Sustainability Report 2019: Creating Value For Sustainable Growth Through ESG Management

Housing innovation to make your heart feel at home
Sustainability Report 2019

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
C on te nts
I Value Creation Vision and Strategy (Integrated Report) II Value Creation in Practice III CSR Management
Messages from Top Management Strategy and Core Competencies E Environmental

CSR Policies and the ESG Management Framework ..... 84
Identifying Material Topics ................................................... 85
Sekisui House Group Business ............................................ 09 Decarbonized Society .............................................................. 35 Stakeholder Engagement ...................................................... 86
Built-to-Order Business ..................................................... 11 Society in Which Humans and Nature Coexist ........... 43 Comments from External Members
Development Business ...................................................... 14 of the CSR Committee ............................................................. 87
The Circular Economy .............................................................. 47
Supplied Housing Business ............................................. 15
Independent Third-Party Assurance Report ................. 88
Eco-First Promise ........................................................................ 50
Overseas Business ................................................................ 17 ..............
GRI Content Index for “In Accordance” Items 89
Risks and Opportunities ......................................................... 21 Material Balance (Environmental Impact) .................... 51
FY2018 Accolades and Achievements .............................. 91
The Sekisui House Group’s Unique Strengths ............ 23
Summary of Initiatives ........................................................... 93
Value Creation Process ............................................................ 25
Financial and Non-Financial Performance .................... 27
S Social
Tackling social challenges head-on Our approach to reporting media
Pursuing Customer Satisfaction through
with an eye to the global context 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.
Toshinori Abe Chairman & Representative Director ......................... 05 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
Vision and Goals Human-Resource Development ......................................... 65 importance to customers.
Note: Our CSR website is only available in Japanese.
Respect for Human Rights .................................................... 67
Our Four Key Values and SDGs ........................................... 29 This document has been
Activities of high importance

Contributing to Society .......................................................... 69 edited with a focus on
Sustainability Vision 2050 ..................................................... 31 Publication issues that the Sekisui
House Group must address
Our Medium-Term Management Plan and ESG ........ 33 through stakeholder
engagement.
to stakeholders
Governance WEB Comprehensive coverage of
details and information related
to initiatives
Strengthening Our Corporate Governance System ... 73
Activities of high importance to the Sekisui House Group
Messages from External Directors
Happiness: Our core concept for a bright and Corporate Auditors .......................................................... 77 WEB
WEB https://www.sekisuihouse.co.jp/sustainable/
future of ongoing business growth Compliance and Risk Management .................................. 79
Yoshihiro Nakai President & Representative Director ...................... 07 Occupational Health and Safety Management .......... 83
Editorial Policy
This report is published with the objective to spread awareness about Features of the Sustainability Report 2019 Scope of business
the Sekisui House Group’s efforts to create a sustainable society. The energy usage, waste and greenhouse
• The content of this report was decided by the CSR Committee, This report covers Sekisui House, Ltd. and 264 consolidated subsidiaries.
We also seek to communicate with various stakeholders and improve gas emissions, water used in factory
taking into account social conditions and the responses to a survey
the quality of our activities through it. For this purpose, we disclose production, and social reporting (accidents
information through three outlets – the integrated report, the
of the FY2018 report. Scope of business activities resulting in lost worktime and job-related
environmental report and the CSR report. • This report conforms to the Core items of the GRI Standards; general This report covers the business operations of the Sekisui House Group, illness frequency rates) disclosed in the
We refer to the following for identifying and editing the contents disclosures (topics that must be disclosed in compliance with the which include custom detached houses, rental housing, remodeling, Sustainability Report 2019 are assured
Core items) and 17 itemized standard material topics have been by third-party institutions to heighten
of the reports. real estate management fees, houses for sale, condominiums, urban
reliability (see the Independent Third-Party
• Integrated report: The International Integrated Reporting disclosed mainly within the pages concerning Putting Value Creation redevelopment, overseas business, and others (e.g. exterior Assurance Report on page 88).
Framework of the International Integrated Reporting Council (IIRC) into Practice (ESG). construction work). Furthermore, the symbol on the right
• Environmental report: The Environmental Reporting Guidelines • As an annual report, this document organizes and discloses the results • Period covered: FY2018 (February 1, 2018 to January 31, 2019) indicates that this report meets the
2018 published by the Ministry of the Environment of initiatives implemented in FY2018. It also publishes achievements Note: Some activities undertaken in FY2019 are covered in this report. greenhouse gas reporting examination
• CSR report: Guidance on Social Responsibility ISO26000 and self-evaluations regarding our targets. and registration mark standards
• Date of publication: This report is published annually in Japanese in
established by The Japanese Association
• This report discloses the key performance indicators (KPIs) of May; versions in English and in Chinese are published annually in July.
of Assurance Organizations for
important areas, such as the progress of our Eco-First Promise. • Direct inquiries about this report to: Sustainability Information in terms of the
Corporate Social Responsibility Department; tel: +81-6-6440-3440 reliability of the greenhouse gas emissions
Environment Improving Department; tel: +81-6-6440-3374 data disclosed herein.
Online inquiries https://www.sekisuihouse.co.jp/mail/
Value Creation Vision and Strategy
Messages from Top Management
a commitment to using 100% renewable energy for all business In driving SumStock forward, the Sekisui House Group is
activities. With the purchase period under the Japanese leveraging its impressive track record in supplied housing to
government’s feed-in tariff (FIT) system for renewable energy stand at the industry forefront and accelerate the overall effort.
gradually drawing to a close, we are also planning to launch Social problems are growing more diverse and increasingly
the “Sekisui House Owner Denki” in November 2019. This is a complex as we march into the future. In the process of
framework through which we buy surplus power from home formulating solutions to those changing issues, individual
owners at competitive prices and use the electricity for our companies and industries can only do so much. Making
group activities. Countries and corporations abroad are setting problem-solving a concerted, society-wide effort hinges on
ambitious numerical targets and timelines for renewable energy, all-encompassing standpoints and bold, revolutionary ideas.
embodying a dynamic attitude. Japan has to be in the thick of Without those radical breakthroughs, new answers will lie out
it all. For Japan to do its part amid that constant rush of activity, of reach.
climate-change countermeasures in the housing sector can
play a crucial role. Now is the time for the Sekisui House Group
Toshinori Abe
to showcase its true value. Having balanced industry-propelling Step-by-step progress toward
advances in low-carbon technology and comfortable living, we
Chairman & are in prime position to seize business opportunities and drive
governance reforms
Representative Director further progress forward.
Last but not least is governance reform, a crucial issue for the
Sekisui House Group. Our efforts to tackle the six items for
Tackling social challenges through strengthening the corporate governance system that we laid
out in 2018, the first year of the governance-improvement
stronger group solidarity drive, have made solid progress and a sizable impact. In working
Tackling social challenges head-on

toward the establishment of the Management Meeting and
The Sekisui House Group has gradually expanded from a transparency and invigoration of Board of Director meeting
foundation in built-to-order housing into a structure operations, a new standard process has taken root: the Board
encompassing supplied housing, development business, and of Directors deliberates on matters after the Management
with an eye to the global context overseas business. That breadth speaks to what we can do as
a housing manufacturer in realizing a sustainable society, which
goes beyond just building new ZEH units. We create top-quality
Meeting has discussed the topics, with outside officers present
to diversify the talks. Forward progress has been made on
clarifying directors’ responsibilities for the various departments,
housing and do the proper maintenance, remodeling, and thereby facilitating the evaluation of Board of Director
How our collective diversity of strengths can transform renovations to keep the structures performing well—and efficacy—another of the six items. These initiatives are
better—for generations to come. Our mission is to extend open-ended; there are always improvements to make and
the Japanese housing sector housing life, provide long-term support to customers, form deeper levels to probe.
markets where housing constitutes a meaningful social asset, We have also added new efforts to our action plan ensuring
and minimize the impact of housing on the global environment, independence and strengthening internal checks of chief managers
House’s net-zero energy housing (ZEH) and other initiatives. all in hopes of making a circular economy a reality. Vital to that in charge of general affairs, in sales administration headquarters
The dynamism of the world, As I took in my surroundings at the event, I got a real sense of process are the capabilities of the Sekisui House Group—the and branches, as well as improving the integrity of branch
how dynamically the global community is taking action. diversity of strengths that group companies like Sekiwa managers. As we work to enhance training programs and make
on full display at COP24 Countries around the world are tackling climate change in so Construction, Sekisui House Remodeling, and Sekiwa Real personnel evaluations more rigorous, we will also strive to foster
many practical, progressive ways, but Japan is starting to fall Estate bring to the table. From my perspective, synergizing that future branch managers. The whole process will follow the Plan,
Japan is currently dealing with myriad social challenges: falling behind. A look at the Climate Change Performance Index, a diversity of strengths will open doors to new business approaches, Do, Check, Action (PDCA) cycle, just like our business activities do.
birthrate and aging population, climate change, large-scale report that a leading international NGO releases at yearly COP such as customer-asset management, and pave the way for On top of that, we plan to iron out new reform guidelines by 2020.
natural disasters, and increasing numbers of unoccupied houses, meetings, shows that Japan sits in the “Very Low” rating ongoing growth. The Sekisui House Group‘s corporate philosophy encapsulates
to name a few. As a Japanese company, we at the Sekisui House category. At the top of the list, meanwhile, are Sweden, the The plethora of existing houses in Japan presents a wealth our beliefs. Our fundamental philosophy is “love of humanity,”
Group have to address the challenges through our business United Kingdom, and other European nations; India is one of of new roles and a world of new possibilities for housing and our stance is “truth and trust.” Those elements all play
pursuits and keep on growing amid the adversity. We also need the higher-performing Asian countries on the list. manufacturers. In that area, The Sekisui House Group is into our governance initiatives. Truth, for example, captures
to make steady, step-by-step progress on efforts to solve the Up until the mid-1990s, when the Kyoto Protocol was proactively promoting “SumStock”—an initiative to help the sincere, high-minded morality of integrity that is at the crux
problems at hand. One of the most pressing issues is the state of adopted, Japan was a world leader in the movement to cut customers pass their homes on to the next generation. At the of our governance reforms. Trust, meanwhile, represents an
the environment. With typhoons, torrential rains, and other greenhouse-gas emissions. Sekisui House blazed trails, too, core of the effort is the Provision of Quality Housing Stock interpersonal ideal: connections where individuals can be their
large-scale natural disasters wreaking havoc around the world releasing its “Environmental Future Plan”—a bold vision for a Association, which Sekisui House and nine other leading true selves, make the most of their abilities, and have that
at a startling frequency, extreme weather is quickly becoming an housing manufacturer—in 1999. Things have changed housing manufacturers created as a joint project. Through individual worth recognized. “Love of humanity” and “truth
everyday occurrence—disaster could strike anywhere, any time. dramatically in the two decades since. I recognized our mission SumStock, the member companies get access to a housing and trust”—it all finds expression in how we strive to stay
The prevailing discourse on global warming frames the as a housing manufacturer and knew that we needed to history database that facilitates the process of evaluating and humble, uphold honesty, answer our call with a full heart,
environmental threat as an issue for the “future of our planet,” accelerate our efforts with a real sense of urgency. selling their high-quality existing houses in accordance with clear, want the best for others, and take joy in others’ joy. Those
a concern for the “next generation.” That future, however, is In 2008, the Sekisui House Group announced its “2050 well-defined appraisal standards. Besides providing that valuable philosophical roots form the cornerstones of our governance
now; the effort to control global warming simply cannot wait. Vision” aiming to eliminate CO2 emissions from housing and framework, the Japanese housing market has traditionally reforms as well.
The risks are real and present today, imperiling the world we quickly shift management focus to decarbonation. ZEH currently followed a pattern of building new houses and selling as many Creating new standards with an eye to the world, our goal
inhabit at this very moment. The need for action is an urgent one. accounts for 79% of our newly built detached houses, with as possible (and then tearing them down when they get old). is clear, but our reforms—and evolution—are still works in
At the 24th Conference of the Parties to the United Nations total cumulative sales of roughly 40,000 units—both SumStock, however, is working to invigorate the market for progress. As we keep aiming higher, always training our sights
Framework Convention on Climate Change (COP24) in Katowice, world-leading figures. In October 2017, we became the first high-quality existing housing to help curb the country’s growing on social issues, we continue to march on toward sustainable
Poland, in December 2018, I gave presentations on Sekisui construction company in Japan to join the RE100 initiative, numbers of unoccupied houses. growth as a company.
Value Creation Vision and Strategy
Messages from Top Management
health. Environmental controls and a bevy of sensing

technologies will help users monitor day-to-day changes in
their physical conditions, enabling early detection of Stable, balanced business growth abroad
sudden-onset diseases and life-threatening conditions,
particularly those with a high likelihood of occurring at home
(strokes and heart attacks, for example). By facilitating prompt We have now been active in overseas business for nine years
medical care, our homes will not only help residents live since our initial foray in Australia, and we are finally starting to
healthier lives on an individual level but also benefit reap benefits in valuable know-how. Business is on a solid trajectory,
communities through reductions in medical expenses and too, with the debut of our “SHAWOOD” wooden-frame houses
other social costs. We look forward to forging alliances with in the Australian market and our acquisition of Woodside
outside partners, pursuing research backed by science and Homes in the United States. As we take overseas business to
logic, and shaping those results into new services with roots a new stage, we will foster our development business and start
in the home—offerings that will broaden our business domains applying all the environmental technologies, production and
and fuel sustained business growth. construction systems, expertise, and real-estate management
Yoshihiro Nakai fee background that we have amassed. The goal is to use
President & those assets to foster balanced growth in the industry—from
Representative Director development business to built-to-order and supplied
Housing expertise as a difference-maker
housing—from a medium- and long-term perspective.
outside the housing sphere,
benefiting communities on multiple levels
Nurturing a culture of innovation
In the non-housing sector, we launched a community-
development project. The initiative makes use of resources
and communication, two key elements
Happiness: Our core concept for a bright like our original Flexible β System, which extends design
freedom, expands our options for space proposals, and
shortens construction times through the use of factory-shipped
of leading the way in ESG management
To accelerate sustainable growth on a company level, we need
future of ongoing business growth materials. Building on Sekisui House’s prowess in delivering
quality physical housing at quick turnaround times, the project
also lets our proposal capabilities shine by foregrounding
to enable growth on an individual employee level. Innovation
and communication are our goals in that regard. We want
our workplaces to encourage and rejuvenate communication
comfort, eco-consciousness, and other elements of the livability through day-to-day interpersonal contact and free, candid
Forming business strategies around social impact to create new value expertise we have gained. dialogue—key ingredients in cultivating the ideas that spark
An effort along those lines began in November 2018, innovation. Welcoming, open environments lay the groundwork
and make Sekisui House a leader in ESG management when Sekisui House joined forces with Marriott International, for effective information sharing and, as a result, stronger
Inc., a hospitality-focused accommodation provider with governance. If we want to make home the happiest place in
locations in 130 countries and regions around the world, to the world, we need to make our systems, offices, and
of humanity. Operating from that foundation, we are now create the Trip Base Michi-no-Eki* Project. With local worksites conducive to happy, healthy work. That effort spans
The turning point of 2020: Charting a new delving deeper into realizing customer happiness in a society governments across Japan offering their assistance, the a broad range of activities, including diversity-oriented measures
where people will have a 100-year lifespan. That means collaboration will open hotels to showcase a “journey through to help women thrive professionally, workstyle reforms, and
course for sustainable growth into the future creating new value as a partner in nourishing happiness the attractions of each region” and empower roadside health management. In September 2018, we instituted a
through housing. In August 2018, we began to concretize Michi-no-Eki areas as travel hubs. The plan is to have 15 special program that encourages male employees with children
The Fourth Medium-Term Management Plan, rooted in the that vision with the opening of the Human Life R&D Institute: hotels in 5 prefectures up and running by the fall of 2020, under the age of three to take month-long parental leave.
core policy of building the foundation for the residential-related Japan’s first-ever corporate research institution to specialize with nationwide expansion to follow. Sekisui House will offer Leave gives people time off, of course, but how employees use
business toward BEYOND 2020, is set to wrap up in 2019. in happiness. Aiming to propose houses where happiness high-quality accommodation experiences at lodging-only that extra time is a key factor. If people take those opportunities
For Sekisui House, the year 2019 also represents the 60th grows the longer you live there, the Institute is a hub of roadside hotels, and guests will visit Michi-no-Eki locations and to spend more time engaging with their families, communities,
anniversary of the company’s founding. As we move closer progressive inquiry. In October 2018, for example, we local establishments for food, shopping, and more. As inbound and others both within and outside the company organization,
and closer to 2020, which could prove a pivotal turning point released the “Family Suite” concept model, which draws on demand continues to grow, modes of travel—both domestic the resulting value can be extraordinary—and the encounters
for Japan as a whole, Sekisui House is constantly fostering institute research to break away from the conventional “LDK” and international—are bound to diversify. Working in tandem and discoveries that emerge can even help shape new proposals
innovations to drive sustainable growth and steadily expanding (living-dining-kitchen) concept and propose a new mode of with regional communities will make the Sekisui-Marriott tie-up to customers. With that awareness and a long-term perspective,
its business scope. living. We also showcased our brand-new Platform House a palpable force in benefiting people, economies, regional we will strive to cement our status as a leading force in ESG
For us, innovation means expanding our strengths in the Concept at CES 2019, the world’s largest consumer development, and community revitalization. management.
built-to-order business into non-housing areas and creating value electronics show, in Las Vegas (US) in January 2019. The I look forward to seeing Sekisui House’s track record To keep growing into the future, we need to be a company
with bold, forward-thinking concepts for housing. Platform House, a conception of home as a platform for expand in other areas outside the accommodation sphere, capable of contributing to society through our business activities.
Sekisui House has spent its entire history as a company happiness, will utilize resident data to foster intangibles like as well, including medical facilities, educational institutions, The Sekisui House Group is determined to create new value
striving to create safe, secure housing of exceptional health, connections, and learning through technologies and and commercial establishments. via business strategies that align with the international
quality—shelters for families’ lives and property. Since services that fuse the physical and the immaterial. The community’s shared Sustainable Development Goals (SDGs),
releasing our Environmental Future Plan in 1999, we have concept is moving along the pipeline, nearing its release in * Michi-no-Eki are highway rest areas where drivers and passengers can take breaks, get hold true to our long-standing legacy, and know when to
information on roads and the local community, buy local specialties at shops, try local eats,
concentrated on maximizing comfort and aimed to be a the spring of 2020. and even stay overnight at on-site accommodation. break from convention in favor of fresh ideas. Our initiatives
pioneering force in creating environmentally friendly housing. Our first initiative centers on health. With health-related will continue to focus on steady, innovative progress.
We want to stride onward along that path, translating our services in three areas—emergency response, health
vision of “making home the happiest place in the world” into monitoring over time, and preventive care—we can provide
extraordinary housing. Our fundamental philosophy is a love new value to residents in the forms of houses that make
Strategy and Core Competencies Vision and Goals E Environmental S Social G Governance CSR Management
Sekisui House Group Business
Our growth strategy Built-to-order

Custom detached houses
Design, construction, and contracting
of detached houses
Custom detached house sales
12,708 houses
in four business domains business Main affiliates

18 Sekiwa Construction companies
(housing construction, etc.)
No.1 among prefabricated house manufacturers (FY2017)
Custom detached houses,
rental housing Source: Housing Industry Express,
Jutaku Sangyo Kenkyusho Co., Ltd.
Rental housing Total number of orders received for

Design, construction, and contracting net-zero-energy housing
Other businesses (exterior business, etc.) Custom detached houses

of rental housing, medical and nursing
care facilities, and non-housing such
as commercial facilities and hotels.
Main affiliates
44,247
No.1 in Japan
houses
Other
businesses 3.4%(73.0) 16.6%(357.9) 18 Sekiwa Construction companies
(housing construction, etc.)
Total number of houses constructed
2,425,372
Overseas business Rental housing Built-to-order
FY2018
Overseas
11.4%(245.9) Consolidated Sales 19.3%(416.0) business
business by Segment
houses
Remodeling No.1 in the world
Supplied
2,160.3
Remodeling and renovation
of houses, etc.
Urban redevelopment housing Main affiliates Remodeling business sales
business
141.4
8.0%(173.3) 3 Sekisui House Remodeling companies
(expansion and renovation of Sekisui House
Supplied Remodeling, real estate detached housing, etc.)
Development Condominiums (billion yen) Remodeling
housing management fees 18 Sekiwa Construction companies billion yen
business (remodeling and extension of housing and
4.1%(89.5) 6.5%(141.4) business condominium, etc.) No.1 in Japan
7 Sekiwa Real Estate companies
Houses for sale Real estate management fees (remodeling and extension of rental housing, etc.)
6.9%(148.8) 23.8%(514.0) Total number of registered residential
Real estate management fees units in assisted-living complexes for
Subleasing, management, operation,
senior citizens
14,883
and brokerage of real estate, etc.
Main affiliates
7 Sekiwa Real Estate companies
(trade, brokerage and lease of real estate)
units
Sekiwa Grand Mast, Ltd. No.1 in Japan
(operation and management of rental housing
for senior citizens)
Houses for sale

Sale of houses and residential land; design, construction, and contracting
Development of houses on residential land for sale
business Main affiliates
7 Sekiwa Real Estate companies (purchase/sale of real estate, etc.)
Houses for Sale,
18 Sekiwa Construction companies (housing construction, etc.)
condominiums,
urban redevelopment
Condominiums
Sale of condominiums
Main affiliates
Corporate profile (as of January 31, 2019) Group companies 7 Sekiwa Real Estate companies (purchase/sale of real estate, etc.)
Corporation name Sekisui House, Ltd.

