andand information
information technology fields will also become important. There are plenty of female
personnel
students in these fields, so we can hope for an increased ratio in female hires.
students in these fields, so we can hope for an increased ratio in female hires.

We are also devising ways to make it easier for women to work at the manufacturing sites. Making the tough jobs easierÑ
We are also devising ways to make it easier for women to work at the manufacturing sites. Making the tough jobs easierÑ
such as introducing equipment to handle heavy itemsÑmakes for a work environment that is better, not only for women but
such as introducing equipment to handle heavy itemsÑmakes for a work environment that is better, not only for women but

for all employees as well.

Ñ In order to increase the number of women in management, isn!t it necessary to have more initiatives thanthere have been so far?

Urano:

46

KOMATSU CSR REPORT 2016

As mentioned before, once the ratio of women increases after addressing the issues in each job category, it will be

Adobe
Adobe AcAc

was 4.6% and did not reach the goal, but setting a number and aiming high is what makes it possible to work on even themost detailed policies. Going forward, targets will be set for employee ratio, hiring ratio, and management ratio to aim for anin the ratio of women.
Diversity increase
Initiatives

KOMATSU CSR REPORT 2016

For example, in looking at the new graduate hires for engineers, until now it was mainly from mechanical fields where malestudents dominate in numbers. However, with products and services becoming increasingly ICT based in Komatsu,
personnel from the science and information technology fields will also become important. There are plenty of female

CSR Theme 2

students in these fields, so we can hope for an increased ratio in female hires.

Developing People

We are also devising ways to make it easier for women to work at the manufacturing sites. Making the tough jobs easierÑ
such as introducing equipment to handle heavy itemsÑmakes for a work environment that is better, not only for women but
for all employees as well.

Ñ In order to increase the number of women in management, isn!t it necessary to have more initiatives thanthere have been so far?

Urano:As mentioned before, once the ratio of women increases after addressing the issues in each job category, it will benecessary to make it possible for women to continue in their career even through life events such as marriage and childbearing.
In order to do that, particularly in the present transitional period, we are holding training sessions for women who are one or
two steps away from management level positions, to help them think about their career plan. Being given work with some
responsibility often leads people to experience a lot of personal growth and find joy in their work. We are hoping that if
women employees have such experiences before going through life events, it will motivate them to continue pursuing theircareers.

Aside from this, Komatsu has continued with other initiatives for diversity, such as actively promoting the ÒBusiness
Creation CenterÓ (BCC) where persons with disabilities are employed as permanent staff to work at manufacturing sites andin the offices, as well as promoting the re-hiring of retired people to have them make good use of their cumulative
experience.
In society there are people who have various characteristics and conditions that cannot be lumped together. We areconscious that creating a work environment where the LGBT population can work comfortably is also an issue that must not
be forgotten. We will continue to work on diversity as a way of being both a Ògood companyÓ and a Òstrong companyÓ.

Promoting Women!s Careers
Approach and Goals
Komatsu is actively promoting various measures such as proactive employment and development of women as well as creating anenvironment where women can maintain a career after child bearing. With the 3 year mid-range management plan ÒTogether We
Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and BeyondÓ which started in April this year, we have set
and begun working towards the goal of having a ratio of women in management of 7% by April 2018 and 10% by April 2021.

Systems and Status in FY2015
From FY2015, as measures for the development of women employees, the CDP (Career Development Program) was fully
implemented. This provides career plan training which includes thinking about future careers and ways of working, as well as discussing
mid-term career goals with their supervisors. We are also working on creating an environment that makes it easier for women to work,
such as introducing and establishing the system for working from home in FY2014 as a flexible way to work, and providing a childcare
service at the KOMATSU Way Global Institute located in Komatsu City, Ishikawa Prefecture, so that employees who have children canparticipate.
Also, in order to have female students searching for jobs to get well acquainted with Komatsu, we are being proactive in hiring activities
for women such as discussion meetings for each job category, holding career and networking events in cooperation with outside groups
and schools for women engineers.
In terms of external recognition, Komatsu was selected again this year for the second time in a row as a Nadeshiko Brand company by
the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange as a listed company that excels in promoting careerdevelopment for women. The commendation noted the number of women in managerial positions at Komatsu, including executive
officers, and the company's work-life balance initiative for actively promoting employee childcare and nursing care leaves regardless ofgender.

47

KOMATSU CSR REPORT 2016

Diversity Initiatives

KOMATSU CSR REPORT 2016

implemented. This provides career plan training which includes thinking about future careers and ways of working, as well as discussing
mid-term career goals with their supervisors. We are also working on creating an environment that makes it easier for women to work,
suchCSR
as introducing
Theme 2 and establishing the system for working from home in FY2014 as a flexible way to work, and providing a childcare

Developing People

service at the KOMATSU Way Global Institute located in Komatsu City, Ishikawa Prefecture, so that employees who have children canparticipate.

Also, in order to have female students searching for jobs to get well acquainted with Komatsu, we are being proactive in hiring activities
for women such as discussion meetings for each job category, holding career and networking events in cooperation with outside groups
and schools for women engineers.
In terms of external recognition, Komatsu was selected again this year for the second time in a row as a Nadeshiko Brand company by
the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange as a listed company that excels in promoting careerdevelopment for women. The commendation noted the number of women in managerial positions at Komatsu, including executive
officers, and the company's work-life balance initiative for actively promoting employee childcare and nursing care leaves regardless ofgender.

Nadeshiko Brand logo

DATA
FY2014FY2015FY2016

1,050(10.3%)
1,101(10.5%)

1,091(10.5%)
1,203(11.1%)

1,239(11.5%)

Number (ratio) of women in management positions

55(3.5%)57(3.5%)64(4.0%)66(4.0%)80(4.6%)

Number (ratio) of women in executive positions2(4.7%)

2(4.7%)

2(4.2%)

32(15.0%)35(15.7%)

20(10.9%)21(10.8%)29(18.3%)
28(17.4%)

Number (ratio) of women employed

Number (ratio) of women hired* All based on Komatsu (non-consolidated). The number employed and the ratio is of new college graduates, data as of April 1.

Promoting Globalized Management
Approach and Goals
Komatsu has placed top priority on localized management and is developing locally-hired employees into business leaders who will beable to hold top management positions at overseas subsidiaries. Local nationals take leadership positions at our major subsidiaries. For
situations where Japanese managers still hold the top local post, our goal is to develop local candidates to whom the baton of executive
leadership can be gradually passed. To this end, the primary role of staff with extensive experience at Komatsu (commonly Japanese)WayÑKomatsu's approach to management, technology and skills—inskillsÑin overseas locations andprovide in communicating the KOMATSU Way—Komatsu's
serve as a bridge between Komatsu in Japan and subsidiaries overseas.

Systems and Status in FY2015
Human Resource Development
Since FY2006, Global Management Seminars have been conducted annually for local nationals in executive positions at overseas
subsidiaries to present and discuss information including Komatsu's management policies, the KOMATSU Way and businessstrategies. In FY2015, the seminar was held in July with the participation of 11 executives representing subsidiaries in 9 countries:
United States, Chile, Brazil, Italy, Sweden, Russia, China, Indonesia, and Australia. The overall objective has been to deepen
understanding of the KOMATSU Way based on Komatsu's corporate history, and of the company's approach to production, marketingÒtheir own words”.
wordsÓ.
and development, so that participants will be able to clearly convey the information in “their
We also provide Global Management Training for selected employees to develop executive candidates capable of holding global

CSR REPORT2016 subsidiaries with potential are selected every
48
leadership roles. About 10 general managers in Japan
andKOMATSU
top managers
at overseas
year for enrollment in short-term courses at international business schools. In FY2015, 10 individuals attended training at businessPromoting Globalized Management

Diversity Initiatives

KOMATSU CSR REPORT 2016

Approach and Goals
Komatsu has placed top priority on localized management and is developing locally-hired employees into business leaders who will beable CSR
to hold
top management
positions at overseas subsidiaries. Local nationals take leadership positions at our major subsidiaries. For
Theme
2Developing People

situations where Japanese managers still hold the top local post, our goal is to develop local candidates to whom the baton of executive
leadership can be gradually passed. To this end, the primary role of staff with extensive experience at Komatsu (commonly Japanese)
provide in communicating the KOMATSU WayÑKomatsu's approach to management, technology and skillsÑin overseas locations andserve as a bridge between Komatsu in Japan and subsidiaries overseas.

Systems and Status in FY2015
Human Resource Development
Since FY2006, Global Management Seminars have been conducted annually for local nationals in executive positions at overseas
subsidiaries to present and discuss information including Komatsu's management policies, the KOMATSU Way and businessstrategies. In FY2015, the seminar was held in July with the participation of 11 executives representing subsidiaries in 9 countries:
United States, Chile, Brazil, Italy, Sweden, Russia, China, Indonesia, and Australia. The overall objective has been to deepen
understanding of the KOMATSU Way based on Komatsu's corporate history, and of the company's approach to production, marketingand development, so that participants will be able to clearly convey the information in Òtheir own wordsÓ.
We also provide Global Management Training for selected employees to develop executive candidates capable of holding global
leadership roles. About 10 general managers in Japan and top managers at overseas subsidiaries with potential are selected every
year for enrollment in short-term courses at international business schools. In FY2015, 10 individuals attended training at businessschools in the United States, England, France and Switzerland.
Management System
In order to effectively promote global management, Komatsu runs various global meetings, including the Komatsu Global Executive
Meeting convened for the top management of all Komatsu Group companies in Japan and overseas, management committees for eachregion and business area, and other meetings for specific purposes, such as the Quality Meeting; Occupational Safety, Health &Environmental Affairs Meeting; and Legal Meeting.
Also, for even further development, from FY2016, a Global Officer SystemÑcomposed of executives of the main overseas subsidiariesÑwill be established. In addition to appointing top management personnel from the main overseas subsidiaries as executive officers, 14of them will be appointed as executive officers who are to participate in Komatsu!s important meeting body.

DATA
Overall

Non-Japanese

Number of Executive Officers

53

5

Number of Global Officers

26

17* As of April 1, 2016

Employing Persons with Disabilities
Approach and Goals
Komatsu actively seeks to employ persons with disabilities across the Group. Our goal is to achieve an employment ratio of 2.3% on aconsolidated basis (the current statutory employment ratio is 2.0%) for the Group in Japan by April 2018.
In April 2008, Komatsu established the Business Creation Center (BCC) within the Human Resources Department in Japan as a
dedicated organizational entity for promoting the hiring of persons with disabilities. Persons with mental or developmental disabilities
are employed by the BCC in nine business units in japan. Advisors are assigned to each business unit to provide training and advice on
daily tasks. Each BCC staff member meets with an advisor every six months to discuss goals, instead of simply handling a delimited setof tasks. Linking salary to individual performance assessments, we encourage employees with disabilities to work on their goals towardachieving independence and self-reliance.
Through these efforts Komatsu is not merely focused on achieving a targeted employment ratio; it is seeking to create a workplace thatprovides a sense of fulfillment for all individuals, and where employees with disabilities work alongside other staff members.

49
Status in FY2016

KOMATSU CSR REPORT 2016

Employing Persons with Disabilities

Diversity
ApproachInitiatives
and Goals

KOMATSU CSR REPORT 2016

Komatsu actively seeks to employ persons with disabilities across the Group. Our goal is to achieve an employment ratio of 2.3% on aconsolidated basis (the current statutory employment ratio is 2.0%) for the Group in Japan by April 2018.
In April
2008,
Komatsuestablished the Business Creation Center (BCC) within the Human Resources Department in Japan as a
CSR
Theme
2

Developing People

dedicated organizational entity for promoting the hiring of persons with disabilities. Persons with mental or developmental disabilities
are employed by the BCC in nine business units in japan. Advisors are assigned to each business unit to provide training and advice on
daily tasks. Each BCC staff member meets with an advisor every six months to discuss goals, instead of simply handling a delimited setof tasks. Linking salary to individual performance assessments, we encourage employees with disabilities to work on their goals towardachieving independence and self-reliance.
Through these efforts Komatsu is not merely focused on achieving a targeted employment ratio; it is seeking to create a workplace thatprovides a sense of fulfillment for all individuals, and where employees with disabilities work alongside other staff members.

Status in FY2016
As of April 2016, the employment ratio of persons with disabilities is 2.63% (Komatsu Ltd.). As for BCC, there are 98 people working at
9 business units. With the expansion of its organization, BCC has taken on matters that had previously been outsourced, as well as
tasks that had been taking up time and effort internally, and thereby contributed to the efficiency and cost cutting for the company as awhole.

DATA
FY2014
Employment ratio of persons with disabilities

FY2015FY2016

2.50%

2.58%

2.63%

Number of BCC locations

9

9

9

Number of BCC staff members

88

94

98

* Data is for Komatsu Ltd. As of April 1st.

Promoting Hiring of Retired Employees
Approach and Goals
As the aging of Japanese society accelerates, Komatsu is committed to maintaining its efforts to hire more elderly workers.
Komatsu(non-consolidate) introduced a re-employment program in 2006 and revised this system from April 2013 so that as a generalrule all those who desire to do so can work until the age of 65. We also established a Second Career Support Program for employees
who are up to 65 years old and were able to find new careers, and we provide training opportunities, paid leaves and monetary aid.

DATA
FY2013

FY2014FY2015

Number of retired employees

143

178

207

Number of retired employees who were rehired by Group companies

118

157

159
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50

KOMATSU CSR REPORT 2016

Enhancing Work-Life Balance

KOMATSU CSR REPORT 2016

Home > CSR > Developing People > Enhancing Work-Life Balance

CSR Theme 2

Developing People
Enhancing Work-Life BalanceApproach and Goals
Reducing the total number of actual working hours and implementing related systems are the key aspects for achieving a healthy worklife balance for employees. Komatsu Ltd. has worked in coordination with labor unions on this issue to formulate numerical targets,
which are now set at 2,100 or less working hours per year, and at least 17 days of paid vacation taken per year.

Systems and Status in FY2015

Appr

In an effort to achieve appropriate working hours, every workplace in the Komatsu Group formulates a concrete action plan for reducing
overtime and encouraging employees to take more of their paid annual leave, which in turn allows them to seriously consider andaddress working hour management on a daily basis. Childcare leave and shorter working hours are contributing factors in the creationof an environment that facilitates productive careers. In 2007, Komatsu was certified by the Japan Ministry of Health, Labour andWelfare to display the Kurumin Mark as a company that is supporting the development of the next generation. We subsequently

Our A

Enha

-ProviSocietlaunched the ÒPanel on Fostering Future GenerationsÒ to further advance discussions on working conditions. As a result of ourDevecontinuing efforts to expand our childcare support system, we were again granted use of the mark in 2010.

Grow

We have continued these efforts through initiatives such as increasing periods of childcare leave (to a maximum of three years) in 2011,
granting childcare leave for employees when a spouse is transferred, and increasing the subsidy for childcare support service expenses
through the ÒCafeteria PlanÒ in 2013.
Aside from our efforts to reduce working hours, we are also supporting the achievement of work-life balance for our employees through

Socia
Activ

the ÒLife Support Leave SystemÒ introduced in FY2014. Life Support Leave is separate from regular annual leave, in which employeesGe

can take paid time off for personal circumstances such as non-work related illness, pregnancy, childcare and family-care. An employee

Corp

is allotted five days of this type of annual leave per year and may accumulate up to 40 days of annual leave.
Also, in FY2013 we focused on family-care, and have introduced an allowance that can be received during family-care leave to provideCompfinancial support. We have also launched an internal website that publishes information on family-care. Komatsu will continue to work

Koma
Code

on helping our employees achieve a healthy work-life balance.

Risk

DATA

CSR

Information on this page is non-consolidated data except for that for some programs, which are intended not only for Komatsu Ltd. but
also for subsidiaries in Japan.

To vi
need to dMain Programs and Measures Designed to Enhance Work-Life Balance
Program/Measure

Adobe Ac

Description

Childcare leave program

Available for a maximum of three years from the birth of the child to the time thechild enters nursery school. Also available for a maximum of three years forchildren up to the third year of elementary school in cases where a spouse istransferred, etc.

Part-time work

Shortening of working hours by a maximum of three hours per day to allow forcare of children up to the third grade of elementary schoolChildcare support

Telework program

Option to work at home in order to care for children up to the third grade ofelementary school

Allowance toward the51

KOMATSU CSR REPORT 2016

Allowance toward the cost of childcare for infants up to age two before entering

the ÒLife Support Leave SystemÒ introduced in FY2014. Life Support Leave is separate from regular annual leave, in which employeesGe

can take paid time off for personal circumstances such as non-work related illness, pregnancy, childcare and family-care. An employee

Corp

is allotted fiveWork-Lifedays of thisBalance
type of annual leave per year and may accumulate up to 40 days of annual leave.
Enhancing

KOMATSU CSR REPORT 2016

Also, in FY2013 we focused on family-care, and have introduced an allowance that can be received during family-care leave to provideCompfinancial support. We have also launched an internal website that publishes information on family-care. Komatsu will continue to work

Koma
Code

on helping our employees achieve a healthy work-life balance.

CSR Theme 2

Risk

Developing People

DATA

CSR

Information on this page is non-consolidated data except for that for some programs, which are intended not only for Komatsu Ltd. but
also for subsidiaries in Japan.

To vi
need to dMain Programs and Measures Designed to Enhance Work-Life Balance
Program/Measure

Adobe Ac

Description

Childcare leave program

Available for a maximum of three years from the birth of the child to the time thechild enters nursery school. Also available for a maximum of three years forchildren up to the third year of elementary school in cases where a spouse istransferred, etc.

