Management of sustainability

Major achievements

Major Achievements

Major achievements

KPIs for solving social issues

We aim to create a positive cycle of solving social issues and improving profitability through our business activities under our Sustainability Policy. Our Strategic Growth Plan identified 10 relevant SDGs we selected and sets KPIs tied to the three pillars of our growth strategy. The Komatsu Report discloses our progress toward accomplishing these KPIs.

Category SDGs Materiality No. Key activities KPIs FY2027 targets
With people ●Employees
●Human rights		 1 Create safe and secure work environments; support employee health Occupational accident frequency rate (per one million hours) Continue to decrease from the three-year average frequency rate of 1.17 during the previous mid-term management plan period (performance disclosed)
2 Create workplaces where all individuals can shine as their authentic selves, wherever they are Engagement surveys
  1. (1) Improvement of eNPS*1
  2. (2) Global score for sustainable engagement*2
  • *1 Indicator measuring employee sense of attachment to the company
  • *2 Scores represent the rate of positive responses.
  1. (1) Continuous improvement (score higher than previous survey)
  2. (2) 85
3
  1. (1) Ratio of full-time female employees (global)
  2. (2) Ratio of women in managerial positions (global)
  1. (1) 17.0%
  2. (2) 14.0%
4 Ratio of employees with disabilities 2.7% (single year, Japan)
5 Create environments and develop human resources to foster innovation Enrich the succession planning (efforts to build diversity-conscious talent pools in each region) Improved readiness rate and secured diverse pool of talent
6
  1. (1) Global score for Innovation in the engagement survey
  2. (2) Training and growth support for digital talent and leadership driving strategic digital implementation initiatives
  1. (1) Continuous improvement (score higher than previous survey)
  2. (2) Global headquarters and group companies in Japan: 220 participants per year
7 Certified personnel ratio under the solutions sales and mechanic certification program (proficiency assessments by region) 70%
8 Respect human rights across all business activities Conducted human rights due diligence in the following three areas
i. Upstream ii. Komatsu Group iii. Downstream		 Disclose results
Category SDGs Materiality No. Key activities KPIs FY2027 targets
With business ●Customers
●Ethics and governance
●Communities		 9 Enhance product safety Plan, develop, and market safety equipment Disclose results
Expand Industrial Komtrax* contents
  • * Equipment operation management system
 Number of large press predictive maintenance contracts 75 lines (single year)
10 Improve jobsite productivity through Smart Construction Rate of ICT machine* adoption
  • * Hydraulic excavators and bulldozers equipped with 3D machine control and 3D machine guidance functions
 47%
11 Smart Construction support center customer satisfaction 90%
12 Provide solutions for sustainable resource development (mining) Cumulative Autonomous Haulage System (AHS) installations in mines 1,000 units (aggregate)
13 Cumulative number of mines in commercial operation on the new platform
(open technology platform)		 40 sites (aggregate)
14 Completed trials of mining TBM*, a new tunnel boring method
  • * Tunnel-boring machines
 Completed trials at customer sites
15 Hard rock mining business sales US$400 million (single year)
16 Provide solutions for better jobsite safety and productivity
(automation, autonomous operation, remote operation)		 Accelerate automation and remote control of construction and mining equipment Disclose results
17 Build value chains adaptable to changes in the environment and demand Aftermarket business sales growth rate +15% (compared with FY2024; foreign exchange rates fixed)
18 Multi-site parts sourcing ratio for 20-ton class hydraulic excavators (produced by major overseas subsidiaries) 95%
19 Enhance governance and ensure thorough compliance Initiatives to improve management efficiency, ensure sound management, and enhance transparency Disclose results
Full revision of the Komatsuʼs Worldwide Code of Business (13th edition)
  • Deployment in 18 languages globally
  • Improved global e-learning participation rate
20 Continue social contribution activities Ongoing social contribution activities (contribution to communities, landmine removal, disaster recovery support) Disclose results
Category SDGs Materiality No. Key activities KPIs FY2027 targets
With the planet ●Environment 21 Implement efforts to become carbon neutrality Reduce CO2 from production Reduce by 39% (compared with FY2010 levels, total volume)
22 Reduce CO2 from product use Reduce by 32% (compared with FY2010 levels, intensity basis)
23 Rate of renewable energy use 40%
24 Number of product models introduced to the market aimed at carbon neutrality Disclose results
25 Reduce environmental impact through business activities (industrial machinery business) Unit sales of power generation units with thermoelectric elements 150 units (single year)
Number of machine tools sold contributing to electric vehicle production (1. FSW units, 2. large processing machine for aluminum giga die-cast parts)
  1. (1) 7 units (single year)
  2. (2) 15 units (single year)
Extended lifetime of light source modules (chambers) for semiconductor lithography (1. ArF immersion light sources, 2. KrF light sources)
  1. (1) +20% (to be introduced to market in Q1 FY2027)
  2. (2) +30% (to be introduced to market in Q2 FY2026)
Drive circular economies Reman and rebuild business sales growth rate
  • * Component repairs and overhauls performed by authorized Komatsu distributors using genuine parts, based on customer needs
 +5.2% (compared with FY2024; foreign exchange rates fixed)
26 Provide solutions that support sustainable, circular forestry businesses
  1. (1) Forestry machinery business sales growth rate
  2. (2) Annual increase in trees planted using tree-planting machinery sold during the fiscal year (based on additional planting capacity)
  1. (1) +27.1% (compared with FY2024; foreign exchange rates fixed)
  2. (2) +60 million (compared with FY2024)
27 Smart Forestry solution contract rate 62%
28 Nature-positive activities Nature-positive activity planning and framework development Water consumption
Water consumption Reduce to 30% or less (compared with FY2010 levels)
29 Contribute to solving global food challenges Number of agricultural construction machines in operation
  • * Agricultural bulldozers used in farming
 100 units (single year)
Category SDGs Materiality No. Key activities KPIs FY2027 targets
General General 30 Obtain top-tier external sustainability ratings within the industry
  1. (1) CDP
  2. (2) Dow Jones Best-in-Class Indices
  1. (1) Selected for A-list for both climate change and water security
  2. (2) Selected for World and Asia Pacific

