DOWNLOAD PDF Japanese
Our Approach to CSR

Message from Top Management

Making Contributions to Solve Social Problems through ESG-Conscientious Business Operation

Tetsuji Ohashi President and CEO
Tetsuji Ohashi
President and CEO

In April 2016, we announced the new mid-range management plan, “Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond”. Since the announcement of our previous mid-range management plan, global demand for construction and mining equipment has entered an adjustment phase centering on emerging countries, resulting in a drastic change from our business environment of three years ago. Nevertheless, we have made no change in our assumption that we can expect that our market will grow in the long range. We are continuing the same basic strategies of “Growth strategies based on innovation,” “Growth strategies of existing businesses,” and “Structural reforms designed to reinforce the business foundation,” while reviewing specific initiatives, redefining them as needed, and implementing them.

We also recognize the importance of reinforcing ESG (Environmental, Social and Governance) efforts in order for us to ensure our long-term growth and of the indispensable need for us to aggressively promote those efforts. While we have conventionally emphasized ESG efforts, we are going to intensify those efforts as one of the targets of the new mid-range management plan. In the following, I would like to introduce some social issues which we reviewed while developing the mid-range management plan, and how we are going to respond to them.

Responding to the labor shortage of the construction industry and improving the safety and productivity of jobsite operations

Japan's construction industry is facing a serious problem of a declining labor force today. At the same time, we see growing needs to improve the safety and productivity of construction and mining jobsite operations. To strengthen our ability to propose solutions to these tasks of customers, we are working to accelerate the development of our DANTOTSU (unique and unrivaled) products, services and solutions, as we also utilize open innovation, in order to fuel our growth based on innovation.

As an example, we are deploying “SMARTCONSTRUCTION” designed to achieve the “future of construction jobsites”. SMARTCONSTRUCTION automates surveying which is conventionally handled by surveyors and requires a considerable amount of time. Our intelligent Machine Control construction equipment enables operators with a small amount of experience to carry out work at high-precision levels. In addition to improving safety resulting from automation and labor saving, SMARTCONSTRUCTION enables customers to reduce costs, resulting from a shorter construction period, as well as CO2 emissions. We will continue to advance the “visualization” of construction jobsite operations in order to provide total support for customers, as we foster this business as one of our core businesses.

Reducing CO2 emissions from our products in use by customers as well as in production

While our products build social infrastructure, improving the lives of people, they also generate an environmental impact throughout their lifecycle, ranging from manufacturing and use to disassembly for recycling or disposal. We regard our DANTOTSU products and services, designed to help customers improve their environmental performance, as strategies of differentiation. We are also cutting down consumption of electricity at our production plants, dynamically improving productivity and leading to the reinforcement of our competitiveness.

In terms of CO2 emissions throughout the life cycle of construction equipment, about 90% is emitted during use by customers. Accordingly, it is very clear and evident that we must focus our efforts on this stage. In addition to providing products with a high environmental performance, such as hybrid models, we are taking an approach to the customers' ways of using our machines by proposing fuel economy operations based on analyses of KOMTRAX (Komatsu Machine Tracking System) data. As a result, we are working to reduce CO2 emissions per work load by 25%*1 as the long-range target.

With respect to the reduction of CO2 emissions in manufacturing, we have conventionally set up long-range targets. We are working for a reduction of 57%*2 in Japan and 32%*3 overseas by continuing the power consumption reduction program and making other efforts.

Notes:
   *1: New equipment to be sold in 2025 as compared to new equipment sold in 2007.
   *2: The target figure in 2020 from 2000.
   *3: The target figure in 2020 from 2010.

Promoting responses to diversity and a global management drive

In terms of corporate governance, I am convinced that Komatsu needs to become a company where a diverse range of employees can demonstrate their talents to the fullest extent, while fair and high-transparency management is a must, of course.

Concerning diversity, it is important to create workplaces where female employees can demonstrate their talents to the fullest extent, and we have set the target of increasing the ratio of female managers to 7% by April 2018, and 10% by April 2021. Furthermore, we introduced the Global Officer system in April, 2016. We have promoted the policy of assigning the posts of Presidents of overseas subsidiaries to local employees who have worked for Komatsu over the years and who have a thorough understanding of the respective local markets and business practices. As a result, many overseas subsidiaries are managed by them today. In the Global Officer system, presidents of major overseas subsidiaries have been assigned as Global Officers, and fourteen of them have been assigned as Executive Officers of Komatsu Ltd. so that they can participate in important management meetings of Komatsu Ltd. I believe their involvement in management of the Komatsu Group is very important to drive our globally consolidated management into the future.

Komatsu maintains the basic management policy of commitment to Quality and Reliability to maximize its corporate value. Komatsu believes that its corporate value is the total sum of trust given to it by society and all its stakeholders.

Under this policy, as we are looking into March 2019, the target year of the mid-range management plan, 2021, our 100th anniversary year, and beyond, we would like to make an innovative contribution to solving customers' problems as well as social problems through our business activities by becoming more acutely aware of the importance of ESG than before.

We are also going to fulfill our corporate responsibilities as a global company, as we aggressively get involved in the United Nations' Global Compact and other initiatives, such as WBCSD.

July 2016
Tetsuji Ohashi
President and CEO

 

(UNGC)
 
image
  • Komatsu participates in the World Business Council for Sustainable Development. Please see this link.