Urban redevelopment
Trade, brokerage and Oversea subsidiaries Development of office buildings and commercial facilities; management
Head office 1-1-88 Oyodonaka, lease of real estate Sekisui House Australia Holdings Pty Limited and operation of real estate in possession
Sekiwa Real Estate Tohoku, Ltd. Sekisui House Australia Pty Limited
Kita-ku, Osaka 531-0076,
Sekiwa Real Estate Kanto, Ltd. Sekisui House US Holdings, LLC
Japan North America Sekisui House, LLC
Sekiwa Real Estate, Ltd.
Date of establishment August 1, 1960 SH Residential Holdings, LLC
Sekiwa Real Estate Chubu, Ltd.
Woodside Homes Company, LLC
Capital stock issued ¥202,591,200,000 Sekiwa Real Estate Kansai, Ltd. Sekisui House Singapore Pte. Ltd.
Sekiwa Real Estate Chugoku, Ltd. Sekisui House(China) Co., Ltd.
Employees 24,775 (consolidated); Sekiwa Real Estate Kyushu, Ltd. Sekisui House Construction Engineering Overseas business
14,616 (non consolidated) Sekiwa Grand Mast, Ltd. (Beijing) Co., Ltd. Condominium and building complex business, sales of ready-built detached houses
Sekisui House Umeda Operation Co., Ltd. Sekisui House Advanced Manufacturing and residential land, and detached housing business in overseas markets
Total number of 2,425,372
houses built
(Shenyang) Co., Ltd. Overseas Main affiliates
Remodeling Sekisui House(Shenyang) Co., Ltd. Sekisui House Australia Holdings Pty Ltd.
Sekisui House Remodeling East, Ltd. Sekisui House No.1 (Shenyang) Co., Ltd. business Woodside Homes Company, LLC
Sekisui House • Changcheng (Suzhou)
Sales and service offices (as of January 31, 2019) Sekisui House Remodeling Central, Ltd. Real Estate Development Co., Ltd.
Sekisui House Remodeling West, Ltd. Sekisui House • Changcheng (Suzhou)
Branch and sales offices: 115 Real Estate Development Co., Ltd.
Customer service centers: 29 Housing construction, remodeling Sekisui House (Taicang) Co., Ltd.
and exterior business Sekisui House No.2 (Taicang) Co., Ltd.
Model homes: 370 18 companies under Sekisui House (Wuxi) Co., Ltd. Other businesses Exterior business sales
65.5
Factories: 5 Sekiwa Construction, Ltd. Exterior construction work, etc.
Sapporo, Tohoku, Kita-Kanto, Saitama, Others Main affiliates
R&D institute: 1 Higashi-Kanto, Higashi-Tokyo,
Sekisui House Financial Services Co., Ltd.
Other 18 Sekiwa Construction companies billion yen
Sky Rail Service Co., Ltd. (exterior construction, landscaping, etc.)
Consolidated subsidiaries: 264 Nishi-Tokyo, Kanagawa, Shizuoka, Sumainotoshokan, Ltd. (Housing Library, Ltd.) businesses No.1 in Japan
Chubu, Niigata, Shinsyu, Hokuriku, Sekisui House Asset Management, Ltd.
Companies accounted for under 33 Kinki, Kansai, Chugoku, Shikoku, Kyusyu Sekisui House Trust, Ltd.
the equity method:
Note: Data on ranking in Japan or the world is based on Sekisui House’s survey of disclosure documents and other materials.
Strategies for the rental Growing through area marketing

FY2018 Custom detached housing business
Rental housing net sales houses and high-value-added rental housing
Built-to-Order Business 416.0 774.0
(billion yen) 357.9 In our rental housing (Sha Maison) business, we seek to expand
orders, mainly of three- to four-story rental houses, by proposing
Order price per Sha Maison rental house /
Ratio of three- to four-story rental houses (share in amount)
Custom detached houses, rental housing high-value-added rental housing based on thorough area (10,000 yen) (%)
12,000 90
Trends in net sales in built-to-order business / marketing in urban and other areas and leading to long-term 10,019
10,000 9,395 80
Order price per custom detached house stable management. The order price per rental house has also 8,361
8,000 7,677 70
(Billion yen) (10,000 yen) 6,854
We are engaged in design, construction and 1,000 4,200
been rising steadily. We will strive to respond to varied needs and 69
825.5 794.3 823.4 814.0 774.0 resolve social issues with our new construction method, Flexible β 6,000
63 60
contracting of custom detached houses and rental 800 4,000 62
System, which extends greater design freedom and expands our 4,000 50
housing. We seek to take on fresh challenges in 600 3,800 52
3,807 3,875
400 3,729 3,600 options for space proposals, and aim for further growth in the 2,000 46 40
non-housing areas and other new fields, while 3,700
200 3,565 3,400 non-housing field, including houses used as commercial 0 0
leading the industry as a top brand. 0 0 2014 2015 2016 2017 2018 (FY)
2014 2015 2016 2017 2018 (FY)
properties, hotels, childcare centers, medical facilities and Order price per Sha Maison rental house
Net sales in built-to-order business assisted-living complexes for senior citizens. Ratio of three- to four-story rental houses (share in amount)
Order price per custom detached house
Strategies for the custom Providing high-value-added houses

detached houses business
that balance comfort and eco-friendliness
We seek to expand orders in the custom detached houses the order price per house and achieve sustainable growth
business through high-value-added products, such as ZEH by promoting high-value-added houses using original
Green First ZERO, which ensure energy zero by saving energy technologies.
using increased insulation and other features and generating
energy using photovoltaic systems, fuel cells and other methods.
BEREO three- to four-story rental housing Celeblio assisted-living complex for senior citizens
We are steadily working toward a target ZEH ratio of
80% by 2020 and will continue to accelerate activities to
spread ZEH by harnessing our strength of balancing comfort
and eco-friendliness. We will focus on increasing sales of IS Business Focus 2
Series steel-frame houses, SHAWOOD wooden-frame houses
and other products and selling three- to four-story houses
that cater to various needs, such as multigenerational Launched the Platform House Concept that considers “home” as a platform for “happiness”
households, in cities with heavy steel-framed houses that
Sekisui House exhibited its new project, the Platform House Concept, presented our efforts towards emergency response. If the house
offer higher flexibility in floorplans. We will strive to increase IS ROY+E steel-framed two-story house
which is based on the concept of making home the platform for can help in early detection of certain conditions, like drowning in
happiness, at the consumer electronics show CES2019 held in Las bathtub, tumbling or falling; apoplexy or acute myocardial infarction,
Business Focus 1 Vegas, USA in January 2019. We seek to utilize the home as a
base to expand our business by creating new services that assist
the resident’s lifestyle.
which have a high probability of occurring at home; and other
domestic accidents, and lead to early treatment, then social cost
can be reduced and quality of life can be improved. We will make
The Platform House will use resident data as a base to develop wide alliances with specialized high-end companies to develop and
Launched the Family Suite with a spacious living room using our happiness research and propose services for creating intangible assets such as health, provide services. Our efforts towards health will be continued
together with NEC, NTT Comware, Faculty of Science and
connections and learning. In line with our vision to “make home
and advanced technologies the happiest place in the world,” the Platform House will assist Technology at Keio University, Keio University Hospital, Konica
the happiness of the homeowners belonging to a society where Minolta, AIST and Hitachi. We will continue to expand our range
The Family Suite model proposes the concept of a new kind of living room * The proportion of customers who adopted Family Suite among all the IS ROY+E
people will have a 100-year lifespan. The first step in our efforts is of partners and complete various verification tests and clinical trials
contracts made from October 2018 to February 2019 (five months)
that breaks away from the conventional “LDK” (living-dining-kitchen) health. We will provide three kinds of services: emergency response, in line with our plan to launch the services of the Platform House by
concept to enable the family to spend an exciting time together in health monitoring over time, and preventive care. At CES2019, we Spring 2020.
any way they like. This model draws on the results of research on
houses where happiness grows the longer you live there by the
Human Life R&D Institute, Japan’s first-ever corporate research House
environment
institution to specialize in happy living, and the company’s data Biodata
Using biodata and
house environment
data to provide
Living room 73
cutting-edge technologies.
bpm
emergency response,
22.4°C health monitoring
53% over time and
We announced the Family Suite model in October 2018 and about 275 lx
preventive care
services
30%* of our customers have adopted it ever since. In April 2019, we

For emergency
added the concept of a more relaxed lifestyle for families by working response
on providing a spacious area under the eaves in addition to a spacious

living room that offers the happiness of connecting, the happiness
of being oneself and the happiness of health. We have also made We use non-contact sensors to monitor the homeowner’s daily life. Whenever
an abnormality is detected in the homeowner’s physical condition, an automatic
the Family Suite model available to all customers irrespective of the notification is sent to the experts at our centers.
The experts check the resident’s condition and contact the ambulance if
type of construction (steel frame/ wood frame) and the interior and abnormality is confirmed. After confirming the arrival of the ambulance, the
system provides other services such as remotely unlocking the house.
exterior design.
We will continue to provide new value to our customers with the Spacious area under the eaves for relaxed lifestyle + spacious Providing emergency response, health monitoring A scene from the CES2019 venue The president’s speech at CES2019
company’s original happiness research and advanced technologies. living room that connects the family over time and preventive care services with least
stress to the homeowners
Business Focus 3 Urban redevelopment Houses for sale
173.3 FY2018
net sales 148.8
Started the Trip Base Michi-no-Eki Project under the regional revitalization business Development Business 411.8
(billion yen) Condominiums
Houses for sale / condominiums /
Sekisui House and Marriott International have teamed up with
various regional communities throughout Japan to propose and
International to Japan. The construction will be carried out by
Sekisui House. The hotels will specialize in providing accommodation
urban redevelopment 89.5
provide a journey through the attractions of each region by where travelers can enjoy a simple and comfortable relaxing time. Changes in development business net sales (Billion yen)
empowering the Michi-no-Eki * areas as travel hubs under the Trip They can also buy food and souvenirs from the Michi-no-Eki station Our development business invests in the future growth 500
Base Michi-no-Eki Project. In the first stage, 15 roadside hotels and other shops in the region, enabling maximum interaction with 411.8
of environmental creation development, aiming for 400 353.6
across five prefectures and offering a total of about 1,000 rooms the local community while cooperating with it. 338.5 336.7
stable growth through sustainable community 311.8
are expected to open beginning in fall 2020. More properties are We expect further increase in inbound visitors and 300
subsequently planned throughout the country. diversification in domestic and foreign travel styles. We will leverage development and an improved asset turnover rate.
200
This project proposes a new experience-based traveling style Sekisui House’s strength of technologies that can build high-quality
100
that is conceptualized on a quest for unexplored Japan. It will accommodations in short construction periods and Marriott
provide a taste of the resources rooted in the community, such as International’s strength of superior hospitality and global 0
culture, customs, lifestyle and food, in collaboration with the local networking to help promote regional revitalization through new 2014 2015 2016 2017 2018 (FY)
people. It aims to provide a higher level of satisfaction to travelers traveling styles while closely working with alliance partners who
by enabling them to feel the connection between the region and its share our cause.
people, while traveling by cars, bikes or cycles to hotels located near
popular Michi-no-Eki stations across the country. These roadside
* Michi-no-Eki Stations are highway rest areas where drivers and passengers can
take breaks, get information on roads and the local community, buy local
Business Improving investments for future growth and rate of turnover,
Strategies
hotels, which form the core of the project, will belong to the hotel
brand Fairfield by Marriott and introduce the high usability Marriott
specialties at shops, try local eats, and even stay overnight at on-site
accommodations.
and enhancing exit strategies
Our development business carefully selects profitable land, focusing In addition to engaging in
on development that will increase our asset turnover rate. We are exhaustive area-based strategies
also promoting the development of townscapes that will increase focused on Tokyo, Nagoya,
Features of the Trip Base Michi-no-Eki Project
asset value in the future. We lead our industry by actively making Osaka, and Fukuoka, our
• Working with various regional communities throughout Japan, • Sekisui House will be responsible for the project management.
use of environmental technologies in our development projects. condominium business makes use
Sekisui House and Marriott International propose and provide a SPCs dedicated to this project funded by Sekisui House, Mizuho of the environmental technology
journey through the attractions of each region, empowering the Financial Group and other tourism specialized funds will own the The house sales business is involved in actively buying up land for that we have cultivated through
Michi-no-Eki areas as travel hubs properties which will be operated by Marriott International first-time buyers and driving the high-quality development of constructing detached houses
• This project will utilize Michi-no-Eki stations, which have been so • A Sekisui House subsidiary will be responsible for the hotel
far a place to rest and pass by for tourists, as hubs to create a business management and will attract the growing numbers of communities to be handed down to the next generation. These in order to actively develop
network out of dispersed regional tourist attractions, maximizing inbound tourists by catering to overseas tourist needs and communities will become even more beautiful as time passes, and environmentally-friendly
their potential and empowering regional revitalization leveraging the strengths of the Marriott International’s brand are created with the goal of realizing a society where humans and condominiums. In FY2018, our
• Fairfield by Marriott is a global brand available all across the US • The Trip Base project aims to become a platform for regional
nature can co-exist. We also aim to positively contribute to accomplishments included
and offering over 900 properties worldwide. Sekisui House will revitalization by working together with local governments and
expand further into the non-housing sector by introducing this proactively developing alliances with partners community formation under our own brand. We are proactively Grande Maison Kakuouzan
brand to Japan, combined with the superior quality and short
* Watch the concept movie for The Trip Base Michi-no-Eki Project
developing land with agreements to build upon it, which is in turn Kikusakacho (Nagoya City) the
construction periods possible with pre-engineered technologies Sekisui House official channel: having a ripple effect on our custom detached house business. first condominium in Japan to
developed through Sekisui House’s housing business https://www.youtube.com/watch?v=Es-Ffl883A4 Grande Maison Uemachidai
meet the criteria for a complete The Tower, in which all the units
net-zero energy housing (ZEH), are equipped with Ene-Farms.
and Grande Maison Uemachidai The Tower (Osaka City), in
which all the units are equipped with Ene-Farms, residential
fuel cells.
Locations scheduled for first stage operations
Tochigi 3 Kyoto 3 Our urban redevelopment business is pursuing enhanced
Gifu 4 Wakayama 3
Mie 2 investor value through cooperation with REITs and developing
high-quality offices and rental housing. We are also developing
Locations scheduled for second buildings for which we predict inbound demand, such as hotels
and third stage operations
Houses for sale business (Fukuoka Island City, Teriha Smart Town) and long-term stay service apartments.
Hokkaido Okayama Yamaguchi
Shizuoka Hiroshima Fukuoka
Nara Ehime Kagoshima
Hyogo
Business Focus
Sekisui House Asset Management, Ltd. signs the Principles for Responsible Investment (PRI)
Sekisui House Asset Management Ltd., which is responsible for the Sekisui House Reit, Inc. is involved in investment assets, mainly
management of Sekisui House Reit, Inc.’s assets, signed the Principles the real estate developed by the Sekisui House Group. This real
In the first stage, we will open for Responsible Investment (PRI) in March, 2019. The PRI involve estate has been well-received by various ESG certification institutes,
roadside hotels at 15 locations in five incorporating ESG issues in investment analysis and decision-making including DBJ Green Building.
prefectures, with about 1,000 rooms processes, with the aims of improving long-term investment The Sekisui House Group will
in total, from fall 2020 onwards.
performance and ensuring that the fulfillment of fiduciary continue to promote our
We also plan to start hotels in 10
other prefectures in the second and responsibilities to beneficiaries is of a higher standard than is development business with
third stages. Roadside hotel conventional. consideration for ESG.
Real estate
management fees Remodeling
Remodeling business Achieving reliable growth through proposal-type
strategies
FY2018 remodeling and energy-saving remodeling
Supplied Housing Business
514.0 net sales
655.4
141.4 Moving beyond conventional maintenance-type remodeling, management such as maintaining and improving rent levels
(billion yen) our remodeling business offers proposal-type remodeling, and occupancy rates.
Remodeling / real estate management fees which proposes lifestyles to allow residents to live comfortably In December 2018, we launched Idokoro Dan-netsu
for longer; we also provide energy-saving remodeling, for (location-based heating) Green First Renovations. This is the idea
which we carry out energy-saving renovations with the aim of of partial insulation focused on the locations where the family
Our remodeling business engages in remodeling and Changes in supplied housing business net sales (Billion yen)
creating a decarbonized society, and large-scale remodeling. spend most of their time, mainly the living, dining and kitchen
renovating housing, while our real estate 750
655.4
management fees business is expanding real estate 583.2 602.6 626.7 All of these are expanding our business. Moreover, we aim to areas. We will carry out insulation repairs and install comfortable
600 562.3
subletting and subleasing, management, operations, increase orders by proposing remodeling to the owners of Sha facilities, which will contribute to the creation of housing that
450
brokerage, and more. Maison rental housing that will contribute to stable, long-term helps to ensure the health and longevity of the residents.
300
Both businesses are optimizing the entire housing
lifecycle and contributing to the creation of a 150 Changes in remodeling net sales and the operating profit margin
recycling-orientated society. 0 (Billion yen) 152.0 (%)
2014 2015 2016 2017 2018 (FY) 150
141.4 20.0
134.1 134.4 133.4 136.8
Real estate management Achieving business growth through the creation of a 100 15.0
fees business strategies 14.9 15.1
new market that makes use of existing housing 14.4
13.1
Our real estate management fees business maintains high also aiming to strengthen our profitability by making use of a 11.8
50 11.2 10.0
occupancy rates through business development that corresponds price leader strategy for the rents we charge. Moving forward,
to the occupancy needs of our high-quality rental housing. we will enhance our real estate brokerage business,
Thanks to collaboration between Sekiwa Real Estate companies including SumStock, and contribute to the realization of a
and the group, bulk leasing of Sha Maison rental housing and recycling-oriented society. 0 0
the number of rooms we manage are steadily increasing. We are 2014 2015 2016 2017 2018 2019 (FY)
(Plan)
Changes in the number of rooms we manage and occupancy rate Remodeling net sales Operating profit margin Proposal-type / energy-saving remodeling (example)
(Rooms) (%)
750,000 100.0
Sekisui
House
584,096 601,582 619,494 Business Focus
600,000 545,757 565,471 98.0
97.8
450,000 96.7 96.0
96.5 96.5
Building
96.4 Expanding the business by developing a hands-on facility for people to experience
Collaboration
contracts 300,000 94.0 the Before and After
150,000 92.0 An alliance with TOKYO interior Renovation showrooms
7 Sekiwa The Sekisui House Group has formed an alliance with TOKYO interior We have grown to have renovation showrooms in 21 locations*
Owners Real Estate Residents 0 0 to expand our business. TOKYO interior has opened renovation around the country, where visitors can experience examples of the
Bulk lease companies Lease 2014 2015 2016 2017 2018 (FY) booths in their Osaka, Kobe, and Fukuoka Shingu stores. latest remodeling available for buildings constructed by Sekisui
agreements agreements Number of rooms we manage Occupancy rate
These booths enable visitors to experience facilities and housing House. Visitors can see housing constructed around 25 years ago
layouts after remodeling. They also function as showrooms that can that has been renovated by three of Sekisui House’s remodeling
support general property remodeling as well as the remodeling of companies and has now been reborn, appearing as a new build.
buildings constructed by Sekisui House. We expect to open showrooms in five further locations.*
* As of May 1, 2019
BEREO three- to four-story rental housing Interior of rental housing (example) TOKYO interior Fukuoka Shingu store renovation booth Renovation showroom
Australia
Australia
FY2018 Condominium business, custom detached housing business
United States
net sales
by region 41.9 and building complex business
Overseas Business 166.6 245.9 China

Business
Further improving the quality of houses and services to expand business
(billion yen)
37.3 strategies
In Australia, we strive to create value for society and the region

We seek to leverage the technologies and know-how Changes in overseas business net sales (Billion yen) through our business. For this, we offer a high-value-added
developed in our domestic businesses to provide 306.7
housing environment for the homeowners, while building
300
high-value-added houses and housing environments 245.9 townscapes with rich natural environments, invigorating the
throughout the world. We will strive to create regions, saving energy and contributing in other ways.
200 182.1
houses and communities that contribute to resolving We are currently engaged in developing and selling
local social issues based on the diverse climates, 89.5 residential land and condominiums, mainly in New South Wales
100 79.8
natural feature, cultures and lifestyles of each country (Sydney) in the southeastern part and Queensland (Brisbane)
or region. 0 in the northeastern part of Australia. Apart from development
2014 2015 2016 2017 2018 (FY)
of residential land, the custom detached houses business is also
picking up in the suburbs of Sydney.
The high quality of the intrinsic basic performance of our
Our goals
Contributing to sustainable development in every country houses and their environmental performance, as well as the high The Hermitage, Sydney
quality of our services, have been well received in the market and
and region from the perspective of the four key values our brand recognition has been rising every year. With these
In the overseas business too, Sekisui House views housing What Home Can Bring to the World achievements as stepping stones, we will focus on further
value from the multidimensional perspectives of its four key improvement in quality and expansion in services to work toward
Homeowner Economic Environmental Social
values: environmental value, economic value, social value and value value value value sustainable business growth in the Australian market.
homeowner value, and strives to increase the value of each. Longevity Knowledge and Energy Coexistence and
technology co-prosperity
When developing business overseas, we thoroughly research Comfort
Regional economy
Resources
Relationships Areas of operation
Prosperity Chemical
with local culture
the climate, natural features, culture and lifestyles in each Fair profits and
social sharing
substances
Human resource
Ecosystems development
country or region and aim to create sustainable houses and
communities based on the specific requirements of the region. Australia Brisbane
We will continue to respect the unchanging universal value of

Sydney
housing while responding to the needs of the changing times
with advanced technologies to help achieve the SDGs by
carrying out development (sustainable development) that will Changing the World Through Living West Village, Brisbane
serve as an asset for the country or region.
Business Focus 1 Business Focus 2

Business Resolving social issues in each country by leveraging the technology SHAWOOD Shinka House based Strengthening human resource
strategies
and expertise developed in Japan on ZEH specifications development as a growth strategy
Sekisui House’s overseas business has been growing each to resolving social issues faced by each country. In the residential land sales project, the Hermitage (230ha, about The employee turnover rate in Australia far exceeds that of
year, and in our ongoing Fourth Medium-Term Management In our overseas business, we have mainly focused on the 1,800 plots), which is under development in the suburbs of Japan. With the working conditions of the country in mind, we
Plan (FY2017-FY2019), we have positioned it as the fourth development business. However, we now seek to explore the Sydney, we are promoting sales of the Australian version of our not only disseminate information from Sekisui House in Japan,
pillar of our growth strategy along with our built-to-order, possibilities of the built-to-order (e.g., custom detached ready-built SHAWOOD houses that meet local needs to spread the but also focus on encouraging communication within the
supplied housing and development businesses. houses, rental housing), and supplied housing (e.g., property original SHAWOOD wooden-frame houses in the market. company in our offices in Australia. We constantly share Sekisui
We operate our business in Australia, USA, China and management, rental housing management) businesses as We will maintain Japanese quality in all aspects of design, House’s ideas on the housing business, the four key values to
technology, construction and sales. Our standard specifications will achieve them, details on our CSR activities and other
Singapore and expect future expansion in sustainable and well. In other words, our growth strategy for our overseas
significantly surpass the standard sustainability indicators information through email. We hold quarterly events in the
stable demand for housing in all the four countries. We aim business here on involves applying our domestic strategy— expected in local houses, including high insulation and company to nurture the Sekisui House mindset and business
to make full use of the strengths we have developed as a expanding and strengthening these three areas: airtightness. We will also add photovoltaic systems and other visits to across various departments, including those at our
leading Japanese industrialized housing company to offer development, supplied housing and built-to-order. To features to the standard specifications to build Shinka House, a Japan headquarters. This has invigorated communication
highly satisfying housing suitable for each county’s culture, expand these diverse businesses on a global scale, we will SHAWOOD model based on ZEH specifications, and work between employees, and employees and management, and
lifestyle habits, and natural environment. We believe that our continue to focus on building trusting relationships with toward the commercialization of ZEH in Australia. expanded mutual understanding. The turnover rate has fallen
We will continue to strengthen the SHAWOOD brand in significantly since we began operations.
environmental technologies—including net-zero energy excellent local partners and promoting global training and
collaboration with the Moreover, as part of our efforts to develop human resources
housing (ZEH), which take global warming and resource education of superior local human resources that understand
company’s and other recruited locally, we also started an education and training
issues into consideration, and advanced community-building Sekisui House’s principles and ideas to further promote domestic research program in entire Australia. We design and offer local training
know-how, represented in the Gohon no ki project that localization of our business. institutions, local programs for human resource development and skill
considers the ecosystem around the house—can contribute suppliers and the improvement based on surveys about the needs of each
Product Design & department.
Development
Shinka House model based Department.
on ZEH specifications
Strategy and Core Competencies Vision and Goals E Environmental S G Governance CSR Management
United States Community business, multifamily business

and homebuilding business China Townhouse and condominium business
Business Business
strategies Strengthening housing proposals for highly environment-oriented customers strategies Building houses from the homeowner’s perspective
We are operating our master-planned community business and records of more than 40,000 units in western US. Amid In China, we operate our townhouses and condominiums
multifamily business in the US market in collaboration with excellent advancement in environment-related regulations and growing business under the brand “Yuqin” in the cities of Taicang,
local partners. In 2017, we also entered the homebuilding business. interest in sustainable housing environment in the US, we will Suzhou and Wuxi on the outskirts of Shanghai and in the
We are contributing to raising housing value, in addition to strive for further expansion in the country by developing and northeastern city of Shenyang.
promoting energy-saving housing and environmentally conscious spreading the US version of ZEH using our strength in technology It is common in the Chinese housing market to sell just
development. for eco-friendly homes and introducing prefab housing suited the skeleton of the house. We provide houses with
In the community business, we offer community building and to local needs. high-quality interiors and storage because we thought it
houses for sale in suburbs from which people can easily commute essential for housebuilding to take care of the interior design
for work to the areas where workplaces are concentrated in the as well.
country. We are working on various projects by leveraging our rich China has been focusing on environmental issues in recent
experience. years. Therefore, we are striving to reduce harmful chemicals,
In the multifamily business, we are developing rental apartments such as formaldehyde, using building materials that have
in city centers and easily accessible locations for working members cleared strict standards and technology for better ventilation
of the family who wish to live close to their workplace in big cities. to provide healthy and safe living environments. Taicang Yuqin Garden, Taicang
Many projects are underway in the western parts of US. We design projects from the homeowners’ perspective,
We also entered the homebuilding business with the acquisition Skystone in Summerlin, Las Vegas *Woodside Homes using the strengths developed in Japan, such as high-quality
Areas of operation
of Woodside Homes, a major home builder with housing sales construction, environmental technology and after-sales Shenyang
Areas of operation services, while respecting local culture and customs. Our
Seattle brand is gradually gaining recognition in the local market for China
Portland
Salt Lake City
U.S.A. living comfort and high quality. Wuxi Taicang
We will continue to offer safe, reliable and comfortable Suzhou
Sacramento Denver
Las Vegas
Washington D.C. housing to protect the resident’s lifestyle and the buildings
Oakland Central Valley Atlanta Chapel Hill forever.
Los Angeles Inland Empire Wilmington
Phoenix Dallas
San Diego
Austin Charleston
Houston Tampa
Union Denver, Denver We offer Woodside Homes at locations marked with • (four states, six locations)
Business Focus 1 Business Focus 2 Singapore Condominium business and building complex business
Business
Promoting development of housing We received the Best Community Award strategies Generating new value in society along with local partners
and residential land in response in Florida and became the most trusted We are engaged in the building complex business, including
to climate change brand in all of US retail malls and offices, centered on condominium
development, in collaboration with leading local developers.
The global impact of climate change (extreme weather) in recent We received the Grand Aurora Award for Best Community in
years has increased people’s expectations for measures against the southeastern region for Bexley, which is in Tampa, Florida. We will share our ideas on community and house building
natural disasters in houses and residential land. In our business Our community business has also been highly praised for Bexley with local partners and offer them as added value.
in the US, we have been developing residential land where Club, which serves as an oasis for the residents. Launched in We are working on three building complex projects –
damage from natural disasters like heavy rainfall or hurricanes fall 2016, this business offers various lifestyles, from townhouses Woods Square, which are characterized by offices of unique
can be minimized. This has enabled us to limit damage to to luxury houses. designs and building complexes with commercial facilities;
communities that comprise our houses, even in areas directly Woodside Homes featured among the top four brands in
Seaside Residences, which incorporates our design ideas such
affected by the long spells of rainfall and hurricanes that the US in the home builder category as the most trusted brand
occurred in recent years in the southern regions facing the in the country. This has contributed to maintaining employee
as living room closet; and One Holland Village, a housing
Atlantic Ocean. motivation and skill improvement in services. design that incorporates the idea of slow living. Water Town,
Woods Square, Woodlands
which includes houses for sale, and Waterway Point, a
commercial facility, are part of our building complex business
in which we have sold out all houses and own and run Areas of operation Project in Singapore
commercial facilities with partner companies. Woods Square
We will strive to create new value in Singapore by sharing Singapore Water Town
our ideas, which focus on the homeowners’ perspective, with Waterway Point
local partners. Singapore One Holland
Seaside
Village
Residences
Cinco Ranch, Houston Bexley, Tampa
Risks and Opportunities
Analyzing risks and opportunities from a sustainability perspective

