GLOBAL SITE

ESG

Making Sekisui House technologies the global de facto standard

Since its founding 60 years ago, Sekisui House has contributed solutions to society’s challenges by providing housing suited to the needs of the times. We remain dedicated to solving the diverse problems that arise in the countries in which we operate and improving living environments while responding to our customers’ needs. Grounded in our Global Vision of making home the happiest place in the world, we are applying the Sekisui House technologies we have refined throughout our history, especially those technologies focused on safety, security, and comfort.

Accolades and Achievements

FY2020 Accolades and Achievements
EENVIRONMENT SSOCIAL GGOVERNANCE

United States

Due to the large land area of the U.S.A., the issues that present housing challenges differ from region to region. To contribute to a societal commitment to sustainability, we aim to solve environmental and social issues and provide homes offering new value in accordance with our common philosophy. We are achieving this by partnering with local companies and by re-employing in the U.S.A. the same initiatives that have succeeded in Japan.

ELeading the way to a decarbonized society

Raising environmental awareness in the community through large-scale park development coupled with the Gohon no ki Project

The ongoing Tehaleh Community Development Project located on a 19-square-kilometer site near Seattle is a large-scale development of 9,500 planned dwelling units alongside commercial, office, and R&D facilities. Discovery Park, an extensive 7.3-hectare project, is currently under construction. Working together with the residents, we have created a conceptual plan that creates synergies with other preservation zones and open spaces in the surrounding area.
In addition, from a location adjacent to the local elementary school, we have planted native tree species and installed birdhouses as part of the Gohon no ki Project so that young people in the area can learn more about the natural environment.
Here, we are developing an environment in which plants naturally pollinate and are creating spaces that make local residents more aware of the need to live in harmony with nature.

The Tehaleh Project

Collaborating with Woodside Homes to develop more environment-friendly products

California, a state committed to environmental conservation, has been proactive at enacting environmental legislation. Laws mandating reductions in greenhouse gas emissions have been enacted, and legislation requiring new homes to be equipped with photovoltaic panels was introduced in 2020, marking the first time such a policy has been adopted in the U.S.A.
Our subsidiary, Woodside Homes, is strengthening the development of environment-friendly products to promote Zero Net Energy (ZNE, the U.S. equivalent of ZEH) housing in line with revisions to the state’s environmental and energy-efficiency standards for buildings.
In Glendale, Arizona, plans are under way to obtain LEED Certification* for an environment-friendly community that is scheduled to open in 2022.

*Leadership in Energy and Environmental Design, an environmental performance evaluation and certification system for buildings and sites that was developed and operated by the US Green Building Council (USGBC)

A home office setting in a model home

SPursuing the potential of the home

Offering options for healthy home living

In October 2020, Woodside Homes introduced the Healthy Home Package, which embodies the idea that the health of residents is of paramount importance. Furthermore, in December, the company released the Conscious Comfort Package, an option that combines solar panels, high-performance thermal insulation, and high-efficiency home appliances to offer a comfortable way of life that is also eco-friendly.

Our “concept home” exhibit at IBS 2020 paved the way to our new SHAWOOD pilot project.

In January 2020, we became the first* Japanese house builder to exhibit at the largest U.S. trade show for the housing industry, the International Builders’ Show (IBS) in Las Vegas. There, we constructed and opened to the public the first SHAWOOD concept home in the United States (Sekisui House’s original wooden house model). Built to the U.S. equivalent of ZEH housing, it incorporates Bellburn porcelain panels for exterior walls that offer fire protection and low maintenance. It also features high seismic resistance, solar power generation, and storage batteries. It was highly evaluated by the participants for suggesting ways to address societal issues that have arisen in the United States.
Following the display of this concept home project at IBS, a new SHAWOOD pilot project was launched in April 2020. These efforts represent a valuable opportunity for us to convey our commitment to making a better society through housing while aiming to resolve issues through the export of SHAWOOD technology to the U.S.A.

*Our research of various display materials suggests we were the first Japanese housebuilder to exhibit at IBS, an annual housing fair that attracts more than 85,000 participants involved in the construction industry as well as institutional investors from around the world. A “concept home” is a full-size model home exhibited by a selected company. We constructed our concept home exhibit at IBS 2020 in collaboration with Woodside Homes.

