We respect the human rights related to our business activities in accordance with international human rights principles, including the United Nations’ Guiding Principles on Business and Human Rights. We also prevent and mitigate the occurrence of negative human rights impacts and establish following processes for corrective action when it becomes clear that we have caused or been involved in such impacts.
【Komatsu Group Human Rights Management System】
Assessment of human rights risks: Identification of potential risks based on the requirements of national laws and international human rights laws and regulations.
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 its Human Rights Policy and declared that it endeavors to conduct its business respecting human rights in accordance with international standards throughout its global base, both in the Group and with its business partners, including suppliers and sales and service distributors.
This human rights policy has been incorporated into the Komatsu Code of Conduct (revised in 2021) and is thoroughly communicated by all Komatsu Group employees worldwide.
| Target | Policies and guidelines |
|---|---|
| Group employees | Global personnel policy |
| Suppliers | CSR procurement guidelines Green Procurement Guidelines |
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 conduct ongoing due diligence 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 | With the support of BSR (Business for Social Responsibility), an external expert, we conducted a risk assessment of human rights issues for our global construction, mining, and forestry equipment business. |
|---|---|
| 2017 | Conducted the second human rights risk assessment with the cooperation 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. |
| 2020 | With the support of an external expert, CSR Europe, a Belgian business network, we conducted a systematic global human rights risk assessment of our downstream business (sales of equipment and spare parts) in construction, mining, and forestry equipment business. Based on the characteristics of our business, we assessed and prioritized risks from multiple perspectives, including discrimination based on race, ethnicity, and country of origin, and forced labor, freedom of association, and fair labor conditions to identify and prioritised potential issues for each business sector and region. |
| 2021 | Prioritized how Komatsu’s human rights issues should be addressed and decided to conduct a survey of suppliers and Komatsu Group companies, as well as an on-site impact assessment in downstream businesses. |
| 2022 | - Conducted a human rights web survey of the Komatsu Group companies and major suppliers with support from external consultants. - Conducted an on-site impact assessment of downstream businesses in South Africa with the support of CSR Europe. |
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 conductedan 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) |
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.
We have repeatedly conducted risk assessments and followed up all identified risks. We plan to follow up on issues in our upcoming survey in fiscal year 2022.
In the "Komatsu Code of Conduct," we declare that we shall disclose appropriate information on Komatsu's business operations to our shareholders, investors and other stakeholders to the extent permissible under the relevant laws, regulations and contracts with third parties, and subject to appropriate protection of trade secrets and other confidential information. We will also proactively 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 assessment conducted in the previous year, we have started an on-site impact assessment on our business impact on human rights from 2022.
In September this year, 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.
Komatsu will continue to conduct such on-site impact assessments on sales and services sectors to deepen communication in each region, while accumulating operational methods and know-how of impact assessments to standardize them.
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 head office, 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.
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 will also support the safe deployment of the machines and reduces further the risks for accidents and misuse.
Examples of specific human rights due diligence activities
Since 2019, we have conducted due diligence on Myanmar with the support of external experts, to identify the issues and discuss how we approach those issues. As a result, we made a decision in 2019 to terminate sales of mining equipment to the jade mining market in Myanmar. We also terminated the operations of "Komatsu Manufacturing Myanmar", our subsidiary engaging in mining equipment maintenance. We have since been in the process of liquidating the company. We will continue to work further with our distributors and external experts in Myanmar to take effective measures to strengthen respect for human rights in our operations.