Part-time work

Shortening of working hours by a maximum of three hours per day to allow forcare of children up to the third grade of elementary schoolChildcare support

Telework program

Option to work at home in order to care for children up to the third grade ofelementary school

Allowance toward theAllowance toward the cost of childcare for infants up to age two before entering

cost of using childcare

nursery school (10,000 yen/month)services
Nursing leave

Five days for nursing care of one child up to the third grade of elementary
school, and ten days for the second child onward (paid leave)
Allowance toward the cost of using childcare services

Care support

Family-care leave

A maximum of three years available to employees taking care of family

programmembers

Part-time work

Shortening of working hours by a maximum of three hours per day

Telework program

Option to work at home for a maximum of three years in order to provide carefor family members

Care leave

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

Life support leave

Can be used as sick leave, pregnancy leave, childcare leave or for care offamily members. An employee may add five new days of accumulated leave
per year. A maximum of 40 days of unused annual leave may be accumulated.
Childcare leave may be used for school events for children aged up to sixth
grade in elementary school

Other types of

Flexible leave

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

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

programyear

Flexible Working Style

52

KOMATSU CSR REPORT 2016

grade in elementary school
Flexible leave
Other types ofEnhancing
Work-Life Balance

Provided to encourage employees to take five consecutive daysof leave
KOMATSU
CSRforREPORT 2016leave

mental and physical rejuvenation

Employees receive an additional five days of annual leave and a travel voucher

CSR Theme 2

Developing People

upon completion of their 15th, 25th and 35th year of continued service

Volunteer incentive

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

programyear

Flexible Working Style• Flexible working hours (core time; 10:00 amÐ3:45 pm)• Part-time work (child and other family-care)• Half-day paid vacation• Maximum of five consecutive days of paid vacation• System and facility for supporting childcare (nursery payment and use of in-house nursery)• Work-sharing (based on negotiation between labor and management as necessary)• Discretionary work system (employees in development, design and R&D section)• Telework program (officially introduced in FY2014)

Various Incentive Programs• Subsidizing the expense of taking a certification course• Job posting system• Studying in domestic college or study abroad program• Employee awards program for distinguished achievement• In-house language school and subsidizing the expense• Stock option (directors, officers and some executives)

Work-Life Balance Data
Parental leave
FY2013

FY2014FY2015Pregnancy leaves

41

47

46

Childcare leaves

85

80

89

Male

7

4

9

Within one week leave

0

0

1

Return and retention rates

98.8%

100%

96.7%

Family-care leave
FY2013
Family-care leaves

FY20144

Remuneration

53

KOMATSU CSR REPORT 2016

FY20154

6

FY2013

Enhancing
Work-Life Balance
Salary for 30-year-old employees

FY2014FY2015

JPY320,430

JPY323,890

KOMATSU CSR REPORT 2016
JPY326,460

Highest

JPY334,000

JPY332,100

JPY339,900

Lowes
CSR
Theme 2

JPY311,400

JPY288,850

JPY317,900

Overtime payment

JPY55,831

JPY62,509

JPY49,674

Developing People*College graduates and others hired during annual recruitment period. Overtime pay calculated based on model pay scale for 30-year
olds.
Paid vacation
FY2013

FY2014FY2015

Days granted

20.0

20.0

20.0

Days taken

17.8

18.3

18.4

89.0%

91.5%
91.4%

92%

Ratio
Volunteer incentive program

FY2013
Number of program users

FY2014FY2015

100

79

92

Long-term leaves

1

1

1

Dispatch of Japan Overseas Cooperation Volunteers

Ñ
—

Ñ
—

Ñ
—
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54

KOMATSU CSR REPORT 2016

The KOMATSU Way

KOMATSU CSR REPORT 2016

Home > CSR > Developing People > The KOMATSU Way

CSR Theme 2

Developing People
The KOMATSU Way
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. By holding these values in common, employees of the Group can build global
teamwork that transcends nationalities and generations to amass and fortify the Group's workplace (gemba) capabilitiesÑthe
dynamism of all workers and the entire organizationÑplus the ability to improve their own workplaces. This in turn enhances quality andreliability, heightening the trust given to the Group by society and all stakeholders.

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System and Status in FY2015
The KOMATSU Way is based on the corporate strengths that Komatsu has cultivated over time. To disseminate the KOMATSU Way toGroup companies across the world, focusing around the KOMATSU Way Global Institute, Komatsu is conducting various disseminationand human resource development activities.

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Enha

-ProviSocietWe deepen the employees' understanding and comprehension of the KOMATSU Way by applying it to their training and setting up
opportunities for exposition and group debate. Regular sessions are convened at workplaces to explain this way of thinking and have
employees relate stories of their own experiences so that communication between different generations is stimulated, which allows forthis knowledge to be handed down and rooted in the younger generation. To promote the KOMATSU Way at Group companies outside
Japan and help this foundation take root, Komatsu has made the KOMATSU Way easy to understand and relevant to local conditions,

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while being mindful of the differences among customs and cultures.
In 2011, Komatsu distributed a revised edition of the KOMATSU Way that was officially acknowledged in 2006, to all Group employees.
The revisions included making the established values and way of thinking easier to understand, increasing the number of case studies
discussed, and adding Komatsu's approach to brand management.

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In FY2015, we started QC (Quality Control) training at our overseas subsidiaries. As the understanding and practice of QC progresses
at each overseas subsidiary, we expect that efficiency and quality improvement will progress at the same time, and also lead to a better
understanding and spreading of KOMATSU Way which is much influenced by QC.
Also, in order to increase the workplace (gemba) capabilities of all employees worldwide, in addition to the long-standing TQM (Total
Quality Management: comprehensive quality control), we are conducting training to upgrade specific technical skills, expertise andmanagement skills in all areas. In addition, to exercise newly acquired knowledge and skills, we hold debriefing sessions for
improvement activities at each level and promote practicing guidance. We are enhancing the skills of individuals, and improving

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organizational ability and cohesiveness with global teamwork by continually developing human resources in order to have a businessTo vi
need to dframework that can respond quickly to changes in environment.

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DATA
Educational Training that pertains to KOMATSU WayName of Training

Course participants

Aim

Education for top

Overseas subsidiaries!

To train up managers

management

management levelat overseas

personnel of

personnel orsubsidiaries whooverseas

candidates

understand the

Coursesubsidiaries(Global Management
Seminar)Training dates (2015)
July

KOMATSU Way and55

cantalk about
in their 2016
KOMATSU
CSRit REPORT
own words

Number ofparticipants/cases
11 people

The revisions included making the established values and way of thinking easier to understand, increasing the number of case studies
discussed, and adding Komatsu's approach to brand management.

Corp

In FY2015, we started QC (Quality Control) training at our overseas subsidiaries. As the understanding and practiceKOMATSU
of QC progresses
CSR REPORT 2016 CompThe
KOMATSU Way
at each overseas subsidiary, we expect that efficiency and quality improvement will progress at the same time, and also lead to a better
understanding and spreading of KOMATSU Way which is much influenced by QC.
Also, in order to increase the workplace (gemba) capabilities of all employees worldwide, in addition to the long-standing TQM (Total

CSR
Theme 2 comprehensive quality control), we are conducting training to upgrade specific technical skills, expertise andQuality
Management:

Developing People

management skills in all areas. In addition, to exercise newly acquired knowledge and skills, we hold debriefing sessions for
improvement activities at each level and promote practicing guidance. We are enhancing the skills of individuals, and improving

Koma
Code
Risk
CSR

organizational ability and cohesiveness with global teamwork by continually developing human resources in order to have a businessTo vi
need to dframework that can respond quickly to changes in environment.

Adobe Ac

DATA
Educational Training that pertains to KOMATSU WayName of Training

Course participants

Aim

Education for top

Overseas subsidiaries!

To train up managers

management

management levelat overseas

personnel of

personnel orsubsidiaries whooverseas

candidates

understand the

Coursesubsidiaries

KOMATSU Way and(Global Management

can talk about it in their

Seminar)own words

Training dates (2015)

Number ofparticipants/casesJuly

11 people

Education for mid-Mid-level managers of

To train up local

June (United States)

June: 23 people

level managers ofoverseas subsidiaries

leaders who will

October (Chile)

October: 29 people

overseas

expected to beunderstand andNovember (Indonesia)

November: 19 people

subsidiaries

responsible for thepractice KOMATSU(KOMATSU Way

core

Way

Leadershipbusiness/functions

Development
Program)

KOMATSU Way

Mid-level managers of

To train up

June (United States)

June: 14 people

Expert Development

overseas subsidiaries"evangelists!

October (Chile)

October: 12 people

Programwith aptitude

responsible for

November (Indonesia)

November: 12 people

spreading the
KOMATSU Way inoverseas subsidiaries
QC Training

Mid-level managers of

To promote

September (Chile)

September: 21 people

overseas subsidiaries

understanding of QC

November (Indonesia)

November: 23 people

with aptitude

at overseas

Year round3,314 people

November

87 cases

subsidiaries
Training by Job

New employees,

To promote theLevelassistant managers,

understanding andnewly appointed

practice of KOMATSU

executives, etc.

Way

All Komatsu QC

Representatives of

To present

Convention

domestic and oversea

improvement activities

Komatsu Groupas OJT and strengthen

companies

awareness of
KOMATSU Way
practices56

KOMATSU CSR REPORT 2016

The KOMATSU WayÑHistory of Dissemination Activities

KOMATSU Way in

The KOMATSU Way
QC Training

CSR Theme 2overseas subsidiaries
Mid-level managers of

To promote

September (Chile)

KOMATSU CSR REPORT 2016
September: 21 people

overseas subsidiaries

understanding of QC

November (Indonesia)

November: 23 people

with aptitude

at overseas

Year round3,314 people

November

87 cases

Developing People

subsidiaries

Training by Job

New employees,

To promote theLevelassistant managers,

understanding andnewly appointed

practice of KOMATSU

executives, etc.

Way

All Komatsu QC

Representatives of

To present

Convention

domestic and oversea

improvement activities

Komatsu Groupas OJT and strengthen

companies

awareness of
KOMATSU Way
practices

The KOMATSU WayÑHistory of Dissemination Activities

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KOMATSU CSR REPORT 2016

Employee Training Structure

KOMATSU CSR REPORT 2016

Home > CSR > Developing People > Employee Training Structure

CSR Theme 2

Developing People
Employee Training Structure
Approach and Goals
Komatsu strives for the sustainable growth of both the company and employees through human resource development. Our policy isthat each employee should set high goals and be self-reliant and self-motivated in acquiring knowledge and skills and that the company
should support employee career development through the implementation of necessary education for both the company and employees
in a focused manner.
While fulfilling the education of professionals in a variety of fields, the company also supports the acquisition of knowledge and skills at
every level at the company. Regular explanatory sessions and discussions are convened at Group companies to disseminate the
KOMATSU Way and incorporate it into human resource development around the world at each level of the company hierarchy, as wellas to allow this knowledge to be handed down to younger generations.

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System and Status in FY2015

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Please refer to the following pages for the contents of each program that was held in 2015

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Educational training pertaining to the KOMATSU Way p.56
Technical Capability of manufacturing workplace p.59

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Services Personnel HR development p.61

DATA
Employee Training
FY2013

FY2014FY2015

Average hours per FTE

96

98

96

Average spent per FTE

JPY215,000

JPY229,000

JPY244,000*Non-consolidated data for Komatsu Ltd.

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KOMATSU CSR REPORT 2016

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Strengthening Our Gemba Capability

KOMATSU CSR REPORT 2016

Home > CSR > Developing People > Strengthening Our Gemba Capability

CSR Theme 2

Developing People
Strengthening Our Gemba Capability
Enhancing the Technical Capability of Our Manufacturing Workplace
Systems and Status in FY2015
Globalization of Komatsu's production organization is progressing and the manufacturing workplace requires a high level of technicalcapability. We have designated the third Saturday of every October as ÒTechnical DayÓ 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
the Komatsu Group's technical capabilities by mutually dedicating themselves to their studies.
In addition, Komatsu established the Meister system for passing down technical capabilities from the production site in FY2006.
Techniques and skills that merit handing down are divided into 9 fields of 15 capabilities, and a First Meister is certified for eachcapability.
Under Komatsu's Mother Plant System, production plants with product development capability are positioned as Mother plants, which
are responsible for overseeing the safety, quality, cost and delivery of overseas Child plants that produce the same products. Meisters
are certified for their high level of proficiency in specific technical areas and dedicate their time to guiding and nurturing engineers at
plants in Japan as well as at overseas Child plants.

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Komatsu is also enthusiastically conducting improvement activities. Every year on the third Saturday of November, we hold the allKomatsu quality control competitions, and similar to the technical competitions, many people from overseas subsidiaries and business
partners in the supply chain participate.

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Newly Established Technical Training Center in Oyama City, Tochigi Prefecture
In September 2015, a new building for a technical training center was built on the grounds of the Oyama Plant, one of the main
domestic plants, strengthening and completing the educational function. In this training center, in addition to consolidating eachtraining area including assembly, painting, machine processing, facility maintenance, parts inspection, and thermal treatment, awelding area was added, providing training areas for the 7 technical fields to strengthen its functionality. As a result, aside fromoperation inspection, comprehensive training in all technical areas has become possible, forming the framework to promote further

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skill upgrading.

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The newly completed technical training center59

KOMATSU CSR REPORT 2016

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the Komatsu Group's technical capabilities by mutually dedicating themselves to their studies.

In addition, Komatsu established the Meister system for passing down technical capabilities from the production site in FY2006.
Our A
KOMATSUCSR REPORT 2016
Strengthening
Our Gemba
Techniques and skills
that meritCapability
handing down are divided into 9 fields of 15 capabilities, and a First Meister is certified
for eachEnhacapability.
Under Komatsu's Mother Plant System, production plants with product development capability are positioned as Mother plants, which
are responsible for overseeing the safety, quality, cost and delivery of overseas Child plants that produce the same products. Meisters

CSR Theme 2

are certified for their high level of proficiency in specific technical areas and dedicate their time to guiding and nurturing engineers at

Developing People

plants in Japan as well as at overseas Child plants.

-ProviSocietDeve

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Komatsu is also enthusiastically conducting improvement activities. Every year on the third Saturday of November, we hold the allKomatsu quality control competitions, and similar to the technical competitions, many people from overseas subsidiaries and business
partners in the supply chain participate.

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Activ

Ge

TOPICS

Corp

Newly Established Technical Training Center in Oyama City, Tochigi Prefecture

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In September 2015, a new building for a technical training center was built on the grounds of the Oyama Plant, one of the main

Koma
Code

domestic plants, strengthening and completing the educational function. In this training center, in addition to consolidating eachtraining area including assembly, painting, machine processing, facility maintenance, parts inspection, and thermal treatment, aRisk

welding area was added, providing training areas for the 7 technical fields to strengthen its functionality. As a result, aside fromoperation inspection, comprehensive training in all technical areas has become possible, forming the framework to promote further

CSR

skill upgrading.

To vineed to d

Adobe Ac

The newly completed technical training center

DATA
Status of Human Resource Development at the Manufacturing Gemba
FY2013All-Komatsu Technology Olympics

All-Komatsu QC Competition

FY2014FY2015

Number of participants

203

211

195

From overseas

49

50

36

(11 countries)(10 countries)(11 countries)

Number of teams

76

78

87

From overseas

21

25

26

(11 countries)(13 countries)(12 countries)

Status of Dispatching Technicians from Japan to Overseas Plants and Distributors
FY2015 Main

U.S.A., Yemen, Italy, India, Indonesia, Egypt, Australia, Oman, Qatar, Korea, Kuwait, Sri Lanka, Thailand,

Countries ofChina, Chile, Germany, Turkey, Norway, Philippines, Brazil, Vietnam, Myanmar, Mongolia, Jordan

Dispatch

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KOMATSU CSR REPORT 2016

Strengthening Our Gemba Capability

KOMATSU CSR REPORT 2016

From overseas

49

50

36

(11 countries)(10 countries)(11 countries)

Number of teams

76

78

87

From overseas

21

25

26

(11 countries)(13 countries)(12 countries)

CSR Theme 2

Developing People

All-Komatsu QC Competition

Status of Dispatching Technicians from Japan to Overseas Plants and Distributors
FY2015 Main

U.S.A., Yemen, Italy, India, Indonesia, Egypt, Australia, Oman, Qatar, Korea, Kuwait, Sri Lanka, Thailand,

Countries ofChina, Chile, Germany, Turkey, Norway, Philippines, Brazil, Vietnam, Myanmar, Mongolia, Jordan

Dispatch

Services Personnel Human Resource Development
Building a Structure Centered on the Department for Promotion of Distributor HR Development
The services personnel, who support our customers with the operation of our products that they have purchased, play a very importantrole in Komatsu's ÒQuality and Reliability.Ó Komatsu puts a lot of effort into the human resource development of our distributor services
personnel all over the world. We have two training programs for services personnel human resource development: internal humanresource development for services support and distributor human resource development.
We have created an internal training program called ÒTechno Service SchoolÓ for training our Japanese staff, and the Komatsu Human
Resource Development Center for training essential personnel who will be working at future mining sites, and conduct planned training
within departments and at overseas sites by rotation.
Distributor human resource development, depending on the content, will be created or supported by the head office, and for the basic
courses on products and services, Komatsu provides the curriculum and training materials and conducts the training on site (at the local
company and distributors). We also provide advanced courses by inviting senior managers and mechanics to Japan to conduct thetraining, and technical training provided by the local company's training center (mother training center) for more specialized training.
Having set up this educational environment, we will conduct tests to assess knowledge levels in order to gage the competitive
capabilities of the distributor and develop a practical training program that is combined with sales promotion activities.

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Newly Established Training Center for Domestic Distributors in Komatsu City, Ishikawa Prefecture
In October 2015, a model training center for domestic distributors was newly established in Komatsu City, Ishikawa Prefecture.
Due to Japan!s market situation of the last few years, which has included an increase in the number of vehicles distributed due toan upswing in demand, compliance with emissions regulations, and growing complexity of machine composition due to ICT
technology being mounted, proper training of distributors! service personnel has become imperative. The model training center
recreates the environment of a maintenance plant as a model for the distributors by envisaging various service work so that wecan provide practical training on everything from safety training, such as predicting dangers, to learning accurate and efficientmaintenance/repair technology.

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KOMATSU CSR REPORT 2016

personnel all over the world. We have two training programs for services personnel human resource development: internal humanresource development for services support and distributor human resource development.

KOMATSU
CSRHuman
REPORT 2016
Strengthening
Gembatraining
Capability
We have created Our
an internal
program called ÒTechno Service SchoolÓ for training our Japanese staff, and theKomatsu

Resource Development Center for training essential personnel who will be working at future mining sites, and conduct planned training
within departments and at overseas sites by rotation.
Distributor human resource development, depending on the content, will be created or supported by the head office, and for the basic

CSR Theme 2courses on products and services, Komatsu provides the curriculum and training materials and conducts the training on site (at the local

Developing People

company and distributors). We also provide advanced courses by inviting senior managers and mechanics to Japan to conduct thetraining, and technical training provided by the local company's training center (mother training center) for more specialized training.
Having set up this educational environment, we will conduct tests to assess knowledge levels in order to gage the competitive
capabilities of the distributor and develop a practical training program that is combined with sales promotion activities.

TOPICS
Newly Established Training Center for Domestic Distributors in Komatsu City, Ishikawa Prefecture
In October 2015, a model training center for domestic distributors was newly established in Komatsu City, Ishikawa Prefecture.
Due to Japan!s market situation of the last few years, which has included an increase in the number of vehicles distributed due toan upswing in demand, compliance with emissions regulations, and growing complexity of machine composition due to ICT
technology being mounted, proper training of distributors! service personnel has become imperative. The model training center
recreates the environment of a maintenance plant as a model for the distributors by envisaging various service work so that wecan provide practical training on everything from safety training, such as predicting dangers, to learning accurate and efficientmaintenance/repair technology.