Interior view of the SHAWOOD concept home built to ZEH specifications and featuring high seismic resistance

SCoexisting with local communities

Contributing to local communities by participating in charities and other events

Since 2019, Woodside Homes has been contributing to the Dream Home Giveaway*¹ , a series of charity events held by St. Jude Children’s Research Hospital*² . After its initial participation in Las Vegas, the company added the Sacramento event in 2020 and continued participating in 2021.
These events are held in about 40 cities across the U.S.A. Woodside Homes covered almost all the construction and material costs associated with construction of the lottery homes in Las Vegas and Sacramento. By supporting the activities of St. Jude hospital, it is helping to improve pediatric medical services in the U.S.A.
Woodside Homes also contributes to local communities by participating in various charity events, while its employees take part in local cleanup events.

*1: A charity lottery in which a portion of solicited donations, in the form of houses and land, are awarded to the lottery winners
*2: Established in Memphis, Tennessee in 1962, this globally renowned pediatric treatment and research facility provides medical treatment to children and supports their families free of charge.

Groundbreaking ceremony for the home provided by Woodside Homes to the Dream Home Giveaway charity event

SBringing together diverse capabilities

Appointments of first female corporate officer and division head announced

The percentage of female employees tends to be higher in companies outside Japan, and the number of women appointed to management positions is also increasing year by year. In 2020, the Central Valley Branch of Woodside Homes in California appointed the company’s first female branch manager; moreover, in April 2021, a female employee was appointed to the position of Chief Insight and Marketing Officer (CIMO), representing the first woman named to the position of corporate officer.

Australia

By developing a version of our SHAWOOD construction method exclusively for Australia, we are providing comfortable housing of Japanese quality to accommodate the local weather, climate, and needs. In addition to developing technology, we are engaged in large-scale development in pursuit of comprehensive sustainability that also reflects social values, environmental issues, the economic situation, and residents’ needs. These efforts have won awards for many of our projects, including West Village and Central Park, which have earned global recognition for its environment-friendly technologies.

The Central Park Project features aerial gardens, impressive green walls, and reflectors to take advantage of natural light. In 2019, one of the project’s high-rise condominium buildings received the world’s highest award from the Council on Tall Buildings and Urban Habitat (CTBUH), having been evaluated as “world’s best” in both name and reality.

ELeading the way to a decarbonized society

SHINKA House, a project built to ZEH specifications

The standard specifications for SHAWOOD buildings greatly exceed the standards for local houses in terms of sustainability indicators; the high thermal insulation and airtightness of the structure contribute significantly to this performance. In 2020, SHINKA House, a pilot home built to ZEH standards equipped with solar power generation facilities, was completed in The Hermitage, a residential area offering for-sale housing that is currently under development in suburban Sydney.
All our projects in Australia, whether SHAWOOD housing, residential land development, or condominium development, incorporate the Shin-Satoyama biodiverse garden concept and the Gohon no ki Project that we are promoting in Japan. At the initial stage of studying the development plan, we investigate the topography of the planned site in detail, leave existing trees untouched as much as possible, and devise a plan for streets and buildings that takes advantage of local features to the maximum. In addition, when planting trees, we focus on native species to conserve the local ecosystem.

SHINKA House, a SHAWOOD project built to ZEH standards

Three Green Star-certified projects

Ecco Ripley, a large-scale mixed-use development in the suburbs of Brisbane, is focused on reducing power consumption in common areas by installing solar panels on the roofs of a commercial parking garage. Customers are encouraged to monitor the amount of power generated and consumed. In this way, we are promoting our corporate policy of visualizing global warming prevention measures. Under the Green Star rating system* introduced by the Green Building Council of Australia (GBCA), Ecco Ripley earned a 5 Star Green Star rating in 2015 and again in 2020. The Ripley Town Center on the site also acquired a Green Star rating.
Together with West Village, which received a 6 Star Green Star rating, the highest rating available, in 2017, three of our projects have earned Green Star ratings.

*An internationally recognized sustainability rating system that evaluates buildings, equipment, communities, and other attributes of a project

Ecco Ripley’s townscape earned a 5 Star Green Star rating.

Large-scale projects utilizing Sekisui House environmental technology are under way in several locations

Brisbane’s West Village preserves the exterior structure of a former ice cream factory on the site that has been designated a historic building. Leftover tiles from the repair project were reused as sidewalk tiles. We collect 100% of the food scraps from the food service tenants in the commercial section and reuse them for biofuel and compost (a method of using microorganisms to decompose organic matter into usable compost).

