Komatsu has requested all of its Midori-kai (cooperating supplier companies) in Japan and China to obtain certification for environmental management systems (EMS), such as ISO 14001 and Eco-Stage, and has provided guidance and support to help them obtain certification. In Japan, all 155 companies subject to this initiative have obtained certification, and Komatsu has been monitoring their certification renewal status since 2018. All 60 companies in China have also obtained certification.
Komatsu also encourages the remaining Midori-kai companies in Europe, the Americas and Thailand to obtain similar certification.
More than 10 years have passed since the Midori-kai companies in Japan obtained certification. As with occupational health and safety activities, it is important to monitor the extent to which EMS has become embedded in each company’s business activities. To this end, Komatsu began conducting environmental audits of subcontractors that are members of Midori-kai in 2021 and had conducted on-site audits of four companies by 2023.
Through document reviews of compliance with environmental laws and regulations and on-site inspections at each company’s facilities, Komatsu assesses whether each company’s EMS has become embedded in its on-site operations and uses the findings to provide follow-up support for improvements. Since FY2022, Komatsu has expanded checklist-based self-assessments to all subcontractors that are members of Midori-kai in Japan and has held study sessions on environmental laws and regulations. In FY2023, Komatsu conducted training specifically focused on the Water Pollution Control Act and the Sewerage Act, as the document reviews identified a particularly large number of facilities subject to these laws. Komatsu will continue to increase the number of on-site audits, focusing primarily on companies considered to be at higher risk.
Environmental audits
Number of Midori-kai member companies with EMS certifications (as of the end of March 2026)
| Region | Number of member companies | Number of companies which have obtained certification | Percentage of companies with certification | ||||||
|---|---|---|---|---|---|---|---|---|---|
| FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
FY2026 Target |
FY2025 Progress |
||
| Japan | 155 | 156 | 156 | 156 | 156 | 155 | 155 | 100% | 100% |
| China | 56 | 58 | 60 | 60 | 60 | 60 | 53 | 100% | 95% |
| Thailand | 32 | 16 | 16 | 18 | 20 | 20 | 19 | 65% | 59% |
| North America | 47 | 19 | 27 | 27 | 27 | 27 | 21 | 50% | 45% |
| Europe | 40 | 34 | 34 | 35 | 35 | 35 | 35 | 90% | 88% |
| Total | 330 | 283 | 293 | 296 | 298 | 297 | 283 | 90% | 86% |
Komatsu has set a management target for FY2030 of reducing CO2 emissions from production (Scope 1 and 2) by 50% compared with 2010 and is promoting improvement activities toward this target. Meanwhile, as reducing CO2 emissions across the entire supply chain associated with Komatsu’s business has become increasingly important in recent years, Komatsu has also been working to reduce CO2 emissions generated by business partners, which account for approximately 10% of indirect CO2 emissions other than Scope 1 and 2 (Scope 3).
From 2012 to 2016, in response to tight electricity supply and demand and the sharp rise in electricity costs following the Great East Japan Earthquake, Komatsu targeted 96 major Midori-kai outsourcing companies in Japan and set a goal of reducing electricity consumption by at least 15% compared with 2010. Through Midori-kai subcommittee activities, Komatsu shared improvement examples from its own operations across these companies. Although comparisons were complicated by major fluctuations in production volumes and new capital investments, the target was largely achieved by the end of FY2016. These activities prompted the companies to thoroughly roll out their own initiatives company-wide, resulting in some business partners receiving the ECCJ Energy Conservation Grand Prize. Since 2017, each company has independently worked to maintain and improve its electricity consumption intensity.
In addition to electricity, Komatsu has been providing concrete support since 2019 for reducing CO2 emissions from all forms of energy use, including heavy oil and gas, initially targeting the top 10 high-emitting companies engaged in casting, forging, and heat treatment. Since FY2023, Komatsu has also requested all 156 Midori-kai member companies in Japan to set medium- and long-term reduction targets in line with SBT criteria and undertake concrete improvement activities.
At the same time, 92 Midori-kai outsourcing companies have set a common target of reducing CO2 emissions by 20% on an intensity basis by FY2030 compared with FY2022 and have begun CO2 emissions reduction activities. With the launch of these activities, Komatsu distributed its latest collection of improvement case studies in FY2022. Komatsu is also promoting CO2 reductions through technical exchange meetings and other initiatives conducted in collaboration between its improvement promotion division and Midori-kai subcommittees.