The external environment surrounding businesses is becoming increasingly complex, with the speed of technical innovation * TCFD
and social system change accelerating. In these circumstances, a company’s existing and potential ability to create value is The TCFD (Task Force on Climate-related Financial Disclosures) is a subordinate organization of the Financial Stability Board (FSB),
subject to a variety of influences. made up of the governors of central banks and Finance Ministers from different countries. It is a private-sector-led task force that
Having analyzed the risks and opportunities should these megatrends be accepted as part of the business environment, we are recommends effective climate-related financial disclosures to companies to encourage investors to make appropriate investment
decisions; the TCFD seeks to ensure that companies understand the scale of the impact of climate change risk, and the financial
formulating measures from the perspective of sustainability and the SDGs, and focusing our efforts on these. In addition, in impact it will have on corporate management.
relation to climate change, in FY2018 we promptly endorsed the TCFD*, and analyzed scenarios according to its recommendations When carrying out TCFD scenario analysis, we have constructed an internal, cross-organizational project and are clarifying high
and are taking concrete steps to evaluate risks and opportunities, and reflect their impact on our business activities. priority areas with the cooperation of outside experts (marked with a « below).
Risks and opportunities relating to the environment, and the economy and society
The main SDGs
Megatrend Business environment Risks Opportunities Policies and initiatives targeted
Strengthening the Green First ZERO product strategy

Promoting the popularization of net-zero energy housing (ZEH) « Promoting ZEB in the non-housing sector
Impact on lifestyles caused by extreme heat « Popularizing and expanding environmental reforms
Promoting the popularization of net-zero energy buildings (ZEB)
Promoting ZEH in housing complexes
Impact on business (production and construction Strengthening occupational health and safety
Acceleration of the trend of sites, etc.) caused by extreme heat «
Climate change decarbonization due
to concerns about global warming Strengthening the weather resistance capabilities
Impact of increasingly severe natural disasters « Popularizing highly durable homes, etc. of housing (rainfall assumed in designs, etc.)
Inclusive, safe and strong community development
Environment Launching Sekisui House Owner Denki
Introduction of carbon tax Introducing and expanding renewable energy «
Introducing internal carbon pricing
Responses to ecosystem change due Changes in vegetation regions and adaptive areas Increasing greening through the fulfillment
Proposals for effective arrangements for shrubs and trees of the Gohon no ki indigenous landscaping concept
Ecosystem to global warming for plants used for afforestation
conservation Demand for effective use and re-use Demand for the introduction of water conservation
Popularization of water-saving housing facilities Popularizing and expanding environmental reforms
of water resources business and facilities
Demand for effective use and re-use
of resources Demand to realize higher quality recycling
Promotion of recycling business through the use of high-level,
Resource recycling Change in awareness, moving Increased processing costs for plastic waste thorough sorting and “wide-area certification” Expanding Zero Emissions
towards a society without plastic materials derived from fossil fuels
Reduced workforce due to declining employee

satisfaction, turnover, and working-hour regulations Improved productivity due to better employee satisfaction, Introducing IT, improving working environment by offering
Promotion of workstyle reforms leave for men who want to care for their children
should reforms not go ahead recruitment of talented personnel
Turnover and reduced productivity due Ensuring a good-quality workforce due to improvements
Economic and Accepting foreign workers to worsening working conditions in working environment Workstyle reforms, promoting diversity
policy changes Extension of loan deduction, expansion
of housing benefit End of support measures to buy housing
Increased orders due to appropriate funding advice Business strategy via four business domains
Reactionary fall due to rush demand, move away
Increase in consumption tax from home-owning
Acceleration of business globalization Intensification of competition Development of international business Overseas business strategy
Increase in foreign visitors to Japan Lost opportunities due to an inability
Capturing overseas visitor demand Development business strategy, Trip Base-related business
Globalization Inadequate number of hotel rooms to respond to need
Social participation of the millennial Lost opportunities due to an inability to respond
generation to the needs of the new generation Expanding digital marketing opportunities Technological innovation and alliances
Economy and Assisted-living complexes for senior citizens, smart
Coming of a super-aged society Accidents in the home, lack of care support Expanding Platinum Business, providing health-conscious housing
society universal design
Decline in the number of new home starts, decline
High-value-added built-to-order business, supplied
Total population reduction in the occupancy ratio of properties under management， People selecting good-quality housing
increased severity of the problem of unoccupied houses housing business
Changes Concentration of population
Decline of rural areas Increased need for regional revitalization
Rental housing area strategy, Trip Base
in population in urban areas Michi-no-Eki Project
movement Escalation of the issue of daycare Increased opportunities for preschool intake, improved child Built-to-order business (non-housing),
waiting lists Delay in employees returning to work support systems promoting diversity
Coming of a long-lived/high death Increasing complications and trouble Increased distribution of existing housing and need Cooperation with Sekiwa Real Estate and Sekisui House
rate society with asset inheritance for real estate management trusts Trust, promoting SumStock
Preemptive competition over advanced
Rising health consciousness Promoting the sale of housing that contributes to health
health-related technology Platform House concept, alliances, deepening
Loss of business opportunity, rising necessity technological development
Technological Coming of an IoT/AI age for security measures Providing highly convenient housing
innovation Development of robotics technology Discontinuation of passing on construction techniques Improving construction efficiency Developing exoskeletons
The Sekisui House Group’s Unique Strengths
Maximizing value for customers using our core competences

Unlike general consumable goods, the value sought from houses varies significantly from one customer to another. Displaying our core competences (unique strengths) in the value chain
Sekisui House itself must continue to exist by engaging in sustainable management if it wishes to provide “comfortable
Research and Post-handover
living—now and always” to its customers in response to changes in housing environment, changes in the needs and development Sales/Design Production Construction
services
mental or physical conditions of the homeowners and changes in buildings due to age. To this end, it must incorporate
Technical capabilities
a business mechanism that can continue to provide services.
All companies of the Sekisui House Group will strive to maximize value for customers by leveraging the group’s core Construction capabilities Customer base
competences (unique strengths) throughout the value chain. We will demonstrate our core competences throughout the value chain, from research and development of latest housing technology
We will demonstrate the merits of in-group alliances, while dividing functions efficiently and working flexibly. to post-handover services, by combining the strengths of all group companies.
Technical Capabilities Construction Capabilities Customer Base

Housing innovation Unique project accountability system through Lifelong support for homeowners through
alliances between group companies post-handover services
Tangibles Predicting future trends with the basic features important for housing Project accountability from wholly owned Long-term support to maintain and
subsidiary Sekiwa Construction and improve asset value of houses
Japan faces numerous natural disasters. Therefore, houses serve
as shelters that protect our customers’ lives and properties and
partner building contractors
Many housing companies consign after-sales services to an
must be equipped with various basic features such as earthquake Controlling the quality of onsite construction is an extremely outside contractor after handing over a property. However,
resistance, durability, shock resistance, and fireproofing. At important process to ensure that our characteristic detached Sekisui House considers appropriate after-sales services that
Sekisui House, we constantly predict future trends and develop housing is designed, manufactured, and constructed to match ensure security, safety and comfort for customers to be an
various features at our advanced research facilities to increase each customer’s taste. intrinsic part of a house’s value. For this reason, we have
safety, reliability, and comfort for our customers. We develop Therefore, we created a project accountability structure to established Customer Service Centers throughout Japan where
technologies required for housing from all angles. These include ensure proper construction quality. The Sekisui House Association, 1,450 employees, about 10% of the total number, take care
safety in the event of major earthquakes, durability (carried out which includes the wholly owned 18 Sekiwa Construction of after-sales services. We also centrally manage information
by checking the housing components), features that ensure a companies and partner building contractors, constantly strive to related to customer housing in our company-wide system.
healthy and comfortable lifestyle, and universal design that is improve their skills through training and other activities. The Sekisui We use questionnaires and other tools to solicit customer
verified by ergonomic experiments. We also focus on building House Group’s proprietary IT system helps plan construction feedback after they move in and harness the responses as an
eco-friendly housing. For this, we have developed the Green First schedules and visualize information on inspections as well as important source of information for product development and
ZERO net-zero-energy housing and the Airkis high-quality indoor progress in construction works. These are continually shared with service improvements.
air system. We actively propose the Gohon no ki indigenous the Sekisui House Association to thoroughly manage quality. We also provide a wide range of services from small-scale
landscaping concept to contribute toward protecting eco-systems. Explaining the SHEQAS seismic control system remodeling to large-scale renovations to deal with aging
Design
buildings and changes in customer lifestyles. These services are
Production provided for detached houses by the three companies that
Sekiwa
Sekisui
Customers
Intangibles Pursuing happier homes through research and proposals on new lifestyles Sekisui
Alliances Construction
House
Association
comprise Sekisui House Remodeling and for rental housing
House
Partner
Sha Maison by the seven companies that make up Sekiwa Real
Construction
We have been conducting universal design research based on the intangible value of feeling happy, manifested in familial building Estate. We also respond to customer needs during rebuilding
contractors
lifelong housing, a concept we initiated more than 30 years bonds, health, life purpose, individuality and enjoyment. and relocation through in-group alliances.
ago. This research helps produce a safe and comfortable living
environment for everyone, underpinned by the achievements
of ergonomic experiments. Our KidsDesign Kodomo idokoro
houses were born from research to foster children’s healthy
growth by considering space from their perspective. We are
also looking into offering other new lifestyle concepts, such as
Oishii365, which proposes interior designs centered around
happy dining; Shuuno 3 Shimai that attempts to resolve storage
problems in houses; Dear One for those who live with pets,
Tomoie for families where both husband and wife work; and
Otona House awai for elderly couples.
Additionally, we opened the Human Life R&D Institute in
August 2018, becoming the first Japanese company to study
happiness. The institute began research on houses where
An example of KidsDesign Kodomo idokoro Sekisui House Association Visit from after-sales service in-charge
happiness grows the longer you live there and strives to raise
Value Creation Process
Creating economic and social value with unique business models

The Sekisui House Group is building business models to create value for various stakeholders.
We invest the profits and value we generate by collaborating with group companies for future
growth using our core competencies, which are our unique strengths, and the expertise of each company.
We seek to create further value for society and stakeholders in each aspect of ESG.
We believe that we can achieve sustainable development by brushing up this business model.
Investment and activities aimed Business model Primary value creation and impact
at value creation (Figures show FY2018 results) on society (Figures show FY2018 results)
¥ 6,041 million Approximately 25,000 man-hours

spent on research and development to further strengthen technical
and construction capabilities
Providing houses reduced by streamlining construction
We are striving to increase productivity at construction sites to cope with
Technical and construction capabilities are our core competencies. and building of value expected shortage of construction workers and diversifying workstyles
on-site. We identified issues and took steps to deal with them using
Therefore, we strive to improve these at all times. We are particularly “things,” such as improvement in construction methods by developing
focused on developing new businesses, such as the platform house We achieve high customer satisfaction by
new components and combining materials, and “structures and
concept, and streamlining construction, which suffers from severe providing high value-added housing (such as people,” such as improvements in process management and design
aging and shortage of labor. From basic research to commercialization
Built-to-order Development Green First ZERO) that deliver comfort, as well as the environment of the construction sites. As a result,
of products to vitalization of existing residential land and other economy and eco-friendliness. we drastically reduced man-hours in comparison to FY2017. We will
urban development, we are engaged in research and development business business continue to focus on reducing man-hours to achieve shorter
in collaboration with universities and other companies. construction periods and greater customer satisfaction.
¥ 15,892 million Supplied housing

business
Overseas
business
¥ 73.5 billion
worth of non-housing orders to help resolve social issues
invested in IT environment upgrades to improve productivity
and innovate workstyles Building a solid customer base We are receiving an increasing number of orders for constructions
that contribute to resolving social issues. These include accommodations
The group constructed a system based on the usage of big data to We have been leading the housing industry for to cope with the increase in inbound visitors and regional vitalization,
centralize the management of residence information related to more than half a century, developing businesses care facilities for the growing needs of the elderly, assisted-living
customer proposals, construction and after-sales services. As a result, complexes for senior citizens, group housing to support the daily life
we have shortened construction time, substantially reduced cost and
specialized in housing and building a solid of persons with disabilities, kindergartens for waitlisted children and
trained human resources. We are also reforming workstyle by enabling customer base by delivering the largest number medical facilities to support residents returning to Fukushima. We
employees to carry out major operations on smart devices. This has led Group collaboration of detached and rental housing units in the world. respond to varied needs through increased design freedom levels,
to greater work-life balance by increasing productivity and widening space proposal capabilities and environmental technologies.
the range of operations that can be completed on the go. Additionally, our original construction method Flexible ß System,
We are also visualizing our capabilities using IT for design, site Technical Construction with shorter construction time and lower costs as compared to RC
supervision and other purposes. Core
capabilities competencies capabilities constructions, got us orders worth ¥50 billion out of the ¥73.5 billion
worth of orders received.
About 720,000 Customer base

Supplied housing business Rate of insulation reforms 13.1 %
requests and consultations handled annually to ensure
customer satisfaction expansion Sekisui House has about 405,000 existing houses that were constructed
Strengthen management foundation before 1996 and fall short in insulation capabilities. These houses do
Approximately 10% of Sekisui House employees—1,450 people— We are expanding real estate management fee, not have adequate insulation. Repairing the insulation function in these
work at the customer service center in the after-sales service division. remodeling and other supplied housing houses is not only important to increase comfort but also for
The service center dispatches customer support desks and service E Environmental businesses in response to societal changes by
decarbonization. We have conducted a total of 53,000 insulation
reforms, achieving an insulation reforms rate of 13.1% (0.8-point
in-charges to 95 sites across Japan, conducting periodic inspections and
responding promptly to requests and consultations from customers. S Social applying our strengths of a solid customer base
and in-group collaborations.
increase year-on-year) for existing houses. We are promoting proposals
such as Idokoro Dan-netsu (location-based heating) and seek to achieve
We also make various proposals on maintenance and other
matters and conduct monthly “LOHAS visits” during the first year after
detached housing customers move in. This is to provide information
G Governance the target rate of 15% set for 2020.
on seasonal care so that customers can enjoy a long stay and

experience “comfortable living—now and always.”
Customer satisfaction level 95.9 %
848
In questionnaires submitted one year after moving in, the total ratio of
¥ million Investment for future profits very satisfied (42.3%), satisfied and somewhat satisfied homeowners
has hovered around 95% for the past several years. The questionnaire
invested in employee training to cultivate professionals with results are analyzed in detail and incorporated into the PDCA cycle.
a deep sense of humanity We invest profits earned from business activities
The Sekisui House believes that its mission is to develop the skills of
diverse human resources, harness those to create high added value and Accelerate sustainable growth
in human resource development, IT (for operational
efficiency and cost reductions), overseas business
and other forward-looking activities.
Number of employees
acquiring qualifications 2,821
become a corporate group needed by the world. To cultivate We are focusing on fostering professionals by establishing in-house
professionals having a deep sense of humanity who understand what standards for chief architect, chief constructor, platinum specialist, building
customers want from housing and make their wishes a reality, we and design specialist and others, in addition to first-class architect and
systematically conduct a variety of trainings for all levels and positions. other public qualifications, and encouraging employees to acquire them.
Financial and Non-Financial Performance
Improving financial Indicators by creating value sought by society

We established four key values in 2005: environmental value, economic value, social value and homeowner value.
We have continued to grow ever since through business activities that pursue these values by creating products and
services that solve the issues of the times and respond to customer needs.
The company’s growth trajectory in recent years is presented below in the form of major financial and non-financial data.
It shows that our efforts to create environmental and social values have led to improvements in financial indicators.
We will continue to generate values sought by society by striving for a balanced business with sustained growth.
(Million yen)
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Net sales 1,488,369 1,530,577 1,613,816 1,805,102 1,912,721 1,858,879 2,026,931 2,159,363 2,160,316
Operating income 56,354 70,897 86,196 131,930 146,595 149,645 184,164 195,540 189,223
Ordinary income 56,271 70,075 91,767 137,794 156,426 160,589 190,989 203,678 195,190
Business Net income attributable to owners of parent 30,421 28,962 46,458 79,801 90,224 84,302 121,853 133,224 128,582
performance
Earnings per share (EPS) 45.02yen 42.90 yen 69.17yen 118.63 yen 130.91yen 120.16 yen 175.48 yen 193.06 yen 186.53yen
Return on equity (ROE) 4.2% 3.9% 6.0% 9.2% 9.0% 7.9% 11.3% 11.6% 10.8%
Operating income ratio to net sales 3.8% 4.6% 5.3% 7.3% 7.7% 8.1% 9.1% 9.1% 8.8%
Total assets 1,341,308 1,445,828 1,539,272 1,769,005 1,929,409 2,029,794 2,184,895 2,419,012 2,413,053
Financial
status
Net assets 738,029 750,374 814,063 941,415 1,079,064 1,068,428 1,118,264 1,208,121 1,196,923
Shareholders’ equity ratio 54.9% 51.4% 52.4% 52.6% 55.4% 52.1% 50.5% 49.4% 49.0%
Dividends per share 21.00 yen 20.00 yen 28.00 yen 43.00 yen 50.00 yen 54.00 yen 64.00 yen 77.00 yen 79.00 yen
Dividend Total dividends 14,193 13,477 18,811 29,200 34,799 37,832 44,243 53,151 54,454
Dividend payout ratio 46.6% 46.6% 40.5% 36.2% 38.2% 44.9% 36.5% 39.9% 42.4%
Total market value (year-end) 540,831 484,650 680,946 985,007 1,059,072 1,329,946 1,297,656 1,379,985 1,123,050
Shared value Average sales price of detached houses (10,000 yen) 3,172 3,311 3,344 3,450 3,565 3,700 3,729 3,807 3,875
Average sales price of rental housing (10,000 yen) 5,138 5,263 5,519 6,128 6,854 7,677 8,361 9,395 10,019
Non-financial data Financial data

E CO2 emissions reduction rate of the daily energy S Rate of men taking childcare leaves* (%) Net sales (billion yen) Operating income (billion yen)
consumption of sold detached houses (%) 100 2,159.3 2,160.3 195.5
95 189.2
83.6 82.6 184.1
80.1 70 2,026.9
75.5
73.4 1,912.7 146.5 149.6
23 1,858.8
19
2014 2015 2016 2017 2018 (FY) 2014 2015 2016 2017 2018 (FY) 2014 2015 2016 2017 2018 (FY) 2014 2015 2016 2017 2018 (FY)
* Number of employees taking parental leave/number of births; the value for FY2018 is 100%
as the number of employees taking parental leave exceeded the number of births (555)
S Grants through the Sekisui House S Number of women in managerial positions Net income attributable to owners of parent (billion yen) Transition of dividends (yen per share)
Matching Program* (10,000 yen) in the group (persons) 176
4,105 158 133.2
4,064 128.5 77.00 79.00
141 121.8
114 64.00
3,744 101
3,618 50.00 54.00
3,430 90.2
84.3
2014 2015 2016 2017 2018 (FY) 2014 2015 2016 2017 2018 (FY) 2014 2015 2016 2017 2018 (FY) 2014 2015 2016 2017 2018 (FY)
* Program for joint donations with employees
Our Four Key Values and SDGs
Promoting sustainable management through our four key values

The Sekisui House Group creates and provides value in response to societal changes and needs based on its corporate The Four Key Values, 13 Guidelines and the SDGs (Direct and indirect contributions through our businesses)
philosophy. Our value creation has always been based on our Sustainable Vision, which was established in 2005.
The direction of the 4 Key Values and 13 Guidelines established in our Sustainable Vision in 2005 corresponds with the SDGs*1,
With management that balances our four key values —environmental value, economic value, social value and which are common goals for the international community adopted by the UN in 2015. We were one of the pioneering companies to
homeowner value— based on the 13 guidelines that embody them, we confidently make use of synergies to generate deal with “sustainability” head on at the time and have been advancing it ever since.
a major driving force. Social issues are expected to become even more global and complex in times to come. It will be increasingly important to achieve the
SDGs and Society 5.0*2 to resolve those issues. We will continue to achieve the targets set in the SDGs through our businesses by
carrying out steady and innovative activities to add value.
*1 SDGs: Acronym for Sustainable Development Goals
Common goals for the international community, including both developed and developing nations, that aim for sustainable development with respect to society,
Corporate Philosophy 4 Key Values and 13 Guidelines the economy and the environment, adopted by the General Assembly of the United Nations in September 2015.
*2 Society 5.0 refers to a future-oriented society that optimizes people’s lives and entire society by making the most of new technologies, such as IoT, AI and robots.
Our stance Energy Longevity
Truth and trust Resources

Comfort
Chemical
substances
Environmental Homeowner
value value Prosperity
Ecosystems
Energy Longevity
Our Resources Comfort
fundamental Sustainability Chemical
philosophy: substances Environmental Homeowner
Love of Ecosystems value value Prosperity
humanity Knowledge and Coexistence Sustainability
technology Economic Social and
co-prosperity Knowledge
value value and
Economic Coexistence and
technology Social value co-prosperity
Our objective Our business focus value
Regional Relationships Regional economy Relationships with local culture
Superior quality Comfortable housing economy with local culture
and leading technology and ecologically sound Fair profits and Human resource
Fair profits and social sharing Human resource development
communities social sharing development
At the core of the Sekisui House Group’s corporate philosophy is a In 2005, we announced our Sustainable Vision targeting balanced
love of humanity: recognizing the irreplaceable value in each and management based on four key values that focus on sustainability
every person, we maintain a fervent hope for the wellbeing of as the cornerstone of our management. In 2006, we formulated
others and a sense of joy in others’ joy, doing whatever we do in 13 guidelines as guiding principles based on these four key values.
good faith and a spirit of service. This philosophy took root in 1989 The sizes of the pictographs conceptually represent the degree of relation to our group’s four values.
with the unanimous approval of every group employee.
1960 1982 1999 2003 2007 2010 2014 2017

