Management of sustainability

Major achievements

Major Achievements

Major achievements

Sustainability policy and KPIs of mid-term management plan

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

Furthermore, the achievement of ESG-related KPIs is directly linked to the performance-based component of internal directors' remuneration under the mid-term management plan, specifically through Stock-Based Remuneration B.

	Sustainability Policy	Materiality
With people	We provide an environment where diverse and global employees can work safely and healthily as one team, with respect for each individual, and with satisfaction and pride. We nurture employees who can take on challenges 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
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
	Employee engagement and job satisfaction
		Increase employee engagement	2	Global engagement survey score	1. Japan score:75 or more 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. 69 (Japan score) 2. 80 (global score)
	Diversity and Inclusion
		Promote diversity and inclusion	3	Indicators related to female employees 1. Ratio of full-time female employees (consolidated) 2. Ratio of female managers (consolidated)	1. 17.0% or more (as of March 30, 2025) 2. 13.0% or more (as of March 30, 2025)	1. 14.1%(as of March 31, 2023) 2. 10.3%(as of March 31, 2023)	1. 14.5%(as of March 31, 2024) 2. 11.1%(as of March 31, 2024)
		Promote diversity and inclusion	4	Ratio of employees with disabilities	2.5% or more (single year, Japan)	2.42%	2.48%
	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)
			6	Development of human resources with digital transformation and Al skills	Number of training recipients (three-year aggregate) 1. Digital transformation :900 for entry-level, 180 for practical 2. AI :90 for entry-level, 30 for practical	Number of training recipients 1. Digital transformation:5,341 for entry-level* , 44 for practical 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. Digital transformation: 5,643 for entry-level* , 84 for practical 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
			7	Cultivation of Smart Construction consultants	1,000 (aggregate)	867	953
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. Internal 2. Procurement supply chain 3. Sales	1. Internal:Online surveys targeting all Group companies 2. Procurement supply chain:Online surveys targeting major suppliers 3. Sales:On-site impact assessment in South Africa	1. Internal: Basic training on business and human rights 2. Procurement supply chain: (I) Training for the Procurement Division (II) Interviews with major suppliers 3. Sales: Discussions with the marketing department

	Sustainability Policy	Materiality
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
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.
		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
			11	Number of workplaces using Smart Construction (global total)	13,000 workplaces (single year)	8,955	11,740
			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%
		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
			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
			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
			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
		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
		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)
			19	Multi-sourcing ratio (implementation of business continuity measures across the supply chain)	92% (82% in FY2021)	85%	91％
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)
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)

	Sustainability Policy	Materiality
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
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％
			23	Water consumption (compared with FY2010 level)	70% reduction (compared with FY2010 level)	Reduced by 69％	Reduced by 67％
			24	Rate of renewable energy use	20%	17％	25％
	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％
		Reduction of CO₂ emissions at customer workplaces	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
	Forest conservation through business activities
		Provision of solutions that support sustainable, cyclic forestry businesses	27	Growth of forestry machiney business (process mechanization)	1. Sales growth rate : 50% (compared with FY2021, foreign exchange rates fixed) 2. Number of tree planting machines introduced : 30 (single year)	1. Sales growth rate: 22.1％（compared with FY2021, foreign exchange rates fixed) 2. Number of tree planting machines introduced: 5 units	1. Sales growth rate : 28% (compared with FY2021, foreign exchange rates fixed) 2. Number of tree planting machines introduced: 9 units
			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 : 23,705ha
	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)

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