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CSR Report

As a good corporate citizen coexisting with society, Kanamoto seeks to be a firm entrusted with the future while positioning CSR activities as the foundation of its management.

Overview of CSR at Kanamoto

The Kanamoto Group conducts its business activities with the goal of being a firm entrusted with society’s future as a corporate citizen coexisting with society. Currently these business activities are being accomplished with the support of many stakeholders, beginning with our shareholders and investors but also encompassing groups as diverse as our customers, employees and local communities, while showing growth overseas. We believe that building a deep relationship of trust with stakeholders, supported by proper corporate activities, is indispensable for accomplishing our mission and achieving sustainable growth. The Company has positioned CSR (Corporate Social Responsibility) at the heart of its corporate management and is committed to its practice.

Working to further improve corporate value under the simple yet strong philosophy of
“contribute to society”

The foundation for a relationship of trust with stakeholders is formed by the fundamental corporate activities demanded by society, including compliance, corporate governance and disclosure. For the Company, these are nothing new. That’s because our business operations have always assumed “contributing to society through equitable and appropriate corporate activities” as a starting point, and we have always conducted our business with this firmly in mind. Our approach to environmental protection has been the same, and we have always promoted this policy proactively through actions such as the early introduction of equipment models that meet anti-pollution statutes.
Together with the creation of earnings, which is our intrinsic purpose as a firm, we will continue devoting ourselves to fulfilling our social responsibilities and further increasing our corporate value in the future, through systematic CSR activities at every company of the Kanamoto Group.

Kanamoto will strengthen its compliance system and increase its “social value”

System for ensuring directors and employees comply with laws and the Articles of Incorporation in the execution of their duties

Kanamoto Company, Ltd. and its subsidiary companies have prepared Ethics Guidelines as their corporate philosophy, which they use as a company standard concerning compliance. Under the Compliance Committee chaired by Kanamoto’s president, the Company has disseminated these Guidelines throughout the Company and established a system for compliance with laws and the Guidelines, and has prepared a handbook summarizing Kanamoto’s corporate philosophy and employee conduct standards, which it distributes to all executives and regular employees to increase compliance awareness. As a consultation and reporting system, Kanamoto also has set up in-house and external compliance hotlines and created a system to resolve problems quickly when consultations or reports are received directly from employees and other individuals, while strictly observing confidentiality and ensuring the individuals who report problems do not suffer any disadvantages. In addition, the Company has established a Legal Section reporting directly to the president, which acts as an advisory panel for important legal issues and enables the Company to give proper legal consideration to all decision making.

System for ensuring efficient execution of directors’ duties

In addition to their regularly scheduled Board of Directors meetings, Kanamoto and its subsidiary companies hold extraordinary board meetings when necessary to decide important matters and make flexible decisions concerning the execution and supervision of management strategies and the Company’s business plans. The Board of Directors receives reports on the financial condition and other important matters of the subsidiary companies. For its business plan, the Company establishes budgets for the next business fiscal year and medium-term future, which provide the managers of each division with Kanamoto’s overall objectives based on specific numerical targets. Each division sets division-wide objectives and executes progress management and specific measures aimed at achieving its goals. Kanamoto also has introduced a corporate officer system to accelerate management decision making and clarify supervisory authority and responsibility for plan execution, and each corporate officer is responsible for achieving the business plan approved by the Board of Directors. To respond quickly to the severe pace of change in its management environment, the Company also has shortened the directors’ term of office to one year.

Kanamoto's corporate governance organization
Kanamoto’s corporate governance organization

Enhancement and operation of a company-wide internal control system

Instruction and training program conducted by the Internal Control Promotion Office To respond appropriately and implement measures to prevent a recurrence if unforeseen circumstances that will have a serious effect on Company operations have occurred or might occur, the Company has prepared an Emergency Response Manual (Contingency Plan). One measure for further clarifying these activities is Kanamoto’s “internal controls reporting system,” which all of the Company’s employees have been united in supporting since the system was placed into full-scale operation.
To ensure the effectiveness of Kanamoto’s company-wide internal controls and each activity process, guidance and training programs are conducted at the Company’s offices by the Internal Control and Auditing Office, and internal controls similar to Kanamoto’s are also established and put into operation at Kanamoto Group companies.

We strive for fair, transparent, and timely information disclosure that will further enhance shareholder value.

Enhance fair and prompt disclosure and IR activities

The Company has always practiced fair, highly transparent and prompt information disclosure. To release information on a timely basis, Kanamoto posts information on the Tokyo Stock Exchange TDnet system, while also reporting it promptly on Kanamoto’s website, where English translations of the documents disclosing the information are also made available. All materials providing information about the Company and the Kanamoto Group, including videos of the Company’s financial statement briefings and briefing materials distributed to participants, the Kanamoto Examiner issued quarterly to shareholders, and the Annual Report, can be viewed on the Company’s website.
Kanamoto also considers direct conversations with its stakeholders to be an important aspect of its disclosure efforts. Kanamoto actively exhibits at IR events, including the Tokyo Stock Exchange IR Fair for individual investors, Sapporo Securities Exchange individual investor briefing meetings, and the Nikkei IR Fair for individual investors, and holds company briefings throughout Japan each year. Kanamoto also holds quarterly briefings with securities analysts and domestic institutional investors, and devotes efforts to implementing IR activities overseas.