Performances of FY 2022 to 2024 against KPIs in the med-term management plan for FY 2022 to 2024 are as follows:

  Sustainability Policy Materiality SDGs
With people
  • We provide an environment where diverse and global employees can work safely and healthily as one team, with respect for each individual, and with satisfaction and pride.
  • We nurture employees who can take on challenges in various job sites and regions, create new value together with customers, and contribute to the realization of a sustainable society.
  • As the Komatsu Group, we shall respect human rights related to all of our business activities.
 Employees Occupational safety and health and well-being
Employee engagement and job satisfaction
Diversity and Inclusion
Skills development 
Human Rights Respect for human rights
Materiality Key activity themes No. KPIs FY2024 targets FY2022 KPI
results		 FY2023 KPI
results		 FY2024 KPI
results
Employees
  Occupational safety and health and well-being
  Build workplaces that are safe and secure 1
  • Frequency rate of lost work time accidents（per 1 million hours）
 Continue to decrease from the three-year average frequency rate of 0.65 during the previous mid-term management plan period (Performance disclosed) 0.80 0.62 0.96
Employee engagement and job satisfaction
  Increase employee engagement 2
  • Global engagement survey score
  1. 1) Japan score:75 or more
  2. 2) Global score:85 or more
  • Notes:1) Scores represents the rate of positive responses.
  •  2) These surveys are conducted once every two years (next : FY25).
 Implemented action plan based on FY2021 survey results Conducted second global engagement survey
  1. 1) Japan score: 69
  2. 2) Global score: 80
 Conducted third engagement survey (FY2025)
  1. 1) Japan score: 71
  2. 2) Global score: 81
Diversity and Inclusion
  Promote diversity and inclusion 3
  • Indicators related to female employees
    1. 1) Ratio of full-time female employees (consolidated)
    2. 2) Ratio of female managers (consolidated)
  1. 1) 17.0% or more (as of March 30, 2025)
  2. 2) 13.0% or more (as of March 30, 2025)
  1. 1) 14.1%(as of March 31, 2023)
  2. 2) 10.3%(as of March 31, 2023)
  1. 1) 14.5%(as of March 31, 2024)
  2. 2) 11.1%(as of March 31, 2024)
  1. 1) 14.9%(as of March 31, 2025)
  2. 2) 11.9%(as of March 31, 2025)
4
  • Ratio of employees with disabilities
 2.5% or more (single year, Japan) 2.42% 2.48% 2.6% (single year, Japan)
Skills development
  Develop individuals' skills and achieve business growth 5
  • Succession plans
 Increased succession planning for senior management positions at Komatsu group companies outside of Japan Defined global key position(GKP) and formulated succession plans Support development and provide oppotunities for global key position(GKP) Increased succession planning for senior management positions at Komatsu Group companies outside of Japan
(Used to select personnel for development of executive candidates)
6
  • Development of human resources with digital transformation and Al skills
 Number of training recipients (three-year aggregate)
  1. 1) Digital transformation :900 for entry-level, 180 for practical
  2. 2) AI :90 for entry-level, 30 for practical

