Komatsu : > Komatsu's CSR Themes and Mid-Term Management Plan KPIs

A Century of Creating the	Top Management's Views on
Workplaces of the Future	Komatsu's Management Issues and
	Strategies for the Next Century

Evolution of Business Model for Creating the Workplaces of the Future

Resolution of ESG Issues through	Corporate Profile
Growth Strategies

Resolution of ESG Issues through Growth Strategies

Komatsu's CSR Themes and Mid-Term Management Plan KPIs

Komatsu seeks to help resolve ESG issues by promoting the three pillars of growth strategies defined in the new mid-term management plan. We strive to realize a positive cycle of sustainable growth through improvements of earnings and resolutions to ESG issues. Our initiatives include reducing environmental impacts to combat climate change and supplying

high-quality,high-performance products, services, and solutions ensuring safety. KPIs have been set to guide these ­initiatives for solving ESG issues through our core business.

CSR Themes

Enhancing Quality of Life

-Providing Products Required by Society-

Developing

People

Growing with Society

ESG Solutions through	Key Initiatives under Mid-Term Management Plan	FY2019 KPI Performance	FY2020 KPI Performance	FY2021 KPIs	Strategies Relevant SDGs
Three Pillars of Growth
	Reduction of CO2 emissions (in comparison to FY2010)
	• Reduction of CO2 emissions from product use (fuel-efficiency equipment, hybrid hydraulic	14% reduction	14% reduction	16% reduction (in comparison to FY2010)
	excavator, rate of Smart Construction use, enhancement of ICT-intensive construction, mine
	automation, and underground mining equipment)
	• Reduction of CO2 emissions from production (plants with zero impact on environment and	33% reduction	33% reduction	40% reduction (in comparison to FY2010)
	workers)
	Plants with zero impact on environment and workers
• Provide products, service and solutions	• Rate of renewable energy use (including purchase of renewable energy)	11%	13%	15%
• Work environment burden coefficient (particle matter density)	10.7% reduction	24% reduction	30% reduction (in comparison to FY2018)
contributing to sustainable development of	• Water consumption	49.4% reduction	52% reduction	55% reduction (in comparison to FY2010)
infrastructure, natural resources and circular	Value chain reforms and redefinition of the aftermarket business
• Spare parts sales	3% increase	8% decrease	11% increase
environmental protection (remanufacturing	• Reman component lifespan (compared to new components)
and forestry).	Actual value: Average operating time from the nth to the n+1st overhaul order	26,866 workhours (134% of new components)	19,106 workhours (95% of new components)	20,000 workhours (100% of new components)
• Improve productivity, efficiency, safety and	Assurance of mine operation safety and productivity
• AHS units' population (promotion of mining platform business)	221 units	352 units	380 units (aggregate)
environmental impact (lower CO2 emissions	DANTOTSU Product, DANTOTSU Service, and DANTOTSU Solution
• ICT-intensive equipment introduced (United States, Europe, and Australia)	1,361 units	1,288 units	1,590 units (per year)
and higher ratio of renewable energy use)	• Sites adopting Smart Construction	2,440	3,348	4,850 (per year)
through innovations, such as automation in	Automation, autonomous operation, electrification, and remote-controlling of equipment
the entire value chain.	1. Automation of construction equipment	Verification tests conducted on user sites	In-house verification tests	Test introduction of hydraulic excavators for automated
		Preparations advanced to launch mining bulldozer with	Domestic pretest of bulldozer with level 3 automation,	loading
	2. Automation, autonomous operation, and remote operation of mining equipment	Entry into mining bulldozer market (level 4 automation)
• Make commitment to DANTOTSU Value which	level 2 automation	preparation for proof of concept test in Australia
will realize a better Earth and future by means	3. Automation of utility equipment	Development of peripheral safety technologies for	Entry into retrofit market for installing peripheral safety	Development of technology for automated forklifts
supporting automation	functions in preparation for automation
of technology and reliability (creation and	• Enhancement of mining equipment and hard rock mining businesses	Advancement of development projects for expanding	Expansion of product series (drills, LHD) Four models	Expansion of product series
maximization of customer value).	product series
Agricultural solutions and smart forestry
		Japan: Commencement of verification tests at five	Japan: Development and market evaluation of agricultural	Japan: Expand lineup of agricultural loaders
	• Creation of construction equipment demand in agricultural field	agriculture business operators	ATT
	Indonesia: Increase number of users of agricultural
	Indonesia: Started mass production and sales of D31PLL	Indonesia: Confirmation of feasibility of D21 agricultural
		techniques employing agricultural bulldozers
	• Smart forestry projects	agricultural bulldozer	bulldozer for direct rice planting applications
	10	19	50
	IoT and ICT work reforms
	• Sales in Kom-mics platform business (visualization of production equipment operation)	865 units	1,447 units	1,900 units (including for internal use)
	Development of a diverse workforce with a high level of productivity and technical skills
	• Enhancing employee engagement	Scheduled for FY2020	Preparation for survey in FY2020, global survey in April 2021	Improvement of global surveys and indexes
