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Komatsu's Environmental and Social Activities Enhancing Quality of Life


Pursuing Environmental Management  Environmental Action Plan and Results for FY2014 (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 FY2014 Results for FY2014 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 164 certified companies, and are promoting environmental management activities Within three years, have newly admitted Komatsu "Midori-kai" admission company masters attestation of environmental management systems (ISO 14001, Eco-stage, etc.)

Environmental conservation in logistics

·Reduce CO2 emissions per unit of cargo weight 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 FY2014 Results for FY2014 Medium- and long-term objectives
Improve CO2 emission per cargo weight (kg-CO2/ton) by 24% compared to FY2006 levels
  • ·Achieved 25.6% improvement compared to FY2006. CO2 emissions decreased by 5.8% , 20.7⇒19.5(kg-CO2/ton) compared to the previous fiscal year.
  • ·Increased the domestic vessel usage rate of Tohoku-bound coastal shipping, one prioritized area of improvement since FY2011, and also the usage rate of railway transport, another since FY2014 (distances of 500 km or longer subjected to a modal shift), have resulted in transportation at the lower rate of energy consumption and cuts in long-distance cargo trucking, still another area of improvement.
Improve the basic unit of CO2 emissions generated through shipping of products and components by 27% compared to FY2006 by FY2015 (14 Komatsu logistics facilities in Japan)


·Shift to means of shipping with low environmental impact
Objectives for FY2014 Results for FY2014 Medium- and long-term objectives
Promote modal shifts in shipping from trucks to inland ferries or rail
  • ·The total modal shift rate in FY2014 was 29.1% (+12.8% compared to FY2006: +5.8% by railway, +7.0% by domestic vessels)
  • ·By proactively increasing the usage of domestic vessels in place of long-distance trucking to the north-east, which increased due to the Great Eastern Japan Earthquake Disaster after FY 2011. A higher rate of railway transport has been pursued as a prioritized area of improvement since FY2013.
  • ·The rate of railway transport in FY2014 improved 1.7% to reach 6.1% (modal shift rate: 28.7% ⇒ 29.1% (+0.4%), modal shift rate for distances of 500 km or longer needing improvement: 47.6% ⇒ 49.2% (+1.6%)).
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 Awazu and Osaka to north-east Japan.
Improve the transportation of products from Tochigi plant to Shikoku and Kyushu as well.
Expand rail usage for Oyama, Koriyama, and Awazu plant components: engines, hydraulic equipment, transmission, etc.
Shift to battery powered forklifts Forklifts used for in-plant logistic purposes have been shifted to hybrid and battery-powered models to lessen their environmental impact. In FY2014, the number of hybrid and battery-powered forklifts accounts for 45.9% of all forklifts, up 26.5% from its FY2006 level.
(Ratio of the number of battery-powered forklifts: 46.4% in FY2013 ⇒ 45.9% in FY2014, down 0.5%)
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 FY2014 Results for FY2014 Medium- and long-term objectives
Promote the returnability of packaging containers
  • ·Expanding scope of returnable general-purpose wooden packaging container usage, which had been pursued on a priority basis, has helped cut wooden packaging requirements.
    Ratio of general-purpose packaging container returnability for CKD parts: 49.0% ⇒ 60.2% (+11.2%)
    Ratio of general-purpose packaging container returnability for spares: 53.7% ⇒ 57.7% (+4.0%)
Proceed with further improvement efforts to achieve "zero" procurement of new packaging materials as a prioritized area of improvement.
Continue improvement in the returnability ratio of containers designated for CKD parts.
Further improve the returnable rate of general-purpose containers for CKD/spare parts.

·Measures for protecting biodiversity and reduction in wood used in packaging containers (Avoid tree trimming and the risks of immigration and emigration of nonnative species in wood)
Objectives for FY2014 Results for FY2014 Medium- and long-term objectives
Reduction in the usage of wooden/cardboard packaging containers
Reduce the basic unit of usage per cargo weight (kg-CO2/ton) by 8% compared to FY2010
·Efforts continued into FY2014 to cut packaging material requirements, mainly wooden materials, with a view to protect biodiversity.
Amount of wood/cardboard used in FY2014: 5,404 tons
Achieved an reduction by 30.7% compared to FY2010
(Approaches to cutting wooden packaging material: Change in packaging material, improvement of higher returnability ratio, cut in packaging material requirements through VE)
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 FY2014 Results for FY2014 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 98.4% to 99.3% (+0.9%), while upsized transportation units resulting from an expanding scope of containerized transportation have been kept at a predefined maintenance and management level since FY2013.
  • ·The usage of vans at supply component plants, which we have been focused on improving since FY2012, increased from 99.0% to 99.3% (+0.3%) to reach a predefined maintenance and management level since FY2014.
Prioritized improvement activities come to completion as upsized transportation units resulting from an expanding scope of containerized transportation have reached a predefined management maintenance and management level.
Continue improving to reduce the distance per shipment by utilizing nearby ports
  • <Suppression Measures for Increased Transport Distance and the Worsening CO2 Emission Basic Unit Due to Changes in Domestic Transport Configuration>
  • ·The configuration of domestic transport destinations greatly changed since the Great East Japan Earthquake in 2011 due to increased long-distance transport to the Tohoku region as well as export CKD with shorter transport distances and a sharp decline in export models (mining) produced at the port factories of Kanazawa and Ibaraki. As a result, the average transport distance of truck trailers increased to 189km/case in FY2014 and the rate of increase was +19% compared to FY2010. This increase in average distance directly translated to a worsening of the CO2 emissions basic unit. Viewing the promotion of modal shifts as a prioritized area of improvement for checking the worsening of the raw unit of CO2 emissions, Komatsu embarked on a program to expand modal shifts in 2011, switching long-distance trucking to coastal shipping and railway transport in pursuit of transportation at a lower rate of energy consumption and cuts in long-distance trucking. The average trucking distance, which had trended worse since 2011, narrowed 7% in FY2014 from the previous year, with the result of improved CO2 emissions per unit of transportation.
  • <Improvements in Transport Distance Reduction by Utilizing Nearby Ports>
  • ·Kanazawa Port utilization improved by 1.3% from FY2013 to 46.1% against a mid-term target of 50%.
  • ·Hitachinaka Port utilization is 97.4% against the mid-term goal of 95%, thereby maintaining the achievement of the mid-term plan.
Continue reducing transportation distance by utilizing near-by ports.
A target usage rate has been achieved for Hitachinaka Port. It will be maintained and managed at 95% at least from now on.
A FY2015 target usage rate (products) of 50% will be set for Kanazawa Port and will be approached through improvement efforts.

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 FY2014 Results for FY2014 Medium- and long-term objectives
The basic unit of CO2 emissions per cargo weight (kg-CO2/ton) has improved 6% from its 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).
  • FY2014 status of the basic unit of CO2 emissions per cargo weight
    The basic unit of CO2 emissions per cargo weight advanced 0.1%, more or less sideways, from its FY2011 level but has improved by 3.0% from the previous year. 58.3 ⇒56.5 (kg-CO2/ton)
    As a principal improvement item, the need for long-distance trucking in the U.S. has been cut as a result of cross-sourcing North America-bound products from the CMO (Chattanooga, America) plant (with 44% of the total volume of North America-bound products having been switched to imports from Osaka Plant in Japan and the BKC plant in Thailand).
    Changes in the shipping destinations, coupled with improvements implemented at the CMO, have cut the average land trucking distance in overseas plants by 6%, contributing to improve the basic unit of CO2 emissions per cargo weight.
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)