Number of  training recipients 

  1. 1) Digital transformation:5,341 for entry-level* , 44 for practical
  2. 2) AI: 30 for entry-level, 10 for practical
  • Notes: * We administer the entry-level digital transformation course to a wider range of employees via video lectures
 Number of recipients (two-year aggregate)
  1. 1) Digital transformation:
    5,643 for entry-level* , 84 for practical
  2. 2) AI:
    60 for entry-level, 20 for practical
  • Notes: * We administer the entry-level digital transformation course to a wider range of employees via video lectures
 Number of training recipients (three-year aggregate)
  1. 1) Digital transformation: 22,074 for entry-level*, 192 for practical
  2. 2) AI: 99 for entry-level, 34 for practical
  • * DX entry-level courses are offered to all employees as mandatory training
7
  • Cultivation of Smart Construction consultants
 1,000 (aggregate) 867 953 1,414 (aggregate)
Human Rights
  Respect for human rights
  Promote human rights due diligence 8
  • Human rights due diligence activities

Conducted due diligence activities for the following three areas

  1. (1) Internal
  2. (2) Procurement supply chain
  3. (3) Sales
  1. (1) Internal:Online surveys targeting all Group companies
  2. (2) Procurement supply chain:Online surveys targeting major suppliers
  3. (3) Sales:On-site impact assessment in South Africa
  1. (1) Internal:
    Basic training on business and human rights
  2. (2) Procurement supply chain:
    (I) Training for the Procurement  Division
    (II) Interviews with major suppliers
  3. (3) Sales:
    Discussions with the marketing department

Enhancement of grievance structure:
Joined the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER)

