We respect human rights related to our business activities in accordance with international human rights standards, including the United Nations Guiding Principles on Business and Human Rights. We also prevent and mitigate the occurrence of negative impacts on human rights and establish following processes for corrective measures if it becomes clear that we have caused or been involved in such impacts.
【Komatsu group human rights management system】
Assessment of human rights risks: Identifying potential risks continuously based on the requirements of domestic and international laws and regulations on human rights.
Integration into internal divisions and procedures, and appropriate measures: Adoption of improvement activities based on risk assessment evaluation results (appropriate actions to prevent or reduce identified risks and integration of these actions into internal divisions and procedures).
Follow-up survey (Monitoring): Monitoring of the status and effectiveness of risk prevention/mitigation measures and the prevention of the recurrence of incidents.
Information disclosure: Disclosure of information on web pages and in reports to provide an overview of risk assessment efforts and the actions taken to address identified risks.
In September 2019, Komatsu established our human rights policy (revised in September 2023), declaring our endeavors to conduct business with respect for human rights in accordance with international standards, including the United Nations Guiding Principles on Busines and Human Rights, throughout our global organization. This policy applies to all Komatsu Group activities, and Komatsu encourages our business partners, including suppliers, sales and service distributors, to engage in their respective business activities based on this policy.
In September 2023, the Human rights policy was revised following discussions by the Sustainability Promotion Committee and final approval by the President. The revised policy incorporates Komatsu's "Purpose" and "Sustainability policy," clearly articulating the company's stance by stipulating the prohibition of forced labor and child labor and respecting freedom of association and right to collective bargaining. The revised version has been translated into 13 languages and disseminated to Komatsu Group companies and partner companies (suppliers and distributors).
Since human rights management activities are closely related to the operations of each department, including human resources, procurement, occupational safety, and marketing, the Sustainability Promotion Division serves as the secretariat and promotes human rights management in cooperation with each department.
Human rights policies, measures, and activities are discussed and decided by the Sustainability Promotion Committee, and the discussions are reported to the Board of Directors at least once a year.
We operate a human rights due diligence process to identify, prevent, and mitigate any human rights abuses and explain how we address human rights issues in our business activities.
【Summary of human rights due diligence conducted to date】
| 2014 | Conducted assessments with the assistance of external specialist Business for Social Responsibility (BSR) to evaluate human rights risks pertaining to the construction and mining equipment business, as well as the forestry machinery business, both of which we develop on a global scale. |
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| 2017 | Conducted the second human rights risk assessment with the assistance of BSR. In conducting the assessment, we referred to the Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights. |
| 2019 | Established the “Human rights policy.” |
| 2020 | Conducted a systematic human rights risk assessment on a global scale with support from external specialist, CSR Europe, targeting our downstream business (machinery and spare parts sales) of the construction and mining equipment business, as well as the forestry machinery business. Assessed relevant issues pertaining to discrimination based on race, ethnicity, or country of origin; forced labor; freedom of association; and fair labor conditions, in light of the characteristics of our businesses. Identified potential issues and priorities by business and by region. |
| 2021 | Prioritized the human rights issues facing Komatsu, and approved plans to administer written questionnaires to Komatsu Group companies and suppliers, and performed an on-site impact assessment of downstream operations. |
| 2022 | - Conducted a human rights web survey targeting the Komatsu Group and major suppliers. - Performed an on-site impact assessment of downstream businesses in South Africa. |
| 2023 | - Revised the "Human rights policy." - Conducted basic training on business and human rights for all Group employees, as well as supplier human rights training for procurement staff within the Group. - Held open discussions with Komatsu headquarters marketing representatives in charge of each region. - Visited suppliers in Japan and exchanged opinions on the status of their initiatives and the new draft of the human rights guidelines. |
| 2024 | - As part of stakeholder engagement in the downstream business, we held a dialogue with an independent distributor serving the West Africa region and other countries. The discussion covered a wide range of sustainability topics, including not only human rights initiatives but also environmental measures, local human resource development, and social contribution activities. - Continued basic training on business and human rights for all Group employees, as well as supplier human rights training for procurement staff within the Group. - Expanded the “opinion exchange meetings” launched in 2023 with headquarters marketing personnel. In addition to the construction equipment marketing division, the initiative was extended to include staff responsible for mining and forestry equipment to further facilitate the exchange of information and opinions. |
We will strengthen the identification of human rights risks and issues by conducting constant risk assessments throughout our business.