Actions taken by Sekisui House
Sekisui House Launched the PSH-21 Announced the Environmental Incorporated next-generation Formulated Wood Commemorated 50th anniversary Launched Disaster Risk Reduction Became the first firm in the
established (passive solar house) Future Plan energy-saving systems as standard Procurement Guidelines Achieved the milestone of Factory of the Future Japanese construction industry to
utilizing natural energy equipment in all newly built detached Introduced the SHEQAS 2 million homes join the RE100 initiative
1979 2001 homes seismic control system 2015
Conducted the 1989 Launched the Gohon no ki indigenous 2011 Signatory to the Global Alliance for 2018
housing industry’s Formulated a corporate landscaping project 2004 2008 Launched the Green First HYBRID Buildings and Construction at COP21 Joined the TCFD declaration
first full-scale philosophy Began uniform use of Fc0 and E0 Began systematic initiatives toward Made the Eco-First Promise model Paris Agreement Compliance Received accreditation for SBT
vibration experiments materials in finishing materials for disaster-ready housing Launched the Airkis high-quality Declaration Initiative
1996 Cooperated in the construction
interiors as a countermeasure for sick Launched sales of energy-saving of a Zero Emissions House for the indoor air system Began implementation of paid
1981 Launched the Centrage ∑ model, building syndrome and disaster-ready housing 2016
Toyako Summit in Hokkaido childcare leaves system for men
Built Japan’s first a first in the housing industry to 2013 Higashi-Matsushima City Disaster-Ready
model house for provide multi-layered 2002 2005 Announced the 2050 Vision Launched the Green First ZERO Smart Eco-Town Started research on “houses where
people with high-performance heat insulating Achieved zero emission at all our Announced the Sustainable Vision model that promotes happiness grows the longer you
disabilities glass as a standard component 2009 Commenced operation of the electronic live there”
factories, Incorporated standardized Formulated the Urban Development energy-neutral housing management system
crime prevention specifications in all Launched the Green First model
Charter of eco-friendly homes
homes
High growth period 1985 Vienna Convention for the Protection 1995 Great Hanshin-Awaji Earthquake 2004 Niigata Prefecture Chuetsu Earthquake 2007 Niigata Prefecture Chuetsu 2010 10th meeting of the Conference of 2015 Third session of the United Nations 2017 The GPIF selected three ESG indices
Social trends
of Japan of the Ozone Layer adopted 2000 Housing Quality Assurance Act comes 2005 Kyoto Protocol takes effect Offshore Earthquake the Parties to the Convention World Conference on Disaster Reduction 2018 The Katowice Climate Package
Oil shock 1992 Earth Summit held in Brazil into force in Japan 2008 Lehman Shock causes global on Biological Diversity (COP10) held held adopted at COP24
2006 Basic Act for Housing comes into effect Adoption of Paris Agreement
1981 New seismic design 1993 Environmental Basic Act comes 2002 “New National Biodiversity Strategy” in Japan financial crisis 2011 Great East Japan Earthquake 1.5-degree C Special Report
Hokkaido Toyako Summit held United Nations formulates sustainable announced by IPCC
standards introduced into force in Japan determined Construction Materials development goals (SDGs)
in Japan Recycling Act comes into force in Japan 2009 Japanese government launches
Long-Life Quality Housing 2016 Kumamoto Earthquake
Certification Program
Sustainability Vision 2050
Toward 2050: Creating Environmental and Social Value, Leading the Way to Sustainable Societies
In 2008, the Sekisui House Group announced its 2050 Vision that aimed to eliminate CO2 emissions from housing
and we quickly shifted management focus to decarbonation. Amid changing social systems and rapid technological
innovations, we laid down a long-term vision in FY2016 to gear up for 2050, preparing for future environmental
changes and being aware of the timeline of a wider range of business domains.
In FY2017, we announced medium-term initiatives for 2030 to share our path of progress with customers, employees,
long-term investors, suppliers and other stakeholders who are interested in the group’s achievements of long-term value.
Sustainability Vision 2050

Corresponding Measures
Our Goals Main Actions Taken 2030 Goals SDGs 2050 Challenge Objectives for ESG
Leading the Way to a

• Announced the Eco-First Promise (2008)
Achieving SBT Goals Zero CO2 Emissions
Decarbonized society • Launched the Green First model of
With the goal of achieving zero CO2 emissions
throughout the housing lifecycle, we aim to Goal Energy
within the Housing Lifecycle
Climate change attributed to global warming is eco-friendly homes (2009) As a leading company in housing products, we will
E
reduce emissions by 45% for Scope 1 & 2 Sustainable
Goal cities
beginning to have a visible impact on our lifestyles. • Launched Net Zero Energy House Green and 35% for Scope 3 (category 11: Housing) eliminate CO2 emissions from the entire housing
Consumption and
Secure, high-quality lifestyles will realize a First ZERO (2013) compared to FY2013 (SBT goal). Also, as a Goal production lifecycle, from the purchase of materials to
sustainable society that is not dependent on fossil • Paris Agreement Compliance Declaration RE 100 member company, we will ensure manufacturing, sales, occupancy and demolition,
Goal Climate action Environmental
fuels or constrained by energy problems. (2015) that 50% of the electric power consumed by including renewable energy usage.
• Joined RE 100 international initiative and our business activities is from renewable Goal Partnerships
energy sources.
announced commitment (2017)
Leading the Way to Leading the Mainstreaming Maximizing Ecosystem Networks

of Biodiversity
Societies in which humans and • Launched Gohon no ki indigenous Regarding the number of trees planted under
Goal
Water and
sanitation through Business
nature coexist the Gohon no ki indigenous landscaping Goal Sustainable cities We will procure 100% FairWood products to realize
E
landscaping project (2001) Zero Deforestation, which is linked to the destruction
…Total number of trees planted: 15 million project, which proposes the planting of Goal
Consumption and
Rich natural networks contribute to the protection of production of ecosystems. We also aim to become Japan’s
mainly native tree species in consideration of
biodiversity and alleviate climate change, contributing not (2018)
local ecosystems, we will maintain the pace of Goal Life below water number one corporation in terms of urban greening
only to the protection of ecosystem services that support • Formulated Wood Procurement Guidelines planting 1,000,000 trees each year and contributions, intelligently utilizing green infrastructure
Environmental
our lifestyles, but also to improving the quality of people’s (2007) promote further expansion of urban greening Goal Life on land
functions such as ecosystem conservation, disaster
lifestyles and strengthening connections between while also aiming for 100% procurement of Goal Partnerships prevention/reduction and comfort through green
people. We will maximize this network function to sustainable FairWood fair lumber products for
housing construction and community development.
realize coexistence between humans and nature. use in all standard Sekisui House homes.
Recycling Business System

Leading the Way to a
• Initiated the Zero Emissions Project (2000) Development Acceleration Expanding Zero Emissions
Circular economy • Achieved zero waste emissions at all our We will expand the targeted scope of the Wide- Initiatives
factories (2002) Area Certification System, a special system of the within the Housing Lifecycle
Amid increasing demand for resources and energy
E
Waste Management and Public Cleansing Law, Goal Sustainable cities
in line with the growing world population, we will • Achieved zero waste at each stage of which Sekisui House was first to acquire in our To cultivate housing as a quality asset, the Sekisui
Consumption and
work toward a circular economy that uses recycled production, including new home industry, while enhancing support for housing Goal production House Group provides remodeling and renovation
resources sustainably without depending only on construction, and after-sales maintenance stock-related businesses. At the same time, Goal Partnerships services that are matched to living styles and societal Environmental
natural resources, through technological and to remodeling (2005–2007) we will accelerate the use of IT technologies, changes. To deal with the waste generated from
economic system innovations to enable all people • Transitioned to a next-generation system increase the accuracy of waste recovery these activities, we will expand our industry-leading
to live a stable lifestyle. compatible with big data utilization (2017) management and electronic management
zero emissions initiatives to realize zero emissions at
systems mainly using cloud computing and
promote efficient and smooth management. the social infrastructure level through industry alliances.
• Built Japan’s first model house for people

Leading the Way to with disabilities (1981) Provision of New Value in Housing Goal Good health
Maximizing Abundance
Society with advanced longevity • Defined lifelong housing as the ideal for
Sekisui housing construction (1989)
We will focus on tangible assets such as
structure, interior and eco-friendliness as well
Goal Education in Housing and Communities
and diversity • Established Sekisui House Universal Design Goal Gender Positioning the abundance of safety, security and
S
as intangible assets including health,
(2002) connections and learning, by providing comfort, enjoyment of new technologies, health,
We aim to create a society in which the elderly are Goal Decent work
• Announced Human Resource Sustainability happiness well into the 100th year of life long life, happiness and a familial bond as a positive
healthy and proudly participate actively (advanced Goal Innovation element of people’s lifestyles, we will pursue the
(2006) through the creation of homes that support a Social
longevity society) as well as a society in which people long and healthy life. Specifically, we will tackle potential for these elements from every angle.
• Began proposing Smart Universal Design Goal Sustainable cities
of every generation and nationality with disparate the prevention of injuries and disease by We will keep striving to develop new technologies
in pursuit of comfort (2010) Consumption and
values work to realize mutual benefit while realizing preventing in-home accidents, providing Goal and carry out open innovation that maximize the
• Launched the Airkis high-quality indoor air production
sustainable innovation (diverse society). system (2011) support in times of emergency, monitoring richness of our lives and create happiness.
lifestyle diseases and enabling stress reduction. Goal Partnerships
• Began research on happy living (2018)
Our Medium-Term Management Plan and ESG
Aiming to be a leading company in ESG management, and creating a sustainable society

The Sekisui House Group has specified that ESG (environmental, social, and governance) initiatives are important
management topics. They have been incorporated in our Medium-Term Management Plan, and we are striving to
create and develop a sustainable society as a management foundation.
In addition, our long-term goal for ESG management is the realization of our Sustainability Vision 2050.
This vision also establishes our medium-term goals for 2030, taking into account the 17 Sustainable Development Goals
adopted by the United Nations, and we are making steady progress towards creating our ideal society.
Material Topics ESG Incorporated in the Fourth Medium-Term

Main ESG Themes (See page 85)
Main Corresponding SDGs Management Plan (FY2017–2019) Medium- and Long-Term Initiatives
E: Environmental Management
E
Energy The four key values and SDGs (2030) that we will continue to pursue
Decarbonized society Page 35–
Atmospheric emissions Net-Zero energy housing
Promotion of Green First ZERO
• Global warming prevention
Society in which humans • Ecosystem conservation
Page 43– Biodiversity
and nature coexist • Resource recycling
• Joined the RE100 global initiative
Launched Sekisui House Owner Denki
Environmental Energy Longevity
• Recognized by the SBT Initiative
Circular economy Page 47– Effluents and waste
for greenhouse gas reduction
Resources
Chemical
Comfort
substances Environmental Homeowner
Ecosystems value value Prosperity
Sustainability
Pursuing customer Environmental Knowledge
satisfaction through our Page 53– assessments of and
technology Economic
Social value
Coexistence and
co-prosperity
suppliers value
value chain S: Improvement in Sociability Regional economy Relationships with local culture
Diversity driving growth Fair profits and social sharing Human resource development
Diversity and equal

Promoting diversity Page 61– opportunities
[Workstyle reforms]
Creating exciting workplaces
S
• Fair evaluations and
visualization
Workstyle reforms Page 63– Employment • Higher operational efficiency Improved
using IT productivity
• Achieving a work-life balance
• Introducing a childcare leave
Human-resource Page 65–
Training and system for men
development education Sustainability Vision 2050
Social [Diversity promotion]
• Promoting active female participation
Human rights • Support for people childrearing while working
Respect for human rights Page 67–
assessment • Support for people providing nursing
care while working
• Creation of pleasant workplaces for people
Biodiversity with disabilities
Contributing to society Page 69– Atmospheric
emissions Society in which
Decarbonized humans and
society nature coexist
Strengthening our
G
Socioeconomic
corporate governance Page 73– compliance
system Society with
G: Governance Circular economy advanced longevity
Customer privacy Innovation and communication and diversity
Compliance and risk Customer health
Page 79– and safety • Ranking corporate governance as an important
management Environmental
compliance
management issue and promoting reforms
• Further strengthening governance based
on our Basic Policy on Corporate Governance
Governance Occupational health Occupational
Page 83
and safety management health and safety
E
In 2015, we endorsed the Paris Agreement, which aims Highlights

to limit temperature rise to less than 2°C. We declared
compliance and accelerated measures. In 2017, we became
Reported our activities in COP24
the first Japanese construction company to join the RE100
initiative, which aims to use renewable energy for all electricity Sekisui House participated in COP24 held in Katowice, Poland
in December 2018. Chairman Abe gave a keynote speech at
Environmental needs in all business activities. In 2018, we also acquired the Sustainable Innovation Forum held on December 10 and
certification from the Science Based Targets (SBT) Initiative for talked about the group’s efforts to spread ZEH and reduce
setting scientifically sound goals for reduction of greenhouse gas. CO2 in its business activities.
We believe that our vision of aiming for decarbonization
by 2050 is consistent with the global goals set forth in IPCC’s
Decarbonized Society Main stakeholders
Customers, partner
special report (October 2018). We will keep striving to take
concrete action for decarbonization by 2050.
companies (equipment
We strive to create a decarbonized society by building eco-friendly houses manufacturers, etc.), We also endorse the TCFD recommendations and have
that offer comfortable and healthy lifestyles, significantly reducing CO2 emissions, energy supply companies started to examine our business strategies with consideration
strengthening energy-saving activities in our company to climate change in line with its framework (refer to pp. 21-22).
and harnessing renewable energy.
The chairman’s speech at the Sustainable Innovation Forum
Background
Action policies
The global goal of reducing greenhouse gas emission
Global warming is causing climate change and the impact has will begin in 2020. The Sekisui House Group is promoting net-zero energy through emissions throughout the group. It is also striving to reduce
started to show in our lives. To curtail its advancement, we must Meanwhile, the Intergovernmental Panel on Climate Change remodeling and renovation of existing houses, in addition to the CO2 emitted from business activities of group companies.
reduce the emission of CO2 and other greenhouse gases at the (IPCC) released its special report Global Warming of 1.5°C in improving the ZEH ratio in newly built ones, to help reduce CO2
global scale. October 2018. The report suggests that limiting global warming
The 21st Session of the Conference of the Parties to the to 1.5°C instead of 2°C will help achieve a more equitable and
United Nations Framework Convention on Climate Change sustainable society. Sekisui House, too, participated in COP24 Greater comfort
(COP21) in 2015 adopted the Paris Agreement under which all held in December 2018. Discussions in the conference indicate 1 Expand net-zero energy housing (ZEH)
countries are to aim to limit global warming to less than 2°C that the movement to reduce CO2 emissions has further
above pre-industrial times. Implementation of the agreement intensified globally. We will make proactive proposals to achieve the target sales rate of 80%
for our ZEH product Green First ZERO in newly built detached houses by Conventional Green Green First ZERO
First model
2020. We will also strive for reduction in CO2 emissions by promoting ZEH Comfort
Comfortable
living—now
in our rental housing Sha Maison and our condominiums.
Approach
and always
3 homeowner benefits
Eco-
Economy friendly
Economical Living in
lifestyle harmony with
nature
Our goal
Greater economic Greater
Aiming to eliminate CO2 emissions throughout the house lifecycle advantages eco-friendliness
Sekisui House aims to eliminate CO2 emissions from the entire Green First model of eco-friendly homes which reduce CO2
house lifecycle, from the purchase of materials to manufacture, emitted from occupied houses by more than 50%. In 2013,
Strengthen energy-saving and Reduce CO2 emissions in business
sales, occupancy and demolition, by 2050 (2050 Vision:
announced in 2008) for all its newly built and existing houses.
we launched an upgraded version, Green First ZERO housing
in anticipation of government plans to standardize net-zero
2 energy-generation proposals for 3 activities of the Sekisui House Group
remodeling and renovation
In the year after the vision was announced, we launched the energy housing (ZEH) by 2020.
We will promote Green First Renovation for existing homes All companies of the Sekisui House Group are striving to
to provide comfortable, eco-friendly living. We seek to reduce CO2 emissions generated from their business activities
significantly reduce CO2 emissions by saving energy through and will take proactive measures, such as switching to energy-
2050 Vision Declared compliance Joined RE100 50% electricity supply 100% electricity supply
Decarbonization with the Paris for business from for business from
renovations to improve insulation and installation of latest saving equipment and facilities and introducing renewable
Declaration Agreement renewable energy renewable energy equipment, while creating energy using photovoltaic systems energy.
and fuel cells.
2008 2009 2013 2015 2017 2018 2030 2040 2050: Decarbonization
How our activities impact society
Launched models Launched net-zero Acquired SBT

that reduce CO2 energy housing certification Scope 1&2: 35% reduction ZEH housing significantly reduces CO2 emissions and utility In addition, we seek to expand business and increase quality
Scope 3: 45% reduction Achieve zero CO2 expenses, while supporting more comfortable living and housing stock by stimulating potential demand through our
by over 50% (ZEH)
(as compared to 2013) in housing
lifecycle increasing healthy life years of homeowners. We strive to efforts to actively promote remodeling and renovation of existing
emphasize these merits to customers to expand sales of homes homes to make them energy-saving and energy-creating.
ZEH 79% Total number of houses 44,247
with high added value.
Progress Construction of condominiums meeting ZEH standards in all dwelling units for the first time in Japan
We are also promoting ZEH for condominiums. In February 2019, cells for each unit in case of a power cut and drinking water,
we completed the construction of Grande Maison Kakuouzan private generators, toilets and other provisions in emergency
1 Expand net-zero energy housing (ZEH) Kikusakacho condominiums in Nagoya, a first in Japan with all supplies storage in common spaces to use during disasters.
dwelling units meeting the ZEH standards.
The exterior walls of the units are made of foam-based
insulation material with thickness nearly double that of ordinary
Activity report houses. The doors and windows use aluminum and resin
composite frames and multi-layered glass filled with argon gas.
Promoting the spread of Green First ZERO This has raised insulation capabilities of the units by a factor of
We are striving to promote the spread of Green First ZERO Green First ZERO further while maintaining a solid relationship 1.4 to 1.5. Moreover, we have drastically improved energy-saving
homes, which are net-zero energy housings (ZEH), in detached of trust with our customers. capabilities by adopting energy-saving equipment, such as fuel
housing. After the announcement of Green First ZERO in 2013, cells, hot water saving faucets, insulated tubs and LED lights, and
Green First ZERO model
we have been conveying its merits to our customers by achieved ZEH by installing photovoltaic systems of an average
We aim to build zero energy houses by improving insulation and
encouraging visits to our model homes, Housing Dream installing energy-saving equipment, in addition to using photovoltaic 4kW per unit. These efforts have enabled us to offer comfort
Factories and other facilities, organizing periodic seminars and systems and other advanced energy-generating equipment. and economy to customers in their daily life.
conducting various other activities. This has led to an increase We have also made our condominiums disaster-ready by
1 Energy savings 2 Energy creation
in ZEH ratio for our detached homes year after year. The total Reduced energy use Home generation providing power generation by photovoltaic systems and fuel
number of ZEH has reached 44,247 (as of March 2019), which 1 Advanced, energy-saving
2 PV system for
energy creation Electricity supplied by
heat insulation system power company
is the highest in Japan. Our customers have also showed high
appreciation for our products, with positive feedback from more 1 Air conditioning and lighting equipment 2 Energy-creating Construction of the first net-zero energy building (ZEB) in Tohoku through industrialized housing
High-quality storage cell
HEMS
than 90% of them on satisfaction with housing comfort as well Managing energy
Storage
cells
air system Ene-Farm We completed the construction of Tohoku region’s first Nearly strength in industrialized housing technology and know-how
used in everyday life
as overall satisfaction. ZEB standard* office building, the new office of Sekiwa developed in the ZEH field.
EV outlet EV-PHV
2018 also saw a 3% increase in the ZEH ratio for our Construction Tohoku, in Miyagi Prefecture’s Sendai City in * Nearly ZEB is a ZEB rank indicating buildings that have achieved over 75%
Integrated system capable of resisting, Floor heating using reduction in annual primary energy consumption.
detached homes, achieving 79% as a result of active proposals controlling, and isolating vibrations hot water September 2018.
from earthquakes
made to customers, including use of subsidies for the net-zero Net-zero energy buildings (ZEB) refer to buildings that
1 Saved energy 2 Created energy Energy 0
energy housing support project. We will strive to keep spreading maintain a high-quality indoor environment by reducing
environmental impact through building design, high-efficiency
Growth in the Number of Green First ZERO (ZEH) Homes Reduction in CO2 emissions achieved by the Green First strategy* equipment and other measures, significantly increase energy-
(Number of homes) 79
(%) (Kgs of CO2 per house/year) (%) savings and aim to eliminate yearly primary energy consumption
16,000 74 76 80 8,000 100
71 80 by using renewable energy. The new office building achieves
76 83.6 82.6
62 73 80.1 these using high insulation, high-efficiency air conditioners
71 73.4 75.5
12,000 65 60 6,000 75 and lighting, Building Energy Management System (BEMS)
49 61.5
and a high-capacity photovoltaic system (66.2kW). We also
7,942 8,366 3,941 4,107 4,062
8,000 7,512 7,686 40 4,000 3,621 3,703 50 shortened the construction time to about 4.5 months by using
6,103 6,638 3,037
the original “Flexible ß System,” heavy-gauge steel structural
4,000 20 2,000 25 frame construction.
We will strive to spread ZEB using our long-standing
0 0 0 0
2013 2014 2015 2016 2017 2018 2020(FY) 2013 2014 2015 2016 2017 2018 (FY)
Number of Green First ZERO (ZEH) homes Target (rate) Annual CO2 reduction at each house Reduction rate (result)
Key performance indicators (KPIs)
Achievement (rate) * Figures are Sekisui House estimates (versus 1990)
Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Definition and remarks
Ratio of Sekisui House detached housing
Promoting ZEH in Sha Maison rental housing
Green First ZERO % 62 71 74 76 79 (excluding Hokkaido)
Amount of CO2 reduction Tons of
Among different types of houses, around 30% of the CO2 compared to 1990 CO2 / year 43,015 41,599 41,877 41,681 40,290 Reduction of residential CO2 emissions
from new detached homes compared
emissions come from collective housing. Under our aim to Rate of CO2 reduction
comply with the Paris Agreement, we have started promoting compared to 1990
% 73.4 75.5 80.1 83.6 82.6 to 1990 levels (amount and %)
ZEH for collective housing, in addition to detached houses

(Green First ZERO).
In January 2018, we constructed Japan’s first rental housing Evaluation Future initiatives
with ZEH standards in all units in Kanazawa City, Ishikawa
Prefecture under our Sha Maison rental housing brand. After The ratio of Green First ZERO houses reached 79% in FY2018 We will strive to raise the sales ratio of comfortable, economic
that too, we have constructed many ZEH units across Japan, and we are steadily working to expand it to the FY2020 target and eco-friendly Green First ZERO detached houses to 80% by
focusing mainly on enabling the residents to use the electricity of 80%. We also began ZEB activities, while promoting ZEH in FY2020. We will also promote ZEH in Sha Maison low-rise rental
generated with the photovoltaic system. The total number of rental houses and condominiums, by leveraging the experiences apartments and Grande Maison condominiums, work toward
ZEH-M houses stood at 45* at the end of March 2019. gained through ZEH and our strengths in industrialized housing. energy-saving and energy-generation in existing houses
* ZEH-M refers to ZEH for collective housing and is applicable to the entire building, (remodeling) and further the concept of ZEB for non-residential
including common spaces. The number includes condominiums too.
buildings to help achieve decarbonization.
Strengthen energy-saving and energy-generation proposals for remodeling

2 and renovation
Achievements in energy-saving and energy-generating CO2 reductions due to energy-saving and energy-generation
remodeling* remodeling*
Energy-saving and energy-generating (tons of CO2 / year)
Activity report remodeling menu
FY2018 achievements
10,000
Photovoltaic system installations 365 units
Promoting Green First Renovation for existing houses Energy-efficient bath fixtures 3,692 units 7,500 6,657
We must promote energy-saving and energy-generation not save and generate energy. 5,024 5,465
Door and window insulation remodeling 2,557 units 4,703 4,605
5,000
only in newly built houses but also in existing ones if we wish We help customers lead a comfortable and healthy life by Ene-Farm (residential fuel cells) 689 units
to achieve a decarbonized society. For this, Sekisui House combining innovative technology to improve insulation of the Eco-Jozu (latent heat recovery gas 2,500
2,756 units
actively proposes Green First Renovation, mainly for existing floor, wall, ceiling, and window with installation of comforts water heater system)
customers with detached houses. This initiative contributes to such as floor heaters and air conditioning. Eco-Cute (heat pump water system) 1,344 units 0
a comfortable, healthy and happy lifestyle by remodeling to 2014 2015 2016 2017 2018 (FY)
Underfloor heat cover 843 units
* Achievements of the three companies under Sekisui House Remodeling Co., Ltd.
New proposal – Idokoro Dan-netsu based on Green First Renovation