Model Training Center for Domestic Distributors

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KOMATSU CSR REPORT 2016

Brand Management Initiatives

KOMATSU CSR REPORT 2016

Home > CSR > Developing People > Brand Management Initiatives

CSR Theme 2

Developing People
Brand Management Initiatives
What are Brand Management Initiatives?
Become Invaluable to Our Customers, who Both Create and Assess Our Corporate Value
Komatsu embodies this concept in our statement that Òour corporate value is the total sum of trust given to us by society and all
stakeholders.Ó We have made raising the company's corporate value the basic stance of management. If we group our various
stakeholders into those who create corporate value and those who evaluate corporate value, the former role would fall to employees,
business partners, and sales and after-sales service agents, and the latter would include society, shareholders, investors and the
media. As we see it, only our customers take on both of these roles. Customers create and assess our corporate value and feed theresult back to us. ÒHeightening the trust placed in us from our customersÓ was then defined as Òincreasing the degree to which ourcompany is indispensable to our customers and as a result continues to be selected as the partner of choice.Ó Initiatives in this regard
for brand management activities have been underway since 2007.

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Komatsu's basic policy regarding brand management activities is Òfrom the customer's perspective.Ó People often think that marketingGrow

activities are about ways to differentiate one's products from those of competitors, and about positioning oneself in the market.

Socia
Activ

However, this is not the case. Acting from the customer's perspective refers to the ideal and the mission of discovering what customers
want and of responding to these needs.
To realize this, we are engaged in activities designed to develop and improve our own management resources and capabilities on an
ongoing basis. In the past, these initiatives tended to rely on experience and intuition, but in the context of Komatsu's brandGemanagement activities, we are now using a variety of tools and methods to develop case studies and accumulate know-how to pass on

Corp

to the next generation.

Comp

Recent Activities and Future Plans

Koma
Code

When we began in FY2007, the scope of our activities was limited to Japan, North America, Chile, South Africa and Australia. By
FY2013, we had expanded these activities to include China, Southeast Asia, Europe, Brazil, Oman, the Commonwealth of Independent
States, and the forestry business. In FY2011, we declared our approach as the KOMATSU Way of relating to customers by compiling

Risk
CSR

the ÒKOMATSU Way of Brand Management.Ó
In FY2015, we also sought to raise the standard of the comprehensive strengths of our distributors, overseas subsidiaries and Komatsu
by holding not only the global Brand Management Convention, but also by holding Brand Management Meetings in Japan, Europe,

To vineed to d

Russia and North America, as well as by having Brand Management Conventions in Europe, Russia and North America.

Adobe Ac

The idea is not simply to raise sales and profits and increase market share in the short term, but instead to use these activities tointeract with customers and heighten customer trust by visiting their workplaces, while at the same time improving the skill levels of ouremployees and strength of our organization.

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Realizing Our Customers' Vision and Mission Òfrom the Customer's PerspectiveÓ

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activities are about ways to differentiate one's products from those of competitors, and about positioning oneself in the market.

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KOMATSU CSR REPORT 2016
Brand Management Initiatives
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Komatsu's basic policy regarding brand management activities is Òfrom the customer's perspective.Ó People often think that marketing

However, this is not the case. Acting from the customer's perspective refers to the ideal and the mission of discovering what customers
wantCSRand ofresponding
to these needs.
Theme
2

Developing People

To realize this, we are engaged in activities designed to develop and improve our own management resources and capabilities on an
ongoing basis. In the past, these initiatives tended to rely on experience and intuition, but in the context of Komatsu's brandGemanagement activities, we are now using a variety of tools and methods to develop case studies and accumulate know-how to pass on

Corp

to the next generation.

Comp

Recent Activities and Future Plans

Koma
Code

When we began in FY2007, the scope of our activities was limited to Japan, North America, Chile, South Africa and Australia. By
FY2013, we had expanded these activities to include China, Southeast Asia, Europe, Brazil, Oman, the Commonwealth of Independent
States, and the forestry business. In FY2011, we declared our approach as the KOMATSU Way of relating to customers by compiling

Risk
CSR

the ÒKOMATSU Way of Brand Management.Ó
In FY2015, we also sought to raise the standard of the comprehensive strengths of our distributors, overseas subsidiaries and Komatsu
by holding not only the global Brand Management Convention, but also by holding Brand Management Meetings in Japan, Europe,

To vineed to d

Russia and North America, as well as by having Brand Management Conventions in Europe, Russia and North America.

Adobe Ac

The idea is not simply to raise sales and profits and increase market share in the short term, but instead to use these activities tointeract with customers and heighten customer trust by visiting their workplaces, while at the same time improving the skill levels of ouremployees and strength of our organization.

September 2015, Europe Brand Management Convention held in Brussels, Belgium
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KOMATSU CSR REPORT 2016

Compliance

KOMATSU CSR REPORT 2016

Home > CSR > Growing with Society > Compliance

CSR Theme 3

Growing with Society

Compliance

Promoting ComplianceFollowing the principle that compliance is a top priority, Komatsu will ensure that it fully understands and complies with business rules

Compliancewhile
promoting structural improvements.

Frameworks
for Promoting
Compliance
PromotingComplianceTo make certain that the entire Komatsu Group complies with the rules of the business community, Komatsu has appointed at the head
Following the principle that compliance is a top priority, Komatsu will ensure that it fully understands and complies with business rules
office an executive officer in charge of compliance and established the Compliance Department to handle this issue exclusively. The
while promoting structural improvements.
Compliance Committee, chaired by the president and CEO, deliberates the Group's action policies and important issues while regularly

Apprreporting the state of compliance-related activities to the board of directors.

Frameworks for Promoting ComplianceEnha

To make certain that the entire Komatsu Group complies with the rules of the business community, Komatsu has appointed at the head

Appr
SocietKomatsu's Worldwide Code of Business Conduct

office an executive officer in charge of compliance and established the Compliance Department to handle this issue exclusively. The
The company has formulated Komatsu's Worldwide Code of Business Conduct (established in 1998 and revised eight times to date) as
Compliance Committee, chaired by the president and CEO, deliberates the Group's action policies and important issues while regularly
a compilation of best business practices to be observed by officers and employees of Komatsu Group companies around the globe. The
reporting the state of compliance-related activities to the board of directors.
code addresses items such as free and fair business practices, appropriate relationships between the company and its employees,
endeavors for the global environment, the handling of information, and the establishment of an internal control structure. The text of theKomatsu's Worldwide Code of Business Conduct

code has been released to the public in its entirety. Komatsu considers CSR as a key responsibility and Komatsu's Worldwide Code of
The company has formulated Komatsu's Worldwide Code of Business Conduct (established in 1998 and revised eight times to date) as
Business Conduct clearly conveys its policy of giving full weight to CSR. The pillar of Komatsu's compliance activities is based on
a compilation of best business practices to be observed by officers and employees of Komatsu Group companies around the globe. The
constant repetition of the following process, outlined in the Code of Worldwide Business Conduct: (1) Formulate and revise the Code,code addresses items such as free and fair business practices, appropriate relationships between the company and its employees,(2) Implement the Code, (3) Determine the Code's current status, and (4) Address inadequacies.
endeavors for the global environment, the handling of information, and the establishment of an internal control structure. The text of thecode has beenreleased
to thepublic in its
entirety.
CSR as a key responsibility and Komatsu's Worldwide Code of
Komatsu'sWorldwide
Codeof BusinessConduct
is Komatsu
available considers
at:Business Conduct clearly conveys its policy of giving full weight to CSR. The pillar of Komatsu's compliance activities is based on
Komatsu's
Code ofBusiness
Conduct
constant
repetitionWorldwideof the following
process,
outlinedin the Code of Worldwide Business Conduct: (1) Formulate and revise the Code,(2) Implement the Code, (3) Determine the Code's current status, and (4) Address inadequacies.
Komatsu's Worldwide Code of Business Conduct is available at:Process for Compliance Activities(1) Formulate
andrevise theCode:
Komatsu'sWorldwide
Codeof Business Conduct

Formulate the Code as a foundation for compliance activities and revise the Code (currently in its ninth edition) as required to reflectsocial change.

(2) Implement the Code:

Process for Compliance Activities

Implement the Code through education that corresponds to employee rank and their respective duties, and by communicating(1) Formulate and revise the Code:information in accordance with the Code.
Formulate the Code as a foundation for compliance activities and revise the Code (currently in its ninth edition) as required to reflect(3) Determine the Code's current status:
social change.
Determine the level at which the Code is being applied by having all business units regularly report on their use of the Code and by(2) Implement the Code:conducting audits and enhancing Komatsu's internal reporting system.
Implement the Code through education that corresponds to employee rank and their respective duties, and by communicating(4) Address inadequacies:
information in accordance with the Code.
Any issues identified during the above activities will be addressed in accordance with the Code and preventive measures will be(3) Determine the Code's current status:
implemented.
Determine the level at which the Code is being applied by having all business units regularly report on their use of the Code and by
conducting audits and enhancing Komatsu's internal reporting system.

Upholding Thorough Compliance(4) Address inadequacies:
So that employees remain continuously aware of compliance, the Group is working to raise their consciousness of best business
Any issues identified during the above activities will be addressed in accordance with the Code and preventive measures will bepractices by displaying in every Komatsu Group business unit posters listing The Five Principles of Compliance, a condensed version of
implemented.
Komatsu's Code of Worldwide Business Conduct. The Group engages in awareness-raising initiatives, with a page dedicated tocompliance on its intranet as well as well-developed compliance-related education and training that corresponds to each employee rank

Upholding Thorough Complianceand and their respective duties. The Group strives to detect risks early and implement reforms at Komatsu business units and GroupSo that employees remain continuously aware of compliance, the Group is working to raise their consciousness of best businesscompanies through monitoring during financial audits and compliance and risk audits. The monitoring covers compliance in highly
practices by displaying in every Komatsu Group business unit posters listing The Five Principles of Compliance, a condensed version ofimportant areas such as safety and environmental practices.
KOMATSU
CSRinREPORT
2016
Komatsu's Code of Worldwide Business Conduct.65The Group
engagesawareness-raising
initiatives, with a page dedicated tocompliance on its intranet as well as well-developed compliance-related education and training that corresponds to each employee rank

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Determine the level at which the Code is being applied by having all business units regularly report on their use of the Code and by
conducting audits and enhancing Komatsu's internal reporting system.

Compliance(4) Address inadequacies:

KOMATSU CSR REPORT 2016

Any issues identified during the above activities will be addressed in accordance with the Code and preventive measures will be
implemented.

CSR Theme 3

Upholding Thorough Compliance

Growing with Society

So that employees remain continuously aware of compliance, the Group is working to raise their consciousness of best businesspractices 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 engages in awareness-raising initiatives, with a page dedicated tocompliance on its intranet as well as well-developed compliance-related education and training that corresponds to each employee rank
and and their respective duties. The Group strives to detect risks early and implement reforms at Komatsu business units and Group
companies through monitoring during financial audits and compliance and risk audits. The monitoring covers compliance in highly
important areas such as 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 Compliance Hotlines, to respond to consultations or reporting from Group company employees that pertain to best
business practices or questionable actions. The Group actively encourages consultations and reporting through Komatsu's Worldwide
Code of Business Conduct, the Five Principles of Compliance, and Group companie's workplace rules, making it clear that employees
who use the system for appropriate reporting will not be treated unfairly in any way as a result of their action.

Status in FY2015
No incidents of special note occurred during 2015.

DATA
1. Number of Internal Reporting

Number of Internal Reporting

FY2013

FY2014FY201552 (0)

52 (0)

68(0)(number of serious cases)

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

January 1, 1998

Last

April 1, 2014 (9th edition)

revised15 languages
Languages

Japanese, English, Chinese, Spanish, Portuguese, German, Dutch, Italian, Swedish, Indonesian, Thai, Russian,Turkish, Persian, Tamil

Distribution

Global Group employees (more than 29,000)
The Japanese and English versions are published on the Komatsu website

3. Compliance Education in FY2015
Class Learning

Approx. 2,000 people

e-Learning

Approx. 22,000 people
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KOMATSU CSR REPORT 2016

Risk Management

KOMATSU CSR REPORT 2016

Home > CSR > Growing with Society > Risk Management

CSR Theme 3

Growing with Society
Risk Management
The Komatsu Group recognizes all uncertainties that could threaten the Group's sustained growth as risks, particularly complianceissues, environmental issues, product quality concerns, accidents, and information security problems. The company has adopted thefollowing measures to counter these risks.

Basic Principles and Structure for Risk Management• In addition to the basic policy for risk management to ensure business continuity and stable development, Komatsu has established
Risk Management Rules to correctly recognize and manage risks.
• Komatsu has established a Risk Management Committee to devise relevant policies for the entire Group, review the risk management
system, and evaluate and improve upon response measures in place for each risk, as well as to take control of risks when they arise.
The committee regularly reports on its deliberations and activities to the board of directors.
• Komatsu will establish an emergency headquarters when serious risks occur and implement appropriate measures to minimize

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-ProviSocietdamage.

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Risk Management Structure

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Systems and Status in FY2015
Implementing a Business Continuity Plan for Komatsu
In order to quickly confirm the safety of employees and their families in the event of an accident or disaster, and to be able to continue
or quickly restart important business operations, Komatsu has formulated a business continuity plan (BCP). In addition, at our head
office buildings and all production plants, we assume the possible occurrence of earthquakes and conduct regular training so that in theevent of a disaster everyone will be able to act quickly and appropriately. Furthermore, at our production plants, we are working onseismic strengthening for buildings and equipment, as well as reinforcement against damage from torrential rains, according to the
production plant's plans. Also, in case of an outbreak or epidemic of a new type of influenza, we will establish a special committee andtake appropriate measures. For our employees we have compiled a manual with information regarding preventative measures and what

KOMATSUCSR REPORT
2016a thorough understanding of these measures.
67
actions to take in case of infection, and we also provide
training
sessions
to promote

Risk Management

KOMATSU CSR REPORT 2016

Koma
Code
Risk
CSR

CSR Theme 3

Growing with Society

To vi
need to d

Adobe Ac

Systems and Status in FY2015
Implementing a Business Continuity Plan for Komatsu
In order to quickly confirm the safety of employees and their families in the event of an accident or disaster, and to be able to continue
or quickly restart important business operations, Komatsu has formulated a business continuity plan (BCP). In addition, at our head
office buildings and all production plants, we assume the possible occurrence of earthquakes and conduct regular training so that in theevent of a disaster everyone will be able to act quickly and appropriately. Furthermore, at our production plants, we are working onseismic strengthening for buildings and equipment, as well as reinforcement against damage from torrential rains, according to the
production plant's plans. Also, in case of an outbreak or epidemic of a new type of influenza, we will establish a special committee andtake appropriate measures. For our employees we have compiled a manual with information regarding preventative measures and what
actions to take in case of infection, and we also provide training sessions to promote a thorough understanding of these measures.

Oyama Plant and Tochigi Plant combined BCP Training

Promoting Risk Management throughout the GroupTo reinforce the risk management structure across the Group, including overseas subsidiaries, Komatsu is establishing channels forrisk reporting, creating a risk management manual, etc. Also Komatsu is conducting BCP initial response training at the sales andservice bases in Japan to raise the level of risk management and response to disasters. Additionally, Komatsu is strengthening its
Group-wide system for contacting employees during an emergency by introducing safety confirmation systems, broad-area wirelessdevices, and conducting regular training for safety reporting and communication.

Conducting Compliance and Risk Audits
As a part of its risk management activities, Komatsu has been conducting compliance and risk audits (CR audits) since FY2008. These
cover areas not included in the J-SOX audits, which are conducted in accordance with the Financial Instruments and Exchange Act ofJapan to evaluate internal controls related to financial reporting and identify potential compliance risks within the company, with aparticular focus on confirming and evaluating the status of legal compliance. Our internal specialist team conducts the internal audits at
Komatsu and its Japanese and overseas affiliates, as well as at sites operated by independently-owned distributors.
The audited items are: 1. Safety; 2. Environment; 3. Labor; 4. Finance and Treasury; 5. Quality Assurance and Recall; 6. Vehicle
Inspections and Specific Voluntary Inspections (inspections done on construction equipment, similar to vehicle inspections); 7. Export
Control; 8. Information Security; and 9. Anti-monopoly Act.
Through these audits, we strive to raise the control and compliance awareness levels at each company and in every department. Goingforward, we would like to improve our case-by-case audit method and raise the operational level of CR audits as a part of risk
management functions.

Strengthening Information Security

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KOMATSU CSR REPORT 2016

cover areas not included in the J-SOX audits, which are conducted in accordance with the Financial Instruments and Exchange Act ofJapan to evaluate internal controls related to financial reporting and identify potential compliance risks within the company, with aparticularfocus on confirming and evaluating the status of legal compliance. Our internal specialist team conducts theinternal
audits
at 2016
KOMATSUCSR
REPORT
Risk
Management
Komatsu and its Japanese and overseas affiliates, as well as at sites operated by independently-owned distributors.

The audited items are: 1. Safety; 2. Environment; 3. Labor; 4. Finance and Treasury; 5. Quality Assurance and Recall; 6. Vehicle
Inspections and Specific Voluntary Inspections (inspections done on construction equipment, similar to vehicle inspections); 7. Export

CSR8.Theme
3
Control;
Information
Security; and 9. Anti-monopoly Act.

Growing with Society

Through these audits, we strive to raise the control and compliance awareness levels at each company and in every department. Goingforward, we would like to improve our case-by-case audit method and raise the operational level of CR audits as a part of risk
management functions.

Strengthening Information Security

Komatsu is developing an information security structure for the entire Group, placing the Information Security Committee at its center.
As one sphere of this structure, the company distributes an Information Security Guidebook to all employees. In conjunction with this, it
provides education and awareness-raising activities based on the Guidebook, with the belief that raising individual employee
consciousness of information security is essential. The company is developing a structure to protect information from being falsified,leaked or lost, even in cases of negligence or outside intrusion. In addition, it is conducting information security audits to ensure thatthese measures are working effectively and to detect and address any problems.

