025 gloria blue nega

Theme 3 : Growing with Society

Business and Human Rights

Business and Human Rights

1. Formulation of human rights policy

In September 2019, Komatsu established our Human Rights Policy and declared that we endeavor to conduct our business respecting human rights in compliance with the United Nations Guiding Principles on Business and Human Rights, and to apply respect for human rights in accordance with international standards throughout our global organization. Based on this policy, Komatsu develops and implements measures to prevent and mitigate negative impacts on human rights, and further improves its processes to correct potential negative impacts on human rights.
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.

2. Implementation of human rights due diligence

By continuing to implement the following human rights process, we will identify human rights issues in our business, and clarify specific operational procedures for dealing with each issue.

Implementation of human rights due diligence

(1) Human rights risk assessment and impact assessment

Risk assessment is a step in assessing and identifying human rights risks that may be affected by business activities and has been conducted as follows.

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 CSR Europe, an external expert, 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.

(2) Implementation of 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). We are currently investigating ways to expand the scope of this system to include responsible sales approaches and policies.

(3) Deployment to employees and agents

To inseminate our human rights policies within our employees and to raise awareness of preventive and mitigation measures against negative impacts, we have launched an e-learning program in July 2020 and starting with employees in Japan and the United States, we will expand this to our employees worldwide.
We do not have ownership in many of our distributors that sell and service our products worldwide, but we added the clause in our distributorship agreements in which our partners will "respect human rights in the business". We are also engaged in dialogue with these business partners on the formulation of human rights policies and the implementation of voluntary due diligence in line with the realities of their respective regions and businesses.

(4) Deployment to the supply chain

As part of its efforts to ensure that its suppliers respect human rights, we endevour our CSR Procurement Guidelines to penetrate into our daily procurement operations. And in fiscal 2020, we also started to conduct SAQ (Self Assessment Questionnaire) on CSR activities including human rights, among our primary suppliers in Japan and overseas, in order to further promote CSR in our supply chain. In fiscal 2020, we started the survey on 156 companies of “Midori Kai” suppliers in Japan, and we have received responses from 77 companies so far.
For more information, please visit https://komatsu.disclosure.site/en/themes/185.

[Conflict Minerals]

In line with our corporate social responsibilities, Komatsu does not condone the use of conflict materials produced by the Democratic Republic of Congo (DRC), or its neighbors (Angola, Republic of Burundi, Central African Republic, Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia). 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 and to ensure that none of them are sourced from areas of conflict.

[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.


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.

(6)Monitoring and communication

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.

In addition, we believe that an approach to regional and economic development in those areas will also contribute to remediation. 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 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.

komatsu csr, env, corporate communication, Procurement Division