We launched Idokoro Dan-netsu based on the Green First insulation repairs in one day. We will continue to expand
Evaluation Future initiatives
Renovation Concept in December 2018 as a new proposal for Idokoro Dan-netsu to all houses to provide a comfortable,
existing detached houses. This proposal is meant for existing healthy and happy lifestyle to our customers, prevent global
houses built before 1999 when the energy-saving standards warming and create quality housing stock. We offer various remodeling options for floors, walls, ceilings, We will continue to promote Green First Renovation to help
were revised. Until now, repairing existing houses built more doors, and windows to improve insulation and reduce CO2 reduce CO2 emissions from existing houses. We seek to provide
than 20 years ago to match the insulation level of newly built emissions. Our efforts to provide a comfortable and healthy a comfortable and healthy lifestyle to our customers through
ones entailed high costs and a long construction period. Under lifestyle while saving energy have received high praise from energy-saving and energy-generating remodeling, including
Idokoro Dan-netsu, however, the area of repair is limited to the customers. Although installation of our photovoltaic power improvement in insulation and installation of high-efficiency
living, dining and kitchen space, where families spend maximum system has declined partially due to a drop in the electricity equipment. We will promote Idokoro Dan-netsu renovation
time, enabling high-precision insulation repairs in a shorter period. feed-in tariff, installation of Ene-Farm fuel cells has seen a rise and make stronger proposals through our Housing Dream
We offer two options for Idokoro Dan-netsu—the under energy-generating remodeling, including hybrid power Factories, other interactive facilities and events held around
premium option that aims for comfort equivalent to newly generation. the country.
built houses and the basic option that effectively provides
Contributing to a comfortable, healthy and happy lifestyle for our customers Highlights
Improved insulation + comfort-enhancing equipment Renovation that adds comfort
Floating solar system using irrigation ponds
Idokoro Dan-netsu Premium that aims Idokoro Dan-netsu Basic that effectively provides
for comfort equivalent to newly built houses insulation repairs in one day There are about 200,000 irrigation ponds in Japan, mainly in the Distribution of irrigation ponds in Japan
western regions of the country, and we have started the business of 43,245
819
Insulation equivalent to comfort-enhancing installing floating solar systems on them. The total power generation
comfort-enhancing equipment capacity created through this business exceeded 20MW in January
newly built houses for Easy installation in one day equipment in spaces other
that cover shortcomings
a limited area than the living area 2019. 1,813
Insulation of Insulation of Insulation of Insulation of Unlike ordinary photovoltaic systems (installed on fields), floating
cocotas air conditioner One or more of the items below 2,705 3,150
walls doors and windows Floor heating for small spaces
doors and windows the floor cocotas air conditioner solar systems do not require land development. They are characterized 19,609
for small spaces by shorter installation periods and lower environmental impact. Large 5,041 5,793
1,160
14,619
island-type floating systems can be easily inspected and maintained. 6,093
They are also typhoon-resistant and did not suffer much damage 9,995
3,127 1,892 3,730
despite the occurrence of many major typhoons in 2018. 11,077 2,195
or 1,579
Insulation of Insulation of Bathroom dressing Insulation of Additionally, floating solar systems contribute toward payment 877
594 501
the ceiling the floor the ceiling Bathroom dryer Dressing room 531
dryer room * The ceiling is and heater heater of charges to irrigation associations that maintain the irrigation 2,638
5,232 1,554 2,459
1,510
and heater heater 3,255 9,754 668 21
insulated if the ponds. They are also considered to be effective in curbing green 3,680 8
2,672 124 1,079
second-floor
needs insulation
algae that grow when water temperature in the pond rises. 2,158
2,248 415 5,707 Source: Documents by the
550 5,236 4,000
or if the house Sprouting and blossoming of a rare breed of prickly water lily have 741 1,209
Ministry of Agriculture,
is single storied also been sighted after construction, due to sludge dredging based 619 Forestry and Fisheries
(Surveyed by the Disaster
on environment assessment. Prevention Division in March 2014)
Improved insulation and comfort in the living space (LDK/one floor) surrounding the living room Prefectures ranked
by the number of ponds
LDK insulation package One-floor package Insulation equivalent to newly built houses possible
No. of
Improved insulation in the living, Improved insulation for existing houses of any age Rank Prefecture Ponds
dining and kitchen areas on the entire first floor High
where people spend more time which is the main living space
1 Hyogo 43,245
Premium Large island-type floating solar system
level
2 Hiroshima 19,609
Insulation tio n
sula
After1 After2 3 Kagawa 14,619
level in
Basic level
an ced
Adv
Before 4 Osaka 11,077
Low 5 Yamaguchi 9,995
Old New New Next-
energy- energy- energy- generation ZEH
saving saving saving energy-
insulated high- saving
interior performance Floating solar system A rare breed of prickly water lily
wall frame layered glass
Old Construction New
3 Reduce CO2 emissions in business activities of the Sekisui House Group Reducing CO2 emissions and accidents using telematics-equipped commercial vehicles
From 2011, Sekisui House has been installing telematics* in the number of accidents (34.1% less than 2011).
roughly 6,000 commercial vehicles used by about 200 offices Based on the verification of the effectiveness of these
across Japan. We are using the telematics data to run two PDCA activities in Sekisui House, we expanded the use of telematics
Activity report cycles— one for improvements in daily work and the other to group companies and fitted the system in all 5,700 vehicles
for long-term, company-wide improvements, to promote eco- owned by 34 main group companies in January 2019.
Launched Sekisui House Owner Denki to purchase post-FIT electricity and use it for corporate activities friendly and safe driving. We have been continuously organizing * Telematics is a system that provides information on vehicle operation, such as usage
and fuel consumption, as well as dangerous driving, such as sudden acceleration or
The Feed-in-Tariff (FIT) system started in 2009 is a scheme over 700MW, with annual generation of approximately 700 about 400 driving safety trainings annually at each worksite deceleration, using devices fitted in the vehicles and communication terminals. It helps
under which renewable energy can be purchased at a specific GWh. By purchasing 20-30% of post-FIT electricity, the group and creating handbooks, DVD study materials and stickers on visualize fuel consumption, CO2 emission, idling, dangerous operation and other
information.
price for a specific period. However, the specified period for can cover its operating electricity needs of 120GWh annually. safe driving, which has resulted in a yearly reduction of about
purchasing electricity from residential PV solar systems (less Sekisui House Owner Denki is the company’s innovative 9,600 tons of CO2 (40% less than 2011) and a decrease in the
than 10kW) is 10 years and will start to expire from November business model that provides greater satisfaction to post-FIT
2019 onwards. Sekisui House Owner Denki will purchase excess homeowners while enabling the company to meet its RE100
The structure of telematics
electricity from post-FIT homeowners, whose specified period initiative targets*.
Sends email notification for dangerous driving
has expired, and use it in corporate operations of the group. * The mid-term target of RE100 initiative is to meet 50% of the electricity needs for
corporate operations with renewable energy by 2030 and aim for 100% by 2040.
The total capacity of photovoltaic systems installed by Sends vehicle operation data over Verification of effectiveness using data
Sekisui House on its detached and rental houses until now is communication networks
Provides information
of operation control
Consulting
Sekisui house launched Sekisui House Owner Denki for post-FIT homeowners
The purchase price of post-FIT electricity is ¥11/kWh
Purchased electricity will be used by the group to achieve the targets of the In-vehicle device System server Telematics website Leasing company
RE100 initiative
Total annual capacity of photovoltaic systems installed Number of vehicles owned by Sekisui House,
CO2 reduction rate, accident reduction rate
Highlights
by Sekisui House Sekisui House Group’s annual operating electricity needs
Approximately 700GWh Approximately 120GWh Number of vehicles CO2 reduction rate, accident reduction rate (%) Received the Minister of the Environment’s Award
7,000 50 for Global Warming Prevention Activity for
6,000 38.4 40.0 reducing CO2 emissions from commercial vehicles
35.2 40
5,000 31.2 Sekisui House received the Minister of the Environment’s Award
27.2 34.1 30 for Global Warming Prevention Activity (Advanced Implementation
4,000
22.6 of Countermeasure Techniques category) for its efforts to reduce
3,000 CO2 emissions from commercial vehicle by using telematics to
Office Factory Model home 20
promote eco-friendly and safe driving. The award is part of the
House with photovoltaic system 2,000 Ministry of the Environment’s initiatives to
10 promote countermeasures for global warming.
1,000
2.5 In 2018, 145 applications were received from
0 0 companies, local public organizations, private
Purchase at ¥11/kWh Achieve RE100 2011 2012 2013 2014 2015 2016 2017 2018 (FY) organizations and others and 39 of them were
awarded. Sekisui House has received the award
Vehicles without telematics Vehicles with telematics
three years in a row and five times in all.
Accident reduction rate (as compared to 2011)
Excess electricity from photovoltaic systems Effective use of electricity for corporate activities
Power transmission CO2 emission reduction rate (as compared to 2011)
and distribution

Highlights
Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Definition and remarks
Egota-no-mori Project (Nakano Ward, Tokyo) CO2 emissions from fuels,
Scope 1&2 CO2 emissions t-CO2 126,209 130,482 126,337 140,425 131,226 power and heat used
(122,058) by the Sekisui House Group
We started building Egota-no-mori under the concept of creating a
sustainable community with members from diverse age-groups and CO emissions from vehicles
2 Annual CO2 emissions from
inaugurated it on September 26, 2018. Apart from boasting a rich, used by group companies t-CO2 37,262 37,239 33,530 31,788 30,413 vehicles used by Sekisui House
and group companies
(out of the above)
green satoyama environment, it comprises Grande Maison (531 units)
and Prime Maison (263 rental units, 121 assisted-living unites for * Starting in FY2015, CO2 emissions by Sekisui House’s main overseas subsidiaries are also added. The totals from 2017 onward were calculated using unitary heat generation and emissions
factors based on the Act on Promotion of Global Warming Countermeasures. Figures in parentheses were calculated using the previous calculation method.
senior citizens and others) properties. We have also built Livinlabo
as a base that serves as the living room for the whole community
so that residents can comfortably and safely live in the houses for
long periods. We have also paid attention to managing energy-saving Evaluation Future initiatives
and energy-generation through HEMS by generating solar energy,
providing emergency generators, installing home-use fuel cell
batteries and taking other measures (Total area: About 3.4ha). We launched Sekisui House Owner Denki with the objective to We are preparing to start purchasing post-FIT electricity from
achieve the targets of the RE100 initiative. We are ahead of November. We will continue to reduce CO2 emissions from
our targets for reducing CO2 emission from vehicles used by corporate vehicles and change office lights to LED to reduce
group companies and Scope 1 and 2 emissions of our group Scope 1 and 2 emissions and work toward decarbonization.
have decreased 6.6% year-on-year.
E
Action policies
Planting indigenous species suited to Promoting the use of legal and

1 regional ecosystems through the Gohon 2 sustainable FairWood lumber
Environmental no ki indigenous landscaping project
Since 2001, Sekisui House has been promoting gardening and To enable the use of sustainable lumber, Sekisui House procures
landscaping activities through the Gohon no ki (five trees) FairWood* lumber and wood products that are friendly to local
project. “Select five native species. Three for the birds, two communities and the forest environment in logging areas.
Society in Which Humans and
Main stakeholders
for the butterflies.”—guided by this concept, this project FairWood procurement is legal and based on 10 Wood
Suppliers (tree growers, actively advocates planting native species that are beneficial Procurement Guidelines established with consideration of
Nature Coexist
landscapers and wooden
building materials to the ecosystem and capable of providing a high level of ecosystems and resident lifestyles in logging areas. Each year,
manufacturers) and support to the local wildlife, as opposed to the frequent and procurement surveys are conducted targeting approximately
customers exclusive use of cultivated or non-native species. 50 suppliers of wood materials to ascertain where their timber
Striving to maximize ecosystem networks through In terms of project implementation, we collaborate with is felled and milled and to confirm its legality. This information
our business based on sustainable use of natural capital a network of local tree growers and landscapers to ensure a is then converted into numerical data used to manage
stable supply of indigenous species, which were previously ongoing progress in this area. When the traceability of
available in small numbers in the market. We will propose to some wood materials cannot be confirmed, we visit their
consumers the richness of coexisting with other living beings production area to ensure due diligence through verifications
Background and the significance of environmental conservation. and surveys.
These initiatives attempt to expand the use of FairWood
The importance of biodiversity preservation in supporting all lifestyles and business activities by enhancing supplier consciousness of procurement routes
Biodiversity acts as an ecosystem service that supports our biosphere, which 17 while promoting awareness among trading companies further
daily necessities. It is also strongly connected with business supports society, which ECONOMY upstream in the supply chain.
activities of corporations in supplying raw materials and other in turn gives shape to 8 9 10 12 Garden Garden * Advocated by the Global Environmental Forum and FoE Japan, an
international environmental protection NGO.
Satoyama
Satoyama
SOCIETY
aspects. This is also clearly presented in the SDGs “wedding our daily economic
Forest
Forest
1 11 16 7 3 4 5 2 Town
cake” illustration*, a model increasingly recognized for its activities. Our company, Garden Park Procurement surveys and Cooperation for the
representation of the relationship between the 17 goals of the too, recognizes the BIOSPHERE progress management in exchange of information
line with Wood and specialist knowledge
SDGs. following two points 15 14 6 13 Procurement Guidelines
Sekisui House
pertaining to global
developments in lumber
In other words, the goals on Life Below Water (Goal 14) as challenges. procurement
and Life on Land (Goal 15) as well as Clean Water and Sanitation * Source: Adapted from SDGs “wedding cake” Satoyama
(Goal 6) and Climate Action (Goal 13) support the earth’s illustration presented by Johan Rockström and Pavan Sukhdev
network
Specialists,
If such living spaces spread throughout the country, the Suppliers of
environmental
(1) Deterioration of the urban ecosystem (2) The importance of traceability in procurement gardens in houses will become an ecosystem network that wood materials
NGOs
As green spaces shrink due to urbanization in recent years, effective planting Lumber is an important renewable resource material that helps build our supports the lives and activities of various living beings.
will not only lead to ecosystem preservation but will also support our lifestyles living spaces and Sekisui House uses approximately 300,000 cubic meters of
in a variety of ways, such as creating spaces for relaxation, revitalizing regions, lumber each year. However, functional degradation of environmental
and reducing flood damage by storing rainwater. Many trees are planted preservation and disruptions in our everyday lives due to practices like illegal
every year when new living spaces are created. However, cultivated and logging present obstacles to sustainable forest management. Additionally,
non-native trees tend to be extremely difficult to use for local birds and insects. ensuring lumber traceability has also become an extremely important issue
Many of them are also unable to adapt to Japan’s climate and natural because distribution channels are complicated. For this reason, initiatives
Focus on management conscious of natural capital
features and have low resistance to pests. It is necessary to carefully consider have been spreading throughout the world to secure appropriate lumber Forests, land, water, air, biological resources and other produces ecosystem services worth trillions of dollars at the
compatibility when selecting plant species in order to protect regional procurement, including Japan’s Act on Promoting the Distribution and Use
ecosystems. of Legally Harvested Wood (Clean Wood Act). “blessings of nature” are not conventionally considered part of global scale.
economic systems. Natural Capital is the concept where these ESG investments in recent years have come to focus on
blessings are seen as a form of capital in economics, in the appropriately evaluating and managing the value of natural
Approach same way that financial, manufacturing, intellectual and other
artificial or human capital are considered the foundation of
capital as stock to support sustainable growth of the company.
As a member of the construction industry, which impacts
production. nature, we seek to advance our business activities with due
Our goal It is believed that the flow of natural capital as stock consideration to this in our initiatives related to biodiversity.
Thinking ahead, promoting the preservation of biodiversity by working with our supply chain
The Sekisui House Group is Japan’s largest manufacturer and biodiversity. How our activities impact society
supplier of prefabricated housing. It is also one of Japan’s largest Natural capital and ecosystem take time to mature or
landscape gardeners, planting nearly one million trees each year. recover. Moreover, such initiatives cannot be completed by one Promotion of the Gohon no ki project enables us to also build rich urban spaces.
From this standpoint, we have set a 2050 goal of expanding company alone. While thinking long-term, we will work with rich ecosystems in urban areas and create beautiful houses Furthermore, in the area of lumber procurement, we are
ecosystem networks through our business—this involves our suppliers to provide customers with rich and comfortable that enhances the quality of life by proposing to customers raising awareness about the procurement process and increasing
focusing efforts on planting to preserve local ecosystems and lifestyles while helping to preserve the environment and creating comfortable lifestyles surrounded by abundant nature. More the accuracy of traceability data by having each supplier follow
to procure sustainable lumber that would help protect global a sustainable society. people are starting to understand that the value of a property our guidelines. As a result, we expect the market for high-quality
increases when the appearance of a building is influenced by FairWood to steadily expand, leading to the spread of sustainable
the growth of greenery over time. Green common areas are lumber.
on a rise in rental housing as well, leading to the creation of
Progress
2 Promoting the use of legal and sustainable FairWood lumber
Planting indigenous species suited to regional ecosystems through

1 the Gohon no ki indigenous landscaping project Activity report
Proactively procuring FairWood lumber with a view to zero deforestation

Activity report In line with our Wood Procurement Guidelines created in communities’ forestry we do not set procurement targets for
April 2007, we continue with FairWood lumber procurement the sole adoption of certified wood. Still, certified wood accounts
Building beautiful houses by continuously promoting the Gohon no ki project initiatives, toward the fair procurement of wood sourced with for 63% of all of our wood materials, including those used for
In FY2018 too, we continued planting based on our Gohon no rental house, Sha Maison, and at our condominiums. Regardless, consideration to the environment. These guidelines are divided interior installation, and 97% of the structural lumber (including
ki project while keeping the regional ecosystem in mind. In that our group has been striving to increase the quality of planting. into 10 wood procurement policies that take into consideration certified processed wood).
fiscal year, we planted 930,000 trees in the gardens of detached We strongly believe that planting enhances the comfort of our legality, biodiversity, economies of production areas, and In FY2016, we formulated Zero Deforestation to clearly
homes and collective housing across Japan. living spaces and helps them to become more beautiful with lifestyles of residents of logging areas. Each wood product is express the direction we are aiming for as a company. As part of
We have planted a total of 15.02 million trees since the age. It also intensifies their character and the attachment classified into one of four ranks based on its total score from our efforts to strengthen foundational support for the initiative,
inception of the Gohon no ki project in 2001. Greening initiatives residents feel toward them, and helps to differentiate them each policy. We are pushing ahead with FairWood procurement we completed registration in the System for Businesses that
were earlier considered a contributing factor that increased from other companies’ properties. by using fewer low-ranked wood products and more Rank S Deal in Registered Lumber, which was established under the
maintenance costs at our collective housing, such as at our and Rank A products. In addition, in consideration of cultivating Clean Wood Act, in March 2018.
Highlights Wood product procurement

10 Wood Procurement Guidelines ranking
Source wood products from areas with relatively low risk of illegal logging. Depending on their total score,
Meticulous support to individual properties by harnessing big data in planting procured wood products are classified
Source wood products from areas without sensitive ecosystems.
We have been striving to install a system to collect detailed data on planting in individual properties. The system established a stronger reach in into four ranks, from high to low: S,
Do not source wood products from areas where local ecosystems are seriously damaged due to large-scale
our company in FY2018 and we are using the planting data collected through it in the following two scenarios. logging of natural forests. A, B, and C. Minimally acceptable
scores are set for Guidelines 1 and 4,
Do not use endangered species for wood products. as we place a high priority on these
When proposing planting: Planting and Raising Proposal
Minimize CO2 emissions when producing, processing, and transporting wood products. two items.
Sheet
When logging wood products, avoid conflict with local communities and refrain from unfair labor practices.
This sheet enables us to inform our customers more specifically Total score
Source wood products from areas of controlled logging, so as not to exceed the rate of forest regeneration. Rank
about the enjoyable season-based aspects of our gardens, such as (maximum 43 points)
Source wood products from domestic forests where well-planned forest management is in place to conserve
the timing when flowers bloom, fruits appear or leaves take on
ecosystems. 34 and above S
autumn colors, when we propose planting in their homes.
Source wood products from plantation forests that are managed so as to promote conservation and ecosystem 26 to 34 A
development.
At the time of handover: Maintenance Sheet 17 to 26 B
Use recyclable wood building materials.
Our Customer Service Centers share detailed information on Below 17 C
maintenance with our customers. This includes information on the
Introduction to planting Information on maintenance
timing to apply fertilizers, the time for pruning and the damage Calendar for plant care Growing environment
caused by diseases and insects. QR code (for detailed information)
Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Target Definition and remarks
Key performance indicators (KPIs) Ratio of Rank S and Rank A wood products as
defined by the Wood Procurement Guidelines
% 91 93 93 92 94 95 Survey results of around 50
of our main wood suppliers
Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Total from 2001 to 2018 Definition and remarks
Number of trees Tens of FairWood procurement volume and rank breakdown (10,000 m3) Percentage of wood products by region
planted annually thousands 81 99 107 103 93 1,502 15 million trees by 2020
50
South America 0.1% Others*4 3%
40 North America 15%
33.4 32.0
5% 30.3 29.9 29.3
Evaluation Future Initiatives 30 4%
4%
4% 2% 2% South Pacific*3 9%
29,300
3%
20% 22%
4%
14%
6%
15%
4% Asia*1 32%
18%
20 m3
Although the falling number of detached housing has led to a Using planting data as a communication tool
71% 71% 79% 77% 76%
10
decrease in the number of trees planted, we planted many We have been digitalizing data on plants while managing North Pacific *2 1% Europe 40%
trees at Sha Maison Gardens and other collective housing with planting data for individual properties. We are also changing 0
2014 2015 2016 2017 2018 (FY) *1 Asia: Includes domestic materials *2 North Pacific: Russia, etc.
rich common green spaces. over all plant name plates to more durable materials and adding *3 South Pacific: Indonesia, Malaysia, etc.
Windows and openings have become larger with the spread QR codes to the plates to enable users to S Rank A Rank B Rank C Rank *4 Others: Africa (includes waste wood)
of well insulated windows and frames. Therefore, gardens are easily check information on the plants on their
adding value to the residences themselves by increasing tenant smartphones. This will enable them to take more Evaluation Future initiatives
comfort. With this in mind, we trained our designers in greening, care as they raise the plants, while learning
which has resulted in increasing the quality of greening about or hearing the sounds of wild birds who In FY2018, the ratio of Rank S and Rank A lumber, which are Supplier awareness regarding procurement is growing in line
proposals for buildings on the whole. The sales of our exterior use the plants. set as a management goal, was 94%. We were able to approach with the enforcement of the Clean Wood Act and broadening
construction work business touched 65.5 billion yen in FY2018. Planting information can actually be our goal of 95% because of performance of due diligence and concern for SDGs. We will use this opportunity to strengthen
accessed by using the QR code on the
We were also able to achieve our Eco-First Promise of right.
other efforts. consulting for each of our suppliers while promoting the spread
planting a total of 15 million trees by 2020 before time. of CSR procurement*.
* For more details, please see page 57.
E
Action policies
Contribute to the creation of a circular Promoting recycling of wastes that

Environmental
1 economy through the effective use of 2 are increasing due to the supplied
resources related to housing housing business
We will strive to increase the lifespan of houses through In addition to increasing the physical and social lifespan of
appropriate maintenance as well as remodeling and renovation houses, we also focus on recycling waste generated due to
in response to changing needs. Simultaneously, we will also expansion in remodeling, renovation and other activities. We
The Circular Economy Main stakeholders
Customers and business

lead the industry by properly evaluating the value of quality
housing stock that exists in large numbers in society,
have our own waste disposal system centered on 21 recycling
centers throughout Japan and a cloud-based collection and
partners (materials
We will optimize the use of resources at production, construction manufacturers, Sekisui invigorating their circulation, reducing social loss by creating management system that improves the efficiency of waste
and all other stages, while supporting the creation of a circular economy House Association, markets and connecting it to resource conservation. We will collection. Through these and other systems, we are creating
intermediate disposal contribute to the formation of a circular economy through a proper recycling structure for the whole group in
through recycling-oriented businesses throughout the product lifecycle. operators, dismantlers)
effective use of limited resources. collaboration with partner companies.
Background
Achieving highly efficient use of resources and a circular economy to cope Progress
with pressing issue of resource depletion
The SDGs require companies ensure sustainable consumption lifestyle for all the people.
Contributed to the creation of a circular economy through
and production patterns under Goal 12. Amid global increase The housing industry is expected to spread and develop 1 the effective use of resources related to housing
in population and raised demand for resources and energy, it recycling techniques and at the same time, enhance services
is essential that companies optimize the whole lifecycle of their and support in line with social changes to improve the value
products and improve resource efficiency to support a stable of housing, which is also a social stock.
Activity report
Spread of SumStock quality housing stock