Human Right Management Issues
Komatsu signed the United Nations Global Compact in 2008. In an effort to apply its major principles for protecting human rights,
Komatsu with the help of external experts conducted a human rights risk assessment for all of its construction/mining equipment andforestry machinery businesses worldwide in 2014, referring to the Universal Declaration of Human Rights and the U.N. Guiding
Principles on Business and Human Rights.
The results showed that the degree of urgency for problems occurring is low, while the degree of effect if a problem does occur ismoderate. They also pointed to the need for Komatsu to move beyond its current assessment efforts toward evaluating the activities ofpartner companies, such as parts suppliers and our network of distributors that provide products and services to our customers. In lightof the results, we intend to continue implementing the necessary measures.

DATA
Record of BCP Training
Date

Business Site

Content of Training

July 2015

Business sites in Japan

Communication training with broad-area wireless devices

September 2015

Hakozaki Office (Fukuoka)

BCP Initial Response

October 2015

Oyama-Tochigi Plant

BCP Training

October 2015

Komatsu NTC (Toyama)

BCP Training

October 2015

Gigaphoton (Tochigi) 69

KOMATSUBCPCSRTraining
REPORT 2016

Risk Management

KOMATSU CSR REPORT 2016

DATA

Record of BCP Training
Date
CSR Theme 3

Business Site

Content of Training

July 2015

Business sites in Japan

Communication training with broad-area wireless devices

September 2015

Hakozaki Office (Fukuoka)

BCP Initial Response

October 2015

Oyama-Tochigi Plant

BCP Training

October 2015

Komatsu NTC (Toyama)

BCP Training

October 2015

Gigaphoton (Tochigi)

BCP Training

November 2015

Shonan PlanBCP Training

November 2015

KELK (Kanagawa)

BCP Training

November 2015

Head Office

BCP Initial Response

November 2015

Head Office

Safety Reporting

March 2016

All Group companies in Japan

Safety Reporting

March 2016

Business sites in Japan

Communication training with broad-area wireless devices

Growing with Society

Implementation of Compliance and Risk Audits

Employee Education (Information Security)
Name of Course

TargetNew Employee Training

New hires (both new graduates and experienced hires)e-learning Information Security (Basic Course)

All employees who use PCs at worke-learning Information Security (Management Course)

All managers (line managers such as GMs and section mangers)
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KOMATSU CSR REPORT 2016

manufacturing. Komatsu believes that engaging in CSR procurement will contSupport for CSR Initiatives of Business Partners

endeavors to do so in cooperation with our partners.

KOMATSU CSR REPORT 2016

Home > CSR > Growing with Society > Support for CSR Initiatives of Business Partners

CSR Theme 3

Approach
PolicyGrowingwithandSociety
Komatsu's Procurement Policy

Komatsu's
basic
policy is
producea product in the area where there is dem
Supportfor CSR
Initiatives
oftoBusiness
Partners

construction and mining machinery, 27 are located outside of Japan. In follow

Our business partners, who are suppliers of materials, parts, and components, are important partners that support Komatsu's

manufacturing. Komatsu believes that engaging in CSR procurement will contribute to our business partners' expansion and therefore

plant, we are actively working on procuring parts and materials from the sameendeavors to do so in cooperation with our partners.

shipped everywhere in the world from Japan, and a few specific parts that are
Approach and Policy

plants are on their own in terms of procurement, to promote local and optimal
Appr

Komatsu's Procurement Policy

Komatsu's basic policy is to produce a product in the area where there is demand for it. Out of the 39 plants that manufacture

CSR Procurement Guidelines

construction and mining machinery, 27 are located outside of Japan. In following with the manufacturing of machinery at an overseas

Our A

plant, we are actively working on procuring parts and materials from the same area. Aside from engines and main components that are

Enha

In 2011 we formulated the CSR Procurement Guidelines, which lay out key-Provico
Societshipped everywhere in the world from Japan, and a few specific parts that are only supplied by specialized manufacturers, the overseas
plants are on their own in terms of procurement, to promote local and optimal procurement for parts such as sheet metal.

Devepartners. We have posted the guidelines on our Japanese and English websit

CSR Procurement Guidelines

In 2011 we formulated the CSR Procurement Guidelines, which lay out key compliance and CSR information for all our businessof this information.

partners. We have posted the guidelines on our Japanese and English websites and are now making sure that our partners are awareof this information.

Coverage of the CSR Procurement Guidelines

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Coverage of the CSR Procurement Guidelines

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The Guidelines are available at:

Komatsu Group CSR Procurement Guidelines

Midori-kai and the State of Our Support of the Organization in FY2015
Komatsu Midori-kai
Komatsu Midori-kai is an organization made up of our business partners, with 164 member companies in Japan, out of which theprocurement amount is approximately 75% of domestic purchasing goods. At the regular meetings, where the management membersof each company are present, such as the general assembly, general meetings and New Years' special meetings, Komatsu's top
executives explain our policies, emphasize the importance of CSR management and request that awareness be raised in regard to

The Guidelines are available
at:KOMATSU CSR REPORT 2016
71

CSR management.

Midori-kai companies have been divided into 5 groups by production item, to promote improvement activities along with Komatsu for

Adobe Ac

Risk

Support for CSR Initiatives of Business Partners

KOMATSU CSR REPORT 2016 CSR

CSR Theme 3

The Guidelines are available at:

Growing with Society
Komatsu Group CSR Procurement Guidelines

Midori-kai and the State of Our Support of the Organization in FY2015
Komatsu Midori-kai
Komatsu Midori-kai is an organization made up of our business partners, with 164 member companies in Japan, out of which theprocurement amount is approximately 75% of domestic purchasing goods. At the regular meetings, where the management membersof each company are present, such as the general assembly, general meetings and New Years' special meetings, Komatsu's top
executives explain our policies, emphasize the importance of CSR management and request that awareness be raised in regard to
CSR management.
Midori-kai companies have been divided into 5 groups by production item, to promote improvement activities along with Komatsu foreach one of the shared improvement themes of safety, environment and cutting-edge element technologies. The case examples ofimprovement are shared within the companies of the group which is set up for lateral dissemination of information.
In North America, Europe and China, there are Midori-kai organizations made up of Komatsu's major business partners.
These chapters are making the most of the characteristics of their respective region in furthering their activities.

Support to Member Companies
Komatsu supports Midori-Kai member companies in a variety of ways, and making effective use of the initiatives of each group while
promoting improvement activities. Support activities during FY2015 are described below.
SafetyAs part of the effort to strengthen safety and health activities, we are conducting safety patrols continually and sharing information onlabor accidents, as well as lateral sharing of safety measures through the safety activities presentation meetings, in order to support
each company in increasing their level of safety.
As a part of each group!s initiatives, there is some friendly competition as they patrol each other!s companies within the group toprovide findings and look for areas of improvement as part of promoting such activities.
In addition, we opened safety training centers in each Komatsu plant that our business partners can use so that their employees canalso experience simulated workplace hazards and be trained to anticipate dangerous situations.

Example of conducting safety patrols for each other. Activity involving friendly competition of patrolling each others! company to pointout and make improvements based on findings.
Environment
We made certain certifications, such as ISO14001 and Eco Stage mandatory, and as a result of our directing and supporting efforts toobtain these certifications, all 164 companies within the Midori-kai are now certified. In our efforts to reduce electricity consumption, we
set a target for reducing electricity consumption by at least 15% from 2010 levels. We are also working to reduce the energy
consumption of 97 companies of our business partners, focusing on implementing Komatsu's initiative (as part of our production system
reforms) to reduce electricity consumption by 50% across our business partners.
Personnel Development
To develop young top management at our business partners, we hold ÒManagement SalonsÓ as occasions for Komatsu management
and young top management to exchange views. With this approach we intend to develop Òwin-winÓ relationships with our business

KOMATSUCSR REPORT
2016cycles.
72 policies
partners while aligning our respective management
and implementing
PDCA
Furthermore, we select model companies as part of our efforts to support our business partners in overall improvement and advanceTo vineed to d

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also experience simulated workplace hazards and be trained to anticipate dangerous situations.

Support for CSR Initiatives of Business Partners

KOMATSU CSR REPORT 2016

CSR Theme 3

Growing with Society
Example of conducting safety patrols for each other. Activity involving friendly competition of patrolling each others! company to pointout and make improvements based on findings.
Environment
We made certain certifications, such as ISO14001 and Eco Stage mandatory, and as a result of our directing and supporting efforts toobtain these certifications, all 164 companies within the Midori-kai are now certified. In our efforts to reduce electricity consumption, we
set a target for reducing electricity consumption by at least 15% from 2010 levels. We are also working to reduce the energy
consumption of 97 companies of our business partners, focusing on implementing Komatsu's initiative (as part of our production system
reforms) to reduce electricity consumption by 50% across our business partners.
Personnel Development
To develop young top management at our business partners, we hold ÒManagement SalonsÓ as occasions for Komatsu management
and young top management to exchange views. With this approach we intend to develop Òwin-winÓ relationships with our business
partners while aligning our respective management policies and implementing PDCA cycles.
Furthermore, we select model companies as part of our efforts to support our business partners in overall improvement and advancetheir technological resources by capitalizing on Komatsu expertise toward strengthening their organizational capabilities.
As a new initiative in FY2015, we held a CSR study group for young management.

The study group for business partners held in February 2016. Using Komatsu!s CSR activities as an example, each company workedon the CSR Materiality identifying process for their own company.

Management System
Checking System for New Business Transactions and Agreements
Komatsu uses a check sheet before it starts doing business with a new supplier, not only to confirm basic conditions related to quality,
cost and delivery, but also to verify their efforts in environmental protection and employee education.
To conduct a business transaction in accordance with the CSR Procurement Policy, our basic agreement includes clauses pertaining toenvironmental protection and compliance.

Risk Management Prepared for Occurrence of Natural Disasters
Komatsu is strengthening its risk management system for procurement. Since FY2012, we have conducted assessments in Japan sothat we can quickly determine the status of partner companies in the event of a disaster such as an earthquake or tsunami, and be able
to continue procurement activities without delay, to minimize the effect on production. We input the location and production content foreach of the over 20,000 sites of all our partner companies to create a database for Òvisualization,Ó and assessed the degree of risk. In
addition to considering prevention measures for each partner company that have higher levels of risk, the procurement staff will be able
to consider risks from this aspect when considering new agreements, so that we can heighten the accuracy of the information.
In the event of an emergency, we will dispatch security maintenance personnel from our plant to our partner companiesÑas we didfollowing the Great East Japan EarthquakeÑto help support speedy production recovery.

KOMATSU CSR REPORT 2016
Policy and Actions Regarding Conflict
Minerals
73
Komatsu has adopted a policy of not using conflict minerals produced by the Democratic Republic of Congo (DRC) or its neighbors

Support for CSR Initiatives of Business Partners

KOMATSU CSR REPORT 2016

CSR Theme 3

Growing with Society

In the event of an emergency, we will dispatch security maintenance personnel from our plant to our partner companiesÑas we didfollowing the Great East Japan EarthquakeÑto help support speedy production recovery.

Policy and Actions Regarding Conflict Minerals
Komatsu has adopted a policy of not using conflict minerals produced by the Democratic Republic of Congo (DRC) or its neighbors(Angola, Central African Republic, Republic of the Congo, Rwanda, Southern Sudan, Tanzania, Uganda and Zambia) from ourcorporate social responsibility perspective.
During the regular meetings we hold with our suppliers at each Komatsu plant in Japan, we explained this policy as well as Komatsu's
response to the conflict minerals issue and related requests to our suppliers. With the cooperation of suppliers, we conducted a countryof-origin survey to determine the location of origin of the conflict minerals we use.
Looking ahead, we will continue taking steps to prevent the use of conflict minerals from the DRC and its neighbors and thereby restrict
funding for military groups. We will immediately discontinue any use of conflict materials that we discover.

Other Initiatives
Awareness Campaign for CSR Procurement
As an ongoing effort to raise awareness of CSR, Komatsu has been introducing CSR case studies since May 2011 through its
bimonthly CSR newsletter on its website, which is available for all suppliers for the Komatsu Group in Japan.

Procurement Education in Human Resource Development
Komatsu conducts employee training at every level, from new employees to managers, in the forms of group learning and e-learning,with a strong emphasis on safety, the environment and compliance.

DATA
Business Partner Association Midori-Kai
Number of Companies

Procurement Coverage

Japan

164

75%

North America

39

50%

Europe

47

35%

China

61

90%

FY2015 Record of Support to Midori-kai (Japan)
Item

Content

Results

Human resources

Participation in Komatsu!s Executive Development Education (selected

2 companies

development andeach year)

edification

Participation in All Komatsu QC Convention and Technology Olympics

19 companies in total

Publishing ÒCSR CommunicationÓ (FY2011-)

118 issues in all

CSR study groups held

23 companies

Support in Management Salon

13 companies

Held an Act against Delay in Payment of Subcontract Proceeds, Etc. to

181 companies in total

Subcontractors Education
74(312 people)

KOMATSU CSR REPORT 2016

DATA
Business Partner Association Midori-Kai

Support for CSR Initiatives of Business Partners

Number of Companies

Procurement Coverage

KOMATSU CSR REPORT 2016

Japan

164

75%

North
CSRAmerica
Theme 339

50%

Europe

47

35%

China

61

90%

Growing with Society

FY2015 Record of Support to Midori-kai (Japan)
Item

Content

Results

Human resources

Participation in Komatsu!s Executive Development Education (selected

2 companies

development andeach year)

edification

Occupational Safety
and Health
Environment

Participation in All Komatsu QC Convention and Technology Olympics

19 companies in total

Publishing ÒCSR CommunicationÓ (FY2011-)

118 issues in all

CSR study groups held

23 companies

Support in Management Salon

13 companies

Held an Act against Delay in Payment of Subcontract Proceeds, Etc. to

181 companies in total

Subcontractors Education(312 people)

Safety Patrol

All 97 companies

Held a Special Committee on Safety

22 times

Support of reduction activities for electricity use

All 97 companies

Held a Special Committee on Environment

8 times
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KOMATSU CSR REPORT 2016

CSR Procurement Guidelines

KOMATSU CSR REPORT 2016

Home > CSR > Growing with Society > CSR Procurement Guidelines

CSR Theme 3

Growing with Society
CSR Procurement Guidelines
Komatsu Group CSR Procurement Guidelines : What we would like to ask our business partners inthe supply chain(Established on August 30, 2011)

1. Operations for Sound Management
1) Build a system or operational structure designed to meet various risks.
2) Establish legal and transparent decision-making processes concerning management.

Appr3) Conduct appropriate accounting procedures, tax filing and settlement of accounts.

Our A4) Place importance on communication with stakeholders (customers, shareholders, business partners, employees, etc.).

Enha5) Ensure that top management will be notified promptly when any abnormal condition develops and that your company will be able topromptly and accurately respond to the situation(s).

-ProviSocietDeve

2. Thorough Enforcement of Compliance1) Engage in business operations while complying with the laws and regulations as well as the rules of the Business Community of thehost countries and regions.
2) Develop a corporate climate under the leadership of top management, which places top priority on compliance.

Grow

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3) Build up compliance-responsive operations, according to the scale and characteristics of your company, designed to prevent yourcompany, executives or employees from wrongdoings and to respond to any compliance-related problems promptly when they occur.

Ge

3. Product Safety, QCD and Technology Innovation

Corp1) Comply with the laws and regulations concerning product safety and deliver products and services which will offer safety and peaceCompof mind to customers.
2) In addition to maintaining the quality and cost competitiveness of products and services which your company delivers to customers,
stand by the agreed upon date of delivery and supply your products in a stable manner.
3) Establish quality control operations.
4) Constantly engage in technology development and provide innovative, safe and environmental-friendly products and services.

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

5. Measures to Respect Human Rights, Appropriate Labor Conditions and Occupational Safety and Health
1) Respect human rights.
2) Never get involved, directly or indirectly, in any child or forced labor.
3) Create a work environment where there is no discrimination or harassment in any aspect of employment.
4) Build up an occupational safety and health operational structure under the leadership of top management and create a work
environment where all employees can work in safe and healthy conditions.
5) In addition to establishing a fair and just personnel system, pay attention to human resource development and employee education
as well.
6) Give consideration to improving communication between top management and employees.

6. Fair Business Practices

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KOMATSU CSR REPORT 2016

1) Comply with all related laws and regulations and engage in free and fair competition and business transactions.

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3) Build up environmental management systems such as the ISO14000 series and "Eco Stage."

5. Measures to Respect Human Rights, Appropriate Labor Conditions and Occupational Safety and Health

CSR
Procurement Guidelines
1) Respect human rights.

KOMATSU CSR REPORT 20162) Never get involved, directly or indirectly, in any child or forced labor.
3) Create a work environment where there is no discrimination or harassment in any aspect of employment.
4) Build
an occupationalsafety and health operational structure under the leadership of top management and create a work
CSRupTheme
3

Growing with Society

environment where all employees can work in safe and healthy conditions.

5) In addition to establishing a fair and just personnel system, pay attention to human resource development and employee education
as well.
6) Give consideration to improving communication between top management and employees.

6. Fair Business Practices
1) Comply with all related laws and regulations and engage in free and fair competition and business transactions.
2) Respect intellectual properties of other parties and work to prevent infringement thereof. Appropriately handle information (including
personal information) of your company and other companies.
3) Never accept inappropriate cash, gifts or other favors.
4) Carry out proper foreign trade transactions (goods and technologies) while complying with the related laws and regulations.
5) Never have any relationship with antisocial forces or groups.

7. Social Contributions and Co-existence with the Local Community
1) Engage in social contribution activities based on your company's management principle(s) and support employees' volunteer
activities.
2) Place importance on co-existence with local communities which is the foundation of your business, and proactively support thegrowth of local communities.
Note: These guidelines will be revised as needed.
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KOMATSU CSR REPORT 2016

Communication with Stakeholders

KOMATSU CSR REPORT 2016

Home > CSR > Growing with Society > Communication with Stakeholders

CSR Theme 3

Growing with Society
Communication with Stakeholders
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 around the world, while at the same time conducting interactive dialogue.

1. Activities for Corporate Investors and Securities Analysts
On the same day that quarterly business results are announced, the company holds explanatory sessions for corporate 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.

Appr

Our A

Enha

2. Informational Meeting for Individual Shareholders-ProviTo furnish an opportunity to communicate with individual shareholders, Komatsu convenes shareholders' meetings in major cities inSocietJapan twice a year, with top management explaining the company's performance and management strategy. In 2015, we held meetings

Devein Nara City and Fukuoka City in December and the president CEO explained the business environment and corporate performance.
Many questions were raised during the Q&A session, which covered a wide range of topics, including Komatsu's management policy,
overseas business development, and governance.
Since these meetings were launched in 1997, they have been convened 41 times, with about 12,000 shareholders participating to date.

