Komatsu Ltd. (President and CEO: Hiroyuki Ogawa) (hereinafter "Komatsu") has been awarded a position on this year’s A List for climate change and water security by CDP, the non-profit global environmental disclosure platform.
The A-List is awarded to companies which are recognized as international leaders of managing climate change and water security.
Every year, thousands of companies disclose data about their environmental impacts, risks and opportunities to CDP for independent assessment against its scoring methodology. In 2020, over 515 investors with over US$106 trillion in assets and 150 major purchasers with US$4 trillion in procurement spend requested companies to disclose data on environmental impacts, risks and opportunities through CDP’s platform and over 9,600 responded. A detailed and independent methodology is used by CDP to assess these companies, allocating a score of A to D- based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets.
Komatsu has conventionally positioned environmental activities as one of top management priorities. In the mid-range management plan, which began in April 2019, Komatsu has also defined ESG (Environment, Social and Governance) as one of management targets and implemented aggressive activities. In particular, Komatsu has been promoting SMARTCONSTRUCTION designed to achieve Construction Jobsites of the Future by using Machine Control construction equipment and IoT in order to significantly reduce CO2 emissions in the entire lifecycle of construction equipment. Komatsu has also been making efforts to achieve high-level energy savings of production sites through IoT-based "connectivity". As an industrial leader, Komatsu is determined to drive its activities to realize a low-carbon society.
In addition, Komatsu disclosed its first TCFD in the integrated report in 2020. Through climate change risk and opportunity assessments and scenario analyses based on these recommendations, Komatsu will pursue increases our resilience toward climate change impacts. At the same time, Komatsu will advance climate change and water security response measures through a healthy dialogue with stakeholders.
Paul Simpson, CEO of CDP, said: “We extend our congratulations to all the companies on this year’s A List. Taking the lead on environmental transparency and action is one of the most important steps businesses can make, and is even more impressive in this challenging year marked by COVID-19. The scale of the risk to businesses from climate change, deforestation and water insecurity is enormous, and we know the opportunities of action far outweigh the risks of inaction. Leadership from the private sector will create an ‘ambition loop’ for greater government action and ensure that global ambitions for a net zero sustainable economy become a reality. Our A List celebrates those companies who are preparing themselves to excel in the economy of the future by taking action today.”
*CDP: CDP is a global non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. Voted number one climate research provider by investors and working with institutional investors with assets of US$106 trillion, we leverage investor and buyer power to motivate companies to disclose and manage their environmental impacts. Over 9,600 companies with over 50% of global market capitalization disclosed environmental data through CDP in 2020. This is in addition to the hundreds of cities, states and regions who disclosed, making CDP’s platform one of the richest sources of information globally on how companies and governments are driving environmental change.
The full list of companies that made this year’s CDP A List are available here, along with all other public company scores: https://www.cdp.net/en/companies/companies-scores
