Message from Top Management

Tetsuji Ohashi President and CEO

Providing Solutions for Our Customers and Society by Strengthening ESG Efforts

Tetsuji Ohashi
President and CEO

In the mid-range management plan, "Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond", which we announced in April 2016, we uphold the three strategies of “Growth strategies based on innovation,” “Growth strategies of existing businesses,” and “Structural reforms designed to reinforce the business foundation", and work toward the goal of achieving long-term growth by strengthening our Environmental, Social and Governance (ESG) efforts.

Komatsu has been undertaking efforts focused on ESG in the past. However, I have expressly included ESG as keywords in the mid-range management plan, because I have personally felt that there are ever growing needs for ESG initiatives in the course of repeated dialogues with a variety of our stakeholders.

For example, I have found ESG to be one of the common topics of discussions whenever I visit our mining customers. I feel that the number of occasions has been increasing, in which they express their interest in collaborating not only to improve sustainability and safety at their jobsites, but also to work together for human resource and community development by incorporating our know-how accumulated through business.

With this background, we held the ESG meeting with investors in December 2016. We introduced Komatsu's history centering on ESG based on our founder's management principles of Globalization, Quality First, Technology Innovation and Human Resource Development. In this Report, I would like to share with you the philosophy and passion, which has been handed down through generations and honored by our employees for almost 100 years.

Efforts to Reduce Environmental Impact

In terms of CO2 emissions throughout the life cycle of construction equipment, our major products, about 90% is emitted during use by customers. By providing products and solutions designed to reduce CO2 emissions, we will make significant contributions to the reduction of environmental impact.

Over the years, we have continued our efforts of proposing fuel-saving machine operations based on analyses of KOMTRAX (Komatsu Machine Tracking System) data and have introduced hybrid hydraulic excavators. Furthermore, we believe we can offer an important solution to customers by developing and proposing new construction methods which emit a smaller amount of CO2.

Since 2015 we have been promoting SMARTCONSTRUCTION in Japan as our DANTOTSU (unrivaled) solution designed to achieve safe and high-productivity jobsites of the future. SMARTCONSTRUCTION not only enables automated operation of intelligent Machine Control models, but also connects all aspects of jobsite operation data, such as survey, design and work progress data through ICT. As efficient machine operations shorten the period of construction, SMARTCONSTRUCTION reduces CO2 emissions per work volume.

Support for Sustainable Mining

Against the backdrop of increasing global population and rate of urbanization, we can anticipate that consumption and production of major minerals will continue to grow in the mid to long range. In mines, safe and low environmental impact operations are urgently needed. As mines are in operation 24hours, 365days, in such demanding jobsites the main challenge is to prevent operational man made errors and minimize the risks of accidents. At the same time, development of a seamless and stable operation for improved productivity is a requirement.

In response to these challenges, we have developed the Autonomous Haulage System (AHS) as a solution. We have succeeded in remote operation of super-large dump trucks with the maximum payload of 300 tons from the control room about 1,500 km away from the mines by taking full advantage of high-precision GPS, obstacle sensors, wireless networks and controllers mounted on the vehicles. In addition to dynamically enhanced safety, we have also confirmed improved fuel consumption and prolonged tire life thanks to stable machine operations.

With AHS, we will continue to propose more comfortable and attractive ways of working for jobsite customers and provide solutions designed to make jobsite operations safer, more sustainable and productive into the future.

Actions based on SLQDC as a general rule

Companies are expected to play more important roles in society today. Each and every employee must fully understand corporate social responsibilities, and comply with the so-called Rules of the Business Community in addition to compliance with the laws and regulations in a narrow meaning. This is indispensable for companies to gain trust from society.

I have repeatedly asked Komatsu Group employees to decide and act according to the priorities of SLQDC, when they cannot easily make decisions. SLQDC stands for Safety, Law (compliance), Quality, Delivery and Cost. Safety comes first, the order is never reversed.

Komatsu believes that its corporate value is the total sum of trust given to it by society and all its stakeholders. Under this policy, as we are looking ahead to March 2019, the target year of our mid-range management plan, 2021, our 100th anniversary year, and beyond, during which we will further strengthen our ESG efforts. We are also going to fulfill our corporate responsibilities as a global company, as we engage in the initiatives of the United Nations' Global Compact and the World Business Council for Sustainable Development (WBCSD).

July 2017
Tetsuji Ohashi
President and CEO

Komatsu participates in the UN Global Compact (UNGC). For more information on the relationship between UNGC's Ten Principles and Komatsu's activities, please visit this site.

Komatsu participates in the World Business Council for Sustainable Development. For more information, Please visit this site.