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Sustainability Report 2019 Housing Innovation to Make Your Heart Feel at Home for the Year Ended January 31, 2019

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Sustainability Report 2019 Housing Innovation to Make Your Heart Feel at Home for the Year Ended January 31, 2019 Sustainability Report 2019 Housing innovation to make your heart feel at home For the year ended January 31, 2019 For the year ended January 31, 2019 Sustainability Report 2019 (Integrated, Environmental, and CSR Report) Creating value for sustainable growth through ESG management Sekisui House was the first company in the housing industry to be certified as an Eco-First Company by Japan’s Minister of the Environment (MOE). Head Office 1-1-88 Oyodonaka, Kita-ku, Osaka 531-0076, Japan Direct inquiries to: Corporate Social Responsibility Department Tel: +81-6-6440-3440 Environment Improving Department This document serves as Sekisui House’s report on the status of implementation for the 10 Principles of Tel: +81-6-6440-3374 the UN Global Compact (UNGC), which the group submits to the UN Global Compact Office. Corporate website: https://sekisuihouse.co.jp/english Published July 2019 Make home the happiest place in the world. People are born to be happy. People can help others find happiness, too. At Sekisui House, we embrace that truth in everything we do. Our extensive track record in the housing sector, where we have built more homes than any other company across the globe, speaks for itself: we have the ability—and responsibility—to make home the happiest place in the world. We strive to help people find happiness, be it enriching families’ lives through housebuilding projects and services or connecting people across the globe through business and procurement efforts. In pursuing that aim, we look forward to finding solutions to social issues and making the world we inhabit a better, more sustainable place. 01 Sekisui House Sustainability Report 2019 Sekisui House Sustainability Report 2019 02 Make home the happiest place in the world. People are born to be happy. People can help others find happiness, too. At Sekisui House, we embrace that truth in everything we do. Our extensive track record in the housing sector, where we have built more homes than any other company across the globe, speaks for itself: we have the ability—and responsibility—to make home the happiest place in the world. We strive to help people find happiness, be it enriching families’ lives through housebuilding projects and services or connecting people across the globe through business and procurement efforts. In pursuing that aim, we look forward to finding solutions to social issues and making the world we inhabit a better, more sustainable place. 01 Sekisui House Sustainability Report 2019 Sekisui House Sustainability Report 2019 02 Contents I Value Creation Vision and Strategy (Integrated Report) Messages from Top Management Strategy and Core Competencies Sekisui House Group Business ............................................ 09 Built-to-Order Business ..................................................... 11 Development Business ...................................................... 14 Supplied Housing Business ............................................. 15 Overseas Business ................................................................ 17 Risks and Opportunities ......................................................... 21 The Sekisui House Group’s Unique Strengths ............ 23 Value Creation Process ............................................................ 25 Financial and Non-Financial Performance .................... 27 Tackling social challenges head-on with an eye to the global context Toshinori Abe Chairman & Representative Director ......................... 05 Vision and Goals Our Four Key Values and SDGs ........................................... 29 Sustainability Vision 2050 ..................................................... 31 Our Medium-Term Management Plan and ESG ........ 33 Happiness: Our core concept for a bright future of ongoing business growth Yoshihiro Nakai President & Representative Director ...................... 07 Editorial Policy The purposes of this report are to educate the general public about Features of the Sustainability Report 2019 the Sekisui House Group’s initiatives to help build a sustainable society, • The content of this report was decided by the CSR Committee, and to encourage communication with the community as a means to taking into account social conditions and the responses to a survey improve these initiatives going forward. of the FY2018 report. We referred to the 2018 Environmental Reporting Guidelines of Japan’s Ministry of the Environment when selecting topics to be • This report conforms to the Core items of the GRI Standards; general reported and formulating our editing policy and layout; the selected disclosures (topics that must be disclosed in compliance with the topics are disclosed in accordance with ISO 26000, an international Core items) and 17 itemized standard material topics have been standard providing guidance on social responsibility. disclosed mainly within the pages concerning Putting Value Creation Furthermore, this report has been prepared in accordance with the into Practice (ESG). Core items of the Global Reporting Initiative’s (GRI) Sustainability • As an annual report, this document organizes and discloses the results Reporting Standards (GRI Standards). of initiatives implemented in FY2018. It also publishes achievements and self-evaluations regarding our targets. • This report discloses the key performance indicators (KPIs) of important areas, such as the progress of our Eco-First Promise. 03 Sekisui House Sustainability Report 2019 II Value Creation in Practice III CSR Management ..... E Environmental CSR Policies and the ESG Management Framework 84 Identifying Material Topics ................................................... 85 Decarbonized Society .............................................................. 35 Stakeholder Engagement ...................................................... 86 Society in Which Humans and Nature Coexist ........... 43 Comments from External Members of the CSR Committee ............................................................. 87 The Circular Economy .............................................................. 47 Independent Third-Party Assurance Report ................. 88 Eco-First Promise ........................................................................ 50 GRI Content Index for “In Accordance” Items .............. 89 Material Balance (Environmental Impact) .................... 51 FY2018 Accolades and Achievements .............................. 91 Summary of Initiatives ........................................................... 93 S Social Pursuing Customer Satisfaction through Our approach to reporting media Our Value Chain ......................................................................... 53 The information in this publication has been compiled based on its importance, and presented in a format that is easy to read and understand. Promoting Diversity ................................................................. 61 Comprehensive information is disclosed on our website to fulfill our ................................................................... responsibility of full accountability to a wide range of stakeholders. Workstyle Reforms 63 We also issue a separate publication that focuses on activities of particular Human-Resource Development ......................................... 65 importance to customers. Note: Our CSR website is only available in Japanese. Respect for Human Rights .................................................... 67 This document has been Contributing to Society .......................................................... 69 edited with a focus on Publication issues that the Sekisui House Group must address through stakeholder engagement. G Governance WEB Comprehensive coverage of details and information related to initiatives ... Strengthening Our Corporate Governance System 73 Activities of high importance to stakeholders Activities of high importance to the Sekisui House Group Messages from External Directors and Corporate Auditors .......................................................... 77 WEB WEB https://www.sekisuihouse.co.jp/sustainable/ Compliance and Risk Management .................................. 79 Occupational Health and Safety Management .......... 83 Scope of business This report covers Sekisui House, Ltd. and 264 consolidated subsidiaries. The energy usage, waste and greenhouse gas emissions, water used in factory production, and social reporting (accidents Scope of business activities resulting in lost worktime and job-related This report covers the business operations of the Sekisui House Group, illness frequency rates) disclosed in the which include custom detached houses, rental housing, remodeling, Sustainability Report 2019 are assured by third-party institutions to heighten real estate management fees, houses for sale, condominiums, urban reliability (see the Independent Third-Party redevelopment, overseas business, and others (e.g. exterior Assurance Report on page 88). construction work). Furthermore, the symbol on the right • Period covered: FY2018 (February 1, 2018 to January 31, 2019) indicates that this report meets the Note: Some activities undertaken in FY2019 are covered in this report. greenhouse gas reporting examination • Date of publication: This report is published annually in Japanese in and registration mark standards May; versions in English and in Chinese are published annually in July. established by The Japanese Association of Assurance Organizations for • Direct inquiries about this report to: Sustainability Information in terms
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