Message from Top Management

Tetsuji Ohashi  Representative Director and President

Contributing to the development of a sustainable society through efforts geared towards ESG

Tetsuji Ohashi
President and CEO

Management with an emphasis on ESG

In FY2017, we expanded our mining equipment business by welcoming a major mining equipment manufacturer in USA, Joy Global Inc.(now Komatsu Mining Corp.), into the Komatsu Group.
Responding to ESG (Environmental, Social, Governance) issues, we seek to develop solutions that utilize our unique strengths in ICT and IoT. These include measures like " SMARTCONSTRUCTION " and the " Autonomous Haulage System(AHS)". We have made efforts to enhance safety and productivity of jobsites while simultaneously reducing the burden on the environment.
FY2018 is the final year of our three-year mid-range management plan "Together We Innovate GEMBA Worldwide - Growth Toward Our 100th Anniversary (2021) and Beyond - ". As we move towards 2021, we plan to focus on "Growth Strategies based on innovation", " Growth strategies of existing businesses", and "Structural reforms designed to reinforce the business foundation " to accelerate growth. By linking these management strategies with ESG activities required by society, we hope to build a brighter future that marks the celebration of our 100th Anniversary in 2021 and beyond.
Furthermore, we aim to contribute to the "Sustainable Development Goals (SDGs)", a collection of common objectives established by the international community, to further strengthen our ESG efforts. Through extensive discussion among our management team, we selected five SDG goals that were most relevant with our business operations. By focusing on these goals, we believe we will be able to comprehensively contribute to the advancement of the SDGs.

SDGs highly relevant with our business

  • SDG Goal 8: Decent Work and Economic Growth
  • SDG Goal 9: Industry, Innovation, and Infrastructure
  • SDG Goal 11: Sustainable Cities and Communities
  • SDG Goal 13: Climate Action
  • SDG Goal 17: Partnerships for the Goals

Symbolic social and environmental activities

This "CSR & Environmental Report 2018" consolidates all non-financial information into a single report. We have highlighted three symbolic social/environmental activities in special stories , which relate to the actual locations of our business operations.

Nurturing the Next Generation

The spirit of "coexistence with local communities" and "human resource development" is of particular importance to Komatsu's management principles. Through the perspective of "people" rather than "products", we intend to convey our business philosophy that has been inherited since our foundation over a century ago to today, and beyond.

Leading the Way at Awazu Plant

Energy resource is indispensable for our business operations. With this in mind, we have worked closely with local communities to come up with ways by which our electricity consumption should be managed considering desirable form of our environmental efforts. Actual cases can be explored through power reduction activities at our Awazu plant and its biomass cogeneration facility.

Fostering Community Growth in Cambodia

Since 2008, we have been supporting anti-personnel landmines removal and reconstruction activities in Cambodia. We would like to report the local daily activities that are carried out alongside our partners, hoping to create a safe and comfortable living environment for villagers in Cambodia.

Creating new value with our customers

It goes without saying that the quality and reliability of products is important for any manufacturer that deals with machines. However, it is my belief that businesses focusing solely on quality and reliability will become difficult to sustain in the long run. Through thorough dialogue with our customers, we wish to envision the future they seek to realize together, which should lead us to genuine "New Value".

How will the future change? What roles will company, industry and society take? We believe deepening such discussions will enable us to materialize products, services and solutions that are in need, and to further promote activities toward value creation.

Actions based on SLQDC

In today's society where the impact of corporate responsibility has become more significant than ever, it is critical for every individual employee to be fully aware of "corporate social responsibility". This applies not only in the narrow sense of complying to law, but also in broader sense of following business and societal rules in general, thus allowing us to meet the level of trust demanded from society.

Whenever our employees face uncertainty or confusion in making decisions, they are advised to use the "SLQDC" as a frame of reference. The "SLQDC" is an acronym for Safety (safety and health), Law (general compliance with the law/compliance with environmental regulations), Quality (quality and reliability), Delivery (timing), and Cost. I believe safety and health should always come first in day to day operations, whether it is an internal/affiliated entity or not.

Finally, Komatsu considers "corporate value" to be the total sum of trust given to it by society and all its stakeholders. Through constant adherence to this guideline, we will further strengthen our efforts towards ESG in order to reach the targets set by our March 2019 mid-range management plan and the 100th anniversary in 2021, and beyond. In addition, while actively participating in initiatives such as the United Nations Global Compact and World Business Council for Sustainable Development (WBCSD), we will fulfill our responsibilities as a global company for society and the environment.

July 2018
Tetsuji Ohashi
President and CEO

Komatsu has signed the United Nations Global Compact (UNGC). Click this link for more information about the ten principles advocated by UNGC and how they pertain to Komatsu's initiatives.

Komatsu has joined the World Business Council for Sustainable Development (WBCSD) Click this link for more information regarding this event.