Approach Aiming to invigorate the circulation of quality housing stock and combine this with our proprietary circulation system SumStock.
create an appropriate market, 10 major housing manufacturers The Sekisui House Group is also promoting SumStock
Our goal including Sekisui House participate in the Provision of Quality proposals using Ie-Log, our original housing history information
Housing Stock Association. Salespeople certified by the Association system. Our Customer Service Centers and all group companies,
Building a circular business model through in-group alliances and business process innovations appraise a house’s basic structure “skeleton” and its interior including Sekisui House Remodeling and Sekiwa Real Estate
The construction industry uses materials in large quantities. business model and lead in creating new markets that can help furnishings and facilities “infill” separately. The price of the group work together to promote the spread of SumStock,
The Sekisui House Group is the first company in this industry maintain and expand the value of housing stock though the building and the land is indicated separately and we are striving to which promotes circulation of quality houses.
to acquire certification by the Wide-Area Certification System. group’s collective capabilities, which stem from our involvement
We will make utmost use of this certification and work toward in a spectrum of business activities.
efficient zero emissions* throughout the construction lifecycle * Eliminating industrial waste incineration and waste sent to landfills for disposal. Participation in Plastics Smart
(Houses) (Houses)
to expand the recycling loop. Moreover, we will build a new 1,500 3,000 We collect all the plastic from our
2,478 2,547 2,544 2,536 2,594
construction sites and are already
Increasing the life of houses through circular business model based on in-group alliances recycling about 17,370 tons yearly.
1,000 840 2,000
Distribution
740
812 785 In 2018, we participated in the Plastics Smart -for
lifecycle of houses
Sustainable Ocean- Campaign operated by the Ministry of

Recycling in the
499
500 1,000 the Environment of Japan and started taking steps to reduce
Design Production Construction Use Maintenance Remodeling and Renovation Demolition
single-use plastics* other than those used for business,
0 0 including prohibition on using plastic bottles at the workplace.
Sekisui House Sekisui House Remodeling Sekiwa Real Estate Sekisui House
2014 2015 2016 2017 2018 (FY)
* Plastic collected as trash or resource after single use
Sekiwa Construction Number of sales contracts Number of appraisals
Non-Sekisui House Sekisui House buildings Sekisui House zero emissions achieved
Sekisui House buildings
buildings Remodeling Remodeling
(Zero Emissions Structure)
After-sales maintenance Virgin materials

Renovation Renovation General recycling route usage
Parts (building materials)
Recycling Wastes
manufacturers,
Recycled material usage materials manufacturers
Newly built home Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Definition and remarks
Achieved construction site Refining companies, etc.
Achieved in FY2006 Achieved in FY2005 * A certification issued by the Japanese government
Demolition Factories Paper manufacturers Long-life Quality Housing* for houses that meet prescribed criteria, including
in FY2007
Factory production Recycling Centers
Cement companies Certification acquisition rate
% 92.1 92.0 90.5 92.6 92.5 durability of structural frames, seismic resistance,
Achieved in FY2002 ease of maintenance and remodeling, and versatility
Ratio of “very satisfied” Ratio of selecting the highest
Intermediate disposal facilities customers in survey
% 41.9 42.0 43.3 42.3 42.3 “very satisfied” scale on a 0-7 scale of assessment
Post-disposal residue
Landfill disposal (partial)
E Environmental
Evaluation
Eco-First Promise
Sekisui House maintains a high level in acquiring the Long-life service structure and increasing quality. In the remodeling
Quality Housing Certification. Customer satisfaction surveys business, we are enhancing our menu options, from general Sekisui House was certified as an Eco-First Company by the Japanese Minister of the Environment in June 2008 for
indicate that the ratio of customers who are very satisfied, existing houses to condominium remodeling, including Sekisui making three promises (Eco-First Promise) – global warming prevention, ecosystem preservation and resource
satisfied or somewhat satisfied has reached 95.9%, and we House properties. We also attempt to strengthen and expand recycling. We have been conducting environmental activities with a view to fulfilling these promises.
will strive to provide even higher satisfaction by expanding our the foundation for in-group collaborations. In 2012 and 2016, we updated our Eco-First Promise within the broad frameworks of the three promises while
incorporating changes in social environment and the progress in our initiatives to intensify our efforts.
2 Promoting recycling of wastes that are increasing due to the supplied housing business 1. Proactive reduction of CO2 emissions
in the residential sector and business activities - Global warming prevention
Our promises *
Activity report To aim for over 27% reduction in primary energy consumption in the Major progress in FY2018*1
residential sector, including housing stock, by 2030, corresponding to ZEH*2 ratio in custom
Strengthening the system for properly disposing and recycling waste Japan’s targets (39.3% reduction in CO2 compared to 2013). detached houses
79%
To actively introduce energy-saving air conditioners, eco-friendly cars and
The Sekisui House Group is focused on recycling construction after-sales maintenance to remodeling. LED to surpass the target values (10% reduction in CO2 emissions in 2020
material waste generated at each life stage of housing. We Additionally, new houses constructed by Sekisui House in comparison to FY2010) set by the Japan Prefabricated Construction
take pioneering steps in the industry, such as being the first and the 18 Sekiwa Construction companies were granted Suppliers and Manufacturers Association for CO2 emissions from business *1 April 1, 2018 to March 31, 2019 Green First ZERO sales promotion
activities of the group. *2 Net-zero energy housing
construction company to acquire certification by the Wide-Area certification by the Wide-Area Certification System in February
Certification System for waste disposal method. We have 2019. We will also strive to achieve zero emission in factories
achieved zero emissions in our factories by eliminating waste working on new home construction under Sekiwa Construction. 2. Proactive revival of ecosystem network - Ecosystem preservation
at each stage, from production, new home construction and
Creating a society that enables a fulfilling and comfortable lifestyle through use of sustainable natural capital.
Our promises *
Key performance indicators (KPIs) To actively carry out planting plans (Gohon no ki project) focused on species Major progress in FY2018
native to the region to promote landscaping in houses and the community
and aim for planting a total of 15 million trees by 2020, which marks 20 Total number of
Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Definition and remarks trees planted
Thousands
years since the launch of business activities based on the Gohon no ki
Total resource input 1,079 1,109 1,098 1,058 984
15.02million
Amount used at our factories project.
of tons
Thousands Waste from new construction and remodeling, To introduce FairWood lumber in cooperation with suppliers and NGOs
Volume of waste generated*
of tons 728 753 725 678 638 including demolition with a view to preventing illegal logging and loss of natural ecosystems Promoting the Gohon no ki
Volume of waste generated
at new construction sites Kg/house 1,485 1,506 1,476 1,517 1,563 Amount per house (per 145 m2) and making the economies of the production areas independent. (2020 target achieved) project
* Includes waste from affiliated companies and waste from demolition of buildings.
3. Proactive promotion of resource recycling activities - Resource recycling
Evaluation Future initiatives Striving to increase the value of social assets by promoting revitalization of cities and communities
and carrying out proposal-type renovation.
The volume of waste generated at new construction sites per Regarding waste generated at new construction sites, Sekisui Our promises *
house was substantially reduced by approximately 60% House sets target values for each model, continues to implement To install a new collection system using resource recycling centers and Major progress in FY2018
compared to FY1999 through improved construction methods optimized construction management and eliminates surplus accelerating zero-emission throughout the group. Material recycling rate at
To continue with zero-emission (zero landfill, zero waste incineration not the time of production,
and other practices. Recycling as well as disposal is becoming materials while ensuring reliable disposal and recycling by construction and after-sales
involving heat recovery) at the time of production, construction and
difficult in the Japanese recycling market due to the impact of monitoring waste volumes. after-sales maintenance and aim for 90% recycling of materials. maintenance
84.5%
import restrictions on resources derived from waste materials Furthermore, in light of expansion in the supplied housing
* This is an excerpt from our Eco-First Promise that was updated in 2016. Separating waste at a resource
in China and other East Asian countries. However, we separate business, including demolition projects, we collaborate with Please visit our website for the full text. https://www.sekisuihouse.co.jp/ecofirst/ recycling center
waste into 27 categories on-site and a maximum of 80 categories partner companies and industry organizations to promote
at our recycling centers. This high-level waste separation helps research related to proper waste disposal and recycling.
maintain zero emissions despite market changes.
Highlights
Symposium held to commemorate the third anniversary of the opening of Sekisui House Eco First Park
Highlights Sekisui House operates Sekisui House Eco First Park adjacent to its factory in Japan’s Kanto region (Koga
City, Ibaraki Prefecture). This facility is open to the general public. It features symbolic model facilities we
Supporting the disabled and recycling by collaborating Subcontracting
S-Core have been working on throughout the history of our environmental activities including three test houses,
Noritz
with partners Hearts Gohon no ki landscaping concept garden Living Garden and the Resource Wellspring, which achieves zero
We support the initiatives taken by S-Core Hearts, a special subsidiary of emission by separating into 80 categories wastes that are separated into 27 categories at construction sites.
building equipment manufacturer Noritz Corporation, to help persons with Deliver to welfare facilities In December 2018, we held a symposium at Housing Dream Factory in Kanto region nearby to
disabilities to become independent. To assist the initiative, we provide Re-Hearts* Taking commemorate the third anniversary of the opening of the park. After Vice Minister of the Environment
Collect waste apart and Hideka Morimoto addressed the gathering, Director Wakui presented a keynote lecture on the ways in
them the water heaters collected at our recycling centers. The company water heaters Separated separating Welfare
outsources the work of taking apart and separating the parts of used water materials organization which housing can help the environment and stop global warming. He said that it will be too late if we
Sell materials
heaters to welfare organizations. In this way, we promote recycling within Recycling do not stop global warming now and that it is important for every individual to do what they can. Hideka Morimoto, Vice Minister of the
* Re-Hearts: A subsidiary of S-Core company
Japan, while providing job opportunities to persons with disabilities. Hearts dealing in recycling of water heaters
*Apply here to visit the Sekisui House Eco First Park. https://www.sekisuihouse.co.jp/efp/eng/ Environment
E Environmental Strategy and Core Competencies Vision and Goals E Environmental S Social G Governance CSR Management
Material Balance (Environmental Impact)

To make its environmental-conservation activities as effective as possible, the Sekisui House Group monitors and reports on Scope: The subjects of this survey are Sekisui House, Ltd., its major consolidated subsidiaries in Japan (47 companies), and major consolidated subsidiaries overseas
(11 companies). Scope 3 CO2 emissions include those attributable to parties outside the Sekisui House Group.
environmental impact at each stage of the housing-product lifecycle—including development and design, raw-material
Period: The data is for FY2018 (from February 2018 to January 2019). The figures include estimates in cases where final data was unavailable at the time of calculation.
procurement, factory production, transportation, construction, and occupancy—in Japan and overseas.
FY2018 environmental impact of corporate activities
Sekisui House provides the market

• We have a framework under
Energy Energy Energy Energy which the head office receives
1,025,696 GJ 838,264 GJ 466,598 GJ 414,947 GJ with eco-friendly products featuring Below are the figures for energy
PV systems and Ene-Farm fuel cells. consumption, water consumption,
reports of any violations of
Electricity • • • • • • • • 53,582 MWh Electricity • • • • • • • • 47,155 WWh Electricity • • • • • • • 11,811 MWh Green First ZERO homes with environmental laws or
waste, and CO2 emissions resulting
Gasoline • • • • • • • • • 12,430 kl Kerosene • • • • • • • • • • • • 223 kl Light oil • • • • • • • • • • 1,052 kl net-zero energy consumption reduce regulations at a factory. In
Resource input
from the demolition of old buildings

Light oil • • • • • • • • • • • • • 406 kl Gasoline • • • • • • • • • • • • • • 33 kl Gasoline • • • • • • • • • • 7,515 kl CO2 emissions by 82.6% compared FY2018, there were no major
prior to new construction.
Natural gas • • • • • • • • • • 519 thous. m3 Light oil • • • • • • • • • • • • • • • 73 kl to data for 1990. violations of greenhouse
Propane gas • • • • • • • • • • 39 thous. m3 LPG • • • • • • • • • • • • • • • • 2,055 t
Energy gas-related laws or regulations
Kerosene • • • • • • • • • • • • • 26 kl Natural gas • • • • • • • • 4,067 thous. m3
Cold water / hot water / LNG • • • • • • • • • • • • • • • 1,439 t
20,553 GJ (no single case subject to
steam • • • • • • • • • • • • • 21,150 GJ Light oil ••••••••••••• 545 kl criminal punishment,
administrative penalty, or
Water Water Water Water administrative guidance) nor
215 thous. m 3
710 thous. m 3
235 thous. m 3
45 thous. m 3
any serious leaks of
Water supply • • • • • • • • 215 thous. m3 Water supply 149 thous.
•••••••• m3 Water supply • • • • • • • 235 thous. m3 Water supply ••••••••• 45 thous. m3 chlorofluorocarbons (CFCs).
Industrial-use water • • • 32 thous. m3 • Sekisui House recycles all waste
Groundwater • • • • • • • • 529 thous. m3 resulting from the production
of materials purchased by
factories. Of that total, the
activities
Business
Development Raw-material Factory Transportation Construction Occupancy Demolition

material-recycling rate was
production 94.5%.
and design procurement
• The water discharged from our
factories into rivers meets the
water-quality standards
Waste/CO2 emission output
CO2 emissions CO2 CO2 emissions CO2 emissions CO2 emissions CO2 CO2 emissions specified in Japan’s Water
59,608 t-CO2 emissions 1,560,600 t-CO2 43,995 t-CO2 31,993 t-CO2 26,213 t-CO2 emissions 3,817,288 t-CO2 1,409 t-CO2
Pollution Control Law and
Waste *1
Waste Waste Waste other relevant regulations and
111 t 17,151 t 155,206 t 465,858 t agreements. The water from
Paper • • • • • • • • • • • • • • • • • • • • • • • • 77 t Glass/ceramics • • • • • • • • • • • • 7,969 t Concrete/ Concrete/ our Tohoku, Kanto, Shizuoka,
Other • • • • • • • • • • • • • • • • • • • • • • • • 35 t Metal • • • • • • • • • • • • • • • • • • • • • 4,413 t asphalt concrete • • • • • • • • 32,646 t asphalt concrete • • • • • • • 232,226 t Yamaguchi, and Hyogo
*1 Amount of waste from the head Sludge • • • • • • • • • • • • • • • • • • • 2,316 t Sludge • • • • • • • • • • • • • • • • • • 13,828 t Wood • • • • • • • • • • • • • • • • • 109,757 t factories meets Sekisui House’s
office building Wood*2 • • • • • • • • • • • • • • • • • • • 1,655 t Plastic • • • • • • • • • • • • • • • • • • 17,376 t Debris • • • • • • • • • • • • • • • • • • 47,741 t in-house standards, which are
Other • • • • • • • • • • • • • • • • • • • • • • • 797 t Wood • • • • • • • • • • • • • • • • • • 17,435 t Other • • • • • • • • • • • • • • • • • • 76,134 t stricter than the legal
*2 Beginning this fiscal year, products deemed Plasterboard • • • • • • • • • • • • 14,539 t requirements.
compliant with internal standards as a result Scope 1,2
of in-house processing at plant facilities Glass/ceramics• • • • • • • • • • • • 7,266 t
(including fuel chips) have been eliminated Paper• • • • • • • • • • • • • • • • • • • • • 6,865 t
from figures for surplus raw-material emissions.
The total figure for wood is thus 654 tons less Other • • • • • • • • • • • • • • • • • • • 45,252 t
than what it would have been under the
conventional calculation method for emissions
Scope 1,2 Scope 3 including surplus raw materials. Scope 1,2 Scope 3 Scope 1,2 Scope 3
Note: All the figures for waste from business activities include valuables.
Notes on the data

FY2018 CO2 emissions (Scope 1–3) Scope 1 and 2 emission amounts attributable to “construction” and “demolition” consignors and Sekisui House Advanced Manufacturing (Shenyang) Co., Ltd.
include CO2 emissions resulting from construction and demolition by non-Sekisui (calculated according to the guidelines provided in the Act on the Rational
We calculate and disclose our Scope 1–3 CO2 emissions in line with the methodology of the Greenhouse Gas Protocol. *3 House Group partner building contractors (applicable to Scope 3). As it is difficult Use of Energy and version 4.3.2 of the manual issued by the Ministry of the
to separate the figures due to housing construction and demolition conditions, Environment and the Ministry of Economy, Trade and Industry)
*3 Greenhouse Gas Protocol “Corporate Value Chain (Scope 3) Accounting and Reporting Standard” (http://www.ghgprotocol.org/standards/scope-3-standard)
the values are included in the calculations for Scope 1 and 2 for the sake of
convenience. Construction
Scope 1 : CO2 emissions resulting from fuels used (73 kt-CO2) Scope 3 : CO2 emissions resulting from energy used for mining and producing raw
materials, transporting building components, disposing of waste by non-Sekisui Development and design (including sales and • Energy, CO2, and water: Estimated energy consumption, CO2 emissions,
Scope 2 : CO2 emissions resulting from electricity and heat purchased House Group companies, and occupancy by customers (5,778 kt-CO2) administration divisions and model homes) and water consumption resulting from new construction by 18 Sekiwa
(58 kt-CO2) Construction companies and partner building contractors
• Energy, CO2, and water: Energy consumption, CO2 emitted, and water • Waste: Waste generated via new construction, after-sales maintenance, and
used by offices and model homes remodeling by Sekisui House, Ltd., 18 Sekiwa Construction companies, and
Scope 1,2 147kt-CO (2.2%) 2 Scope 3 • Waste: the volume of waste generated by the Sekisui House, Ltd. head three Sekisui House Remodeling companies
office (including offices of consolidated subsidiaries in the same building)
Total Raw materials Occupancy
FY2016 Occupancy 4,460kt-CO (67.3%)
2 Other 2,019kt-CO (30.5%)
2
6,626kt-CO 2
• CO2: Estimated CO2 emissions resulting from the production of materials • CO2: Estimated CO2 emissions during occupancy at detached houses and
purchased by factories low-rise rental apartments built from building components shipped from
factories (calculated assuming an occupancy period of 60 years for detached
Total
Factory production housing and 45 years for low-rise rental apartments)
FY2017 Occupancy 3,944kt-CO (65.1%)
2 Other 1,976kt-CO (32.6%)
2
6,061kt-CO 2
• Energy and CO2: Energy consumption and CO2 emissions at the five Sekisui Demolition
140kt-CO (2.3%)
2
House factories in Japan and Sekisui House Advanced Manufacturing (Shenyang)
Co., Ltd., and the Ingleburn Quality Control & Manufacturing Centre (Australia) • Energy, CO2 and water: Estimated energy consumption, CO2 emissions, and
Total • Waste: Water consumption at the five Sekisui House factories in Japan and water consumption resulting from the use of heavy machinery for demolition
3,817kt-CO (64.6%) Raw materials 1,561kt-CO Sekisui House Advanced Manufacturing (Shenyang) Co., Ltd.
FY2018
5,909kt-CO
2
Occupancy by 18 Sekiwa Construction companies and partner building contractors
2
(26.4%) 2 • Waste: Waste generated by the five Sekisui House factories in Japan • Waste: Waste generated via the demolition of housing and commercial
buildings by Sekisui House, Ltd. and 18 Sekiwa Construction companies
131kt-CO (2.2%) 2 Office waste *4
95kt-CO (1.6%) 2 Other 135kt-CO (2.3%)
2 Transportation
*4 Waste generated through business activities Disposal of waste products*5 137kt-CO (2.3%) 2 Transportation 32kt-CO (0.5%)2
*5 Disposal of products sold by Sekisui House • Energy and CO2: Energy consumption and CO2 emissions at specified
after being discarded
S
Action policies
Creating safety, security, comfort, and Enhancing production and

1 health by integrating tangible 3 distribution quality and improving
(technological development) and operational efficiency
Social intangible elements We build-to-order by manufacturing all major structural
We meet many people, including the 940,000 people who have components at our factories under our rigorous quality
visited the Nattoku Kobo Studio (Home Amenities Experience control system. In order to regularly provide high-precision
Studio), and we use Big Data gathered from these meetings to structural components with stable performance and
Pursuing Customer Satisfaction

Main stakeholders: further our research and development of both tangible and quality. We are proceeding with the automation of our
Customers, employees, partner companies
intangible elements. In terms of the tangible, we create safety, production lines and the utilization of AI, IoT and robotics
security and comfort through superior quality and leading technology, continuing to combine small lot, multi-variant
through Our Value Chain
(procurement, production, logistics, and
construction), factories, and residents of technology which we have built up over half a century. On the and built-to-order production while maintaining efficient
neighborhoods near construction sites intangible side, we carry out research on the intangible asset of production systems.
“happiness,” aiming for value creation through innovation in
We offer long-term support for our customers’ living arrangements by collaborating areas such as health, connections, and learning.
Strengthening our construction
with group companies to realize superior quality and leading technology
through stakeholder cooperation and the use of Big Data as an intangible asset. 4 management abilities and
maximizing our construction capabilities
2 Meticulous supply chain management
for material procurement
When we are conducting precision
Houses can use tens of thousands of structural components, construction with high-performance and
Background and collaboration with suppliers who understand and instill our high-quality structural components
values in their products is an important factor in meeting produced in our factories, our great
diversifying needs. As interest in ESG investment rises, we are strengths are our close coordination with
The importance of responding to diversifying customer needs through the entire value chain promoting highly sustainable procurement and other practices, the invaluable Sekisui House Group
Creating safe,
and working to create long-term benefits for both our company companies and our partner building secure and
Increasingly diverse values are required for housing due to Furthermore, as the population decreases, collaboration
and its suppliers, as well as strengthening our collaborative contractors (the Sekisui House comfortable housing
remarkable technological progress and rapidly changing social throughout value chains and strategic approaches are becoming relationships. Association), and our more than 9,000 together with the
Sekisui House
needs. Corporate approaches that aim to provide optimal value more important, as is training skilled technicians, ensuring that construction technicians. Association
to customers are also continuing to change significantly when construction work is meaningful and dignified, and procurement
compared to past examples, with an eye towards the changes that takes the environment and social needs into account.
Providing long-term support for customer lifestyles
in business environments of the future.
For example, when analyzing the optimal solution for
In addition, in Japan, there is a tendency for the property
value of housing to decline over time when compared to Europe
5 and maintaining and improving housing property value
consumers in terms of actual and potential needs, it is essential and America. Constructing good-quality housing and ensuring We muster the diverse power of our group companies, offering asset management and maintenance optimized for each of our
to make use of accumulated Big Data, and involve ourselves in that its value is maintained or increased are important elements customers with the aim of creating homes they can live in throughout the different stages of their lives. We provide repair and
joint development with equipment manufacturers and other in creating a sustainable society. equipment refreshing, or renovations for improved comfort and convenience, but also renovations involving large-scale
suppliers. transformations and changes of purpose that meet customer needs, providing an extremely high level of safety, security, and
comfort that heightens customer satisfaction. We are also creating a market in which housing is a favorable social asset, reducing
our input resources and thus leading to more efficient use of resources.
Approach Supporting security in the different life stages of our customers through group collaboration
When building houses After building houses When passing on houses