Since FY2023, Komatsu has actively promoted improvement activities at forging and casting manufacturers with particularly high CO2 emissions by sharing the details of each company’s improvements through on-site visits and holding case-sharing meetings. Komatsu will continue to follow up on the progress of these activities through periodic CO2 emissions surveys, SAQ questionnaires, and other means.
Changes in electricity consumption
(Midori-kai 92 companies)
Change in CO2 emissions
(Midori-kai 92 companies)
Status of setting of targets for the reduction of GHG emissions (155 companies in the Midori-kai)
| Already set | Not set/not answered yet | |
|---|---|---|
| Short-term target | 142 | 13 |
| Medium- and long-term target | 61 | 74 |
We are inspecting 135 business sites of 96 Midori-kai member companies in Japan to understand their overall water risks, including the above-mentioned flood and tsunami risks, site conditions, water intake and discharge capacities and actual volumes, water quality, and the status of their responses to these risks. We also conduct assessments using Aqueduct, a third-party platform.
In response to these investigations, we have been conducting activities to reduce water consumption since FY2017. In these activities, the top ten companies in the consumption of clean water are considered to be model companies and we present Komatsu improvement examples and provide guidance on improvement through on-site visits, with a target of 15% reduction of water consumption by FY2021. In FY2018, the target was achieved. Since then, we have voluntarily stayed aware of the amount of water used and have extended the activities to other Midori-kai companies through the distribution of improvement examples from Komatsu and ten other companies. We have also conducted environmental audits and confirmed compliance with the Water Pollution Control Act and other water-related laws and regulations since FY2020.
Trends in water supply usage among the top 10 Midori-kai water users
Environmental regulations in China primarily cover the “three wastes”: exhaust gas, wastewater and solid waste. In implementing these regulations, however, regulations and standards independently established by local governments take precedence. Regarding wastewater discharged from factories, in response to the worsening pollution of rivers and lakes, China has established extremely stringent standards for BOD/COD (biochemical oxygen demand/chemical oxygen demand), which are indicators of the amount of organic matter in wastewater, compared with the uniform national standards applied in Japan. As a result, an increasing number of companies are required to install centralized wastewater treatment facilities and other equipment.
Komatsu regularly checks the regulatory compliance status of Midori-kai member companies in China.
In addition, with the aim of fundamentally improving air pollution, including PM2.5 pollution, extremely stringent environmental regulations have been applied since 2015, primarily in coastal regions. Companies engaged in operations such as painting, welding, casting and plating are required to implement comprehensive exhaust gas and wastewater control measures, including VOC controls.
Komatsu works with the relevant Midori-kai member companies in China to support their compliance with these regulations, including the installation of necessary equipment. As a result of the measures implemented by each company, 18 companies had obtained certification for exemption from the application of the regulations, known as green company certification, as of the end of March 2022. Komatsu will continue to work with these companies to reduce risks to the continuation of their operations.
In 2011, Komatsu announced the “Declaration of Biodiversity by Komatsu,” which outlines our commitment to reducing environmental impact through business activities and promoting conservation through social contribution efforts. Midori-kai member companies support this policy and collaborate with us to engage in environmental conservation and other community contribution activities across various regions. Since FY2021, Komatsu has been encouraging member companies to develop their own initiatives tailored to local conditions by providing education programs. In addition, we collect annual reports from each company on their activities and share these examples among all members to promote mutual learning and the dissemination of best practices.
| No. | Theme | Shared cases (summary) |
|---|---|---|
| 1 | Environmental conservation | Conservation of the natural environment through tree planting and green space development on company premises, installation of butterfly gardens, protection of wild bird nests, and other initiatives |
| 2 | Renewable energy | Reduction of CO2 emissions through the introduction of solar power generation at plants, including power sales and self-consumption, as well as the use of non-fossil certificates |
| 3 | Resource circulation | Contribution to a circular economy by reusing wooden pallets, separating waste, and promoting recycling |
| 4 | Environmental education | Raising employee awareness by encouraging employees to obtain Eco Test certification, displaying internal posters, and sharing information through internal newsletters |
| 5 | Regional collaboration | Participation in local environmental activities, including Lake Biwa conservation activities and cleanup activities in industrial parks and along rivers |
| 6 | Environmental impact reduction | Reduction of environmental impact in daily operations through paperless operations, use of certified paper, and selection of simplified packaging |
| 7 | Pollution prevention | Water quality conservation and pollution prevention through proper wastewater management and measures to prevent oil spills |