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Shareholders! meeting held in Nara City in

Shareholders! meeting held in Fukuoka City

December 2015

in December 2015

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3. Plant Tours for Individual Shareholders
Komatsu has been holding plant tours for individual shareholders to further deepen their understanding of the company. Tours were
held at the Awazu Plant (Ishikawa) in October 2015, then at the Osaka Plant (Osaka) and Oyama and Tochigi Plant (Tochigi) in March
2016 for a total of seven days.

Plant tour for shareholders at the

KOMATSUCSR REPORT
78 tour for
Plant
shareholders
at the 2016

Plant tour for shareholders at the

Awazu Plant in October 2015

Osaka Plant in March 2016

Oyama and Tochigi Plant in March 2016

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Communication with Stakeholders

KOMATSU CSR REPORT 2016

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Koma
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Risk

Growing with Society
Shareholders! meeting held in Nara City in

Shareholders! meeting held in Fukuoka City

December 2015

in December 2015

CSR

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3. Plant Tours for Individual Shareholders
Komatsu has been holding plant tours for individual shareholders to further deepen their understanding of the company. Tours were
held at the Awazu Plant (Ishikawa) in October 2015, then at the Osaka Plant (Osaka) and Oyama and Tochigi Plant (Tochigi) in March
2016 for a total of seven days.

Plant tour for shareholders at the

Plant tour for shareholders at the

Plant tour for shareholders at the

Awazu Plant in October 2015

Osaka Plant in March 2016

Oyama and Tochigi Plant in March 2016

4. Techno Center Tours for Individual Shareholders
Komatsu offered Techno Center tours (Izu City, Shizuoka Prefecture) in August 2015 for two days for shareholders and their children or
grandchildren. We demonstrated equipment such as dump trucks, hydraulic excavators and wheel loaders, and also provided tours
during which visitors could observe machinery in operation so they could become more familiar with our products. Our employees alsotaught crafts and science classes, and had stamp rallies.

Visitors watching a demonstration of construction equipment and participating in a science classduring the Techno Center Tours in August 2015.

5. Meetings for Individual Investors
Komatsu holds meetings for individual investors to explain about our business and management strategies and to cultivate a deeper
understanding of our company. In FY2015, these meetings were held in 11 cities in Japan.

Meetings for individual investors

Corp

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KOMATSU CSR REPORT 2016

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Communication with Stakeholders

KOMATSU CSR REPORT 2016

CSR Theme 3

Growing with Society
Visitors watching a demonstration of construction equipment and participating in a science classduring the Techno Center Tours in August 2015.

5. Meetings for Individual Investors
Komatsu holds meetings for individual investors to explain about our business and management strategies and to cultivate a deeper
understanding of our company. In FY2015, these meetings were held in 11 cities in Japan.

Meetings for individual investors

Events for Shareholders in FY2015 (in Japan)
Approximate Number ofLocation

Participants

Shareholders' Meeting

Nara, Fukuoka

800

Plant Tours for Shareholders

Awazu Plant, Osaka Plant, Oyama and Tochigi

350

Plant
Techno Center Tours

Komatsu Techno Center (Shizuoka)

Meetings for Individual

11 cities in Japan

130
1,000

Investors

Communication with Employees
At Komatsu, the president convenes a ÒMeeting with the PresidentÓ periodically at each business site in Japan. At these meetings, thepresident directly explains the business environment and related issues, and also takes part in a Q&A session held for employees andthe top management. The content of these meetings, held at the head office in Tokyo, is simultaneously transmitted by TV broadcast toother business units in Japan and later published on the company intranet in English to share the information with Group employees
around the world. Also, at overseas subsidiaries, we are being proactive about holding employee meetings to provide a place forcommunication to take place with the local Group employees.
In addition, we launched an intranet bulletin board, entitled ÒVirtual Office of President,Ó in January 2014 to share with employees
around the world the questions and answers exchanged during the Meeting with the President. The site is updated each week with newquestions, and as of March 31, 2016 a total of 107 questions on specific topics, along with the president's answers, explanations andmessages to employees, have been published in Japanese and English.

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KOMATSU CSR REPORT 2016

Location

Participants

Shareholders' Meeting
Nara, Fukuoka
Communication
with Stakeholders
Plant Tours for Shareholders

KOMATSU CSR REPORT
800 2016

Awazu Plant, Osaka Plant, Oyama and Tochigi

350

Plant

CSR Theme 3

Techno Center Tours

Komatsu Techno Center (Shizuoka)

Meetings for Individual

11 cities in Japan

Growing with Society

130
1,000

Investors

Communication with Employees
At Komatsu, the president convenes a ÒMeeting with the PresidentÓ periodically at each business site in Japan. At these meetings, thepresident directly explains the business environment and related issues, and also takes part in a Q&A session held for employees andthe top management. The content of these meetings, held at the head office in Tokyo, is simultaneously transmitted by TV broadcast toother business units in Japan and later published on the company intranet in English to share the information with Group employees
around the world. Also, at overseas subsidiaries, we are being proactive about holding employee meetings to provide a place forcommunication to take place with the local Group employees.
In addition, we launched an intranet bulletin board, entitled ÒVirtual Office of President,Ó in January 2014 to share with employees
around the world the questions and answers exchanged during the Meeting with the President. The site is updated each week with newquestions, and as of March 31, 2016 a total of 107 questions on specific topics, along with the president's answers, explanations andmessages to employees, have been published in Japanese and English.

Employee meeting held at the main office theÒVirtual Office of PresidentÓ on the intranet

day after financial statements wereannounced in April 2016

Communicating with the Local Community (Efforts in Japan)
We regularly open our plants to the public and hold various events during ÒPlant FairsÓ to cultivate an understanding of our businessamong local residents. The events were held at five plants in FY2015 and were attended by about 43,700 people.
Date

Plant

Number of Visitors (approx.)

May 24

Ibaraki Plant

7,000

August 2

Awazu Plant

15,000

September 26

Koriyama Plant

7,000

October 25

Shonan Plant

6,700

November 8

Osaka Plant

8,000

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KOMATSU CSR REPORT 2016

Communication with Stakeholders

KOMATSU CSR REPORT 2016

CSR Theme 3

Growing with Society
announced in April 2016

Communicating with the Local Community (Efforts in Japan)
We regularly open our plants to the public and hold various events during ÒPlant FairsÓ to cultivate an understanding of our businessamong local residents. The events were held at five plants in FY2015 and were attended by about 43,700 people.
Date

Plant

Number of Visitors (approx.)

May 24

Ibaraki Plant

7,000

August 2

Awazu Plant

15,000

September 26

Koriyama Plant

7,000

October 25

Shonan Plant

6,700

November 8

Osaka Plant

8,000

Ibaraki Plant

Awazu Plant

Shonan Plant

Osaka Plant

Koriyama Plant (Judo class)

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KOMATSU CSR REPORT 2016

Accomplishments and Approaches for Social Contribution Activities

KOMATSU CSR REPORT 2016

Home > CSR > Social Contribution Activities > Accomplishments and Approaches for Social Contribution Activities

SocialContribution
Activities

Accomplishments and Approaches for Social Contribution Activities
Komatsu believes that, in addition to their main business, it is the responsibility of businesses to conduct ÒSocial Contribution ActivitiesÓ
in the local community where they do business. In our social contribution activities, we emphasize themes that make the most of theknow-how which have been cultivated in our main business.

Basic Approaches to Social Contribution (from ÒKomatsu!s Worldwide Code of BusinessConductÓ)ÒSpecific elements of CSR (Corporate Social Responsibility) may differ from country to country, from region to region or from one
business to another. However, regardless of such differences in detail, the key question remains the same for companies to co-exist inharmony with society, that is, how to respond to the expectations from society, and thus gain trust from society. As already stated, it is
Komatsu Group's world-wide common principle that Komatsu should fulfill its corporate social responsibilities through its own business
operations. On top of that, we also acknowledge that a company, as a good corporate citizen, should live up to the expectations of thesociety by promoting harmonious relations with, and contributing to the benefit of, the community in which it operates. Accordingly, we
shall be proactively and continuously engaged in regional activities for social contribution as part of our corporate social responsibility.Ó

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Social Contribution 5 Basic Principles (from ÒKomatsu!s Worldwide Code of Business ConductÓ)Grow

Aims: To clarify the responsibilities of Komatsu Group and its employees as members of the local community and guide their activities

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Activ

for social contribution accordingly.
Principles: Activities for social contribution should:Ge- have continuity;- contribute to the advancement of public welfare;Corp- be chosen voluntarily (not forced);- be reasonable to employees; andComp- not be designed to advertise our products or services.

Koma
Code

Social Contribution Expenditures of the Komatsu Group
Results of Komatsu!s social contributions divided and summarized into 6 general categories are as per below.

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KOMATSU CSR REPORT 2016

Deve

Social Contribution 5 Basic Principles (from ÒKomatsu!s Worldwide Code of Business ConductÓ)Grow

KOMATSU CSR REPORT 2016
Accomplishments and Approaches for Social Contribution Activities
Socia
Aims: To clarify the responsibilities of Komatsu Group and its employees as members of the local community and guide their activities

Activ

for social contribution accordingly.
Principles: Activities for social contribution should:

SocialContribution
ActivitiesGe- have continuity;- contribute to the advancement of public welfare;Corp- be chosen voluntarily (not forced);- be reasonable to employees; andComp- not be designed to advertise our products or services.

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Social Contribution Expenditures of the Komatsu Group

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Results of Komatsu!s social contributions divided and summarized into 6 general categories are as per below.

CSR

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KOMATSU CSR REPORT 2016

Komatsu’s Initiatives for the Social Issues In Various Areas of the World

KOMATSU CSR REPORT 2016

Home
> Social
Social Contribution
Contribution Activities
Activities >> Komatsu!sKomatsu!s Initiatives
Initiatives forfor thethe Social
Social Issues
Issues In
In Various
Various Areas
Areas ofof thethe World
World
Home >> CSR
CSR >SocialContribution
Activities

Komatsu!s Initiatives for the Social Issues In Various Areas of the World
The
various socialsocial issues
issues depending
depending on
on eacheach area.
area.
The worldworld has
has variousAsdevelops businessbusiness on
on aa global
global scale,scale, we
we listenlisten toto thethe opinions
opinions ofof thethe people
people who
who live
live inin eacheach area
area andand conduct
conduct support
support
As Komatsu
Komatsu develops
activities
improve thethe living
living standards
standards ofof thethe people
people inin thethe local
local community.
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We believe
believe thatthat conducting
conducting such
such socialsocial contribution
contribution
activities toto improve
activities
istheresponsibility
of
those
doing
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in
that
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activities is the responsibility of those doing business in that area.

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AfricaSouth Africa

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Providing
Basic Education
Education toto Youth
Youth Who
Who Did
Did Not
Not Receive
Receive Education
Education due
due toto Apartheid
Apartheid (Komatsu(Komatsu SouthSouth Africa
AfricaProviding Basic
Komatsu-DenRon
Community Development
Development Centre)
Centre)Komatsu-DenRon Community
In thethe poverty-stricken
poverty-stricken districts
districts ofof SouthSouth Africa,
Africa, there
there areare aa large
large number
number ofof unemployed
unemployed people
people who
who did
didIn
notreceiveeducation
duringthedaysofApartheid.
Meanwhile,
there
are
businesses
thatsufferfromnot receive education during the days of Apartheid. Meanwhile, there are businesses that suffer from aachronic lack
lack ofof skilled
skilled human
human resources.
resources. In
In orderorder toto solve
solve this
this problem
problem at
at itsits source,
source, Komatsu
Komatsu isischronic
cooperating with
with its
its customer,
customer, DenRon
DenRon toto operate
operate aa school
school andand provide
provide free
free education.
education. The
The youngyoung
cooperating

people who
who graduated
graduated fromfrom this
this school
school have
have gone
gone onon to
to work
work full-timefull-time atat local
local companies,
companies, andand somesomepeoplehave even
even become
become employees
employees ofof DenRon.
DenRon.
have
Mr. Thembalethu
Thembalethu Smith,
Smith,
Mr.
Graduate ofof Komatsu
Komatsu DenRon
DenRon School
SchoolGraduategrew up
up inin thethe country
country andand there
there were
were nono computers
computers inin thethe village,
village, so
so II waswas ableable toto learn
learn about
about computers
computers
II grew
for thethe first
first time
time at
at thisthis school.
school.
for

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North America

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Fostering Career Ideas in Children (Employees of Komatsu America as guest teachers)

CSR
CSR

ÒJunior Achievement (JA)Ó is anÒJunior
NPO supportinginternationalthat provides
programs
to help thatchildrengain knowledge
Achievement(JA)Ó is aneducation
NPO supportinginternational
education
providesprograms toand
help
experience as a member of society
fromgain
the time
they reachschool age,asand
KomatsuofAmerica(KAC)
thisschool
programchildrenknowledge
and experiencea membersociety Corp.
from thetimesupports
they reachage,through employee participation.and
In theseclassroompresentations,
thethisKAC
employeebecomes
the teacher,
not only
they
Komatsu
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Corp. (KAC) where
supports
programthrough
employeeparticipation.
In do
these

gain the joy of the receiving children!sappreciation,
the employees
improve
their theskillsin communication
classroompresentations,where the themselves
KAC employee
becomesteacher,
not only do andtheytime
gain the joy

management.
of theappreciation,
managers of theKACconsider participationin JA a part
employeeeducation.
ofthe receivingMany
children!s
employees
themselves improvetheirofskills
in communicationand time management. Many of the managers of KAC consider participation in JA a part of employee
education.

Mr. Peter Truschke,

JuniorAchievement
Mr.
Peter
Truschke, of Chicago
Junior Achievement of Chicago
Komatsu volunteers are very important in providing a presence that connects the classroom with the real world.
Komatsu volunteers are very important in providing a presence that connects the classroom with the real world.

Chile
Chile

KOMATSU CSR REPORT 201685
Improving the Living Standards of Residents in the Mining Community (Community Support Together with Customer,

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experience as a member of society from the time they reach school age, and Komatsu America Corp. (KAC) supports this program
through employee participation. In these classroom presentations, where the KAC employee becomes the teacher, not only do they

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the receiving
appreciation,
employees
themselves
improve their skills in communicationKOMATSU
and time
CSR REPORT 2016Adobe Ac
Komatsu’s
Initiatives
forchildren!sthe Social
Issues Inthe
VariousAreasof the World
management. Many of the managers of KAC consider participation in JA a part of employee education.

SocialContribution
Activities

Mr. Peter Truschke,
Junior Achievement of Chicago
Komatsu volunteers are very important in providing a presence that connects the classroom with the real world.

Chile
Improving the Living Standards of Residents in the Mining Community (Community Support Together with Customer,
Komatsu Cummins Chile)
For companies that engage in the mining industry, working to improve the living standards of thecommunity is considered Òlicense to operateÓ and Komatsu Cummins Chile (KCC) actively participates inthis effort. As one of these activities, we are supporting the poverty-stricken district alongside ourCustomer, Minera Los Pelambres. The event at the elementary school of giving out Christmas presentsÑorganized mainly by KCC employee volunteersÑhas been going on for 16 years.

Ms. Patricia Trigo,
Teacher at Coiron Elementary School
It is important that there are people who care about this little village.

Ms. Yesenia Carvaja,
Graduate
It!s like they are all my uncles!

Indonesia
Improving the Living Standards of a Poverty-Stricken District (Local Community Support by KI Foundation)
The villages in the vicinity of Komatsu Indonesia (KI) have a high unemployment rate and the householdincome for the majority is lower than the average in Jakarta, with approximately 70% of the people notgraduating from high school. The KI Foundation, funded by subsidiaries of Indonesia, provides
educational funding support for the children in these areas, as well as providing health programs,
promoting recycling, repairing mosques, and providing employment opportunity as hall staff in theemployee cafeteria.
Mr. Suryana,
Caretaker of the Local Mosque
We received support in getting materials and paying the construction company for mosque repairs.

Japan
Construction Industry Labor Shortage - Promoting Labor Participation of Women (Komatsu Safety Training Center,
Training Course aimed at women, Komatsu Rental (Temporary Toilets for Women))
In Japan!s construction industry, due to the aging of experienced workers and lack of young people
taking construction jobs, the decrease in the labor population is becoming a serious problem. As a86

KOMATSU CSR REPORT 2016

measure to deal with this, initiatives are being started in various areas to make it possible for women toincome for the majority is lower than the average in Jakarta, with approximately 70% of the people notgraduating from high school. The KI Foundation, funded by subsidiaries of Indonesia, provides
educational
fundingInsupport
for Areas
the children
these areas, as well as providing healthprograms,
KOMATSUCSR REPORT 2016
Komatsu’s Initiatives for theSocial Issues
Variousof thein World
promoting recycling, repairing mosques, and providing employment opportunity as hall staff in theemployee cafeteria.

SocialContribution
Activities
Mr. Suryana,

Caretaker of the Local Mosque
We received support in getting materials and paying the construction company for mosque repairs.

Japan
Construction Industry Labor Shortage - Promoting Labor Participation of Women (Komatsu Safety Training Center,
Training Course aimed at women, Komatsu Rental (Temporary Toilets for Women))
In Japan!s construction industry, due to the aging of experienced workers and lack of young people
taking construction jobs, the decrease in the labor population is becoming a serious problem. As ameasure to deal with this, initiatives are being started in various areas to make it possible for women towork and be successful in the construction industry and Komatsu is also supporting these efforts. A
training course aimed at women has been set up at Komatsu Safety Training Center, and Komatsu
Rental has developed and started the rental of temporary toilets that women can use safely andcomfortably at construction sites.
Ms. Midori Yamazaki,
Student of Komatsu Safety Training Center
The practicums make me nervous but it is easier not to feel timid when there are only women.

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87

KOMATSU CSR REPORT 2016

Developing People Needed by the Community

KOMATSU CSR REPORT 2016

Home > CSR > Social Contribution Activities > Developing People Needed by the Community

SocialContribution
Activities

Developing People Needed by the Community
When we asked ourselves: ÒWhat sort of social contribution activities would meet the needs of regional communities and make the bestuse of Komatsu's strengths?Ó we arrive at the answer: Òdeveloping people.Ó We are working in cooperation with several entities, such as
national and local governments, as well as schools, to carry out human resource development programs that are tailored to eachregion's needs and enable participants to acquire skills that will open up employment opportunities.