  1. (1) Internal:
    Basic training on business and human rights
  2. (2) Procurement:
    Training for procurement staff
  3. (3) Sales:
    Visited distributors under the West African region, etc.
  Sustainability Policy Materiality SDGs
With business
  • We contribute to society through our business activities by providing our customers with safe and highly productive products, services, and solutions that realize sustainable infrastructure development, resource development, and a recycling-oriented society.
  • We build relationships with our business partners and local communities that enable mutual trust, fairness, co-existence, and co-prosperity.
  • We comply with the rules of society, including laws and regulations, and strive to respond sincerely to the requests and expectations of all stakeholders, including society.
 Customers Product safety and quality
Provision of solutions
Ethics / Governance Governance / Compliance
Communities Contributions to local communities
Materiality Key activity themes No. KPIs FY2024 targets FY2022 KPI
results		 FY2023 KPI
results		 FY2024 KPI
results
Customers
  Product safety and quality
Provision of solutions
  Enhancement of product safety 9
  • Development of safety devices and expansion of our range of marketed models equipped with safety devices (KomVision, etc.)
 Expand range of marketed models equipped with safety devices Completed introduction in three small-sized wheel loader models Drowsiness detection system: Installed in HD785-7 retrofit in Europe and Southeast Asia (Philippines).
Already deployed on current rigid dump trucks, except for some models.		 Installed an object avoidance system capable of detecting people and objects using KomVision in the PC200i-12
Improve productivity of construction workplaces by promoting Smart Construction 10
  • Overseas sales of ICT-intensive models
 2,700 units (single year) 2,448 2,038 1,845 units (single year)
11
  • Number of workplaces using Smart Construction (global total)
 13,000 workplaces (single year) 8,955 11,740 8,945 workplaces (single year)
12
  • Enhancement and optimization of processes of construction work places
 Ratio of workplaces using Smart Construction that implement solution Level 3 or higher: 15%(single year) 20% 22% 34% (single year)
Provision of products and solutions that enable sustainable resource development (mining equipment) 13
  • Aggregate number of AHS units deployed
 790 units (aggregate, upward revision from prior target of 740 units) 643 727 862 units (aggregate)
14
  • Optimization of operations at mine sites
 Introduce and promote open technology platforms Completed phase one  development and commenced trials at customer workplaces Conducted trials at multiple customer workplaces Introduce open technology platforms to selected users on a trial basis
15
  • Augmentation of hard rock mining product lineup
 Expand product lineup and execute trials, including those for new methods (mechanical cutting)
  • Load haul dump machines: Completed development of one model
  • Mechanical cutters: Advanced trials at customer workplaces and launched for specific customers
  • Mining tunnel boring machine: Production of trial units assembly
  • Mechanical cutters: Continued operation at customer workplaces with trial units and completed the first commercial unit assembly
  • Mining tunnel boring machines: Completion of trial unit assembly
  • Expansion of product lineup: Introduction of new load haul dump machines and mining trucks
  • New methods
    1) Mechanical cutters: Trials completed
    2) Mining tunnel boring machine: Continued outdoor quality checks of trial unit
16
  • Expansion of hard rock mining business
 Net sales: US$ 300 million (threefold increase from FY2021) Net sales: US$100 million Net sales: US$80 million Net sales: US$140 million
Solutions for improving safety and productivity at customer workplaces (automation, autonomous operation, remote operation) 17
  • Development of automated construction and mining equipment
 Expand the number of marketed models (including new developments)
  • Hydraulic excavators: Tests conducted on equipment jointly developed with customers
  • Mining bulldozers: Completed remote control trials at customer workplaces and conducted automated operation trials
  • Hydraulic excavators: Test conducted on equipment jointly developed with automatic excavation function for specific locations
  • Mining bulldozers: Advanced research on linking bulldozers with a remote control system with Autonomous Haulage System(AHS) for mines underway 
 Hydraulic excavators: Introduced the PC200i-12
Building of value chain adaptable to environmental and demand changes 18
  • Expansion of aftermarket business (pursuit of business growth and response to volatility)
 Sales growth rate: 15% (compared with FY2021, foreign exchange rates fixed) Sales growth rate: 13.5%(compared with FY2021, foreign exchange rates fixed) Sales growth rate: +20% (compared with FY2021, foreign exchange rates fixed) Sales growth rate: +23% (compared with FY2021, foreign exchange rates fixed)
19
  • Multi-sourcing ratio (implementation of business continuity measures across the supply chain)
 92% (82% in FY2021) 85% 91% 92%
Ethics / Governance
  Governance / Compliance
  Strengthen governance and ensure thorough compliance 20
  • Enhanced governance and enforced compliance
 Disclose initiative results
  • Enhanced disclosures  based on Japan's Corporate Governance Code (business portfolio, skill matrix)
