Komatsu Ltd.
Climate Impact & Sustainability Data (2018-04 to 2019-03, 2024)
Reporting Period: 2018-04 to 2019-03
Environmental Metrics
Total Carbon Emissions:30,240,000 tCO2e/year
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:15%
Total Energy Consumption:9.2 PJ/year
Water Consumption:3.7 million m3/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Safety
- Human Rights
- Diversity & Inclusion
- Community Investment
- Corporate Governance
Environmental Achievements
- 16% reduction in CO2 emissions from product use (compared to 2010)
- 40% reduction in CO2 emissions from production (compared to 2010)
- 15% renewable energy use
- 30% reduction in work environment burden coefficient (particle matter density) (compared to 2018)
- 40% reduction in water consumption (compared to 2010)
- Expansion of Remanufacturing business (more than four times larger than in FY2004)
- Development of Electric Mini Excavator with zero emissions
Social Achievements
- South Africa: Education Program Instituted through Collaboration with Cummins (TEC program)
- United States: A Partnership to Bring Back Forests (reforestation project in West Virginia)
- Improvement of global surveys and indexes (employee engagement)
- Introduction of telework system (Japan)
- Promotion of KOMATSU Way (global dissemination)
- Empowerment of female employees (targets set for percentage of women in workforce and management)
- Support for regional human resource development (collaboration with Cummins Inc.)
Governance Achievements
- Establishment of Human Rights Policy
- Implementation of corporate governance reforms (separation of management and supervision, enhanced Board of Directors decision-making)
- Establishment of Risk Management Committee and Compliance Committee
- Conducting compliance and risk audits
- Improved Board of Directors effectiveness (annual evaluations)
Climate Goals & Targets
Long-term Goals:
- Realize safe, highly productive, smart, and clean workplaces of the future
Medium-term Goals:
- Reduce CO2 emissions from production by 50% (from 2010 levels) by 2030
- Reduce CO2 emissions from product use by 50% (from 2010 levels) by 2030
- Increase renewable energy use to 50% by 2030
- Achieve synergies equivalent to 10% or more of KMC’s sales in FY2021
Short-term Goals:
- Not disclosed
Environmental Challenges
- Economic and market condition fluctuations
- Foreign currency exchange rate fluctuations
- Fluctuations in financial markets
- Varying laws and regulations across countries
- Stringent environmental laws and regulations
- Product and quality liability
- Challenges in alliances, collaborations, mergers and acquisitions
- Procurement, production and other operational challenges
- Information security risks
- Natural calamities, wars, terrorism, accidents
Mitigation Strategies
- Global production and local sourcing
- Hedging activities to minimize foreign exchange risks
- Fixed interest rate funding
- Compliance with laws and regulations
- Significant investment in R&D to meet environmental regulations
- Stringent internal quality standards
- Careful evaluation of alliances, collaborations, mergers and acquisitions
- Closer collaboration among business divisions
- Technological safety measures and strengthened information management
- Emergency headquarters establishment for serious risks
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Komatsu’s Green Procurement Principles
- Assistance for developing environmental management systems at suppliers
- Support for reducing environmental impacts at suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Abnormal weather events
Transition Risks
- Regulatory changes towards low-carbon society
Opportunities
- Development of energy-efficient products and electric equipment
Reporting Standards
Frameworks Used: International Integrated Reporting Framework, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Fuel-efficient products
- Hybrid systems
- Electric construction equipment
- Electric Mini Excavator
Awards & Recognition
- Not disclosed
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Human Rights
- Environmental Protection
- Occupational Safety and Health
- Compliance
- Stakeholder Relations
Environmental Achievements
- Aiming to achieve carbon neutrality with net zero CO2 emissions by 2050
- Continuous improvement of operations to enhance pollution prevention, minimize waste production, increase recycling, efficiently use non-renewable resources, reduce greenhouse gas emissions and conserve biodiversity
Social Achievements
- Providing an environment where diverse and global employees can work safely and healthily as one team, with respect for each individual, and with satisfaction and pride
- Respecting human rights related to all business activities
- Building relationships with business partners and local communities that enable mutual trust, fairness, co-existence and co-prosperity
Governance Achievements
- Established a Compliance Committee and Compliance Hotline
- Established a Global Compliance Hotline
- Regular review and revision of the Code of Business Conduct
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality with net zero CO2 emissions by 2050
Environmental Challenges
- Climate change
- Maintaining harmonious balance of interests with local communities
- Ensuring compliance with laws and regulations across various countries and regions
- Managing risks related to terrorism, conflicts, riots, natural disasters, and pandemics
Mitigation Strategies
- Implementing initiatives for climate change mitigation and adaptation
- Active engagement with local communities
- Establishing a robust compliance framework and internal control systems
- Continuously enhancing security measures
Supply Chain Management
Responsible Procurement
- CSR Procurement Guidelines
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Guiding Principles on Business and Human Rights, ILO Core Labour Standards