Machinery giant outlines steps to reaching long-term vision of zero carbon emissions in Komatsu Report 2021
Komatsu has announced that it is targeting the year 2050 to achieve carbon neutrality, upholding its new long-term vision of achieving virtually zero carbon emissions.
The company outlined the target in its integrated report – Komatsu Report 2021 – issued recently, in which it also broke down the steps it will take to achieve the goal. Under the current mid-term management plan, Komatsu has defined the target of reducing CO2 emissions by 50% by 2030 from 2010 levels, while raising the ratio of renewable energy use to 50%.
“To achieve carbon neutrality by the end of 2050, an extended target of the ongoing efforts, Komatsu is also extending its efforts of reducing CO2 emissions to customers’ total workplace operations, while working to cut down CO2 emissions at its business sites and from the use of its products,” said the report from the Japanese giant.
Specifically concerning customers’ workplace operations, Komatsu said it is “committed to optimising construction… by evolving Smart Construction solutions, expanding the forestry machinery business, which supports a sustainable forest management cycle of planting, cultivating and harvesting, and strengthening the Reman operations in which Komatsu remanufactures and reuses used components”.
By further strengthening these business efforts, Komatsu hopes to not only contribute to CO2 reductions “in society as a whole”, but also achieve its guiding “DANTOTSU Value” – a positive cycle of improving earnings and solving ESG issues through the creating of customer value.
Concerning CO2 emissions from products in use, which account for about 90% of total emissions in Komatsu’s supply chain, Komatsu’s report sets out the roadmap to develop products designed to mitigate environmental impacts, starting with reduction of fuel consumption and improvement in efficiency, further advancing its existing hybrid, diesel electric and other technologies, and adopting new technologies, such as for fuel cells and hydrogen engines.
With respect to production bases, Komatsu said it will “prioritise energy conservation initiatives for reducing energy consumption through production technology innovation, then energy generation initiatives for producing renewable energy in-house, and lastly, purchases of renewable energy”.
The report also includes a presentation of “Creating value together”, Komatsu’s brand promise, as its 100th anniversary identity, as well as its 100-year history and strengths, messages from its president and CFO which describe management issues and strategies towards the next 100 years, and FY2020 achievements of KPIs concerning solutions for ESG issues.
Looking into the next 100 years, Komatsu’s report says that the brand will “remain committed to Quality and Reliability”. and will continue to create “value through manufacturing and technology innovation to empower a sustainable future where people, businesses and our planet thrive together”.