025 gloria blue nega

Theme 1 : Enhancing Quality of Life

Pursuing Environmental Management

Pursuing Environmental Management

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Komatsu Earth Environment Charter

Komatsu Earth Environment Charter

Komatsu Earth Environment Charter (June 2010 revision)

Corporate Principles

1. Contributions to Realization of Sustainable Society

Mankind must not only promote the further growth of a rich and comfortable society but also pass down this indispensable environment of our planet earth to future generations in a sound and healthy condition.
We, at the Komatsu Group, define environmental conservation efforts as one of the highest priority management tasks, and endeavor to contribute to the sustainable growth of society by integrating advanced technologies into environmental conservation efforts in all our business activities. This is represented by our hybrid construction equipment which features a substantial reduction of CO2 emissions while in operation and by our superior manufacturing.

2. Simultaneous Realization of Environmental and Economic Performance

We are committed to improving both environmental performance and economic efficiency, as a group of companies working toward superior manufacturing for customer satisfaction. To this end, we constantly take up the challenge of advancing technologies to develop creative products that improve both environmental performance throughout the product's life cycle and the product's economic performance at the same time.

3. Observance of Corporate Social Responsibility

Each company of the Komatsu Group promotes environmental conservation by not only complying with the applicable laws and regulations of the concerned host community, region and country but also by establishing its voluntary standards which consider global and local environmental concerns. Each company of the Group also strives to fulfill its corporate social responsibility by actively participating in local environmental conservation programs and thereby promoting close-knit communication with local communities, while striving to become a company trusted by all Komatsu stakeholders.

Guidelines for Corporate Activity

1. Basic Stances on Earth Environmental Problems

We, at the Komatsu Group, work for sustainable society and earth environment through our global business operations by addressing the following four environmental problems with the stances discussed below.

1)Climate Change

We will reduce the use of energy and emissions of greenhouse gas in all phases of our business activities ranging from research and development, procurement, production and logistics to sales and service as well as in the total life cycle of our products and services.

2)Establishment of a Sound Material-Cycle Society

Through our business processes, we work to minimize the use of natural resources, such as materials and water, promote their re-use or recycle them as much as possible, and expand Zero Emissions from our manufacturing activities around the world. At the same time we ensure the thorough management of waste materials in all our business domains, including our suppliers and distributors.
We also continuously work to increase the recyclability rate of products at the time of disposal.

3)Conservation of Air, Water and Other Environments as well as Management of Chemical Substances

We comply with not only local laws and regulations but also with our established standards concerning the conservation of water quality, prevention of air pollution, noise and vibrations.
As much as possible, we also ensure the thorough management of chemical substances for use in our business activities, while continuously reducing the use of potentially harmful chemical substances or replacing them with alternative substances for discontinuation of their use.

4)Biodiversity

We recognize biodiversity as one of the important issues concerning the earth environment, evaluate, understand and analyze impact on it in all our business domains, and work on our tasks according to the criteria of the highest impact and/or the most effective actions.

2. Framework of Global, Group-wide Environmental Management System

The Komatsu Head Office, as well as the manufacturing facilities and main companies of the Komatsu Group, already with ISO certifications, will work to maintain and improve their environmental management system, while other manufacturing facilities and suppliers will also work to establish their environmental management systems and reduce their environmental impact.
The Komatsu Environmental Committee develops environmental action plans and common guidelines for the Komatsu Group. Based on these Group-wide plans and guidelines, each division or company sets up its own mid- to long-term targets, develops and implements specific action plans, reviews them regularly and works to continuously improve them.

3. Environmental Education and Communication

We believe that it is important to enhance the environmental awareness of each and every employee and thereby actively promote environmental awareness and education programs for all employees.
We will gather environment-related information concerning not only our manufacturing facilities but also other related entities, such as major affiliated companies and suppliers, and strive to disclose such information, thereby facilitating proactive communication with all our stakeholders, such as customers, employees, local communities and suppliers and further expanding the content of environmental communication.

Environmental Policy of Domestic plants

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Setting Mid- and Long-Term Objectives and Progress

Setting Mid- and Long-Term Targets and Progress

While long-term targets for CO2reduction were set for the world at COP21 in 2015, we set additional medium and long-term targets in order for Komatsu to further contribute to climate change initiatives. We determined FY2016 as the starting point to take action based on these targets.
Through assessing the CO2generated in the life cycle of our construction equipment products, we found that CO2emissions during the use of our construction equipment make up approximately 90% of total emissions. Therefore, we are working on reducing CO2emissions over the entire life cycle of our construction equipment, and have set fuel efficiency goals for construction equipment products that are to be achieved by 2030.
With regards to the reduction of CO2for domestic production, we have considered the electricity situation that resulted from the Great Eastern Japan Earthquake in 2011 and have set increasingly stringent targets. In addition to the targets set for CO2reduction, we have also set targets for our domestic and overseas factories regarding the amounts of waste generated and the amounts of water consumption in order to promote efficient use of resources. Finally, we set Mid- and Long-Term Targets up to 2030 for CO2in logistics.
Furthermore, we have announced an increase in the promotion of effort towards ESG in our medium-term management plans (FY2016-2018), with Product's CO2emissions reduction rate per unit quantity of work set as key performance indicators.

