-Komatsu's CSR themes and Mid-term management plan KPIs

Under the previous mid-term management plan (FY2019-FY2021), Komatsu sought to help resolve ESG issues by promoting the three pillars of growth strategies. Specifically, we strove to reduce environmental impacts to combat climate change and to supply safe, high-quality,high-performance products, services, and solutions. Under this approach, we set KPIs based on

analyses of their relationships with the three pillars of growth strategies and advanced priority measures based on these strategies to generate a positive cycle for resolving ESG issues and improving earnings to achieve sustainable growth.

In the new mid-term management plan (FY2022-FY2024), we have once again set KPIs to guide us in efforts to generate a positive cycle for resolving ESG issues and improving earnings to achieve sustainable growth. Please see page 36 for details.

Key initiatives under Mid-term management plan

Reduction of CO2 emissions (in comparison with FY2010)

• Reduction of CO2 emissions from product use (fuel-efficiency equipment, hybrid

16% reduction (in comparison with FY2010)

hydraulic excavator, rate of Smart Construction use, enhancement of ICT-

intensive construction, mine automation, and underground mining equipment)

• Reduction of CO2 emissions from production (plants with zero impact on

40% reduction (in comparison with FY2010)

Plants with zero impact on environment and workers

• Rate of renewable energy use (including purchase of renewable energy)

• Work environment burden coefficient (particle matter density)

30% reduction (in comparison with FY2018)

55% reduction (in comparison with FY2010)

Value chain reforms and redefinition of the aftermarket business

• Reman component lifespan (compared to new components) Actual value:

Average operating time from the nth to the n +1st overhaul order

Assurance of mine operation safety and productivity

• AHS unit population (promotion of mining platform business)

DANTOTSU Products, DANTOTSU Services, and DANTOTSU Solutions

• ICT-intensive equipment introduced (United States, Europe, and Australia)

• Sites adopting Smart Construction

Automation, autonomous operation, electrification, and remote-controlling of equipment

Verification tests conducted on user sites

Hydraulic excavators: Preparation for test introduction of

Test introduction of hydraulic excavators for automated loading

2. Automation, autonomous operation, and remote operation of

Preparations advanced to launch mining bulldozer with

Domestic pretest of bulldozer with level 3 automation, preparation

Mining bulldozers: Preparation for level 3 automation proof of concept,

Entry into mining bulldozer market (level 4 automation)

for proof of concept test in Australia

examination of possibility of advanced level 4 automation research

Development of peripheral safety technologies for

Entry into retrofit market for installing peripheral safety functions in

Fork lifts: Completion of function verification for level 2 and

Development of technology for automated forklifts

above automation technologies (drive support function)

• Enhancement of mining equipment and hard rock mining businesses

Advancement of development projects for expanding product series

Expansion of product series (drills, LHD), four models

Trial use of new mechanical cutters at customer workplaces

Agricultural solutions and smart forestry

will realize a better Earth

• Japan: Commencement of verification tests at five agriculture

• Japan: Introduction of one D21 unit; ongoing joint industry-

and future by means of

• Japan: Development and market evaluation of agricultural ATT

• Japan: Expand lineup of agricultural loaders

academic research project at large-scale agricultural site

• Creation of construction equipment demand in agricultural field

• Indonesia: Confirmation of feasibility of D21 agricultural bulldozer

• Indonesia: Introduction of four D21 units; redoubled examina-

• Indonesia: Increase number of users of agricultural techniques

• Indonesia: Started mass production and sales of D31PLL

for direct rice planting applications

tion of agricultural applications for construction equipment in

IoT and ICT work reforms

• Sales in Kom-mics platform business

1,521 units (including for internal use)

1,900 units (including for internal use)

(visualization of production equipment operation)

Development of a diverse workforce with a high level of productivity and technical skills

• Preparation for survey in FY2020, global survey in April 2021

• Global base survey conducted in April 2021

• Work process reforms through expansion of diverse and

• Total workhours of less than 2,100

(2) Commencement of trial in August 2019

(2) Revision of telework system in August 2020

2. Ongoing use of teleworking primarily for purpose of improving

• Introduction of telework system (Japan)

productivity through diversification of workstyles

• Promotion of The Komatsu Way (global dissemination of The Komatsu Way)

• Training hours: 31,625 hours (aggregate hours for all participants)

• Training hours: 33,188 hours (aggregate hours for all participants)

• Training hours and number of participants (Disclosure of results)