Bolster proper control and security of personal information

The Company handles a vast amount of personal information pertaining to suppliers and customers, shareholders and investors and other stakeholders. Accordingly, the Company formulated a Privacy Policy (Personal Information Protection Policy) to ensure appropriate management of this data. We also have a reliable system in place for responses and countermeasures in the event personal data is leaked outside the Company.
One example of Kanamoto’s commitment to personal data protection is its use of the latest encryption technologies to strengthen Internet security and protect information sent to individuals making inquiries via the Company’s website.

Shareholders receive issues of the Kanamoto Examiner four times a year ,Kanamoto actively holds briefings throughout Japan for individual

To achieve sustainable growth, we focus on training and strengthening the skilled human resources who will be the driving force behind our businesses.

Measures to upgrade safety and health systems

One effort the Company has strengthened is safety training, and we have created a system for preventing worker accidents that is spearheaded by the Safety and Health Office, which reports to the company president. This body regularly implements in-house training courses and audits, and works to raise safety and health awareness, covering all of Kanamoto’s offices in combination with the safety patrols operated by the safety and health working groups. These activities to strengthen Kanamoto’s safety and health systems and eliminate accidents have proven successful, and as a result, the number of branches that have achieved a zero accident rate for a continuous period of at least 20 years has increased to 20 branches.

Emphasizing personnel training for Kanamoto’s future

In-house maintenance and repair course The Company considers well-trained personnel who possess high-level knowledge and skills to be the force driving sustained growth. Kanamoto therefore has created an organization that encourages and nurtures the capabilities of each employee to the maximum extent, by implementing personnel training and development programs attuned to individuals with management duties and those responsible for maintenance and repairs.
Given the need for employees to have numerous qualifications for technical work and maintenance and repairs in particular, Kanamoto works diligently to train individuals engaged in these areas. In addition to providing in-house maintenance and repair training, Kanamoto has expanded its training system to support the acquisition of maintenance technology through participation in manufacturer-sponsored maintenance and repair training, and encourages employees to obtain advanced qualifications.

Number of Repair Qualified Technicians and Operation Qualified Technicians (As of February 2018)
Qualification Number of individuals
Repair Qualified Technicians Construction Equipment Repair Technician (Expert) 15
Construction Equipment Repair Technician (First Class) 229
Construction Equipment Repair Technician (Second Class) 455
Portable Generator Repair Technician 474
Automobile Repair Technician 498
Gas Welding Technician 708
Organic Solvent Work Manager 289
Hazardous Materials Handling Manager 355
Vocational Training Instructor 20
Repair Qualified Technicians Vehicle-type Construction Equipment Operator 3,629
Mobile Crane Operator 1,850
Large-scale Equipment (Special) Operating License 473
Sling Crane Technician 807
Forklift Operator 620
Shovel Loader Operator 18
Note: Number of qualifications held is total man-qualifications.

Practicing effective activities,
to achieve a sustainable society.

Greater equipment rental use is linked directly with the preservation of our environment

Rental is a service that enables customers to use equipment through “time sharing.” So we might say rental is an environmentally-friendly business, because the more rentals are used, the more effective the use of a resource. Consequently, rental equipment is linked to energy savings and resource conservation by society, and can be viewed as one solution to environmental problems.
To help more people gain better insight into these environmental efforts by the Company and see how Kanamoto’s businesses are environmentally friendly, Kanamoto participates actively in various environmental events throughout Japan with environmental action and ecology themes.

Responding to needs and shifting assets compatible with environmental conservation

At Kanamoto, we view consideration of the global environment as an important obligation for fulfilling our social responsibilities as a corporation. For many years, the Company has been implementing a systematic shift of rental assets to models that clear anti-pollution statutes for exhaust gases, noise and other emissions. As a result, today nearly all of the Company’s rental construction equipment portfolio consists of the latest environmentally-friendly models that clear anti-pollution regulations.
The Company will fulfill its responsibility to protect the environment even as we meet user needs. This is just one part of Kanamoto’s green actions. In the years ahead, Kanamoto will actively continue to upgrade its inventory to equipment that utilizes “green technologies.”

Aggressive introduction of fuel-efficient, low-emission vehicles, even for corporate automobiles

The Company has actively introduced automobiles certified as fuel-efficient, low-emission vehicles for its own fleet, in addition to our inventory of rental construction equipment.Kanamoto selected hybrid automobiles as its corporate vehicles soon after the start of mass production in 1998. Since then we have continued to upgrade our fleet to these and other fuel-efficient, low-emission vehicles.

Example of environment-friendly equipment introduced by Kanamoto Example of environment-friendly equipment introduced by Kanamoto
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