Various Areas and Forms of Support
Developing Human Resources Tailored to Regional Needs Worldwide

Appr

Using the know-how cultivated through our core business, Komatsu is supporting development of the kind of human resources that are

Our A

needed, not only internally by our company, but for local communities.
Expectations for human resources can vary greatly from community to community. At Komatsu, as we do business on a global scale,
we try to understand what each community needs and work on providing that support accordingly, in various areas and in different
forms.
The pyramid graph below shows the different areas in which Komatsu is supporting human resource development. It also shows that

Enha

-ProviSocietDevethe closer you get to the top of the pyramid, the more closely linked the program is with Komatsu businesses. The base of the pyramidGrowshows our active support of activities such as science classes in elementary schools, mainly in different parts of Japan, the U.S.A. and

Socia
Activ

Europe. The next level up is to provide basic education, which is support given to people who cannot or were not able to receive thelevel of education necessary to find employment, due to circumstances specific to the country or region. We currently run suchprograms in Chile and South Africa. At the next level, we support universities and vocational training schools in many regions byproviding Komatsu's curriculum and equipment, as well as instructors. At the top of the pyramid, we are working with national and local

Ge

governments and with our customers to develop human resources, particularly in regions where human resource development is aCorpsocial challenge.

Comp

The actual content of the support given includes Komatsu providing instructors and trainers; providing teaching materials, equipment
and facilities; accepting apprentices; and various other means through which the daily cultivated know-how can be put to best use.

Koma
Code

Support for Developing Human Resources

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zoom

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KOMATSU CSR REPORT 2016

the closer you get to the top of the pyramid, the more closely linked the program is with Komatsu businesses. The base of the pyramidGrowshows our active support of activities such as science classes in elementary schools, mainly in different parts of Japan, the U.S.A. andSocia

KOMATSU CSR REPORT 2016
Developing
People Needed by the Community
Activ
Europe. The next level up is to provide basic education, which is support given to people who cannot or were not able to receive thelevel of education necessary to find employment, due to circumstances specific to the country or region. We currently run suchprograms in Chile and South Africa. At the next level, we support universities and vocational training schools in many regions bySocialContribution
Activities

providing Komatsu's curriculum and equipment, as well as instructors. At the top of the pyramid, we are working with national and local

Ge

governments and with our customers to develop human resources, particularly in regions where human resource development is aCorpsocial challenge.

Comp

The actual content of the support given includes Komatsu providing instructors and trainers; providing teaching materials, equipment
and facilities; accepting apprentices; and various other means through which the daily cultivated know-how can be put to best use.

Koma
Code

Support for Developing Human Resources

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Providing instructors

Providing teaching materials and equipment

Providing facilities and supporting operations

Accepting apprentices

Activities in FY2015
Continued Support of Construction Equipment Operators Training in Liberia
Since FY2014 we have been supporting the construction equipment operators training center established in Liberia as a cooperative
project with the Japanese government and the United National Industrial Development Organization (UNIDO). The second Term has
started in 2016, as our continued support for the project.

<Outline of the Project>- Name of the Vocational School: Japan Heavy Equipment Operator School (JHEOS)- Objective: To promote employment of youth in the mining, construction and agricultural sectors in Liberia by providing skills training
and the development of human resources.
- Investor: The Japanese government (providing gratis fund aid)
- Manager: UNIDO

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KOMATSU CSR REPORT 2016

Developing People Needed by the Community
Providing facilities and supporting operations

KOMATSU CSR REPORT 2016

Accepting apprentices

SocialContribution
Activities

Activities in FY2015
Continued Support of Construction Equipment Operators Training in Liberia
Since FY2014 we have been supporting the construction equipment operators training center established in Liberia as a cooperative
project with the Japanese government and the United National Industrial Development Organization (UNIDO). The second Term has
started in 2016, as our continued support for the project.

<Outline of the Project>- Name of the Vocational School: Japan Heavy Equipment Operator School (JHEOS)- Objective: To promote employment of youth in the mining, construction and agricultural sectors in Liberia by providing skills training
and the development of human resources.
- Investor: The Japanese government (providing gratis fund aid)
- Manager: UNIDO<Footprints of the First Term (April 2013 - March 2016) of the Project and Contents of Komatsu's Support>
May 2014: Komatsu trained four instructors for three weeks in Japan.
June 2014: Opening ceremony of the vocational school.
August 2014: Temporary closure of the school due to the Ebola outbreak (Komatsu continued to support the instructors via emails, etc.
while the school was closed).
December 2014: Komatsu provided a used PC200 hydraulic excavator free of charge.
April 2015: The vocational school started some programs.
August 2015: First graduation ceremony held (for 149 students).

<Komatsu's Plan of Support for the Second Term (April 2016 -- March 2018) of the Project>- To provide know-how related to training materials and equipment to improve programs.
- To train instructors at Komatsu facilities.
- To dispatch Komatsu instructor from Japan to train local instructors, etc.

August 2015 First Graduation Ceremony (forMarch 2016, The Second Term of Project

149 students)

Starts (the signing ceremony)

Liberia is not only rich in iron ore and other resources, but also the government is planning infrastructure development under the
background of economic growth. As a result, we are looking forward to an increase in mid to long-term demand for construction andmining equipment. To unfailingly capture future market demand, we believe it is our important task to develop human resources in
Liberia. As part of its efforts for social contributions around the world, we have been promoting human resource development which
directly results in employment. In Liberia, under collaboration with our local distributor, we are committed to supporting the Project, oneof the areas of focus for its CSR activities.
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KOMATSU CSR REPORT 2016Collaboration with a Business Partner - Local Human Resources Development in Collaboration with Cummins Inc. -KOMATSU CSR REPORT 2016

Home > CSR > Social Contribution Activities > Collaboration with a Business Partner

SocialContribution
Activities

Collaboration with a Business Partner- Local Human Resources Development in Collaboration with Cummins Inc. More effective results can be expected from CSR activities based on collaborations than from activities conducted alone, as we can use
each other!s human resources, know-how and resources, etc. In promoting social contribution activities in the past, Komatsu has
collaborated with entities like NPO organizations that have their own unique know-how. And now in April 2016, we have made acontract with our business partner, Cummins Inc. of U.S., to collaborate on the development of local human resources.

Komatsu and Cummins! Common Objective
Komatsu and Cummins Inc., a major engine manufacturer in the U.S., have been building a strong trust relationship over the years as
partners in the engine business.

Appr

Our A

Our two companies have both been putting energy into supporting human resources development in local communities as part of theirEnhasocial contribution activities, and already have collaborated in several areas. Based on this contract, we will globally expand ourSocietdevelopment of human resources by comprehensively utilizing each other!s resources and best practices.

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April 10, 2016, Tetsuji Ohashi, President and CEO of Komatsu (left) and Mr. Tom Linebarger,
CEO of Cummins Inc. (right) signing the contract.

Risk
CSR

Programs being started by and considered for the collaboration of the two companies
Country

Contents of Program

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Komatsu and Cummins signed a national agreement for Technical Education for Communities

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(TEC) collaboration earlier this year and are working on plans for five educational programsaround the country.
South Africa

Cummins, Komatsu and Schneider Electric plan to launch a TEC program in 2016.

USA

Along with other partners including the State of Utah, the two launched the Diesel Technicians
Pathways Program in Salt Lake City. This vocational education initiative includes high school
diesel programs as well as a community college.

Peru

Distributors of the two have just launched a TEC partnership with a local school in Arequipa
focused on heavy duty machinery maintenance.

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Activ

Collaboration with a Business Partner - Local Human Resources Development in Collaboration with Cummins Inc. -KOMATSU CSR REPORT 2016

Ge

Corp

SocialContribution
Activities

Comp

Koma
Code

April 10, 2016, Tetsuji Ohashi, President and CEO of Komatsu (left) and Mr. Tom Linebarger,
CEO of Cummins Inc. (right) signing the contract.

Risk
CSR

Programs being started by and considered for the collaboration of the two companies
Country

Contents of Program

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Komatsu and Cummins signed a national agreement for Technical Education for Communities

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(TEC) collaboration earlier this year and are working on plans for five educational programsaround the country.
South Africa

Cummins, Komatsu and Schneider Electric plan to launch a TEC program in 2016.

USA

Along with other partners including the State of Utah, the two launched the Diesel Technicians
Pathways Program in Salt Lake City. This vocational education initiative includes high school
diesel programs as well as a community college.

Peru

Distributors of the two have just launched a TEC partnership with a local school in Arequipa
focused on heavy duty machinery maintenance.

Providing an engine technology program to

Scene at a school supported in Peru

the high school students in Salt Lake City incooperation with the state government of
Utah and other organizations.

VOICE
Mr. Tom Linebarger,
CEO of Cummins Inc.
For decades, Cummins and Komatsu have built a strong and growing business relationship. We sharecommon goals and aspirations for our respective businesses, as well as for the people living in ourcommunities. Using the strength of our employees' skills, our global presence and our strong business
partnership, we can provide opportunity to those most in need. This is a win for Cummins, a win for
Komatsu, but most importantly a win for our communities.

Tetsuji Ohashi,
President and CEO, Komatsu Ltd.
We share a common commitment to producing and supporting products in a responsible manner, as wellas to strengthening education and improving opportunities for the people of the communities where we

REPORT2016
92
do business. A partnership
thatKOMATSU
helps theCSR
peopleof ourcommunities will only make our business

partnership stronger. It is with great enthusiasm that Komatsu enters into this global collaboration with aCollaboration with a Business Partner - Local Human Resources Development in Collaboration with Cummins Inc. -SocialContribution
Activities

Providing an engine technology program to

KOMATSU CSR REPORT 2016

Scene at a school supported in Peru

the high school students in Salt Lake City incooperation with the state government of
Utah and other organizations.

VOICE
Mr. Tom Linebarger,
CEO of Cummins Inc.
For decades, Cummins and Komatsu have built a strong and growing business relationship. We sharecommon goals and aspirations for our respective businesses, as well as for the people living in ourcommunities. Using the strength of our employees' skills, our global presence and our strong business
partnership, we can provide opportunity to those most in need. This is a win for Cummins, a win for
Komatsu, but most importantly a win for our communities.

Tetsuji Ohashi,
President and CEO, Komatsu Ltd.
We share a common commitment to producing and supporting products in a responsible manner, as wellas to strengthening education and improving opportunities for the people of the communities where we
do business. A partnership that helps the people of our communities will only make our business
partnership stronger. It is with great enthusiasm that Komatsu enters into this global collaboration with atrusted partner like Cummins.
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KOMATSU CSR REPORT 2016

Disaster Relief

KOMATSU CSR REPORT 2016

Home > CSR > Social Contribution Activities > Disaster Relief

SocialContribution
Activities

Disaster Relief
Komatsu!s products, starting with construction equipment, are a necessity in the recovery and rebuilding process when a natural
disaster has occurred. When such an event occurs, we support disaster recovery in practical ways, such as quickly assessing thesituation in the affected area and providing the equipment and supplies needed. The latest support provided are as follows:

Flood Damage by Dam Collapse (Brazil)
For the dam collapse accident that occurred in November 2015 in southeast Brazil, Komatsu Brasil International Ltda. lent 2 wheel
loaders free of charge to be used for sludge removal and construction to secure the roads.

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Condition of collapsed dam

Wheel loader WA320 provided by Komatsu

Ge

Corp

Kumamoto Earthquake
For the Kumamoto Earthquake which occurred on April 14, 2016, we provided a temporary house as the office building for the city
government in the town of Mashiki, one of the districts that suffered the most damage.

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Mashiki town office building damaged by the

Temporary house put up as the temporary

earthquake

town office building
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KOMATSU CSR REPORT 2016

Clearing Anti-Personnel Landmines and Reconstruction Support

KOMATSU CSR REPORT 2016

Home > CSR > Social Contribution Activities > Clearing Anti-Personnel Landmines and Reconstruction Support

SocialContribution
Activities

Clearing Anti-Personnel Landmines and Reconstruction Support
Since 2008, Komatsu has partnered with the Japan Mine Action Service (JMAS), a certified NPO, to support demining activities in areasof Cambodia and Angola that suffer from damages caused by anti-personnel landmines, which also includes reconstruction work as
part of this community development project. The demining machines and construction machinery, developed using our company's
technical expertise and manufacturing knowledge, are being put to full use in this endeavor.
We demined about 1,200 ha of land in Cambodia and constructed 40 km of roads in eight villages, bringing the total number ofoperating hours for the machines and machinery introduced in 2008 to a cumulative total of approximately 26,000 hours. Constructionof the seventh elementary school under this project was over, and the building with 3 classrooms and a teachers' staff room wascompleted in May. The total number of elementary school students will be approximately 490.

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Komatsu's demining machine

Seventh elementary school in Roung village, completed in May

Also, last November, 2 buildings of prefabricated houses were donated to members of the local land-mine removal organization CMAC
in Cambodia.
These members stay on site during the periods of activity, and were previously staying in tents pitched on the ground that offered poor
coverage that did not even fully keep out the rain, and was a very problematic environment in terms of security and health.
The prefabricated houses donated by Komatsu, though small, provides private space for each person, and is being used as a breakroom for the members working on reconstruction.

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The donated prefabricated houses

A room of the prefabricated house is for shared by two people
Komatsu employees visit schools in Japan to give lectures and share details about these
activities with younger generations, from elementary school children to university students.
In 2015, classes were held at 6 schools, including elementary schools, junior high schools anduniversities.
At a classroom presentation that was held for sixth graders in November, each of the students
seemed to be giving thought to various aspects of the presentation. There were students who

Visiting lecture at a junior highschoolhad thoughts about peace: ÒI cannot understand why humans make things that hurt otherpeopleÓ, Òwars should not ever happenÓ; while other students had thoughts about the future: ÒIalso want to do something to help other people.Ó We will continue to offer visiting lectures to95

KOMATSU CSR REPORT 2016

inspire young people who are the future.

The prefabricated houses donated by Komatsu, though small, provides private space for each person, and is being used as a breakroom for the members working on reconstruction.

Clearing Anti-Personnel Landmines and Reconstruction Support

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A room of the prefabricated house is for shared by two people

The donated prefabricated houses

Komatsu employees visit schools in Japan to give lectures and share details about these
activities with younger generations, from elementary school children to university students.
In 2015, classes were held at 6 schools, including elementary schools, junior high schools anduniversities.
At a classroom presentation that was held for sixth graders in November, each of the students
seemed to be giving thought to various aspects of the presentation. There were students who
had thoughts about peace: ÒI cannot understand why humans make things that hurt other

Visiting lecture at a junior highpeopleÓ, Òwars should not ever happenÓ; while other students had thoughts about the future: ÒIschoolalso want to do something to help other people.Ó We will continue to offer visiting lectures toinspire young people who are the future.

Essay written by a 6th grader at Naeshiro Elementary School in Komatsu City, Ishikawa Prefecture after a visiting lecture

DATA
Results of Demining and Reconstruction Support Activities in Cambodia (Cumulative)
Results (Cumulative

Item

Total by FY2015)

Demined area

1,218 haRoad construction

39.5kmSchools constructed

7

School children supported

487

In Laos, approximately 36% of the land is contaminated by unexploded bombs, many of which are cluster submunitions and every year
children and farmers are getting hurt.
Komatsu is planning and preparing for a project to demine the unexploded submunitions that threaten people!s lives just as land-minesdo, in conjunction with the government of Laos, governmental agencies of Japan, and JMAS. We plan on moving the project forward incooperation with JMAS and by using the demining machines (for demining unexploded submunitions) developed by Komatsu.
JMAS expects to get their main funding from the foreign ministry of Japan, and the government of Japan has high expectations for thisproject operated jointly by the government and the private sector in order to support Laos, which is one of the countries of the world
most victimized by cluster submunitions.

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KOMATSU CSR REPORT 2016

Clearing Anti-Personnel Landmines and Reconstruction Support

KOMATSU CSR REPORT 2016

SocialContribution
Activities

Essay written by a 6th grader at Naeshiro Elementary School in Komatsu City, Ishikawa Prefecture after a visiting lecture

DATA
Results of Demining and Reconstruction Support Activities in Cambodia (Cumulative)
Results (Cumulative

Item

Total by FY2015)

Demined area

1,218 haRoad construction

39.5kmSchools constructed

7

School children supported

487

approximately
36%of the land isbycontaminatedby unexploded
manyof whichare clusterand
submunitions
every
year
In Laos, theland is widelycontaminatedunexploded bombs,
many ofbombs,
which arecluster
submunitions
every year andchildrenandchildren are
andgetting
farmershurt.
are getting hurt.
farmers
Komatsu is planning and preparing for a project to demine the unexploded submunitions that threaten people!s lives just as land-minesdo, in conjunction with the government of Laos, governmental agencies of Japan, and JMAS. We plan on moving the project forward incooperation with JMAS and by using the demining machines (for demining unexploded submunitions) developed by Komatsu.
JMAS expects to get their main funding from the foreign ministry of Japan, and the government of Japan has high expectations for thisproject operated jointly by the government and the private sector in order to support Laos, which is one of the countries of the world
most victimized by cluster submunitions.

Demining machine (for handling

Cluster submunitions in the grass

unexploded submunitions)developed with hydraulicexcavator PC130-8 as a base
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KOMATSU CSR REPORT 2016

Promoting Sports—The Komatsu Women’s Judo Club

KOMATSU CSR REPORT 2016

SocialContribution
Activities

Home > CSR > Social Contribution Activities > Promoting SportsÑThe Komatsu Women's Judo Club

Promoting SportsÑThe Komatsu Women's Judo ClubFounded in 1991 as part of social contribution activities during the 70th anniversary of the company founding, the Komatsu Women's
Judo Club is celebrating its 25th year. Since its establishment, a total of 82 athletes have participated in competitions worldwide. The
club has actively engaged in teaching judo at home and abroad, and in welcoming foreign judo competitors, with the goal to develop
and popularize this sport.

Results of Club Activities in FY2015
At the World Judo Championships held in Astana, Kazakhstan in August 2015, the athletes representing Japan, Haruna Asami (48kgclass) won the silver medal and Miku Tashiro (63kg class) won the bronze medal. Also, Lien Chen-Ling (57kg class), a member ofKomatsu!s judo club competed as an athlete representing Taiwan and gave an outstanding performance. For the team competition, thewomen!s team from Japan won all four matches, in a clean sweep from the first match to the final match with a score of 5 to 0. In thosematches, Miku Tashiro who competed in the 63kg class performed exceptionally by winning 4 matches straight with ippon victories. For
each day of the competition approximately 50 Komatsu employeesÑincluding people from the local Kazakhstan office and distributors,

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Deve

Ñcame to show support for the athletes.