a. Internal and supply chain human rights due diligence
Assessment of Komatsu Group and the supply chain
From FY2020 to FY2021, we have conducted a Self-Assessment Questionnaire (SAQ) on CSR activities, including human rights, among 156 Midori-kai supplier companies in order to further promote CSR in our supply chain and reconfirm that all parties remain fully aware of the guidelines. We confirmed their recognition of the CSR procurement guidelines and the status of their CSR activities, and followed up on the survey results on an individual basis.
In FY2022, we conducted a web-based human rights survey of all Group companies and Midori-kai supplier companies in Japan and overseas. To ensure objectivity in this survey, we received support from an external consultant to create questions and analyze the results based on the UN Guiding Principles on Business and Human Rights and other international rules.
Although no serious human rights violations were found, some challenges such as insufficient awareness of the human rights policies and grievance mechanisms were identified. To mitigate these risks, a feedback report was distributed to all respondents and the results were shared.
DATA Human rights assessment results for group companies and suppliers
|
Period |
Human rights web survey in FY2022 | |
|---|---|---|
| From October 2022 to February 2023 | ||
| Content | 11 categories, 106 questions in total | |
| Number of respondents | 84 Komatsu Group sites in 48 countries*1 (all Komatsu Group companies) |
Midori-kai suppliers 292 companies in 4 countries*2 |
| Total 376 | ||
| Response rate | 100% (total 84) | 72.9% (total 213) |
Supplier visits and meetings
To understand the actual issues identified in the FY2022 human rights web survey (targeting Komatsu Group and Midori-kai suppliers), we visited five suppliers in Japan in March 2024 and exchanged views with their representatives and staff. Komatsu has been working on establishing human rights requirements. We aim to set more specific and effective requirements based on the feedback received during these visits, which will serve as the future due diligence evaluation criteria.
Screening
In our global operations, we have established a screening system to check and regulate transactions with partners designated specified in our sanction lists and other documents. We are ensuring compliance with international laws and regulations (such as embargoes).
Response to conflict minerals
In line with our corporate social responsibilities, Komatsu is continuing its efforts to avoid using conflict materials produced in the Democratic Republic of Congo (DRC) or its neighbors, as these pose a human risk when mined. We have informed our business partners of this policy through the Komatsu Green Procurement Guidelines. Working hand-in-hand with suppliers, we conducted a country-of-origin survey to determine the location of origin of our materials. Komatsu continuously investigates the subject minerals using the RMAP* and other processes. As the number of minerals of concern is increasing, we are taking action while monitoring the laws and regulations of each country.
Response to UK modern slavery act
In response to the "Modern Slavery Act 2015" being enacted by the UK in October 2015, Komatsu UK Ltd. revised its “Slavery and Human Trafficking Statement for the Financial Year 2015.” disclosed on the web site. Recognizing the possibility of the risk of human rights violations occurring in Komatsu's business operations and its supply chains, this statement reports how such an issue will be properly managed.
As a measure to address human rights risks, Komatsu launched training programs in FY2023: a business and human rights basic education for all employees and procurement staff. These programs are being continuously implemented and updated as necessary.
We repeatedly conduct risk assessments and continuously follow up on identified risks.