West Village incorporating historic buildings

SBringing together diverse capabilities

Progress in diversity & inclusion: A female employment rate of 50%, with 8% female management

In 2020, our sales and marketing representative for West Village won the “2020 Women in Leadership Award for Excellence” sponsored by the Urban Development Institute of Australia Queensland (UDIA Queensland).

Winner of the “2020 Women in Leadership Award for Excellence”

GEmbodying integrity

Initiatives to Strengthen Corporate Governance

For each project, local management and employees in charge attend monthly project control meetings held to provide an opportunity for reporting and decision-making.
Training on how to deal with power harassment and sexual harassment and maintain compliance is provided on an ongoing basis at the time of hiring and thereafter. Both local employees and Japanese employees take these courses and work together.
A statutory accounting audit is conducted at the end of the fiscal year, and an annual internal control audit is conducted by Sekisui House head office.

United Kingdom

In May 2019, we undertook full-scale entry into the UK housing market in partnership with Homes England, a UK government agency, and Urban Splash, an integrated real estate company.
The UK faces a serious housing shortage that has become a major social issue. In addition, the traditional stone-and-brick construction methods used for local houses are associated with challenges in terms of productivity, construction time, and quality, and a high-quality housing alternative is needed. We believe we can contribute solutions to these issues by employing our highquality, short-schedule industrialized housing technology.

ELeading the way to a decarbonized society

Promoting ZEH in line with local government measures: The Gohon no ki Project targeting the essential issue of ecosystem conservation

In the UK, government ministries and local governments are taking a proactive stance in support of the government’s commitment to become carbon-free by 2050. As the housing industry needs to undergo a natural transformation, we are contributing solutions to environmental issues in the UK by employing our ZEH technology and by building on our achievements in Japan.
Sekisui House will supply grade A and grade B homes meeting the two industry-leading standards under the UK’s Energy Performance Certificate (EPC) system. We are also considering the possibility of introducing zero-carbon housing in support of government policies.
In the interests of biodiversity conservation, we plan to introduce the Sekisui House concepts associated with the Gohon no ki Project in multiple projects. Since 2020, biodiversity conservation has been identified as a critical issue that must be resolved by the UK government. The approach embodied in the Gohon no ki Project has been well received in the UK and is on the path toward steady implementation.
For the new Northstowe project, we are proposing ways to utilize gardens to best accommodate the orientation of the building. We are also contributing to lifestyles in harmony with nature as a sales promotion tool. We seek to differentiate our offerings by enhancing the added value of both the building and the garden in tandem.

The ongoing housing development project in Northstowe

GEmbodying integrity

Strengthening risk management while ensuring healthy finances

Since the establishment of our consortium in 2019, we have sought to clarify our reporting lines, specifically in terms of our command system and information sharing tree. We are also creating a new management system with stronger organization and meeting bodies in order to provide a means of visualizing our progress. We are currently designing a simple and clear organizational structure with reporting lines and are working toward implementation of centralized management.
As for risk management, we are considering the formation of a committee to comprehensively strengthen risk management and manage budget performance. We have also instituted clear discipline and risk management frameworks to help ensure a sound financial footing.

China

We are developing a townhouse business in the cities of Shenyang, Suzhou, Wuxi, and Taicang that makes use of Japan’s track record of environment-friendly housing under our own Sekisui House Yuqin brand. We are also engaged in developing condominiums offering world-class living spaces as well as projects involving commercial facilities.
We have a deep understanding of China’s history and culture, and we demonstrate our appreciation as we build sustainable housing and engage in urban development.

ELeading the way to a decarbonized society

Addressing national issues by supplying environment-friendly housing

China has the world’s highest CO2 emissions. While the entire country is addressing its environmental issues, we are also evaluating our building materials and specifications in order to develop projects offering environment-friendly housing. In our Taicang I Project, we achieved a 2 star class rating for Green Buildings in both the design and operation divisions, the highest grade for residential construction under the environment-friendly building evaluation system in China.
In adopting the Gohon no ki Project, we are planting a combination of native species on the grounds of our projects. We strive to produce a satoyama-type biodiverse landscape while creating an environment conducive to the natural cycles of birds and butterflies.