Mid- and Long-Term Targets

Area Object Application Index Base Year Mid- and Long-Term Targets (reduction rate) Progress (results)
FY2018
2020 2030
Production

CO2

Japan

Improvement rate per unit of production

2000

57%

65%

39.8%

Overseas

Improvement rate per unit of production

2010

32%

40%

33.6%

Waste

Japan

Improvement rate per unit of production

2010

10%

20%

0.4%

Overseas

Improvement rate per unit of production

2010

10%

20%

10.4%

Water

Japan

Improvement rate per unit of production

2010

40%

50%

51.3%

Overseas

Improvement rate per unit of production

2010

10%

20%

34.7%

Logistics

CO2

Japan

Improvement rate per unit of production

2006

32%

39%

31.7%

Overseas

Improvement rate per unit of production

2011

13%

22%

0.5%

Construction equipment products performance

CO2

Hybrid Hydraulic Excavator

Fuel Consumption Reduction Rate

2007

40%

45%

36%

Normal Hydraulic Excavator (non-hybrid)

20%

25%

3-11%

  • Minus indicates an increase

Additional Targets for Mid-Term Management Plan

Area Object Application Index Base Year 2025 Targets
(rate of reduction)
Progress (results)
FY2018
CO2during construction equipment usage

CO2

Construction equipment produced worldwide

Improvement rate per unit of production

2007

25%

8.8%

New mid-term Targets from 2019

Komatsu has been moving forward under the new mid-term management plan from 2019. We set new ESG targets and expressed our commitment to sustainable growth through a positive cycle of profit improvement through growth strategies and initiatives for ESG issues.
Our targets from fiscal 2019 are to reduce CO2 emissions from products and production by 50% by 2030. In addition, as a new indicator, we decided to aim for a ratio of 50% of renewable energy power (RE ratio) by 2030.
The new mid-term 2030 targets, including other indicators, are as follows:

Mid-term targets (applicable from 2019)

 

Area Application Object Index Base Year 2030 Targets
Products

Construction Equipment
Mining Equipment
Forest machines

CO2

Fuel Consumption Reduction

2010

50% reduction

Production

Domestic and overseas production bases

CO2

Improvement rate of basic unit

2010

50% reduction

Electricity

Ratio of renewable energy in total electricity usage

-

50%

Water

Improvement rate of basic unit

2010

60% reduction

Waste

Improvement rate of basic unit

2010

40% reduction

Logistics

Japan

CO2

Improvement rate of basic unit

2006

39% reduction

Overseas

CO2

Improvement rate of basic unit

2011

22% reduction

External evaluation

-

-

External evaluation

-

CDP AList(Climate, Water), 
Inclusion in the Dow Jones Sustainability Indices (DJSI) , etc.

SBT (Science-Based Targets) Approved

Komatsu's CO2reduction objectives have been certified by SBT as of April 11, 2017.
SBT (Science-Based Targets) is an initiative that involves “setting goals that are compatible with science.”
The COP21 (Paris Agreement) marked the introduction of a new set of CO2reduction objectives that were submitted by various countries. However, even with the summation of target values, it was found that it would be impossible for the increase of average global temperatures in 2100 to be stay within 2℃ (as compared to temperatures before the Industrial Revolution).
Therefore, after a detailed examination by the businesses of the world, reduction objectives have been reassessed and SBTi (SBT initiative: CDP, Global Compact, WRI, WWF) is supporting and approving SBTs to reach the goal of an increase of less than 2℃.
Komatsu 's SBT meets the requisites of the temperature increase of less than 2℃ scenario.

Komatsu 's SBT are as follows

  1. SCOPE1+2: Base unit -49% (Target Year 2030; Base Year 2010)
  2. SCOPE3: Total -46% (Target Year 2030; Base Year 2012)
  • Note: While Komatsu's 2015 medium and long-term objectives (2020 and 2030 respectively) differ from SBTi in terms of a few requisite conditions (such as using the same base year for assessing both domestic and overseas operations) and target values, the targeted rates of reduction are comparatively equal.
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Environmental Action Plan and Results for FY2017

Environmental Action Plan and Results for FY2018

To promote the Komatsu Earth Environment Charter, the company formulates environmental action plans (implementation policies) for each field, establishes action targets for each fiscal year, and steadily advances its policies, while following up on their implementation status.

The detailed Environmental Action Plan and Results for each field are as follows

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Organizational Chart of the Environmental Management Structure

Organizational Chart of the Environmental Management Structure

The Environmental Management Department, which reports directly to the president, oversees company-wide environmental activities and deliberates on activities at the Earth Environment Committee, which consists of executives from key functional departments.

Organizational Chart of the Environmental Management Structure
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Acquiring ISO14001

Acquiring ISO14001

ISO14001:2015
Domestic Integrated Certification

ISO14001 Integrated Certification

Komatsu has implemented a Group-wide initiative to acquire ISO14001 certification, an international standard for environmental management systems. The objective is to enhance management quality by strengthening systematic steps towards environmental conservation.

Since 1997, several of our domestic and foreign manufacturing facilities received certification. We further added to this number in FY2007, with our major affiliates in Japan and non-certified non-manufacturing facilities (notably the head Office) receiving integrated certification in May 2008, allowing us to achieve integrated certification as a Group.

We acquired the Integrated Certification with the ISO14001:2015 surveillance audit for four of the Komatsu Industries Corp. office locations (Nagoya, Osaka, Hiroshima, Fukuoka) in February of 2019. As of FY2015, we have achieved certification for 100% of our major production sites situated overseas.

Scope of the Integrated Certification in Japan

Global Operations List of certified sites

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