Our goal
Building high-quality housing Maintaining and improving housing performance Utilizing the market for high-quality
housing stock
Applying Big Data, and creating long-term assets using performance, quality, and after-sales support •Creating housing that is safe, •Long-term warranty and after-sales support offering security •Appraisal and distribution of housing stock (SumStock)
secure and comfortable, and •Appropriate maintenance to prevent deterioration •Support when moving to other housing,
We must create a total business scenario to maximize customer and sharing it with our suppliers allows us to provide takes health into account •Remodeling and renovation to match lifestyle changes such as rental housing for senior citizens
value through our value chain. The key to this is our industry- performance, quality, and after-sales services that our Sekisui House (design, construction, maintenance support)
leading Big Data, which has been accumulated through diverse competitors cannot match, as well as to create a market in 18 Sekiwa Construction companies
(housing construction, remodeling and renovating housing constructed by other companies, etc.)
channels, and allows us to anticipate customer needs and which housing is a favorable social asset.
social change. Making use of this data throughout the group 3 Sekisui House remodeling companies
(remodeling and renovating Sekisui House detached houses, etc.)
7 Sekiwa Real Estate companies (real estate sales and management, remodeling and renovating rental housing, etc.)
Before building housing Until the housing is completed Achieve lasting security and comfort
Sekiwa Grand Mast Ltd. (operation and management of rental housing for senior citizens)
Due to the characteristics of community-based projects, We create freely designed housing that responds to We extend the life of our housing by enriching after-sales
we endeavor to ensure open communication with the customer needs by making full use of the advantages of support, aiming to maintain and increase housing value
community and to understand changes in lifestyle needs industrialized housing to secure structural safety and by through remodeling and renovation.
and make home building more open to society. utilizing our highly precise responsible construction system. How our activities impact society
Research We promote research and development We emphasize collaboration and The dedicated staff at our Customer
and
concerning both tangible and intangible Supply cooperation with our high-quality After-sales Service Centers who support our We have supplied a cumulative total of 2.42 million good-quality because we propose and provide after-sales services, remodeling,
elements that reflects valuable customer chains suppliers to secure the vast amount of support customers make up 10% of all our
development opinions and new social needs. structural components that we use for employees. dwellings, pursuing superior quality and leading technology. and renovations as a group, our houses retain their value and
our housing.
We collect the opinions of visitors to
We carry out built-to-order production
We offer an initial 30-year warranty
for structural framework and any parts
Building on our track record, we have come to promote industry- we have accumulated favorable social assets. We aim to enhance
Model initiatives such as model homes that Long-term
homes take advantage of regional Production using high-quality and highly precise
original structural components at our warranty
used to prevent rainwater leakage to leading initiatives; not just technology relating to basic housing the property value of housing and lead the quality housing
characteristics, construction site tours ensure that our customers have a
and tours held in cooperation with owners, and factories. lifelong home. performance but also CSR procurement, improved production stock market by cooperating with the suppliers in our value
hands-on centers. We ensure the stability of our highly
precise construction through our Remodeling
We are intensifying our efforts to
create long-term, high-quality assets
technology, construction technologies that maintain our high chain and focusing our efforts on popularizing and improving
Construction construction systems, human resource and and make effective use of resources quality while reducing the work burden on construction good-quality housing.
development and collaboration with renovations as well as responding to a wide range
one of Sekisui House Group’s strongest
assets, the Sekisui House Association.
of customer needs. technicians, a long-term warranty program, and more. In addition,
Progress Starting to research “houses where happiness grows the longer you live there,”
in addition to researching and developing both tangible and intangible elements
Pursuing the safety and comfort of housing and improving visitors per year. In addition, we have established the
Creating safety, security, comfort, and health by integrating tangible
1 (technological development) and intangible elements
quality while responding to customer demand is a housing Sumufumulab, a base for research and development and
manufacturer’s mission. Our company established the information exchange regarding living spaces and lifestyles
Comprehensive Housing R&D Institute in 1990, and since then inside of the Grand Front Osaka, in front of Osaka Station.
we have conducted investigative research into how lifestyles There, we conduct joint research based on open innovation
Activity report and housing best interact with one another, as well as research with various stakeholders.
and development in pursuit of healthy and comfortable living, In August 2018, we opened the Human Life R&D Institute,
Pursuing further branding of detached houses using our unified management system for residence information including inspection and assessment of basic housing features. becoming the first Japanese company to study happiness, and
We are able to integrate information concerning customers, Factors involved in improving the value of our detached house brand Through in-house inspection and research, we quickly identify began research into “houses where happiness grows the longer
history (e.g. maintenance), design, structural components, and problems and find solutions, creating technologies that are you live there.” Here, we are focusing our attention on research
more by unifying our residence information. Using some of the Top-up strategies unique strengths for Sekisui House, such as the heavy steel- themes that pursue a sense of happiness, such as health and
best Big Data in the industry, we are able to create proposals Brand power of Sekisui using chief architects* framed ß System, the SHEQAS seismic absorption system and familial bonds, in addition to the themes that Sekisui House has
that anticipate customer needs and social change. This Big Data House’s detached houses the Airkis high-quality indoor air system. continued to devote ourselves to for many years: safety, security,
is extremely effective in enabling us to continue providing Bottom-up strategies We have also established the Nattoku Kobo Studio (Home and comfort. We are also proposing “happy homes,” which
good-quality housing, and we recognize that it is a valuable by promoting Amenities Experience Studio) inside our Comprehensive Housing allow residents to recognize and experience happiness, and are
residences
asset to our group as we take on the responsibility and mission R&D Institute; this studio is a place where consumers and heightening the sense of happiness in housing and communities
of leaving exceptional social assets for the next generation. Improved through these two initiatives builders can consider ideal housing through dialogue, and by scientifically and theoretically clarifying expertise relating to
In 2017, we established Residence Evaluation Guidelines * Chief architect is an in-house qualification, and refers to an employee who where we exchange information with approximately 30,000 “houses where happiness grows the longer you live there.”
to drive the construction of beautiful houses that will become has superb design capability, and possesses qualities that make them a role
model to other design employees.
an asset for the communities. These guidelines act as indicators
to objectively evaluate the road-facing part of a house’s exterior Anticipated results
design in terms of whether it has carefully considered the Motivation Process Creating Happiness Propagating
Improved building quality Improved customer satisfaction for building for building our homes that increases housing value
environment and townscape. They are made up of 10 points our homes our homes the longer you
Training of human resources (bottom-up) Leading to business continuity live there
relating to the external appearance and planting design and
exterior design of the building. We aim to enhance brand value
by evaluating all of our detached houses.
Furthermore, we carry out evaluations of townscapes and Experiment using a shaking table to test life-sized structures
at a site that verifies seismic resistance levels
exterior designs by making use of both the Residence Evaluation
Guidelines and the townscape assessment system Commons,
which has been in operation since 2014 with the aim of Concept diagram for “houses where happiness grows the longer you live there”
improving townscape scenery. Through these evaluations, we
are driving the creation of townscapes that are good-quality A beautifully designed exterior, Community development that is a high quality
where the points of the residence asset for our customers and to society
assets to both our customers and to society. evaluation have been understood (Fukuoka Island City)
Experimenting with the flow of

movement when cooking with multiple
Developing new technologies and products in response to customer needs Test carried out in an artificial climate An allergen investigation connected to our people, a demonstration experiment for
Happy Housework Design
and expanding into the non-housing sector room to verify insulation and comfort Airkis high-quality indoor air system
Sekisui House has come to provide high-quality housing that

offers safety, security, and comfort. We have accomplished Key performance indicators (KPIs)
this using advanced technology created through the promotion
of research and development in both tangible and intangible Indicator Unit FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
elements. In 2018, we began proposing Our Own Family Suite, SHEQAS seismic absorption system installation ratio
a new style of home construction centered around a spacious (steel-framed two-story detached houses) % 87 89 94 96 96 96
Airkis high-quality indoor air system installation
living area that combines structural technological development ratio (steel-framed detached houses) % 78 80 85 87 88 91
with the results of our research on happiness. The large living
area takes up approximately 49 m2 of a floor space of around
100 to 135 m2, and we can create this with better cost-control Creating spacious living areas with advanced technology and design solutions Evaluation Future initiatives
than we can a conventional plan for the same exterior.
Additionally, in 1997 we developed our ß System, a heavy- Installation rates for our SHEQAS and Airkis systems remain high. We will continue to actively propose our SHEQAS and Airkis
gauge steel rigid-frame structure for three-story houses that We have used IT to unify residential information, and in systems to customers as strengths unique to Sekisui House.
enables supports to be freely positioned, giving the advantage so doing have been able to improve productivity, operational As well as further improving the way we use IT for each
of highly flexible floor plans and window positioning on each efficiency and customer services. Additionally, thanks to our individual process, we will heighten our sensitivity to customer
floor. In 2017 we developed the Flexible ß System, a new research and development in terms of both tangible and needs and the trends of the times, and continue our research
method that further increased design freedom and spatial intangible elements we have launched new products through and development in terms of both tangible and intangible
solutions. In addition to detached houses, rental housing, the development of new construction methods that have further elements. At the same time, we will continue to produce
housing within shops, and housing for senior citizens, this increased our design freedom and spatial solutions. We have industry-leading proposals while maintaining dialogue with
method can also be used for non-housing constructions such Hospital constructed with the Flexible ß System
broadened our range of response to various construction needs. stakeholders, further improving safety, security, comfort, and
as preschools, hotels, hospitals, and public facilities. (Futaba Medical Center, Fukushima Prefecture) health for residents.
Enhancing production and distribution quality

2 Meticulous supply chain management for material procurement 3 and improving operational efficiency
Activity report Activity report
The housing industry has a broad base and uses multiple From CSR procurement to SDG procurement At Sekisui House, we make use of Big Data, carrying out built- our ß System, a construction method for three- to four-story
materials in large amounts, and therefore has a significant (sustainable procurement) to-order production using structural components custom-made steel-frame houses. The AI learns from the past production
impact on supply chains. We engage in proactive efforts to To help encourage our suppliers’ initiatives relating to CSR, we for each residence. We continue to combine production information (Big Data) that we have accumulated and
make ourselves aware of potential impacts on solutions to carried out CSR evaluations using a check-sheet method, to efficiency across multiple products with small production lots, automatically makes decisions that are appropriate to the
environmental and social issues through our supply chain; these ensure that they agreed with the intent of our CSR Procurement automating the production of key construction materials and situation. By making use of this smart system, we have become
efforts are considered an important strategy to maximize our Guidelines. With these, companies evaluated themselves in installing robotics technology so that we can consistently provide able to automate adjustments to our production volume and
long-term company value. At the same time, we are promoting advance from the perspective of the seven core subjects of ISO high-precision structural components with stable performance work scheduling that until now had been carried out with the
activities that enable us to develop and coexist with our supply 26000 and scored and evaluated the results; the overall company and quality. expertise of our supervisors. We have also increased operational
chains as key initiatives. average for this period was 86.2 (a 1.2-point increase compared We are also prioritizing health and safety management to efficiency and carried out power-saving operations in production
to last year). Through the evaluation results, we also identified prevent work-related accidents and other damage to employee lines that use AI, and as a result we have realized a 31%
Procurement policies suppliers who should be monitored and conducted individual and contractor welfare. At the same time, we endeavor to create improvement in productivity, reduced working hours by 9%,
Since 2007 we have set out, observed and promoted eight site visits. This applied to five companies in FY2018. comfortable working environments, facilitate operations and and decreased power usage by 12%.
procurement policies to pursue procurement activities based on Following the signing of the UNGC (United Nations Global improve productivity.
BD Automatic collection of more than
5,000 pieces of data per customer
the Sekisui House corporate philosophy and code of conduct. Compact) in August 2018, during this period we have revised (Big Data) dwelling
our own standards to include 48 items based on the nine items Introducing a quality inspection system Data acquisition
Automatic collection
of the procurement standards set out by GCNJ (Global Compact that uses AI technology of data from production
Data use
Providing Big Data for AI learning
Fairness and
Social impartiality Trusting Network Japan). From FY2019, we will carry out evaluations Our original Bellburn earthenware exterior wall panels, used on
responsibili- relation-
ties ships based on these standards, move forward from procurement over 80% of Sekisui House’s SHAWOOD wooden houses, are a IoT Smart system AI
(Internet (Artificial
Eight in a conventionally socially responsible manner and actively high-class exterior wall material with superior weather resistance, of Things) Intelligence)
Eco- Optimal
friendliness
procurement pricing contribute to supply chains to help sustainable social durability, and strength. More than 1,000 pieces of Creating a smart network AI calculates predictive
equipment (sensors and information to optimize
policies Controlling machinery and tools
construction (SDGs procurement). Up until now, skilled technicians carried out visual machines) are connected to on-site in real-time production
Creation the in-house network
Highest inspections in the final checking stage, looking for any
of customer Supply quality CSR Procurement Guidelines based on standards set out by GCNJ
value optimiza- hollows and swellings caused by glazing and firing the clay.
Improving working environments
CSR Procurement Standards
tion We have recently introduced a quality control system that uses

1 2 3
Governance Human rights Labor
specialized image-processing AI in the production process; we We carry out necessary health and safety management at each
are now able to control the volume of good-quality products of our factories to prevent accidents and health problems that
Engaging with our partner companies 4 5 6 in real-time, and have reduced costs by improving production may arise during work operations. As well as securing safety
To maintain fair and impartial business practices, we conduct Environment Fairness Quality and safety efficiency and quality management, enhancing quality, and and health for our employees, we endeavor to create comfortable
evaluations of our partner companies based on our procurement 7 8 9 reducing inventory by 40%. working environments, facilitate work performance and improve
policies and inform each company of their results so that they productivity. We hold a Health and Safety Committee meeting
can be used for improvements.
Information security Supply chains Local community
In-house development of once per month and a Production Department Health and Safety
At the same time, we believe that high-level procurement an AI-enabled smart production system Promotion Council meeting at all factories once per quarter to
policies can only be implemented in the presence of a stable We have introduced a smart system that makes excellent use share information regarding the current condition of each
business structure and quality management, thus we Wood Procurement Chemical Substance of IoT, Big Data, and AI to the steel beam production lines of factory, items for improvement and visions for the future.
continuously conduct factory visits and affirm quality Guidelines Guidelines
management systems with our primary partner companies.
Additionally, around 150 of our major partner companies Key performance indicators (KPIs)
participate in our annual policy briefings in order to ensure Strengthening cooperation to achieve Index utilizes FY2012 as 100
consistency in our procurement policies and deepen mutual sustainable procurement Indicator FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
understanding. We offer explanations of our newest We believe that it is important for us to work more closely Breakeven point shipping volume 100 100.9 102.4 98.5 93.1 96.3 97.2
management plans, procurement policies and product strategies together in terms of supplier advice and cooperation to achieve
at these briefings, providing information intended to act as sustainable procurement, and are strengthening our operations,
Complaints and abnormalities at construction sites 100 98.0 75.6 56.7 60.7 47.5 32.8
guiding principles for our partner companies, honoring including due diligence such as inspecting logging areas.
outstanding companies and sharing best practice.
Evaluation Future initiatives
CSR evaluation
As a result of maintenance and enhancement of our production To contribute to increased work efficiency and labor saving at
lines, we are now able to produce structural components in construction sites, we will continue to pre-process and assemble
CSR supplier CSR monitoring
subcommittee Due diligence multiple factories, establishing a system that will enable us to structural components inside our factories and endeavor to
continue production in the case that one or more of our factories improve the state of parts delivered to sites.
is damaged during a natural disaster. Through the introduction Additionally, we will continue to prioritize workstyle reform
CSR Procurement CSR Procurement CSR Procurement of AI and robotics technology, we have more clearly distinguished in production departments, including those of our subcontractors,
Standards Guidelines Agreement Certificate
between automated processes and processes carried out by skilled recognizing that this will result in more comfortable work
Policy briefing for partner companies employees, enabling us to promote improvements to our working environments that will raise work efficiency, which in turn will
environment and improve quality and operational efficiency. increase productivity.
Strengthening our construction management abilities and Providing long-term support for customer lifestyles and maintaining and
4 maximizing our construction capabilities 5 improving housing property value
Activity report Activity report
The Sekisui House Group is working to strengthen our Operation of Sekisui House educational Mustering the group’s diverse power to offer long-term support for customer housing
construction technologies so that we can continue to ensure training centers As housing is subject to long-term use, the quality of support rental housing units using their expert perspective, from
stable construction management abilities and to improve quality Sekisui House directly operates vocational skills development after customers have moved in is crucial. The dedicated staff routine maintenance and remodeling consultations to asset
and customer satisfaction. We are reinforcing our organizational schools accredited by the Ministry of Health, Labour and at our Customer Service Centers make up 10% of all our management. Our unique organizational structure enables us to
strength together with our partner building contractors while Welfare, with the goal of cultivating young human resources employees. They support the lifestyles of customers living in quickly reflect customer feedback in our product development
utilizing all of our systems, and promoting initiatives in order who can play active roles at the forefront of the industry. We approximately 810,000 detached houses and around 230,000 and management structure.
to make the most of our existing construction capabilities. have established three schools. At these schools, we conduct
training that allows technicians from each company in the Enhancing our initial 30-year warranty program, U-trus System,
Cooperation with the Sekisui House Association Sekiwa Construction Group, as well as those hired by our partner and housing history information database Ie-Log
The Sekisui House Association, made up of the 18 Sekiwa building contractors, to learn about techniques and acquire skills. Sekisui House offers an initial 30-year warranty program for We also operate Ie-Log, a database that shares digital
Construction companies and partner building contractors, is These schools also aim to teach and refine manners necessary structural framework and any parts used to prevent rainwater information concerning the various building components of
cooperating with each Sekisui House office, and together we are for members of society. leakage, which provides an additional 20 years of warranty to each property and other data. This is based on the Long-Life
pursuing a variety of initiatives including improving construction Those who have completed the course work actively in the 10-year defect liability period required under the Housing Quality Housing Certification Program in Japan, which aims to
quality, safety measures, making our sites beautiful, fostering regions throughout the country as construction technicians or Quality Assurance Act. In addition, all other parts are under build up a stock of high-quality housing that can be used in
human resources, and improving working environments. construction managers. Even after completing the course, warranty for a specified period of time. Even after the warranty the long term. Group companies utilize the historical data
Even in the case of restoration and reconstruction work technicians are able to continue participating in a variety of period has expired, homeowners can take advantage of our accumulated through Ie-Log to propose genuine remodeling
when a natural disaster has taken place, local Sekisui House training programs aimed at improving technical knowledge unique U-trus System to extend warranties in 10-year intervals. and renovations.
Associations will make use of the strength of the national and skills according to their practical experience and levels.
organization and send large numbers of technicians to disaster- Initial 30-year warranty program for security (For customers who signed contracts on or after April 1, 2018)
stricken areas. We are responding to the increasing demand for Reducing the work burden of Ten Twenty Thirty Forty Fifty Sixty
Repeats indefinitely, as long as your building exists

Moving Three One Two Five Fifteen Twenty five
construction by continuing to guarantee stable construction our construction workers in months year years years years years years years years years years years
Continuing from any time, indefinitely

Initial 30-year warranty
inspection*2
inspection*2
inspection*2
inspection*2
U-trus System for extended warranty
management abilities and using them to the utmost. We have improved the Ekso Vest, that aids work requiring Structural framework/waterproofing initial 10 years’ 10 years’ 10 years’
program for security

extended extended extended
upward motion, and introduced it sequentially from December
U-trus
U-trus
U-trus
U-trus
30-year warranty *1 warranty warranty warranty
Construction Meister system 2018. We are promoting the reduction of workers’ burdens
Twenty-years inspection (free)
Thirty-years inspection (free)
expiration period
expiration period
expiration period
We established the Construction Meister System to honor and ensuring their safety.
Ten-years inspection (free)
inspection*2 *3
inspection*2 *3
inspection*2 *3
superior technicians involved in Sekisui House construction sites. In general, exoskeletons that reduce work burden are worn 10 years’ 10 years’ 10 years’
extended extended extended
Warranty
Warranty
Warranty
U-trus
U-trus
U-trus
We anticipate that they will strengthen the “community with mainly on the lower body, with many products that aid simple warranty warranty warranty
a common destiny” mindset that we share with our partner operations such as lifting and holding objects. However,
building contractors and boost the motivation of all our considering that there are many challenges in construction work
Maintenance
construction technicians by actively becoming role models for that involve complex movement, we focused on an exoskeleton
Twenty five-years
Thirty five-years
inspection (free)
inspection (free)
inspection (free)
inspection (free)
inspection (free)
inspection (free)
Forty five-years
Fifty five-years
Three-month
Fifteen-years
other technicians, passing on high-level skills, and contributing with the aim of maintaining a posture for work requiring
inspection *4
inspection *4
inspection *4
inspection *4
inspection *4
inspection *4
Forty-years
Sixty-years
support
Fifty-years
Two-years
Five-years
One-year
to enhanced construction quality across the entire company. upward motion.
Key performance indicators (KPIs) *1 To continue the initial 30-year warranty for structural framework and waterproofing,
*2 The U-trus System provides extended warranty at 10-year intervals, subject to required
inspections and maintenance work to be completed at the homeowner’s expense.
please ensure you have 10-year or 20-year inspections.
The warranty may be repeatedly provided from any time during these intervals as
• 10 and 20 years after you move in, technical support staff (housing consultants) from a Customer
Center will carry out a housing inspection (free) and propose any necessary maintenance.
long as the building exists.
*3 If you purchase an existing house, extended warranty will continue to be provided as long
Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 • We assume that during your 10- and 20-year inspections any maintenance work (free
construction work) deemed necessary will be carried out.
as the owner allows inspections and maintenance work to be carried out at their expense.
Construction workers (foundations, construction, carpentering) people 10,518 10,393 9,843 9,351 8,792 • Damage caused by natural disasters/accidents or extension/alteration work carried out by a
trader unaffiliated with us is excluded from the warranty.
*4 All inspections and maintenance work from 35 years after purchase require payment;
these are to be carried out by customer request.
* Please ensure periodic inspections (free) for Long-life Quality Housing for the first 30
Participants at education training centers (total) people 2,385 2,480 2,568 2,638 2,711 years, based on the maintenance plan created when applying for certification.
Employees who passed the Sekisui House Senior Technician exam (total) people 14,067 14,808 15,012 15,214 15,462
Certified Construction Meister people 318 305 325 312 292 Introducing virtual reality technology for remodeling and renovations
The Sekisui House Group is introducing VR (virtual reality) more and more as a tool to enhance communication with
technology when considering new construction, and is also customers and more concretely understand customer requests.
Evaluation Future initiatives making use of this technology for remodeling and renovation
plans, conveying a detailed image of the space to customers.
We ensure reliable construction quality through our responsible Moving forward, we will further strengthen our collaboration A 360-degree image is displayed on a computer or smartphone
construction system, carried out with the 18 companies that with the Sekisui House Association. Additionally, we will screen using the Internet, and the viewing direction can be
make up our wholly owned subsidiary Sekiwa Construction and cooperate with each worksite and department to maximize our freely changed. This gives customers a virtual experience of a
our partner building contractors. We have a mutually supportive construction capabilities by leveling construction work, increasing 3D image with a sense of realism, also allowing them to form
and prosperous relationship with the Sekisui House Association, construction productivity and introducing cutting-edge a realistic image of the planned design. This was introduced
built up over a long period of time; this is one of our company’s technologies. Finally, we will make use of educational training through the Sekisui House Remodeling Group and Sekiwa
strengths and actively supports our business activities. centers aimed at securing and retaining new construction Construction Group in 2018, when we offered opportunities to
technicians and focus our efforts on workstyle reforms. experience VR at events such as house tours. VR is being used VR Scope Example of VR image (can be moved 360 degrees)
S
Progress
Activity report
Encouraging female leadership

Social Employee testimonial
In tirelessly encouraging female employees to pursue career
Building effective approaches
development, the Sekisui House Group uses the Sekisui House around work-life balance
Women’s College—a training program for promising female
management candidates—and other projects to develop female
Yumiko Kawasaki
Promoting Diversity Main stakeholders:
Customers, employees,
leaders in a systematic fashion. Regular training sessions and
gatherings for specific job types, ranks, and areas, meanwhile,
Director, Human Life R&D Institute,
Comprehensive Housing R&D Institute
Yumiko Kawasaki, certified as a first-class registered architect, researches the
investors, students, and intangibles concerning daily lifestyle at the Comprehensive Housing R&D Institute.
Aiming to become a sustainable corporate group that generates high added value job applicants give female employees a steady stream of opportunities to After serving as a leader in the Lifestyle Research Development Group, she
by responding sensitively to diverse customer needs and thinking creatively network and develop their careers. Training and promoting became the director of the Human Life R&D Institute in 2018. Her main interests
include research on happy living.
women to higher-ranking positions is another part of the effort,
which has fostered an increase in the numbers of female In August 2018, I became the director of the new Human Life R&D
employees in positions with organizational responsibilities. Institute. In leading the organization, I focus on creating a working
environment where team members can communicate, help each
Background In 2018, we brought more diversity into upper management
by appointing a female executive officer, a female external
other, and operate as a supportive unit. That means establishing a
fruitful work-life balance—and I have to embody my commitment
director, and a female external auditor. to that ideal. I try to formulate thorough, detailed schedules that let
Diversity: An essential business strategy for enhancing a company’s existential value Our Female On-site Supervisor Support Program is another
me tackle work with plenty of breathing room, for example. Being
open about my hobbies and interests helps people know who I am
Recent years have seen Japan’s falling birthrates and aging can harness diversity into groundbreaking innovation and new diversity-building effort. Serving to help female employees thrive and what I do outside the office, meanwhile, helps team members
population shrink the workforce and globalization churn ahead, value. Success hinges on weaving employees’ broad array of in a wider range of job types and create new value through a embrace that part of their own lifestyles. In addition to emphasizing
the importance of time performance, I want to see my team members
accelerating changes in market environments. For companies unique, individual qualities into corporate activities. That means broader diversity of perspectives, the program has made the make the “life” component—time with their families and inspirations
to grow in a sustainable way and be vital assets for society, promoting diversity as a management strategy to fill the on-site supervisor position—a job field in which men have been from their individual interests—a valuable asset on the “work” side.
the concepts of diversity management are becoming more and organization with greater variety and emphasizing inclusion to the majority—a capacity where women shine.
more crucial. By giving a diverse mix of human resources help employees embrace one another’s personalities and value
opportunities to make the most of their dynamic skills, companies systems.
Enabling employees with disabilities to
play larger, fuller roles
Employee testimonial
Taking steps to shorten working
Approach With the aim of employing at least one person with a disability
at every worksite, the Sekisui House Group welcomes interns
hours and boost efficiency
with disabilities and takes active part in joint-recruitment