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Komatsu cheering squad at the World Judo Championships in Astana
During FY2015, all of the athletes entered competitions across the world, including Kuwait, Rabat (Morocco), Budapest (Hungary),
Tyumen (Russia), Ahu Dhabi (UAE), Taipei (Taiwan), Cheju (South Korea), Paris (France), Rome (Italy), DŸsseldorf (Germany) as wellas domestically in Tokyo, Yokohama, Fukuoka, Akita, Amagasaki, Ageo and Chiba. Komatsu employees and their families based inregions where these competitions took place attended to show their support for the athletes. This worldwide support of judo has
contributed to both the popularization of the sport and a greater corporate awareness through global teamwork.

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KOMATSU CSR REPORT 2016

In terms of team achievement, they attempted to continue their winning streak at the 65th Group Tournament of the All Japan

CSR

Promoting Sports—The Komatsu Women’s Judo Club

KOMATSU CSR REPORT 2016

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Activities

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Komatsu cheering squad at the World Judo Championships in Astana
During FY2015, all of the athletes entered competitions across the world, including Kuwait, Rabat (Morocco), Budapest (Hungary),
Tyumen (Russia), Ahu Dhabi (UAE), Taipei (Taiwan), Cheju (South Korea), Paris (France), Rome (Italy), DŸsseldorf (Germany) as wellas domestically in Tokyo, Yokohama, Fukuoka, Akita, Amagasaki, Ageo and Chiba. Komatsu employees and their families based inregions where these competitions took place attended to show their support for the athletes. This worldwide support of judo has
contributed to both the popularization of the sport and a greater corporate awareness through global teamwork.
In terms of team achievement, they attempted to continue their winning streak at the 65th Group Tournament of the All Japan
Businessmen!s Judo Federation held in Akita in 2015 but unfortunately lost by the slightest of margins and placed second. The local
personnel in Akita and a cheering party from Tokyo banded together to cheer for the team.
Since its establishment, the Komatsu Women's Judo Club has been training athletes from more than ten countries around the world.
Athletes who have trained in judo at Komatsu have competed internationally, including at the Olympic Games in Athens, Beijing and
London, and have won medals at world championships. It is our dream to one day see an athlete that had been supported by Komatsu
competing against one of the Komatsu Women's Judo Club athletes at an Olympic Games.

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KOMATSU CSR REPORT 2016

Promoting Sports—The Komatsu Women’s Judo Club

KOMATSU CSR REPORT 2016

SocialContribution
Activities
Social Contribution Activities through JudoThe Komatsu Women's Judo Club has continued to coach the Komatsu Kids Judo Team at the Eitai Dojo (in Koto-ku, Tokyo), while
also directing and coaching at judo classes in different places around the world, in order to popularize this sport and educate the next
generation. Coach Mika Sugimoto conducts classes in many locations across Japan.
In FY2015, Judo classes continued to be held mainly in areas where Komatsu operates a production plant. The class in Yaroslavl,
Russia was conducted for the fourth consecutive year and the one in China, held for the second consecutive year, took place in the
Komatsu Judo Gymnasium donated by Komatsu in Jining, Shandong Province. Two coaches, Ayumi and Ikumi Tanimoto, who had
been studying abroad, offered classes in France, the U.K. and Italy in addition to teaching judo and providing lectures in Calama City, amining town in Chile, where they spoke with employees at Komatsu Cummins Chile in November.
The Judo classes in Yaroslavl, Russia was conducted for the 5 consecutive year under the instruction of Coaches Mika Sugimoto and
Ikumi Tanimoto, while in Brazil, Assistant Coach Ayumi Tanimoto and Coach Mika Sugimoto held Judo classes at Parana and Komatsu
Brazil!s Suzano Plant. In Astana where the World Championships were held, before the Championship competitions took place, Judoclasses sponsored by the All Japan Judo Federation were held and Assistant Coach Ayumi Tanimoto participated in instructing.

Commemorative photo of all participants in the Yaroslavi Judo classes
Month

Place

Number of Participants

September

Koriyama (Fukushima)

20

October

Yaroslavl (Russia)

260

October

Curitiba (Brazil)

150

October

Suzano (Brazil)

70
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100

KOMATSU CSR REPORT 2016

Corporate Profile

KOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > Corporate Profile

Our Approach to CSR
Corporate Profile
Company Name
Komatsu Ltd.

Main Businesses
Manufacture and sale of construction and mining equipment, utilities, forest machines and industrial machinery• Please refer to “Products and Applications” and “Services and SolutionsÓ for details about our products, services and the Komatsubrand.

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

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Sales of the Construction, Mining and Utility Equipment by Region

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Sales of the Construction, Mining and Utility Equipment by Region

Income and Income Ratio

Number of Employees by Region

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Corporate Profile

KOMATSU CSR REPORT 2016

Our Approach to CSR
Number of Employees by Region

Number of Operations• Number of Komatsu Group companies (includes Komatsu Ltd.): 180• Number of production operations for the Construction, Mining and Utility Equipment Department: 40• Number of distributors for construction and mining equipment: 217• Number of distributors for forklift trucks: 140
Notes:
Please refer to “Global OperationsÓ for details about production operations and sales and after-sales service operations.
Please refer to “Annual Securities ReportsÓ for financial related information.
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KOMATSU CSR REPORT 2016

GRI G4 INDEXKOMATSU CSR REPORT 2016

Home > CSR > Our Approach to CSR > GRI G4 INDEXOur Approach to CSR
GRI G4 INDEX
Komatsu CSR Report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines. The table below shows "Core"
indicators of GRI G4.
1. General Standard Disclosures
2. Specific Standard Disclosures: Economic, Environmental, Social
Contents

are included in CSR Report andare included in Environmental Report.

ApprContents

are included in KOMATSU REPORT.

Contents

are included in Komatsu website other than the above.

Our A

1. General Standard Disclosures

Enha

Aspects

Indicators Description

Strategy andG4-1

Analysis

ReferenceStatement from chief

CSR Report: Message from Top Management

decision- maker

Komatsu Report: Interview with the President

regarding organization's
strategy
Organizational
ProfileG4-3

Name of organization

CSR Report: Corporate Profile

G4-4

Primary brands, products,

CSR Report: Corporate Profileand services

Company Info: Products and Applications
Company Info: Service and Solutions

G4-5

Location of organization's

CSR Report: Corporate Profile

headquarters
G4-6

Countries where

Company Info: Global Operationsorganization operates,

CSR Report: Strengthening Our Gemba Capability (Dispatching
Technicians from Japan)

has significant
specifically relevant toNature of ownership andCSR Report: Corporate Profile

legal form
Company Info: Global Operations

G4-8

Markets served

G4-9

Scale of organization

G4-10

Number of employees

G4-11

Percentage of employees

CSR Report: Corporate Profile
CSR Report: Condition of the Labor Union

covered by collective
bargaining agreements
Organization's supply
chain

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G4-12SocietCSR Report: Initiatives for Social Issues

operations, or is

G4-7-ProviCSR Report: Support for CSR Initiatives of Business Partners

KOMATSU CSR REPORT 2016

Adobe Ac

Code

GRI G4 INDEX

G4-6

Countries where

Company Info: Global Operationsorganization operates,

CSR REPORT 2016
CSR Report: Strengthening Our Gemba CapabilityKOMATSU(Dispatching
CSR
Technicians from Japan)

has significant

CSR Report: Initiatives for Social Issues

operations, or is
specifically relevant toTo vi
need to dsustainability

Our Approach to CSR
G4-7

CSR Report: Corporate Profile

Nature of ownership andlegal form

Company Info: Global Operations

G4-8

Markets served

G4-9

Scale of organization

G4-10

Number of employees

G4-11

Percentage of employees

CSR Report: Corporate Profile
CSR Report: Condition of the Labor Union

covered by collective
bargaining agreements
G4-12

CSR Report: Support for CSR Initiatives of Business Partners

Organization's supply
chain

G4-13

Significant changes toÑorganization's size,
structure, ownership, or
supply chain
G4-14

Whether/how

IR Info: Corporate Governanceprecautionary approach

CSR Report: Risk Management

or principle is addressed

CSR Report: Compliance
Environmental Report: Promoting Legal Compliance, and Pollution
Mitigation and Prevention
Environmental Report: Management of Chemical Substances and
Pollution Prevention

G4-15

Externally developed
economic, environmental
and social charters,
principles, or otherinitiatives subscribed or
endorsed

G4-16

CSR Report: Message from Top Management
Environmental Report: International Initiatives through theEnvironment

Memberships toassociations and national
or international advocacy
organizations
Entities included in

Annual Securities Report: Overview of Subsidiaries and Affiliates

Aspects andconsolidated financial

Company Info: Subsidiaries and Affiliates

Boundaries

statements

Identified Material

G4-17

G4-18

Materiality process (keyaspects)

G4-19

Materials identified inprocess
CSR Report: CSR Theme Formulation Process (2011)

G4-20

Aspect Boundary for eachmaterial Aspect withinorganization

G4-21

105

Risk

CSR Report: Formulation of Komatsu's CSR Priority Issues andThemes (2016)

KOMATSU CSR REPORT 2016

Aspect Boundary for each

Adobe Acprinciples, or other

CSR Report: Message from Top Management

initiatives subscribed or

GRI G4 INDEX

Environmental Report: International Initiatives throughthe CSR REPORT 2016
KOMATSU
Environment

endorsed
G4-16

Memberships toassociations and national
or international advocacy

Our Approach to CSR
organizations

Entities included in

Annual Securities Report: Overview of Subsidiaries and Affiliates

Aspects andconsolidated financial

Company Info: Subsidiaries and Affiliates

Boundaries

statements

Identified Material

G4-17

G4-18

Materiality process (keyaspects)

G4-19

Materials identified inprocess
CSR Report: CSR Theme Formulation Process (2011)

G4-20

Aspect Boundary for each

CSR Report: Formulation of Komatsu's CSR Priority Issues andThemes (2016)

material Aspect withinorganization
G4-21

Aspect Boundary for eachmaterial Aspect outsideorganization

G4-22

Effect and reasons forÑrestatements in previous
reports
G4-23

Significant changes sinceÑprevious reports
Stakeholder

G4-24

Engagement

Stakeholder groups
engaged

G4-25

Identification andselection of stakeholder
groups engaged

G4-26

Organization's approach

CSR Report: Dialogue with Our Stakeholders

to stakeholder
engagement
G4-27

Key topics and concerns
raised throughstakeholder engagement

Report Profile

G4-28

Reporting period for
information provided

G4-29

CSR Report 2016: Editorial Policy

Date of most recent
previous report (if any)

G4-30

Reporting cycle

G4-31

Contact point forquestions regarding

CSR Digest: Back Cover

CSR Website, Inquiry Form

report or its content

106

KOMATSU CSR REPORT 2016

engagement

GRI G4 INDEX

G4-27

Key topics and concerns

KOMATSU CSR REPORT 2016

raised throughstakeholder engagement

Report Profile

G4-28

Reporting period for
information provided

Our Approach to CSR
G4-29

CSR Report 2016: Editorial Policy

Date of most recent
previous report (if any)

G4-30

Reporting cycle

G4-31

Contact point for

CSR Digest: Back Cover

CSR Website, Inquiry Formquestions regarding
report or its content
G4-32'In accordance' optionÑchosen by organization
G4-33

Organization's policy andÑcurrent practice regarding
external assurance forreportGovernance

Ethics and Integrity

G4-34

G4-56

IR Info: Corporate Governance

Organization's
governance structure

CSR Report: Organization

Organization's values,

Company Info: Komatsu's Worldwide Code of Business Conduct

principles, standards, andCSR Report: Compliancecodes of conduct

CSR Report: The KOMATSU Way

Environmental Report: Organizational Chart of the Environmental
Management Structure

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2. Specific Standard Disclosures(1) Economic
G4-DMA

Economic

G4-EC1

Performance

Reason for importance of

CSR Report: CSR Theme Formulation Process (2011)

material Aspect

CSR Report: Komatsu's CSR Priority Issues and Themes (2016)

Direct economic value

Komatsu Report: Business Highlights

generated and distributed

CSR Report: Personnel Policy and Performance Appraisal System(remuneration data)
CSR Report: Enhancing Work-Life Balance (Work-Life Balance Data)
Annual Securities Report: Income Taxes
CSR Report: Developing People Needed by the Community
CSR Report: Initiatives for Social Issues
CSR Report: Disaster Relief
CSR Report: Clearing Anti-Personnel Landmines and Reconstruction
Support

G4-EC2

Environmental Report: Mitigating Climate Change through Products
and Services

Organization's financial
implications, risks andEnvironmental Report: Initiatives to Mitigate Climate Change in
Business Operations

opportunities due toclimate change
G4-EC3

Annual Securities CSR Report: Liability for Pension and Other
Retirement Benefits

Organization's defined
benefit plan obligations

G4-EC4107

Financial assistance

KOMATSU CSR REPORT 2016
Ñ

CSR Report: Enhancing Work-Life Balance (Work-Life Balance Data)
Annual Securities Report: Income Taxes
CSR Report: Developing People Needed by the Community
KOMATSU CSR REPORT 2016

GRI G4 INDEXCSR Report: Initiatives for Social Issues
CSR Report: Disaster Relief
CSR Report: Clearing Anti-Personnel Landmines and Reconstruction
SupportOur Approach to CSR
G4-EC2

Environmental Report: Mitigating Climate Change through Products
and Services

Organization's financial
implications, risks andEnvironmental Report: Initiatives to Mitigate Climate Change in
Business Operations

opportunities due toclimate change
G4-EC3

Annual Securities CSR Report: Liability for Pension and Other
Retirement Benefits

Organization's defined
benefit plan obligations

G4-EC4

Financial assistanceÑ

received fromgovernment
Market Presence

G4-EC5

Ratio of entry level wage

Ñcompared to local
minimum wage
G4-EC6

Proportion of senior

CSR Report: Diversity Initiatives (Promoting Globalized Management)

management hired fromlocal community
Indirect Economic

G4-EC7

Impacts

Development and impact
of infrastructure

G4-EC8CSR Report: Initiatives for Social Issues
CSR Report: Disaster Relief

investment and services

CSR Report: Clearing Anti-Personnel Landmines and Reconstruction
SupportSignificant indirect

Komatsu Report: Smart Construction

economic impact

Company Info: Process Innovation utilizing IoT
CSR Report: Developing People Needed by the Community
CSR Report: Initiatives for Social Issues
CSR Report: Disaster Relief
CSR Report: Clearing Anti-Personnel Landmines and Reconstruction
SupportProcurement

G4-EC9Practices

Proportion of spending on

CSR Report: Support for CSR Initiatives of Business Partners

local suppliers at
significant locations ofoperation
Back to TOP(2) Environmental
Materials

G4-EN1

Materials used by weightor volume

G4-EN2

Percentage of materials
used that are recycled

EnergyG4-EN3

Environmental Report: Promoting the Reman Remanufacturing
Business

input materials

Environmental Report: Environmental Action Plan and Results for
FY2015 (Research and Development)

Energy consumption

Environmental Report: Relationship between Business Activities andthe Environment

within organization
G4-EN4

Environmental Report: Relationship between Business Activities andthe Environment

Energy consumption

Environmental Report: Site Data
Environmental Report: Relationship between Business Activities andthe Environment

outside organization
KOMATSU CSR REPORT 2016108

Environmental Report: Amount of CO2 Emissions by Scope 3

significant locations ofoperation

GRI G4 INDEXKOMATSU CSR REPORT 2016
Back to TOP(2) Environmental
Materials

G4-EN1

Environmental Report: Relationship between Business Activities andthe Environment

Materials used by weightor volume

Our Approach to CSR
G4-EN2

Environmental Report: Promoting the Reman Remanufacturing
Business

Percentage of materials
used that are recycled

EnergyG4-EN3

input materials

Environmental Report: Environmental Action Plan and Results for
FY2015 (Research and Development)

Energy consumption

Environmental Report: Relationship between Business Activities andthe Environment

within organization
G4-EN4

Environmental Report: Site Data
Environmental Report: Relationship between Business Activities andthe Environment

Energy consumption
outside organization

G4-EN5

Environmental Report: Amount of CO2 Emissions by Scope 3
Environmental Report: Environmental Action Plan and Results for
FY2015 (Manufacturing)

Energy intensity

Environmental Report: Environmental Action Plan and Results for
FY2015 (Procurement and Logistics)
Environmental Report: Reducing CO2 Emissions in Manufacturing
Operations
Environmental Report: Reducing CO2 Emissions in Logistics

G4-EN6

Environmental Report: Environmental Action Plan and Results for
FY2015 (Manufacturing)

Reduction of energy
consumption

Environmental Report: Environmental Action Plan and Results for
FY2015 (Procurement and Logistics)
Environmental Report: Reducing CO2 Emissions in Manufacturing
Operations
Environmental Report: Reducing CO2 Emissions in Logistics
Environmental Report: Halving Electricity Usage Project
Environmental Report: Environmental Accounting

G4-EN7

Environmental Report: Environmental Action Plan and Results for
FY2015 (Research and Development)

Reduction in energy
requirement of products

Environmental Report: Amount of CO2 Emissions by Scope 3

and services

Water

G4-EN8Environmental Report: Mitigating Climate Change through Products
and Services
Environmental Report: Relationship between Business Activities andthe Environment

Total water withdrawal bysourceEnvironmental Report, Effective Utilization of Resources in
Manufacturing Operations (Water Resources)
Environmental Report, Site Data

G4-EN9Ñ

Water sources
significantly affected bywithdrawal of water

G4-EN10

Total volume of water
recycled and reused

Biodiversity

G4-EN11

Environmental Report: Effective Utilization of Resources in
Manufacturing Operations (Water Resources)

Operational sites owned,
leased, or managed inareas of high biodiversity
value

G4-EN12109

KOMATSU CSRREPORT 2016
Environmental
Report: Biodiversity

Activities, products, andWater

G4-EN8Environmental Report: Relationship between Business Activities andthe Environment

Total water withdrawal bysourceGRI G4 INDEXKOMATSU
Environmental Report, Effective Utilization of Resourcesin CSR REPORT 2016
Manufacturing Operations (Water Resources)
Environmental Report, Site Data

G4-EN9Ñ

Water sources
significantly affected by

Our Approach to CSR

withdrawal of water

G4-EN10

Environmental Report: Effective Utilization of Resources in
Manufacturing Operations (Water Resources)

Total volume of water
recycled and reused

Biodiversity

G4-EN11

Operational sites owned,
leased, or managed inareas of high biodiversity
value

G4-EN12

Environmental Report: Biodiversity

Activities, products, andservices in areas of highbiodiversity
biodiversity value
value

G4-EN13
G4-EN13

Habitats
Habitats protected
protected oror
restored
restored

G4-EN14
G4-EN14

Total
Total number
number ofofendangered
endangered species
species with
with

Ñ
Ñ

habitats
habitats inin areas
areas affectedaffectedbyoperations
by operations
Emissions
Emissions

