Komatsu defines its CSR activities as "responding to the demands of society through our core business." We have formulated CSR themes to be addressed on a global level, and are forging ahead with our CSR activities.

Furthermore, we will implement the CSR-management cycle, while making sure that these activities are aligned with the demands of the times and of society.

CSR Theme Formulation Process

Selecting CSR Priorities

In FY 2010, Komatsu formulated CSR themes with the help of BSR (Business for Social Responsibility), a US-based NPO.

The first step of the process was to select key CSR priorities that would allow us to contribute through our core business. CSR issues relevant to Komatsu's business were selected from a large number of social issues focusing on those that are important to both to our business and to our stakeholders.

◆ Our CSR Priorities
Products, Services, and Customers
Products that enhance safety
Responsible marketing and customer care

Human resource development
Safety and health
Respecting employees

Ethics and Governance
Cooperation with stakeholders
Corporate governance and compliance
Compliance with social norms of business partners
Environmentally-friendly products
Environmental efficiency (facilities, such as plants, and job sites)

Human Rights
Respecting human rights
Equal employment

Local Community
Development of local communities
Disaster relief
Improving local residents' quality of life

Komatsu's CSR Themes and Key Business Activities

After discussions internally and with BSR regarding CSR priorities, we defined three CSR themes that could be shared on a global level. Based on the current Mid-Range Management Plan, key CSR activities relating to the CSR themes were also identified.

◆ Our CSR Themes and Key Business Activities

1. Enhancing Quality of Life -Providing products required by society-

Providing products and services that contribute to infrastructure development and improve quality of life

Improving productivity, safety, and efficiency and enhancing energy conservation through the use of Information and Communication Technology (ICT)

Improving environmental efficiency at operation sites and facilities, such as plants

Reducing our impact on the environment throughout the product life cycle

Enhancing safety for society, customers, employees, and business partners

2. Developing People

Contributing to human resource development in local communities

Enhancing our employees and suppliers through The KOMATSU Way

Enhancing our employees and distributors through "Brand Management"

3. Growing with Society

Engaging in dialogue with our stakeholders

Providing social contributions through the use of our core technologies and resources (e.g., disaster relief or activities to remove anti-personnel land mines)

Contributing to local communities where we do business

Strengthening our corporate governance and compliance

Promoting compliance with environmental, labor, and social norms within our group and among business partners

Incorporating CSR Into Management

Through dialogue with stakeholders both inside and outside the company, we will focus on our CSR themes and further develop these themes and key activities. In this way we hope to enhance the trust placed in us by society as we pursue sustainable growth.

Incorporating CSR Into Management

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Dialogue with Our Stakeholders

In addition to maintaining a dialogue with all of our stakeholders, including employees, business

partners, investors, shareholders and local communities, we also invite stakeholders from

outside the company to voice their opinions on Komatsu's management and business.

Meeting of the Komatsu Industry-Academia Science and Technology Collaboration Council in November 2011

Stakeholder dialogue at the Osaka Plant

Exchange between Industry-Academia Collaboration Partners
While partnering with major universities in Japan, Komatsu also promotes industry-academia collaborations in China with Shandong University and Tongji University through joint research, internships and other projects. In April 2012, we invited Tongji University faculty members involved in research, career guidance and student internships to Komatsu (Changzhou) Construction Machinery Corp. and the KC Techno Center in Changzhou. We provided an overview of our construction equipment and held a dialogue between Komatsu and guests on developing skilled human resources through efforts such as offering specialized courses, providing student internship procedures and sharing laboratory resources.
In November 2012 and March 2013, meetings were held to present the joint research results of Komatsu's partner universities and the company. The researchers shared technical reports and engaged in a discussion that included student participation.

The proposals and opinions solicited through these discussions are both helpful and unique, and we will make efforts to see them reflected in our business and operations.

Meeting of the Komatsu Industry-Academia Science and Technology Collaboration Council in November 2011

Tour of the KC Techno Center

Presentation of joint research results from Tongji University and Komatsu

Presentation of joint research results from Tongji University and Komatsu