	• Work process reforms through expansion of diverse and flexible workstyles	(1) 1,950 workhours per person/year	(1) 1,920 workhours per person/year	Total workhours of less than 2,100; introduction of
	(2) Commencement of trial in August 2019	(2) Revision of telework system in August 2020	telework system (Japan)
		• Training hours: 31,625 hours (aggregate hours for all	• Training hours: 33,188 hours (aggregate hours for all	Training hours and number of participants (Disclosure of
• Develop a diverse workforce with a high level	• Promotion of The Komatsu Way (global dissemination of The Komatsu Way)	participants)	participants)
results)
	• Number of participants: 1,461 in Japan, 307 overseas	• Number of participants: 1,527 in Japan, 0 overseas
of productivity and technical skills.	Strengthening and development of diverse talent with a global perspective to help achieve
	sustainable workplaces
• Strengthen and develop diverse talent with a	• Revision of role of Japan in global management	Human resource system revisions started in Japan	• Revision of domestic retirement, wage, and retirement	Shifting of human resources to projects and improvement
benefit systems in April 2021	activities; globalization of organizations on by-function
global perspective to help achieve			• Introduction of elective retirement and R&D staff systems	basis
sustainable workplaces.	• Foundations for global measures (systems, frameworks)	Preparations advanced for introduction	Commencement of domestic data linkage	Introduction
	• Empowerment of female employees ((1) non-consolidated ratio of female employees,	(1) 12.3%, (2) 7.2%, and (3) 4.5%	(1) 12.3%, (2) 7.7%, and (3) 4.9%	(1) 12.5%, (2) 10.0%, and (3) 5.0%
• Develop talent with cross-value chain	(2) non-consolidated ratio of female managers, (3) consolidated ratio of female managers (Japan))
• Rate of employment of people with disabilities (comply with requirements in Japan)	2.58% (non-consolidated)	2.82% (non-consolidated)	Above 2.3% (legally mandated rate)
capabilities.	• Support for regional human resource development for job creation (regional human resource	• Human resource development program launched in Chile	• Ongoing support in Chile, South Africa, and Australia
• Ongoing support provided in Peru, South Africa, and	Chile, Australia, South Africa, others
	development with Cummins Inc.)	Australia	• Establishment of scholarship program for students in Chile
	and Peru as part of COVID-19 relief program
		• Participants' success in finding employment tracked
	Development of talent with cross-value chain capabilities
	• Cultivation of Smart Construction consultants (capable of proposing solutions using ICT to	396	626	430 (aggregate)
	improve productivity and safety throughout construction workplaces)
	Resolutions to social issues through collaboration with stakeholders
			• Posting of past activity documents on Group portal
	• Promotion of industry-government-academia collaboration as well as of collaboration with	Examination of cutting-edge tools through activities with	• Shared information on activities in 14 regions on rotational	Promotion of Brand Management and activities creating
	basis
	customers	domestic customers and regional dissemination	value for customers
	• Continuation of activities by headquarters team targeting
		• Shareholder meetings: 2 times	three customers (two civil engineering, one aggregate)
		• Shareholder meetings: 1 time (held online)
• Offer resolutions for social issues through	• Shareholders and individual investors (shareholder meetings, shareholder factory tours, individual	• Shareholder factory tours: 10 times	• Shareholder factory tours: 0 (canceled due to COVID-19	Number of meetings held (Disclosure of results)
• Individual investor meetings: 7 times	pandemic, factory tour videos shared on official Komatsu
collaboration with stakeholders.	investor meetings)	• Certain factory tours and meetings canceled due to	YouTube account)
		impacts of global COVID-19 pandemic	• Individual investor meetings: 4 times (held online)
• Act as a responsible corporate citizen ensur-	• Institutional investors (ESG meetings)	11 (ESG-related meetings)	• ESG-related meetings: 4	Number of meetings held (Disclosure of results)
• Participation in conferences: 1 (meetings held with 18
ing corporate governance, compliance, and		Business fairs at nine factories (Awazu, Osaka, Ibaraki,	investors)
human rights.
• Communities (business site fairs)	Kanazawa, Tochigi, Oyama, Koriyama, Shonan, and Himi);	All factory fairs canceled due to COVID-19 pandemic	One fair held at each of nine factories per year
	canceled only at Shonan Plant due to impacts of Typhoon
	• Employees (meetings)	Hagibis	29 in Japan (canceled overseas due to COVID-19 pandemic)	Number of meetings held (Disclosure of results)
	34 (30 in Japan, 4 overseas)
	Action as a responsible corporate citizen addressing corporate governance, compliance, and human rights
	• Occupational health and safety, support for establishing environmental and safety systems at	Establishment of Human Rights Policy, disclosure in	Revised Komatsu Code of Worldwide Business Conduct	Ongoing improvements made in reflection of relevant laws
	suppliers, response to Japan's Corporate Governance Code (corporate governance reports),
	integrated report	Human rights e-learning programs, etc.	and regulations and social expectations
	evaluations of effectiveness of Board of Directors, internal control, and internal audits

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Komatsu Report 2021

Komatsu Report 2021

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