  • Conducted global e-learning program on Komatsu’s Worldwide Code of Business Conduct (in 12 languages)
  • Appointed third-party to the evaluation analysis in the evaluation process of the effectiveness of the Board of Directors
  • Conducted global e-learning program on Komatsu’s Worldwide Code of Business Conduct (in 12 languages)
  • Held overseas Board of Directors meetings and visits to overseas customer sites and offices by the attending executives
  • Revised Komatsu's Worldwide Code of Business Conduct and its global implementation.Entrenched conduct standards by conducting global e-learning
Communities
  Contributions to local communities
  Contributions to communities through business and disaster relief support 21
  • Ongoing social contribution activities
 Disclose activity results
  • Continued demining project
  • Provided 30 million yen in relief support following the  earthquakes in Turkey and Syria
  • Continued forest restoration projects at former mine sites in North America
  • Continued providing support for regional human resource development programs with Cummins  Inc. (Chile, Peru, South Africa, and Australia)
  • Continued demining project
  • Provided relief support following the Noto Peninsula earthquake
    (I) Donated 600 million yen
    (II) Lent equipment in  affected areas free-of-charge
    (III) Provided disaster supplies ( emergency food, etc.)
  • Continued forest restoration projects at former mine sites in North America
  • Continued providing support for regional human resource development programs with Cummins Inc.
    (Chile, Peru, South Africa, and Australia)
  • Continued demining project
  • Provided relief support following the Noto Peninsula earthquake (lent equipment in affected areas free of charge)*
  • * Total support in FY2023 and FY2024 totaled ¥1.3 billion, including donations
  • Provided ¥10 million for the earthquake off the coast of eastern Taiwan
  • Continued forest reforestation projects at former mine sites in North America
  • Continued providing support for regional human resource development programs with Cummins, Inc. (Chile, Peru, Australia)
  Sustainability Policy Materiality SDGs
With the planet
  • Through all of our business activities, we strive to reduce our environmental impact and preserve the global environment through the use of advanced technologies.
  • We strive to increase both global environmental conservation and business growth through manufacturing and technological innovation.
  • We pursue collaboration and value creation with our stakeholders toward a sustainable planet and future.
 Environment Reduction of energy usage and GHG emissions
Development of low-carbon / low-emissions products, solutions, and business models
Forest conservation through business activities
Resource recycling and remanufacturing
Materiality Key activity themes No. KPIs FY2024 targets FY2022 KPI
results		 FY2023 KPI
results		 FY2024 KPI
results
Environment
  Development of low-carbon/low-emissions products, solutions, and business models
  Plants with zero environmental impacts 22
  • CO2 emissions from production (compared with FY2010 levels)
 Reduce by 45% (compared with FY2010 levels) Reduced by 43% Reduced by 51% Reduced by 55%
23
  • Water consumption (compared with FY2010 level)
 70% reduction (compared with FY2010 level) Reduced by 69% Reduced by 67% Reduced by 72%
24
  • Rate of renewable energy use
 20% 17% 25% 31%
Reduction of energy usage and GHG emissions
  Reduction of CO2 emissions at customer workplaces 25
  • CO2 emissions from product use (compared with FY2010 levels)
 Reduced by 24% (compared with FY2010 levels) Reduced by 21% Reduced by 22% Reduced by 23%
26
  • Electrification of construction and mining equipment
 Expand models in the development phase and on the market
  • Launched one model
  • Completion of development of two models
 Launched three models Launched two models
Forest conservation through business activities
  Provision of solutions that support sustainable, cyclic forestry businesses 27
  • Growth of forestry machiney business (process mechanization)
  1. 1) Sales growth rate : 50% (compared with FY2021, foreign exchange rates fixed)
  2. 2) Number of tree planting machines introduced : 30 (single year)
  1. 1) Sales growth rate: 22.1% （compared with FY2021, foreign exchange rates fixed)
  2. 2) Number of tree planting machines introduced: 5 units
  1. 1) Sales growth rate : 28% (compared with FY2021, foreign exchange rates fixed)
  2. 2) Number of tree planting machines introduced: 9 units
  1. 1) Sales growth rate: 36% (compared with FY2021, foreign exchange rates fixed)
  2. 2) Number of tree planting machines introduced: 11 (single year)
28
  • Promotion of forest management solutions (development of a business model combining forestry and decarbonization)
 Forest area : 60,000ha(forest management solutions applied) Completed proof-of-concept tests for remote sensing solutions and selected partners  Forest area: 23,705 ha Forest area: 23,946 ha
Resource recycling and remanufacturing
  Promotion of recycling-oriented business 29
  • Expansion of Reman business
 Sales growth rate: 25% (compared with FY2021, foreign exchange rates fixed) Sales growth rate: 16.5%(compared with FY2021, foreign exchange rates fixed) Sales growth rate: 35% (compared with FY2021, foreign exchange rates fixed) Sales growth rate: 47% (compared with FY2021, foreign exchange rates fixed)
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