• Number of participants: 1,461 in Japan, 307 overseas

• Number of participants: 1,527 in Japan, 0 overseas

• Number of participants: 1,461 in Japan, 71 overseas

Strengthening and development of diverse talent with a global perspective to help achieve sustainable workplaces

• Revision of role of Japan in global management

• Human resource system revisions started in Japan

• Revision of domestic retirement, wage, and retirement benefit

• Shift of human resources to priority and growth fields

• Shifting of human resources to projects and improvement activities;

• Foundations for global measures (systems, frameworks)

• Preparations advanced for introduction

• Introduction of elective retirement and R&D staff systems

• Promotion of global human resource exchanges and projects

globalization of organizations on by-function basis

• Commencement of domestic data linkage

• Development of global data coordination automation systems

• Introduction of global human resource information systems

• Empowerment of female employees ((1) non-consolidated ratio of female employees, (2)

non-consolidated ratio of female managers, (3) consolidated ratio of female managers (Japan))

• Rate of employment of people with disabilities (comply with requirements in Japan)

• Support for regional human resource development for job creation

• Human resource development program launched in Chile

• Ongoing support in Chile, South Africa, and Australia

• Ongoing support in Peru, Chile, Australia, and South Africa

• Chile, Australia, South Africa, others

(regional human resource development with Cummins Inc.)

• Ongoing support provided in Peru, South Africa, and Australia

• Establishment of scholarship program for students in Chile and

• Participants' success in finding employment tracked

Peru as part of COVID-19 relief program

Development of talent with cross-value chain capabilities

• Cultivation of Smart Construction consultants

(capable of proposing solutions using ICT to improve productivity and

Resolutions to social issues through collaboration with stakeholders

• Promotion of industry-government-academia collaboration as well as of

• Examination of cutting-edge tools through activities with domestic

• Posting of past activity documents on Group portal

• Ongoing initiatives for accomplishing the goals of three

• Promotion of Brand Management and

• Shared information on activities in 14 regions on rotational basis

customers selected for brand management activities

• Continuation of activities by headquarters team targeting three

• Global sharing of information on brand management activities

activities creating value for customers

customers (two civil engineering, one aggregate)

around the world through Komatsu Global Portal

• Shareholders and individual investors

• Shareholder meetings: 1 time (held online)

• Shareholder meetings: 1 time (held online)

• Shareholder factory tours: 10 times

• Shareholder factory tours: 0 (canceled due to COVID-19 pandemic,

• Shareholder factory tours: 0 (canceled due to COVID-19

• Number of meetings held (Disclosure of results)

(shareholder meetings, shareholder factory tours,

• Individual investor meetings: 7 times

factory tour videos shared on official Komatsu YouTube account)

pandemic, videos commemorating 100th anniversary, etc.,

• Certain factory tours and meetings canceled due to impacts of

shared on official Komatsu YouTube account)

• Individual investor meetings: 4 times (held online)

• Individual investor meetings: 5 times (held online)

• Act as a responsible

• Institutional investors (ESG meetings)

• Number of meetings held (Disclosure of results)

• Participation in conferences: 1 (meetings held with 18 investors)

• ESG-related briefings: Conducted in conjunction with business briefings

• Communities (business site fairs)

Business fairs at nine factories (Awazu, Osaka, Ibaraki, Kanazawa,

• All factory fairs canceled due to COVID-19 pandemic

• All factory fairs canceled due to COVID-19 pandemic

• One fair held at each of nine factories per year

Tochigi, Oyama, Koriyama, Shonan, and Himi); canceled only at

Shonan Plant due to impacts of Typhoon Hagibis

• 29 in Japan (canceled overseas due to COVID-19 pandemic)

• 29 in Japan (canceled overseas due to COVID-19 pandemic)

• Number of meetings held (Disclosure of results)

Action as a responsible corporate citizen addressing corporate governance, compliance, and human rights

• Occupational health and safety, support for establishing environmental

• Translation of Komatsu's Worldwide Code of Business Conduct

and safety systems at suppliers, response to Japan's Corporate

• Establishment of Human Rights Policy,

• Revised Komatsu's Worldwide Code of Business Conduct

• Ongoing improvements made in reflection of relevant laws and

into English and other languages

Governance Code (corporate governance reports), evaluations of

• Human rights e-learning programs, etc.

• Approval of plans to ramp up human rights due diligence activities

effectiveness of Board of Directors, internal control, and internal audits

Note: Certain data has been revised and restated.

Komatsu Ltd. published this content on 09 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 September 2022 07:59:03 UTC.