In the "Komatsu’s Worldwide Code of Business Conduct," we declare that we shall proactively disclose information, except in cases involving confidentiality or trade secrets. We will also make efforts to disclose relevant information on human rights issues to improve transparency and fairness.
b. Human rights due diligence in downstream business
We continue our efforts to establish a "responsible sales" approach, considering human rights in our downstream business, i.e., sales and service of products and spare parts.
[Activities in 2022] On-site impact assessment in South Africa
Based on the results of the risk assessments conducted up to the previous year, we have been conducting on-site impact assessments of our business operations on human rights since 2022.
In September 2022, we conducted an on-site impact assessment in South Africa with the support of CSR Europe. The assessment was conducted in cooperation with Komatsu Ltd. and Komatsu South Africa (Pty) Ltd., which oversees sales and services in South Africa. Based on desk research conducted in advance, the on-site impact assessment was carried out to hold dialogues with stakeholders involved in our business in South Africa. No major human rights risks were identified, and intensive discussions on human rights were held, enabling us and our customers to share awareness and deepen the understanding of issues and values.
DATA Downstream impact assessment results
| FY2022 | |
| Country | South Africa |
| Number of interviews | Individual interviews: 7 companies/organizations (customers: 5, NGOs: 2) Dialogue with stakeholders: 12 companies/organizations (customers, potential customers, NGOs, mining industry associations, chambers of commerce, vocational training institutions, university associate professors, etc.) |
Komatsu has established a "Global Compliance Hotline" at its headquarters, which can be used to report any violation of human rights issues, and has made this hotline known to all Komatsu Group employees. The hotline also accepts reports of violations or suspected violations of human rights policies and laws, as well as reports of non-compliance or suspected non-compliance in procurement activities, to whom anyone can contact anonymously if he or she becomes aware of facts that may indicate a violation or suspected violation. The "Five Principles of Compliance," which all Komatsu Group companies and their employees must follow, making it clear that employees who use the system for appropriate reporting will not be treated unfairly in any way as a result of their action.
In addition, to broadly receive and respond to inquiries—particularly those from external stakeholders—regarding human rights issues across the entire value chain, Komatsu joined the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER) in 2024. In July 2024, we received a report via JaCER alleging “forced labor at a supplier.” The report concerned the alleged mistreatment (forced labor) of foreign workers at a plastic parts manufacturer in Malaysia that was suspected of being a Komatsu supplier. Upon verification, it was confirmed that Komatsu has had no business relationship with the company, and the case was closed.
Going forward, Komatsu will continue working toward the establishment of fair and transparent grievance mechanisms by actively collecting opinions and inquiries on human rights both internally and externally.
Since FY2023, we have been conducting “Basic training on business and human rights” for all Group employees and “Procurement staff training” for employees at procurement departments through online e-learning. The training materials were translated into 13 languages and distributed to each Komatsu Group company. In addition, we have continued to hold “opinion exchange meetings” with Komatsu headquarters marketing personnel, where we introduce past initiatives and engage in mutual exchange of opinions and information on approaches to responsible sales. We will continue to provide human rights training and work to raise human rights awareness throughout the entire Komatsu Group.
Revitalization of local communities (social contribution activities)
We believe that revitalizing the local economy will also help solving potential human rights issues. Through human resource development utilizing our core skills, we continue to focus on education at training centers around the world, and support regional vocational training schools through our social contribution programs in ways such as providing curriculums and training tools. This is expected to further reduce the risks of product-related accidents and misuse.
Examples of specific human rights due diligence activities
Komatsu has identified Myanmar as a region with potential human rights risks, and since 2019, we have conducted due diligence involving external experts to identify issues and discuss appropriate responses. Based on the outcome of those discussions, we made a decision in 2019 to discontinue the sales of mining equipment to the jade mining market in Myanmar. We also ceased operations of our local mining equipment maintenance subsidiary and have completed the liquidation process. We will continue to collaborate with our distributor in Myanmar and external experts to implement effective measures that strengthen respect for human rights in our business operations.
