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Growing with Society

Together with Business Partners - Initiative for CSR Procurement

Business partners that supply materials, parts and components are important in helping to
sustain Komatsu's manufacturing activities. Komatsu encourages its partners to abide by
social norms while working toward CSR procurement.

Establishment and Dissemination of the CSR Procurement Guidelines

CSR Procurement Guidelines CSR Communication, published twice a month for business partners in Japan since May 2011, with a total of 46 issues released by the end of FY2012 (March 31, 2013).

CSR Communication, published twice a month for business partners in Japan since May 2011, with a total of 46 issues released by the end of FY2012 (March 31, 2013).

Komatsu has consistently worked with its business partners on environmental and workplace safety-related activities. Following the release of the ISO26000 international guidelines on corporate social responsibility in November 2010, we established our CSR Procurement Guidelines in August 2011 to explain the priority CSR issues we would like our business partners to address.

These guidelines are intended to deepen the awareness of our business partners about corporate social responsibility so that we can mobilize the entire supply chain to accelerate the pace of CSR activities.

The Komatsu Midori-kai group is an association of 164 major business partners in Japan that supply roughly 75% of the products Komatsu purchases within Japan. Top management at these companies regularly gather for meetings, including general conferences, roundtable discussions for managers and informal New Year's business functions. On each occasion, we emphasize the importance of CSR under our CSR guidelines to build greater awareness of CSR management.

In addition, we have begun publishing CSR Communication, a periodic journal that introduces specific examples of CSR case studies to member companies of the Komatsu Midori-kai group and other domestic business partners. Since May 2011, CSR Communication has been posted twice a month on our website for business partners in an effort to consistently promote CSR.

Overseas Activities

CSR Procurement Guidelines

Member companies attended a meeting with other construction equipment companies in June 2013 in Detroit, U.S.A. and delivered a presentation on conflict minerals

Midori-kai groups have also been organized outside Japan by our major business partners in North America, Europe and China. There are currently 37 member companies in North America, 51 in Europe and 62 in China. Overseas group members participate as observers in the general conference held by the Midori-kai group in Japan, and an exchange between members from different regions is already taking place. We expect overseas members to draw upon the actions of the Japanese Midori-kai group to develop their own CSR activities that reflect the characteristics of each region.

Initiative on Conflict Minerals
Background on Regulations against Conflict Minerals
Countries Associated with Conflict Minerals

Countries Associated with Conflict Minerals

The term "conflict minerals" is used in reference to four minerals - tin, tungsten, tantalum and gold (abbreviated as "3TG"). Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in July 2010 mandates that companies listed on U.S. stock exchanges report to the Securities and Exchange Commission when conflict minerals from the Democratic Republic of Congo (DRC) or its neighboring countries are necessary for the functionality or production of a product. The act is directed at cutting off sources of funding for military groups in the DRC, which has been ravaged by domestic conflict since 1996.

Komatsu's Policy on Conflict Minerals

Komatsu has adopted a policy of not using conflict minerals produced by the DRC or its neighbors (Angola, Central African Republic, Republic of the Congo, Rwanda, Southern Sudan, Tanzania, Uganda and Zambia) modeled after the U.S. Wall Street Reform and Consumer Protection Act and from our corporate social responsibility perspective.

During the regular meetings we hold with our suppliers at each Komatsu plant in Japan, we explain this policy as well as Komatsu's response to the conflict minerals issue and related requests to our suppliers. With the cooperation of suppliers, we are now conducting a country-of-origin survey to determine the location of origin of the conflict minerals we use.

Looking ahead, we will conduct a more detailed survey that includes refineries in its scope and continue taking steps to prevent the use of conflict minerals from the DRC and its neighbors and thereby restrict funding for military groups.

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