Taicang Yuqin Garden, highly regarded as an environment-friendly building

SPursuing the potential of the home

Interior planning from the residents’ perspective and enhanced after-sales maintenance

In the Chinese housing market, houses are typically sold in a barebones state with minimal appointments. When building a home, we believe it is essential for the builder to take responsibility for completing the interior. We thus provide high-quality interiors and dwelling units equipped with storage facilities adhering to a detailed storage plan that takes into account the residents’ perspective. In addition to our focus on construction and quality, we also offer aftersales maintenance and strive to provide reliability, safety, and peace of mind throughout the period of residence, ensuring the satisfaction of the homeowners.
After-sales service is provided by customer service employees who have been assigned to each location. Among the wealthy in China, expectations for construction management and after-sales service are extremely high, and we are striving to establish the Yuqin brand by providing a value experience that exceeds customer expectations.

GEmbodying integrity

Transforming our systems to strengthen corporate governance and anti-corruption measures

In fiscal 2021, we began strengthening cooperation with our International Business Department and transformed our approval system to require double- and triple-checking without allowing for independent decision-making. This initiative has helped to strengthen our corporate governance.
We are also promoting compliance by conducting audits through our International Auditing Office and third-party organizations. We also hold various workshops and have instituted an internal reporting system.
As for finance, the people responsible for financial reporting at each special purpose company were appointed as Deputy General Managers in fiscal 2021 in an effort to strengthen our financial soundness.

Singapore

In Singapore, we are working with leading development partners to build housing with high added value that is suited to local lifestyles.
Our objective is to create sustainable communities in all our developments, including the One Holland Village project, which is attracting attention as a large-scale residential and commercial mixed-use development.
We are creating value by introducing Sekisui House housing developments, urban development concepts, and designs in styles that suit local environments and ways of life.

ELeading the way to a decarbonized society

Waterway Point: An energy efficiency and water conservation initiative

Featuring a beautifully landscaped promenade and large shopping mall, Waterway Point is a commercial facility that benefits from its exceptional setting alongside a canal. We developed this project in collaboration with a joint venture partner. We have implemented energy-efficiency and water conservation measures by upgrading facade lighting and sanitary equipment. In addition, following our certification of registration with the ISO 14001 international standard for environmental management systems, we are working toward registration with ISO 50001, the standard for energy management systems. In compliance with these international standards, we are promoting the construction of environmental and energy management systems as we focus on efforts targeting continuous improvement.

The Waterway Point Commercial Facility and Water Town Condominiums offered for sale have earned a Gold-Plus rating under Singapore’s Green Mark* certification system.
*An environmental performance evaluation that defines building specifications and performance

SPursuing the potential of the home

Suggesting ways to enhance lifestyles

One Holland Village is a multi-development project offering housing, serviced apartments, commercial facilities, and offices. We are promoting this project with our joint venture partners by introducing our “slow living” concept. In Singapore, marketing of residences typically tends to focus on room size, finishes, appliance specifications, and the like, but we are working with our local partners on a sales approach we call “lifestyle proposal” that enables us to differentiate our offerings from our competitors.
In light of the changes brought by the COVID-19 pandemic, we are providing value to our customers by preparing model rooms incorporating the Sekisui House child-friendly housing design concept of Kodomo idokoro as well as innovative ideas for those working from home.

Common to All Countries

GEmbodying integrity

Strengthening governance through close collaboration with Japan

To maintain open communication, we hold separate meetings twice monthly with our local subsidiaries in each country in which we operate.

Providing a full English-language edition of our corporate philosophy

As we expand our business into other countries, we have published our corporate philosophy in an English-language edition for the benefit of employees outside Japan. We believe it is essential that all employees develop a deep understanding of our corporate philosophy as they engage in their business activities. Going forward, we intend to develop a related training system as we disseminate our corporate philosophy across the globe.

Activities of the International Auditing Office and establishment of our internal reporting system

We established our International Auditing Office in April 2019, and in June 2020 we set up the Sekisui House Global Helpline as an internal reporting system for employees of subsidiaries in English-speaking countries. It provides a point of contact with third-party law firms, while a separate point of contact has been established for employees of our subsidiaries in China.

Strengthening risk management by formulating response guidelines for crises occurring outside Japan

As part of our efforts to strengthen our risk management, we are developing guidelines for responding to crises that occur outside Japan. We have also developed a common understanding and attitude toward crisis response. The system we are building enables our head office and locations outside Japan to respond in a timely manner with a broad multifaceted approach.