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Management of Environmental and Social Initiatives

External Evaluations

External Evaluations

External Evaluations (As of December, 2019)

(1) External evaluations for CSR activities (Evaluation for SRI)

[Global]

[CDP]
An NPO that was established in the United Kingdom in 2000 and engages in the surveying and global disclosure of corporate initiatives with respect to carbon dioxide emissions and climate change, while simultaneously analyzing and evaluating the surveyed details. In 2016, it started to run a system aimed at selecting A-list companies, or companies recognized by the organization as global leaders in terms of the implementation of action on climate change.
One of the ESG management goals set by Komatsu in “DANTOTSU Value - FORWARD Together for Sustainable Growth,” the new Mid-Term Management Plan that has been carried out since fiscal 2019, is to be selected as an A-list company in reference to CDP’s areas of focus—climate change and water.

[Trends in the selection of the Company over the last three years]

  2017 2018 2019
CDP Climate Change A A A
CDP Water  A A- A-

[Dow Jones Sustainability Indices (DJSI)]
The sustainability indices were developed by U.S.-based S&P Dow Jones and Swiss-based RobecoSAM. They analyze and evaluate corporate sustainability from the three perspectives of the economy, the environment and society to select high-ranking companies in each industrial sector.
One of the ESG management goals set by Komatsu in “DANTOTSU Value - FORWARD Together for Sustainable Growth,” the new Mid-Term Management Plan that has been carried out since fiscal 2019, is to be included in DJSI World.

[Trends in the selection of the Company over the last three years]
Komatsu has been selected as a component of the “World Index” for consecutive years since 2006.

  2017 2018 2019
DJSI DJSI World DJSI World DJSI World

[MSCI Global Sustainability Indexes*]
The Socially Responsible Investment indexes were developed by U.S.-based MSCI (Morgan Stanley Capital International), Inc.


[Trends in the selection of the Company over the last three years]
Komatsu has been selected for consecutive years.

[ISS-Oekom]
The corporate sustainability rating indexes were developed by German-based ISS-Oekom.

[Trends in the selection of the Company over the last three years]
Komatsu has been consecutively awarded "Prime" status in the machinery sector.

[EURONEXT VigeoEIRIS]
The ESG rating index was jointly developed by EURONEXT, a European stock exchange, and Vigeo Eiris, a major U.K. and French ESG survey company.

[Trends in the selection of the Company over the last three years]
Komatsu has been selected for consecutive years.

[Japan]

[FTSE Blossom Japan Index]
The index, which was established by U.K.-based FTSE Russell, selects Japanese companies that implement excellent programs to facilitate ESG.

[Trends in the selection of the Company over the last three years]
Komatsu has been selected for consecutive years.

  • *FTSE Russell confirms that Komatsu has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.

[MSCI Japan ESG Select Leaders Index*]
The index is part of those established by U.S.-based MSCI Inc., aimed at selecting listed Japanese companies with high ESG ratings.

[Trends in the selection of the Company over the last three years]
Komatsu has been selected for consecutive years.

[MSCI Japan Empowering Women Index*]
The index is part of those established by U.S.-based MSCI Inc., aimed at selecting listed Japanese companies that promote a high level of gender diversity.

[Trends in the selection of the Company over the last three years]
Komatsu has been selected for consecutive years.

  • *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 OR PROMOTION 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 TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
 

[S&P/JPX Carbon Efficient Index]
The index is offered by S&P Dow Jones Indices and the Tokyo Stock Exchange for member companies in the Tokyo Stock Price Index (TOPIX). It decides on the investment weights to be applied to such member companies with a focus on the disclosure of environmental information and level of carbon efficiency (carbon emissions per sales).

[Trends in the selection of the company over the last three years]
Komatsu has been selected as index component for consecutive years.

 

[Certifications]

[Competitive IT Strategy Company Stock Selection]
This program has been conducted by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange. It selects outstanding companies among those listed on the Tokyo Stock Exchange proactively utilizing and applying IT for management innovation and the improvement of profitability and productivity levels from the perspective of improving corporate value on a medium- to long-term basis and strengthening competitiveness in each industrial category. Komatsu has been selected for two consecutive years since 2019 and for the third time overall.

[SBT]
SBT (Science based targets, namely, science-based emission reduction targets) is an initiative advocated by the CDP, the United Nations Global Compact, the World Wildlife Fund and the World Resources Institute. It certifies companies that have established reduction targets compatible with scientific knowledge aiming to achieve the target established under the Paris Agreement of keeping the average rise in global temperature due to climate change below two degrees from the pre-Industrial Revolution levels in the worst-case scenario.
Komatsu’s CO2 reduction targets were certified as SBT in April 2017.
Please click here for further details about Komatsu's CO2 reduction and SBT.



(2) Evaluations of IR activities

[Award for Excellence in Corporate Disclosure from the Securities Analysts Association of Japan]
Securities analysts developed objective evaluation criteria to decide on the ranking of companies in terms of its quality, quantity, timing and other factors of corporate disclosures, and based on which established the Award for Excellence in Corporate Disclosure from the Securities Analysts program. The program has been implemented since 1955.
Komatsu received the 2018 Award for Excellence in Corporate Disclosure (first place in the machinery section). This is awarded every two years and Komatsu has received it eight consecutive times-12 times in total.

[2017 IR Grand Prix Award]
The Japan Investor Relations Association selects member companies that have conducted excellent IR activities and provides them with the Best IR Awards. In addition, it gives the IR Grand Prix Award to companies that have received the Best IR Award for the third time.
In 2017, Komatsu received the IR Grand Prix Award for the second time since 2010.
Including the Best IR Award, this is the sixth time it has received the award, in addition to 2007, 2008, 2010, 2013 and 2016. We are the first firm to have received the Grand Prix twice.

 

[Tokyo Stock Exchange (TSE) “the Corporate Value Improvement Award” Grand Prix]
TSE created the Award program in FY2012, designed to annually award the companies which have achieved high corporate value by practicing management of improving corporate value through initiatives that consider capital cost and other investor concerns.
Komatsu was selected for the Grand Prix award of the 8th Corporate Value Improvement Award (FY2019) from all listed companies (about 3,650).

 



(3) Endorsement of initiatives

[UN Global Compact]
The Global Compact, which is an initiative advocated at the World Economic Forum in 1999, requests that companies comply with and practice 10 principles with respect to human rights, labor, the environment and anti-corruption. Komatsu expressed its support for the United Nations Global Compact in November 2008.

[WBCSD]
The World Business Council for Sustainable Development (WBCSD), whose members include more than 200 companies worldwide, is an organization that creates surveys and proposals on the economy, the environment and society with a focus on sustainable development. In addition, it works actively to implement SDGs.
Komatsu decided to support WBCSD in 2010 and has been cooperating in its activities.

[TCFD]
The Task Force on Climate-Related Financial Disclosures (TCFD), which is an initiative established by the Financial Stability Board in June 2017, requests that companies disclose climate-related information that may affect financial matters from the four perspectives of governance, strategy, risk management and metrics/targets.
Komatsu expressed its support for TCFD in April 2019 and has been preparing information disclosures in compliance with the request.

 

 
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