G4-EN15
G4-EN15

G4-EN16
G4-EN16

DirectDirect greenhousegreenhouse gas
gas
emissions(Scope1)emissions (Scope 1)

Environmental
between BusinessBusiness Activities
Activities andandEnvironmental Report:
Report: Relationship
Relationship between
thethe Environment
Environment

EnergyEnergy indirect
indirectgreenhousegreenhouse gas
gas

Environmental
Environmental Report:
Report: Site
Site Data
Data

Other
Other indirect
indirectgreenhouse gas
greenhouse gas
emissions (Scope 3)
emissions (Scope 3)

Environmental
between BusinessBusiness Activities
Activities andandEnvironmental Report:
Report: Relationship
Relationship between
theEnvironment
the Environment

Environmental
Emissions inin Manufacturing
Manufacturing
Environmental Report:
Report: Reducing
Reducing CO
CO22 Emissions
Operations
Operations

emissionsemissions (Scope(Scope 2)2)
G4-EN17
G4-EN17

Environmental Report: Reducing CO2 Emissions in Logistics
Environmental Report: CO2 Reduction of Suppliers

Environmental Report: Reducing CO2 Emissions in Non-manufacturing
Divisions
Environmental Report: Amount of CO2 Emissions by Scope 3

G4-EN18

Environmental Report: Environmental Action Plan and Results for
FY2015 (Manufacturing)

Greenhouse gas
emissions intensity

Environmental Action Plan and Results for FY2015 (Procurement andLogistics)
Environmental Report: Reducing CO2 Emissions in Manufacturing
Operations
Environmental Report: Reducing CO2 Emissions in Logistics

G4-EN19

Reduction of greenhousegas emissions

Environmental Report: Environmental Action Plan and Results for
FY2015 (Manufacturing)
Environmental Report: Environmental Action Plan and Results for
FY2015 (Procurement and Logistics)
Environmental Report: Reducing CO2 Emissions in Manufacturing
Operations
Environmental Report: Reducing CO2 Emissions in Logistics

110

Environmental Report: Halving Electricity Usage Project

KOMATSU CSR REPORT 2016

Environmental Report: Environmental Accounting

emissions (Scope 3)

Environmental Report: CO2 Reduction of Suppliers
Environmental Report: Reducing CO2 Emissions in Non-manufacturing
KOMATSU CSR REPORT 2016
Divisions

GRI G4 INDEX

Environmental Report: Amount of CO2 Emissions by Scope 3

G4-EN18

Environmental Report: Environmental Action Plan and Results for
FY2015 (Manufacturing)

Greenhouse gas
emissions intensity

Our Approach to CSR

Environmental Action Plan and Results for FY2015 (Procurement andLogistics)
Environmental Report: Reducing CO2 Emissions in Manufacturing
Operations
Operations
Environmental Report:
Report: Reducing
Reducing CO
CO22 Emissions
Emissions inin Logistics
Logistics
Environmental

G4-EN19
G4-EN19

Environmental Report:
Report: Environmental
Environmental Action
Action Plan
Plan andand Results
Results forfor
Environmental
FY2015 (Manufacturing)(Manufacturing)
FY2015

Reduction ofof greenhousegreenhouse
Reduction
gas emissions
emissionsgas

Environmental Report:
Report: Environmental
Environmental Action
Action Plan
Plan andand Results
Results forfor
Environmental
FY2015 (Procurement(Procurement andand Logistics)
Logistics)
FY2015
Environmental Report:
Report: Reducing
Reducing CO
CO22 Emissions
Emissions inin Manufacturing
Manufacturing
Environmental
Operations
Operations
Environmental Report:
Report: Reducing
Reducing CO
CO22 Emissions
Emissions inin Logistics
Logistics
Environmental
Environmental Report:
Report: Halving
Halving Electricity
Electricity Usage
Usage Project
Project
Environmental
Environmental Report:
Report: Environmental
Environmental Accounting
Accounting
Environmental

G4-EN20
G4-EN20

Emissions ofof ozoneozoneEmissionsÑÑ

depleting substances
substances
depleting
G4-EN21
G4-EN21

Environmental Report:
Report: Relationship
Relationship between
between BusinessBusiness Activities
Activities andandEnvironmental
the Environment
Environment
theNOx, SOx
SOx andand other
other
NOx,
significant air
air emissions
emissionssignificant

Effluents andand Waste
Waste
Effluents

G4-EN22
G4-EN22

Environmental Report:
Report: Management
Management ofof Chemical
Chemical Substances
Substances andandEnvironmental
Pollution Prevention
Prevention
Pollution
Environmental Report:
Report: Relationship
Relationship between
between BusinessBusiness Activities
Activities andandEnvironmental
the Environment
Environment
theTotal water
water discharged
discharged byby
Total
quality andand destination
destination
quality

Environmental Report:
Report: Effective
Effective Utilization
Utilization ofof Resources
Resources inin
Environmental
Manufacturing Operations
Operations (Water(Water Resources)
Resources)
Manufacturing
Environmental Report:
Report: Site
Site Data
Data
Environmental

G4-EN23
G4-EN23

Environmental Report:
Report: Relationship
Relationship between
between BusinessBusiness Activities
Activities andandEnvironmental
the Environment
Environment
theTotal weightweight ofof wastewaste byby
Total
type andand disposal
disposal method
methodtype

Environmental Report:
Report: Effective
Effective Utilization
Utilization ofof Resources
Resources inin
Environmental
Manufacturing Operations
Operations (Waste)(Waste)Manufacturing
Environmental Report:
Report: Environmental
Environmental Data
Data byby Manufacturing
Manufacturing Facility
Facility
Environmental(in Japan),Japan), (outside(outside Japan)
Japan)(in

G4-EN24
G4-EN24

Environmental Report:
Report: Promoting
Promoting Legal
Legal Compliance,
Compliance, andand Pollution
Pollution
Environmental
Mitigation andand Prevention
Prevention
Mitigation

Total number
number andand volume
volumeTotalof significant
significant spills
spillsof

G4-EN25
G4-EN25

Amount ofof wastewaste deemed
deemedAmountÑÑhazardous under
under Basel
Baselhazardous
Convention2 Annex
Annex I,I, II,II,
Convention2
III andand VIII
VIII
III

G4-EN26

Water bodies affected byÑorganization's dischargeof water and runoff
Products andG4-EN27

Services

Extent of impact
mitigation ofenvironmental impacts of

G4-EN28

Environmental Report: Environmental Action Plan and Results for
FY2015 (Research and Development)
Environmental Report: Amount of CO2 Emissions by Scope 3

products and services

Environmental Report: Mitigating Climate Change through Products
and Services

Percentage of products

Environmental Report: Promoting the Reman Remanufacturing
Business

and their packaging
KOMATSU CSR REPORT 2016
111
Environmental Report: Environmental Action Plan and Results formaterials that are reused
FY2015 (Research and Development)

Convention2 Annex I, II,
III and VIIIGRI G4 INDEX
G4-EN26

KOMATSU CSR REPORT 2016

Water bodies affected byÑorganization's dischargeof water and runoff

Our Approach to CSR

Products andG4-EN27

Services

Environmental Report: Environmental Action Plan and Results for
FY2015 (Research and Development)

Extent of impact
mitigation ofEnvironmental Report: Amount of CO2 Emissions by Scope 3

environmental impacts of

G4-EN28

products and services

Environmental Report: Mitigating Climate Change through Products
and Services

Percentage of products

Environmental Report: Promoting the Reman Remanufacturing
Business

and their packaging

Environmental Report: Environmental Action Plan and Results for
FY2015 (Research and Development)materials that are reusedor recycled

Compliance

G4-EN29

Environmental Report: Environmental Action Plan and Results for
FY2015 (Procurement and Logistics)
Environmental Report: Promoting Legal Compliance, and Pollution
Mitigation and Prevention

Fines and non-monetary
sanctions for noncompliance withenvironmental laws andregulations

Transport

G4-EN30

Environmental Report: Relationship between Business Activities andthe Environment

Impacts of shipping andtransportation

Environmental Report: Environmental Action Plan and Results for
FY2015 (Procurement and Logistics)
Environmental Report: Reducing CO2 Emissions in Logistics

Overall

G4-EN31

Environmental Report: Environmental Accounting

Environmental protection
expenditures andinvestments

Supplier

G4-EN32

Environmental

using environmental

Assessment

criteria
G4-EN33

CSR Report: Support for CSR Initiatives of Business Partners

New suppliers screened

Negative environmental

Ñ

impacts in supply chain
and actions taken
Environmental

G4-EN34

Number of grievances

Grievance

filed through formal

Mechanisms

grievance mechanisms

ÑBack to TOP(3) Social
a. Labor Practices and Decent Work
Employment

G4-LA1New employee hires andCSR Report: Personnel Policy and Performance Appraisal System

employee turnover(Data on employment and turnover)(Employment)(Turnover)G4-LA2

Benefits provided to full-

CSR Report: Enhancing Work-Life Balance (Work-Life Balance Data)time employees
G4-LA3Return to work andretention rates after

112

parental leave

CSR Report: Enhancing Work-Life Balance (Data on pregnancy andchildcare leaves)

KOMATSU CSR REPORT 2016

Grievance

filed through formal

Mechanisms

grievance mechanisms

GRI G4 INDEXKOMATSU CSR REPORT 2016
Back to TOP(3) Social
a. Labor Practices and Decent Work

Our Approach to CSR

Employment

G4-LA1New employee hires andCSR Report: Personnel Policy and Performance Appraisal System

employee turnover(Data on employment and turnover)(Employment)(Turnover)G4-LA2

CSR Report: Enhancing Work-Life Balance (Work-Life Balance Data)

Benefits provided to fulltime employees

G4-LA3

CSR Report: Enhancing Work-Life Balance (Data on pregnancy andchildcare leaves)

Return to work andretention rates afterparental leave

Labor/ Management

G4-LA4

Relations

Minimum notice periods

Ñ

regarding operationalchangesOccupational Health

G4-LA5and Safety

CSR Report: Occupational Safety and Health

Total workforce
represented in formal
health and safetycommittees foroccupational health andsafety programs

G4-LA6

Type of injury and rates
of injury, occupational
diseases, lost days, andabsenteeism, and workrelated fatalities

G4-LA7

Number of workers with

Ñhigh risk of occupational
diseases
G4-LA8

Health and safety topics

CSR Report: Occupational Safety and Healthcovered in formal
agreements with tradeunionsTraining and

G4-LA9

Education

Average hours of training

CSR Report: Employee Training Structure (Data on employee training)

per year for employees
G4-LA10

Support for continued
employability throughskills management andlifelong learning, andassistance for managing

CSR Report: Employee Training Structure
CSR Report: Strengthening Our Gemba Capability
CSR Report: Diversity Initiatives (Rehiring of Retired Employees)

career endings
G4-LA11Percentage of employees

CSR Report: Personnel Policy and Performance Appraisal System

receiving regularperformance and careerdevelopment reviews
Diversity and Equal
Opportunity

G4-LA12Composition of113

CSR Report: Diversity Initiatives

KOMATSU CSR REPORT 2016

governance bodies andagreements with trade

GRI G4 INDEX
Training andunions
G4-LA9

Education

KOMATSU CSR REPORT 2016

CSR Report: Employee Training Structure (Data on employee training)

Average hours of training
per year for employees

G4-LA10

Support for continued
employability throughOur Approach to CSR

CSR Report: Employee Training Structureskills management andCSR Report: Strengthening Our Gemba Capability

lifelong learning, andCSR Report: Diversity Initiatives (Rehiring of Retired Employees)

assistance for managing
career endings
G4-LA11

CSR Report: Personnel Policy and Performance Appraisal System

Percentage of employees
receiving regularperformance and careerdevelopment reviews

Diversity and Equal

G4-LA12

Opportunity

CSR Report: Diversity Initiatives

Composition of
governance bodies andbreakdown of employees
by categories

Equal Remuneration

G4-LA13for Women and Men

Ratio of basic salary andÑ

remuneration of women
to menSupplier

G4-LA14

Percentage of newAssessment for

suppliers screened using

Labor Practices

labor practices criteria
G4-LA15

Negative impacts forÑÑlabor practices in supply
chain and actions taken
Labor Practices

G4-LA16

Number of grievances

Grievance

about labor practices filed

Mechanisms

through formal grievanceÑ

mechanisms

b. Human Rights
Investment

G4-HR1

Total number andÑ

percentage of significant
investment agreements
and contracts that include
human rights clauses orscreening
G4-HR2

CSR Report: ComplianceTotal hours of employee
training on human rights
policies or procedures
relevant to operations

Non- discrimination

G4-HR3

Total number of incidentsÑof discrimination andcorrective actions taken
Freedom of

G4-HR4

Operations and suppliersÑ

Association andidentified in which right toCollective

exercise freedom
114 of KOMATSU CSR REPORT 2016

Bargaining

association and collective

GRI G4 INDEXKOMATSU CSR REPORT 2016

Our Approach to CSR

relevant to operations

Non- discrimination

G4-HR3

Total number of incidentsÑof discrimination andcorrective actions taken
Freedom of

G4-HR4

Operations and suppliers

Association andidentified in which right toCollective

exercise freedom ofBargaining

association and collective

Ñbargaining may beviolated or at risk, andmeasures taken
Child Labor

G4-HR5

Operations and suppliersÑ

identified as having
significant risk forincidents of child labor,
and measures taken
Forced or

G4-HR6

Compulsory Labor

Operations and suppliersÑ

identified as having
significant risk forincidents of forced labor,
and measures taken

Security Practices

G4-HR7

ÑSecurity personnel
trained in organization's
human rights policies andprocedures

Indigenous Rights

G4-HR8

Total number of incidents

Ñof violations involving
rights of indigenous
peoples, and actions
taken
Assessment

G4-HR9CSR Report: Risk Management

Operations that havebeen subject to humanrights reviews or impact
assessments

Supplier Human

G4-HR10

Rights Assessment

New suppliers screenedÑusing human rights
criteria
G4-HR11

Negative human rights

Ñ

impacts on supply chain
and actions taken
Human Rights

G4-HR12

Number of grievances

Grievance

about human rights

Mechanisms

impacts filed throughformal grievance115

mechanisms

Ñ

KOMATSU CSR REPORT 2016

Assessment

G4-HR9CSR Report: Risk Management

Operations that havebeen subject to human

GRI G4 INDEXKOMATSU CSR REPORT 2016

rights reviews or impact
assessments

Supplier Human

G4-HR10

Rights Assessment

New suppliers screenedÑusing human rights

Our Approach to CSR
criteria

G4-HR11

Negative human rights

Ñ

impacts on supply chain
and actions taken
Human Rights

G4-HR12

Number of grievances

Grievance

about human rights

Mechanisms

impacts filed throughÑ

formal grievancemechanisms

c. Society
Local Communities

G4-SO1

G4-SO2

Implemented local

CSR Report: Developing People Needed by the Community

community engagement,

CSR Report: Initiatives for Social Issues

impact assessments, andCSR Report: Disaster Relief

development programs

CSR Report: Clearing Anti-Personnel Landmines and Reconstruction
SupportOperations with negativeÑ

impacts on local
communities
Anti- corruption

G4-SO3

Total number andÑ

percentage of operations
assessed for risk related
to corruption and risks
identified
G4-SO4

CSR Report: Compliance

Communication andtraining on anti-corruption
policies and procedures

G4-SO5

Confirmed incidents ofÑ

corruption and actions
taken
Public Policy

G4-SO6

Total value of politicalÑ

contributions
Anti- competitive

G4-SO7

Behavior

Legal actions for anti-Ñcompetitive behaviour,
anti-trust, and monopoly
practices and theiroutcomes

Compliance

G4-SO8

Monetary value ofÑsignificant fines and othernon-monetary sanctions
for non-compliance withlaws and regulations
Supplier
Assessment for

G4-SO9CSR Report: Support for CSR Initiatives of Business Partners
Percentage of new KOMATSU CSRREPORT 2016116
suppliers screened using

G4-SO5Ñcorruption and actions

GRI G4 INDEX
Public Policy

Confirmed incidents of

KOMATSU CSR REPORT 2016

taken
G4-SO6

Total value of politicalÑ

contributions
Anti- competitive

G4-SO7

Legal actions for anti-

Our Approach to CSR

BehaviorÑ

competitive behaviour,
anti-trust, and monopoly
practices and theiroutcomes

Compliance

G4-SO8Ñ

Monetary value ofsignificant fines and othernon-monetary sanctions
for non-compliance withlaws and regulations

Supplier

G4-SO9CSR Report: Support for CSR Initiatives of Business Partners

Percentage of newAssessment for

suppliers screened using

Impacts on Society

criteria for impacts onsociety
G4-SO10Ñ

Negative impacts onsociety in the supply
chain and actions taken

Grievance

G4-SO11

Number of grievances

Mechanisms forabout impact on society

Impacts on Society

filed through formalÑ

grievance mechanisms

d. Product Responsibility
Customer Health

G4-PR1and Safety

Percentage of productand service categories
assessed for health andsafety impact

CSR Report: Quality and Reliability Quality (Responsible Commitment
to Customers)

improvement
G4-PR2

Non-compliance withregulations concerning
health and safety impacts
of products and services

Product and Service

G4-PR3

Labeling

ÑProduct and service
information required byorganization's proceduresfor information andlabelling, and product andservice categories subject
to such requirements

G4-PR4Non-compliance withÑ

regulations concerning

117

KOMATSU CSR REPORT 2016

G4-PR2

Non-compliance withregulations concerning
health and safety impacts

GRI G4 INDEX
Product and Service

KOMATSU CSR REPORT 2016of products and services
G4-PR3

Labeling

ÑProduct and service
information required byorganization's procedures

Our Approach to CSR

for information andlabelling, and product andservice categories subject
to such requirements

G4-PR4Non-compliance withÑ

regulations concerning
product and service
information and labelling
G4-PR5

CSR Report: Quality and Reliability (Responsible Commitment toCustomers)

Results of surveys
measuring customer
satisfaction

Marketing

G4-PR6

Communications

Sale of banned orÑdisputed products
G4-PR7

ÑNon-compliance withregulations concerningmarketingcommunications

Customer Privacy

G4-PR8Substantiated complaintsÑregarding breaches ofcustomer privacy andloss of customer data
Compliance

G4-PR9ÑNon-compliance withlaws and regulations
concerning provision anduse of products andservices

Back to TOP

118

KOMATSU CSR REPORT 2016

KOMATSU
2-3-6, Akasaka, Minato-ku, Tokyo 107- 8414, Japan
http://www.
komatsu.com/
http://www.komatsu.co.jp/