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Komatsu's Environmental and Social Activities Enhancing Quality of Life

Pursuing Environmental Management  Environmental Action Plan and Results for FY2012 (Procurement and Logistics)

Green procurement

·Promote improvements at suppliers through the establishment of environmental management systems ("EMSs") and by specifying matters that require environmental consideration
Objectives for FY2012 Results for FY2012 Medium- and long-term objectives
Provide guidance and support to member companies of the Komatsu "Midori-kai" for acquiring integrated certification of their environmental management systems All subject companies acquired certification for a total of 162 certified companies, and are promoting environmental management activities Within three years, the Komatsu "Midori-kai" admission company masters attestation of environmental management systems (ISO 14001, Eco-stage, etc.)

Environmental conservation in logistics

·CO2 emissions per unit of net sales generated through shipping of products and components (Komatsu manufacturing facilities in Japan) (in the scope of revised Law concerning the Rational Use of Energy of Japan)
Objectives for FY2012 Results for FY2012 Medium- and long-term objectives
Improve CO2 emission per net sales by 20% compared to FY2006 levels Achieved 19.3% improvement compared to FY2006. Increase of CO2 emissions by +6.3% compared to the previous fiscal year, which resulted from an increase in domestic long-distance trucking and increased average distance per shipment of +13.2% Improve CO2 emissions per unit of net sales generated through shipping of products and components by 27% by FY2015 compared to the FY2006 level (Komatsu logistics facilities in Japan) *Modification in goals due to merger of Komatsu Utility

·Shift to means of shipping with low environmental impact
Objectives for FY2012 Results for FY2012 Medium- and long-term objectives
Promote modal shifts in shipping from trucks to inland ferries or rail The total modal shift rate in FY2012 was 22.9% (+6.7% compared to FY2006: +3.6% by railway, +3.1% by domestic vessels)
By proactively increasing the usage of domestic vessels in place of long-distance trucking to the north-east, which increased after the Great Eastern Japan Earthquake Disaster, the domestic vessel usage rate increased +1.7%
In the overall modal shift, the usage of railways has decreased, increasing by +0.4% in total compared to the last fiscal year (modal shift ratio: 22.5% ⇒ 22.9%)
Continue to promote modal shift.
Curb the increase in CO2 emissions through the modal shift, switching long-distance trucking to domestic vessel shipment, in the transportation of products from the Awazu and Osaka to north-east Japan.
Shift to battery powered forklifts Shift to hybrid and battery-powered forklifts that pose less strain on the environment for in-plant logistics. The ratio of hybrid and battery-powered forklifts has increased to 46.2%, +26.8% compared to FY2006 (1.3% reduction compared to FY2011)
(Shift ratio to battery powered forklifts: FY2011 47.5% ⇒ FY2012 46.2%)
Promote reduction in environmental strain by increasing the ratio of battery powered and particularly hybrid forklifts.

·Strive to eliminate the procurement of new wrapping materials through promotion of returnable packaging containers.
Objectives for FY2012 Results for FY2012 Medium- and long-term objectives
Promote the returnability of packaging containers In FY2012, we focused improvement on wooden general purpose packing containers. Returnability throughout Komatsu for all packaging containers shipments improved by +3.1 to a total of 45.0%
The general purpose returnability for the "FY2012 supply components subject to major improvement" improved by 15.7% to a total of 32.8%
Shift in usage of returnable containers: 2011 41.9% ⇒ 2012 45.0%
Continue improvements in effort to achieve "zero" usage of new packaging material.
Continue improvement in the returnability ratio of containers designated for CKD (Component Assembly) parts.
Further expansion in the returnability of general purpose containers for supply parts.

·Measures for protecting biodiversity and reduction in wood used in packaging containers
Objectives for FY2012 Results for FY2012 Medium- and long-term objectives
Reduction in the usage of wooden/cardboard packaging containers
Number used per weight
Improvement of 4% in FY2010
Amount of wood/cardboard used in FY2012: 5,281 tons
Achieved an improvement by 25.9% compared to 2010
22.1% improvement compared to the previous year (improvement of returnability transition of materials for wooden containers)
10% improvement in ratio of wood and cardboard packaging material used per shipment weight by FY2015 compared to the FY2010 level.

·Promote reduction in shipping distances and improvements in shipping efficiency
Objectives for FY2012 Results for FY2012 Medium- and long-term objectives
Increase the size of shipped units to large lots The continued improvement through the use of vans in CKD plants enhanced improvement from 96.1% to 96.9%. The enlargement of shipment units have reached the level of sustainability through increasing the use of containers in shipment. The usage of vans at supply component plants, which we focused on improving in FY2012, increased by 14.2% to a total of 56.3% (+42.1%). The transported amount of supply components increased from 6.4 tons per shipment to 7.8 tons per shipment (+21.4%), lowering CO2 emissions by reducing vehicles used. Improvement in the operation and management of CKD parts.
Increase the use of vans in plants for supply parts.
Continue improving to reduce the distance per shipment by utilizing nearby ports In FY2007, Komatsu constructed harbor plants for assembling large-size shipping machinery in Kanazawa and Ibaraki; the utilization rate of the Kanazawa and Hitachinaka Port were improved by the general consolidation of products from the Mooka and Komatsu Plants. As a result, the shipping distance was significantly reduced through the utilization of nearby ports. In FY2010, the average truck/trailer distance was shortened to 158km per shipment.
The improvement increased by 27.7% (compared to 2007) and contributed directly to lowering CO2 emissions.
After the Great Eastern Japan Earthquake Disaster in 2012, the average transportation distance per shipment increased due to the significant decrease in orders for long-distance shipments and shipment CKD to North-east Japan. Though the ratio of CO2 emission per sales has deteriorated, we saw an +11.4% improvement (to a total of 96.1%) in the individual improvement objective of increasing the usage rate of the Hitachinaka port, fulfilling our mid-term objective.
Continue reducing transportation distance by utilizing near-by ports.
Continue operation and management post achievement in the usage rate goal of the Hitachinaka Port.
Undertake improvement activities to improve the usage rate (main) of the Kanazawa Port from 40% to 50%.

From 2011
·Implement environmental conservation activities in global logistics (both national and international)
·Improve CO2 emission per cargo weight of shipping products and parts. (10 major overseas plants)
Objectives for FY2012 Results for FY2012 Medium- and long-term objectives
Formulate the FY2015 medium-term improvement goal
Improvement of 2% in FY2012 compared to FY2011 level
Implementation of monthly tracking of data for CO2 produced by shipment in 10 major plants in the Americas (2 in US, 1 in Brazil), EU (1 in UK, 1 in Germany) China (3), and Asia (1 in Indonesia, 1 in Thailand). Set the FY2015 medium-term improvement goal as improvement by 8% in comparison to FY2011 levels. The CO2 emission per cargo weight in FY2012 slightly improved by +0.3% towards the goal of +2% compared to FY2011 levels. CO2 emission per cargo weight 56.5 ⇒ 56.3 (kg- CO2/t) 8% improvement in the ratio of CO2 emission per shipment weight in the logistics of products and parts by FY2015 compared to FY2011 levels.
(10 major overseas Komatsu Group Plants)