Message from Top Management

Kunio Noji
President and CEO

CSR Activities in Response to the Earthquake and Tsunami Disaster

Looking back at FY 2011, this was a year to focus on recovery after the unprecedented earthquake and tsunami disaster in the Tohoku area - a disaster that helped us discover what it is that corporations can do for society.

Komatsu regards its Corporate Social Responsibility (CSR) activities as an essential part of its core business. In our efforts to deal with this disaster, we have provided assistance by seeking to understand how we can fill the needs of the affected areas within the framework of our business, keeping in mind that people often need goods more than money.

The Komatsu Group has more than 670 employees in the three disaster stricken prefectures of Iwate, Miyagi and Fukushima, and their work has always been closely linked to these local communities. I have personally visited these areas seven times to provide encouragement, and through these visits I have learned that every employee is listening to the stories of individual disaster victims and trying his/her utmost to offer support.

In addition to direct business-related activities, such as sales, rental, and service of construction machinery required for recovery and reconstruction, Komatsu has set up a dedicated department in Sendai City responsible for overseeing disaster recovery measures. Establishing this department has enabled us to respond promptly to the various needs of the region. By hearing the voices of the people of the community, we consider how best we can meet our corporate social responsibility by drawing on our management resources, and have executed various disaster recovery measures.

I hope that companies will continue to support and collaborate through utilizing core businesses in order to help the recovery and reconstruction of the disaster area. (Komatsu's initiatives in the disaster area are described in more detail in our Special Story. For more detaile, click here.)

Environmental Activities

Komatsu views its environmental activities as one of its top-priority management tasks and drives campaigns to reduce environmental impact in all phases of its business operations in order to meet the Mid-Range Management target set two years ago.

To address climate change related concerns, Komatsu is working to reduce environmental impact throughout the product lifecycle, focusing on reducing CO2 emissions from the use of products, such as hybrid hydraulic excavators and Automated Machine Control/Guidance System by utilizing ICT (Information and Communication Technology). Komatsu is also promoting its biodiesel fuel program, which is hailed as "carbon-neutral," for local production and consumption.

In its domestic production activities, when Komatsu was requested by the government to trim its peak power 15% amid concerns in the summer of 2011 over power shortages triggered by the nuclear power plant accident during the Tohoku earthquake, we realized a reduction of 30% or more. This summer, Komatsu has channeled its capital investment into private power generators and other facilities in a bid to cut the peak power by 25% from the summer of 2010. It also aims to drive the "Cut Power Consumption by Half" campaign in a three-year program to achieve both increases in domestic production and a reduction of CO2 emissions.

Additionally, Komatsu continues its efforts to promote recycling of certain components, such as engines, and to reach "zero emissions," which Komatsu defines as a recycling rate as 99.5% or higher. We strive to drive reductions in the usage of environmental load substances, such as lead and mercury, and phase in the marketing of construction machinery compliant with the Japanese, U.S. and European emission regulations.

Further, Komatsu established the "Declaration of Biodiversity" two years ago to explore relationships between its operations and biodiversity and also a "one-site, one-theme activities" campaign. To bolster sustainable growth, Komatsu is working to enhance the effectiveness of its environmental activities by partnering with overseas affiliates, rental dealers, suppliers, and distributors.

Shouldering Our Corporate Responsibility

Construction equipment for building towns and roads, mining equipment for extracting resources, and forestry machinery for production of timber and pulp - Komatsu products and services help build countries and create better living conditions worldwide.

In the process of developing Komatsu's business, people in many parts of the world receive training in service technology, accelerating the development of local human resources. Furthering business activities in this manner is directly linked to our CSR activities, and I always tell our people that I want them to do their work responsibly and with pride.

But there are, of course, rules that must be followed and responsibilities that must be met in this process.

Komatsu's Worldwide Code of Business Conduct lays down the rules to be observed by people around the world who work for Komatsu or are related to Komatsu's business. The Code has been revised repeatedly and has recently been translated into local languages. The eighth edition of the code, published in FY 2011, was issued not only in Japanese and English, but in fourteen other languages, so that employees worldwide will be able to understand it and conduct themselves accordingly. Through sharing these basic rules on a global scale, we strive to meet our social responsibility to observe the laws and regulations of each country or region and act in accordance with its culture and customs.

Recognizing our responsibility as a company with business evolving around the world, Komatsu is also a signatory to the UN Global Compact. We and our business partners will act through our supply chain in consideration of this voluntary code of conduct.

Komatsu's global network shares the basic management stance that "our corporate value is the total sum of trust given to us by society and all stakeholders," as we fulfill our responsibility to society through promoting CSR activities and pursuing sustainable growth.