Toshiaki Hayashi
Design Section Team Leader,
Our goal gatherings for people with disabilities. Osaka-Minami Sha Maison Regional Branch
Our efforts to give employees with disabilities broader After joining Sekisui House as a regional-business professional in 2002, Toshiaki
A corporate group that the world needs, enabling employees to be the best they can be professional opportunities extend into many areas. In addition
Hayashi obtained certification as a first-class registered architect in 2008, secured
a regular position with high recommendations from his worksite in 2013, and
In its Fourth Medium-Term Management Plan, Sekisui House Every employee needs to be able to take full advantage of to creating opportunities for people with disabilities to connect became a first-class building operation and management engineer in 2016. Last
year, Hayashi won the grand prize at the ACE* Forum.
positioned the promotion of diversity as a component of its their strengths in a mutually respectful, appreciative environment. with each other on an area-to-area basis, thereby fostering a * Accessibility Consortium of Enterprises (ACE), a group of 33 member companies that
seeks to establish a new, growth-driving employment model for people with disabilities
ESG management policy—a key management foundation. Always aware that Sekisui House is the product of all its network that goes beyond organizational lines, we are also
Embracing our fundamental philosophy, a love of humanity, individual parts, we will continue to embrace diversity and spark holding Diversity Exchange events to help employees share I have a functional impairment in my right arm. While that might make
we are working to create a welcoming, enabling environment innovations that meet society’s needs and make Sekisui House their thoughts and discuss issues openly. it harder to do day-to-day tasks, like drawing up plans, I do whatever
for a broader diversity of employees by cultivating an accepting a corporate group that the world needs. To facilitate career development, we have established the I can to work as quickly and efficiently as possible so that I can share
the same workload as my colleagues. People might say that a disability
mindset and establishing new systems. Career Challenge System—a framework that makes it easier is “just another unique trait,” but that glosses over the fact that
for employees with disabilities to transition from positions in disabilities can be extremely hard to deal with. Without the kind, caring
administrative work, regional business, and production into consideration of my supervisors, always willing to support me through
Action policies the tough times, I would not be who I am today. In my current position
regular positions with the potential for promotions. Everything as a Design Section Team Leader, I try to help the entire four-person
Promoting diversity comes together in a proactive commitment to enabling group—myself included—make those kinds of supportive connections.
Participation and Advancement in the Workplace and is enhancing
employees with disabilities to play fuller professional roles.
In 2006, Sekisui House declared its basic personnel policy of Human related activities. We are always working to lay out concrete
Resources Sustainability, whose three main pillars are encouraging policies, make focused efforts, and establish effective frameworks
female employees to pursue career development, promoting a so that women and human resources from a variety of different Key performance indicators (KPIs)
variety of workstyles and work-life balance and effective utilization backgrounds can flourish in every part of the home-building
of human resources. In 2016, the group established the Sekisui process. As we push those initiatives forward, we also strive to
Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Evaluation Target
House’s Action Plan for the Promotion of Active Participation by showcase our industry-leading efforts to the world and promote Number of female
Women in line with the Japanese Act on Promotion of Women’s diversity throughout the entire construction community. personnel in managerial People 101 114 141 158 176 FY2020 200 in FY2020
(5%; 10% in the future)
positions (group-wide) (2.26%) (2.43%) (2.79%) (2.94%) (3.10%)
Number of female personnel

How our activities impact society in sales managerial positions*
(including office managers and
People 12 18 22 33 34 At least 1 female salesperson or
leader at each of our 16 sales
(8/16 Sales Division) (13/16 Sales Division) (12/15 Sales Division) (14/15 Sales Division) (13/16 Sales Division) administration headquarters
office assistant managers)
At least 1 person at every business
With a diverse mix of human resources on board, we can solutions to social issues. The perspectives and sensitivities of Employment rate of
% 2.08 2.21 2.20 2.38 2.53 office (legally mandated
people with disabilities* employment rate already met)
create a broader range of proposals with firm roots in the people with disabilities, for example, can make a big difference
* On a nonconsolidated basis (Sekisui House only)
consumer standpoint and leverage a variety of skillsets into in shaping proposals and technological development for
better technologies—benefits that help pave the way toward universal designs.
S
Progress
Activity report
Social Encouraging all male employees to take The value and effects of “ikumen leave”
parental leave for at least one month For the company
For the employee A “love of humanity” (the company’s
In September 2018, Sekisui House launched a special childcare- Family bonds, richer experiences, fundamental philosophy), stronger
leave program that encourages male employees with children foundations for employees and their
Workstyle Reforms
a broader base of intangible assets,
Main stakeholders: families, better employee
new insights into work
under the age of three to take at least one month off work to recruitment, integration,
Customers, employees, Kids First and development
students, and job focus on childcare (ikumen leave). Leave is paid for the first
Company
Becoming the world’s happiest company by creating exciting workplaces applicants month, and the system lets employees divide a month of leave For the customer For the workplace
up into as many as four separate portions to ensure an optimal Better proposals(for two-income Structural reforms for better
households and families raising role sharing, a work climate that
fit with their individual circumstances. We are making a children, etc.), home-building values mutual support,
with a sense of security better team-management capabilities
concerted effort to motivate all eligible male employees to take
full advantage of the new system.
Background As of January 31, 2019, five months after the system went
into effect, a significant segment of the company’s roughly Employee testimonial
1,400 eligible male employees have explored opportunities for The liberating power of
Accelerating efforts to make the “dynamic engagement of all citizens” a reality ikumen leave: over 500 of more than 700 applicants have understanding and cooperation
Under the Work Style Reform Bill, which the Japanese approaches to work-life balance in the “100-year life society.” taken leave. Not only is the innovative program enriching Noboru Hosokawa
government enacted in June 2018, a host of new policies— To grow in a sustainable way, companies need to ameliorate communication both at home and on the job, but workplaces Manager, Tokyo-Minami Regional Branch
including limits (with penalties) on overtime hours and the patterns of long working hours, enable employees to balance are developing a more cooperative environment and a stronger
Until I took “ikumen leave,” I never thought a branch manager would
principle of “equal pay for equal work” —took effect in April work with family care, and create environments where a diverse awareness of effective time management. Seeing as how it helps be able to take a considerable amount of time off work. When I did,
2019. The new legal structure serves to address numerous mix of human resources can utilize their skills in a holistically men experience childcare and housework firsthand, ikumen however, my colleagues and friends were extremely understanding
issues, from Japan’s falling population and dwindling workforce healthy way. The need for workstyle reforms is clearer than leave can also be important departure from the commonplace and made up for my absence with aplomb. Not only did my
subordinates make tremendous professional strides with the extra
size to improvements in corporate competitiveness and new ever—and vital to innovation. “solo parenting” mindset. work they took on, but our branch won a Presidential Award for sales
We will continue to gather feedback from employees coming performance. The experience proved so rewarding, both personally
off ikumen leave and look into how men’s experiences in the and professionally.
At home, I gained a deeper appreciation of how hard my wife works
childcare process might impact efforts to reform workstyles and how incredible is to experience a child’s formative growth firsthand.
Approach and encourage women to pursue career development. When I look forward to the fulfilling days and years ahead—at home and
on the job—as my family’s bonds continue to grow deeper and happier.
those analyses are complete, we plan to make the results public
for use in problem-solving initiatives around the globe.
Our goal
Promoting health management for the entire workforce
Providing happiness to customers depends on happy, healthy employees To make sure that every employee gets the most out of life, the by taking measures to encourage exercise, establish separate
With the “100-year life society” now dawning and values exciting workplaces, environments where employees can find Sekisui House Group lays out health-management policies and smoking areas, and discourage people from smoking, among
continuing to diversify, customers are looking for more than a fruitful, energizing work-life balance for optimal physical makes efforts to reduce working hours, encourage employees other activities.
what the traditional approaches to product development and health and emotional wellbeing. As we work to offer customers to take paid leave, and promote better health overall.
service delivery can offer. The Sekisui House Group knows that happy homes at an even higher level of sophistication, we will Sound physical health and mental health are both vital to The Sekisui House Group’s “happiness” health management
its ability to boost customer satisfaction and provide customers continue to focus on the key elements of health, interpersonal active, effective work. Aiming to deepen awareness of health
Health-management policy
with happy homes hinges on the satisfaction and happiness of connections, and family so that every employee can take full on those two fronts, especially the mental side, we conduct (1) Management philosophy/policies
The fundamental philosophy at the
each and every employee. Meeting that need means fostering advantage of their unique experiences. training programs for managers and employees in their second heart of the Sekisui House Group is
and third years. a “love of humanity.” In addition to (2) Organizational structure
cultivating systems and workplace
We also organize regular meetings of the CSR Committee, climates that help employees find
Action policies which includes four representative directors, other internal fuller happiness through physical and (3) System / measure
implementation
(4) Evaluation/
improvement
mental health, we embrace that
representatives, and two experts from outside the company. core ideal by promoting workstyle
Driving sustainable growth through “innovation and communication” Under the CSR Committee is the Social Improvement Committee, reforms and strive to be a company
(5) Legal compliance / risk management
where employees take the initiative
Innovation and communication are essential to ensuring enhances collaboration, which continues to foster an array of a group that focuses on the “health management” component in forming healthy lifestyles.
sustainable growth for the Sekisui House Group. Open, effective innovations—the drivers of workstyle reforms.
workplace communication deepens mutual understanding and
How our activities impact society Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Target
Percentage of male
employees taking parental leave
% 19 23 70 95 100 100% in FY2020
(119 People) (162 People) (436 People) (597 People) (818 People)
For years, the housing industry has adhered to a labor-intensive “smart work” methods and health management, along with
Percentage of employees
dynamic. The Sekisui House Group is breaking that mold, full-scale utilization of parental leave by male employees, we taking annual paid leave
% 31.7 32.8 35.0 39.7 42.2 50% in FY2020
however. By pushing forward-thinking initiatives like IT-driven are blazing trails for workstyle reforms across society as a whole. Total monthly work 166.66 hours in FY2020
hours per person
hours 168.22 171.37 170.02 168.32 170.26 (2,000 hours/year)
* Number of employees taking parental leave/number of births; the value for FY2018 is 100% as the number of employees taking parental leave exceeded the number of births (555)
S
Progress
Activity report
Sekisui House Management Training: Locating the leaders of tomorrow and creating a brighter future
Social
To train and select promising candidates to lead the Sekisui New Value Creation and Innovation, where learners look to
House Group forward as regional branch managers, we “create the future” by exploring problems with no clear-cut
launched Sekisui House Management Training in November, answers. Through these types of programs, learners have
2018. Future approaches to regional branch management will valuable opportunities to gain the knowledge, personal qualities,
Human-Resource Development Main stakeholders:
Customers, employees,
have to go beyond simply relying on past experience; in today’s
world, where unprecedented change is common, creating new
management skills, and leadership they need to guide regional
branches into the future. Opportunities are just opportunities,
students, and job
Creating value for customers and society through human resources applicants value entails embracing new perspectives and embarking on of course; the learners are the ones responsible for making
—an ongoing effort to nurture trailblazers self-motivated personal transformations. Participants in the something out of those chances to reconstruct their value
Sekisui House Management Training tackle Integrity systems and produce results accordingly. The Sekisui House
Management, which involves nurturing a solid base of general Group management team also works to optimize the program,
knowledge and enriching individuality; Strategy Planning and which makes it possible to locate exceptional human resources
Background Organizational Management, which fuses theory and practical
case studies for insights into organizational leadership; and
from standpoints outside the field itself through direct, open
dialogue.
Responding to rapid environmental changes Better construction capabilities through better training
Japan continues to contend with falling birthrates and an aging Now, more than ever, we need to cultivate independent To make the most of a team’s construction capabilities, an Construction, Ltd. (a group company) a prerequisite for any
population. Natural disasters are becoming more frequent and human resources: people who can think for themselves, make onsite supervisor—the person responsible for organizing and aspiring design director (who heads up an architecture
destructive. The 100-year life society is dawning. Artificial independent decisions, and give life to new value in the face managing construction worksites—has to collaborate with a department). We are always working to bolster our collective
intelligence and the IoT are constantly expanding. The acronym of change. wide range of different professionals and deal flexibly with construction capabilities through our connections with partner
VUCA* is quickly becoming part of the vernacular—and for * VUCA, which stands for volatility, uncertainty, complexity, and ambiguity, refers to whatever challenges might come along. In addition to issuing building contractors, as well.
today’s increasingly chaotic socioeconomic climate.
good reason, given the myriad changes and unpredictable clear instructions for optimal management, onsite supervisors In FY2018, we also fleshed out our training programs by
environmental shifts characterizing our modern-day reality. also need to balance that administrative side with leadership complementing the existing level-based training with elective
in facilitating the entire effort and steering everyone toward training—planned and developed based on issues and needs
common goals. that people in the field have pinpointed. Elective training is
Approach At the Sekisui House Group, we use interactive training
programs to propel innovation and communication and help
open to all, regardless of service time or experience, and lets
employees focus on the skills that they want to learn. Through
employees hone the management skills so vital to collaborative training sessions on human error, owner relations, and more,
Our goal efforts with partner building contractors. We have also created learners can chart their own personal growth and gain
a system that makes practical experience at Sekiwa capabilities that they can put into practice.
Developing independent human resources to grow as a sustainable, beneficial company
At the Sekisui House Group, we pour our energies into optimizing quality homes amid an ever-changing environment. As we Helping onsite supervisors develop skills through level-based training Helping employees grow on their own
our personnel systems and helping employees develop their skills. emphasize that adaptability and work to tap into the full potential initiative through “elective training”
Learn the roles and responsibilities of an onsite supervisor
The focus is on nurturing independent human resources— of every employee, we will keep our sights set on becoming a Lower level Establishing a strong understanding at Sekiwa Construction and partner
building contractors, which provide valuable support for construction capabilities
employees who can perceive customer needs and deliver high- sustainable company that contributes to society as a whole. Young employee
Owner-relations
Hone unique individual skills OJT leader
Middle level training
(and make strides as a self-sufficient onsite supervisor) training
Using logical thinking to identify and solve problems Each employee
Action policies chooses issues
to tackle
Upper level Gain the trust of others to enroot construction capabilities in a stronger foundation
Using education to cultivate independent human resources capable of innovation and communication Gaining facilitation and leadership skills Human-error Facilitation
training training
We want our management-level employees to go beyond simply While efforts for each employee need to account for Design Get the most out of the team
relying on their past experience. Incorporating new input helps individual roles and experiences, which affect the company’s director Gaining practical skills in developing human resources Identifying issues and locating needs at the source (on-site)
broaden perspectives, which fosters new value standards, expectations of the corresponding employees, human-resource to design optimal training approaches
opportunities for self-improvement, and creative output. That development operates on the same basic concepts as training
ideal shapes our manager-education initiatives. at the management level. Where they differ is in the concrete
Our new Human Resources Development Office, which activities: the focus is on innovation, communication, and Key performance indicators (KPIs)
launched on February 1, 2019, systematically trains and selects autonomy through a foundation in OJT-based efforts, with
human resources by formulating medium- and long-term human- career education and specialized, job-specific training adding Indicator Unit FY2014 FY2015 FY2016 FY2017 FY2018 Target
resource portfolios around the group’s management strategies. other dimensions. Training programs at the head office only
Average annual hours of
training per person*1
Hours 22.9 21.0 19.7 18.1 14.5 (In FY2018, men and women attended averages of
13.6 and 17.7 hours of training, respectively.)
Million Total expenses attributable to education
How our activities impact society
Training investment
Yen 692 734 704 873 848 and training costs
Total number of people

obtaining qualifications*2
People 4,544 6,427 4,332 3,064 2,821 Totals include internal qualifications
Our commitment to human-resource development helps us House Group a growth leader in the housing industry and a
provide higher-quality homes and services, making the Sekisui valuable contributor to society. *1 and 2 On a nonconsolidated basis (Sekisui House only)
*2 Total number of qualifications acquired within the corresponding fiscal year (Three qualifications obtained by an individual employee in a single fiscal year are counted as “3” qualifications.)
The number for FY2015 is relatively high because we promoted the acquisition of certain qualifications through limited-time financial support and other systems over the course of the year.
S Social Strategy and Core Competencies Vision and Goals E Environmental S Social G Governance CSR Management
Human rights-related stipulations in the Sekisui House Group Corporate Code of Conduct and Corporate Ethics Guidelines (excerpts)
Respect for Human Rights Sekisui House

Group Corporate
Rooted in the group’s fundamental philosophy of a love of humanity and the rest of its corporate philosophy, all the
companies in the Sekisui House Group respect human rights, comply with all laws, abide by international rules and the spirit
Code of Conduct thereof, and take independent steps to build a sustainable, informed social foundation based on the following nine principles.
The Sekisui House Group has addressed a variety of human rights issues, including those pertaining to the workplace
5-1. Respect for Human Rights and Prohibition of Discrimination
inclusion of women, non-Japanese nationals, and people with disabilities, to create a corporate culture with zero Always endeavoring to maintain a healthy work environment, we respect each individual’s human rights and never
tolerance for infringements on human rights. engage in any type of discriminatory action in the employment of, treatment of, or any other matter concerning our
employees. We also take thorough measures to prevent others from engaging in such discrimination.
The Sekisui House Group Corporate Code of Conduct and Corporate Ethics Guidelines—the explicit foundations
1. We do not discriminate by reason of origin, nationality, race, ethnicity, beliefs, religion, sex, sexual orientation, gender
of our corporate activities—spell out our commitment to respective human rights, as well. Always striving to stay in Sekisui House identity, age, disability, interests, academic qualifications, family, or any other irrational, arbitrary grounds.
Group Corporate
close compliance with international rules on human rights, such as the United Nations’ Universal Declaration of Ethics Guidelines 2. We do not act in infringe on the human rights of others by means of forcing others to carry out work, engaging in
bullying, or spreading rumors through violence, verbal abuse, libel, slander, or intimidation.
Human Rights, the 10 principles of the UN Global Compact, and the SDGs, we seek to ingrain a corporate culture
where employees recognize mutual human rights. Sections 5-2 (Sexual Harassment), 5-3 (Harassment Related to Pregnancy, Birth, and Childcare Leave, etc.), and 5-4
(Power Harassment) state that we do not engage in the corresponding types of harassment or any other conduct that
may constitute such harassment.
Basic policy on human rights Note: The Sekisui House Group’s Corporate Principles and Corporate Ethics Guidelines (full text) are accessible online at https://www.sekisuihouse.co.jp/company/info/ethics.html.
To create a corporate culture with zero tolerance for infringements We also conduct field consultations on harassment and other
on human rights, all of our employees need to have a solid, human rights-oriented issues in collaboration with work locations. Governance Awareness Survey scores
accurate grasp of the Sekisui House Group Corporate Code of We are also working to establish a mutually accepting,
Conduct and Corporate Ethics Guidelines. While we enhance human rights-aware corporate culture The Sekisui House Group conducts annual Governance Trends in Governance Awareness Survey scores
our internal structures for sustaining the PDCA cycle so central through strict compliance with international Awareness Surveys of all group employees in hopes of turning (on human rights-related topics)
to our basic policies, the Legal Department’s Human Relations rules on human rights, such as the United that feedback into better, more open working environments FY 2016 FY 2017 FY 2018
Office—which specializes in human rights—strives to create Nations’ Universal Declaration of Human (see page 76). The surveys contain sections on human rights, Anti-sexual harassment culture 84.5 83.5 85.1
welcoming, comfortable workplace environments through Rights, and a thorough understanding of whose scores for the last three years are in the table to the right.
annual Human Relations Training programs for all employees the SDGs and the 10 principles of the UN Note: The figures in the table are averages calculated with scores of 100 points for Strongly Anti-power harassment culture 78.1 77.5 79.2
agree, 75 points for Agree, 50 points for Neither agree nor disagree, 25 points for
at all group companies, among other internal education efforts. Global Compact.
Disagree, and 0 points for Strongly disagree. Anti-discriminatory culture 84.9 84.3 85.5
Enhancing the framework for internal consultations

Monitoring human rights along the supply chain
The Sekisui House Group has established a sexual and power consultations (of which 81 dealt with harassment) in FY2018,
harassment hotline, which operates out of the Sekisui House which represents a year-on-year rise, but that increase may be In FY2015, the Sekisui House Group laid out CSR Procurement monitoring to assess the actual conditions. We have also created
Head Office. Fielding consultations on all types of harassment due to a growing sense of reliability on using the hotline via Standards in line with the eight procurement policies and uses a Supplier Subcommittee under the CSR Committee, adding
—from sexual harassment and power harassment to issues consultation personnel positioned at all work locations across it as the base for procurement of materials. The framework another piece to our ongoing efforts to establish a stronger
concerning pregnancy, childbirth, parental leave, and family- the group. Overall, the sexual and power harassment hotline expanded in FY2017, when the group incorporated CSR awareness along the supply chain.
care leave—and a variety of input on optimizing working is solidifying its position as a valuable, helpful resource that evaluations into its supplier evaluations. These new components CSR Procurement Standards
environments for people with disabilities, the hotline serves as an people can trust. involve partner companies performing self- assessments of
in-house hub for important solutions. The hotline handled 190 various items, including matters concerning human rights and Respect for human rights, abolition of discrimination,
Human prohibition of child labor, prohibition of forced labor,
labor, which we then tabulate, score, and evaluate. rights and wages, working hours, dialogue and consultation
Human rights due diligence If the evaluation results turn up evidence of potential issues labor with employees, safe and healthy work environments,
at a given supplier, we visit the supplier and do the necessary human resource development
Human-Relations Sexual and power Policies on addressing concerns
Human-relations training
Promotion Committee harassment hotline identified via consultations
Headed by the President at the

national level
For all group employees Serves as a consultation resource
for all group employees
Protect every person seeking a
consultation
Upholding the human rights of non-Japanese nationals at construction worksites
Required for all promotion
Lay out training policies/plans committee members (managerial Staffed by one male and one Hold meetings involving people
and human-rights measures for personnel, etc.) at every female, who provide group-wide seeking consultations, people
the entire group organization (6 hours/year) and all consultation support and undergo exhibiting the corresponding In today’s world, where the competition over high-caliber human timely reports on non-Japanese workers, as well, to lay out a clear
other employees (3 hours/year) skills training on an annual basis behavior, and other personnel as resources is only bound to intensify, the Sekiwa Construction picture of acceptance status, wages, and other relevant details.
necessary, with the decision-
making process adhering to the Group (a wholly owned subsidiary) and some of the partner The Sekisui House Group will continue to conduct its
principles of fairness and
neutrality building contractors affiliated with the Sekisui House Association corporate activities with respect for the human rights of
are accepting non-Japanese workers in accordance with the non-Japanese workers, adhering to its Corporate Code of
Risk management Identifying problems government’s Technical Intern Training Program. Conduct and Corporate Ethics Guidelines.
and issues We at Sekisui House have three educational training centers
Develop human-relations training General Affairs Department Director
texts Conferences publicize factors,
(in Ibaraki Prefecture, Shiga Prefecture, and Yamaguchi Employment of non-Japanese nationals (as of February 1, 2019)
Analyze internal cases,
Plan skills training for consultation issues, and preventive measures consultations, and trends Prefecture), which offer early-stage development programs
pertaining to consultation themes Technical Construction
personnel Analyze cases and trends outside that help accepted workers gain the necessary technical skills Total
Conduct ZERO Sexual Harassment
trainees workers
the company organization and
training programs at the Sales use that input to detect potential at the request of their destination employers. Looking to provide Sekiwa Construction Group 37 33 70
Divisions of all work locations and problems in light of social
all departments at the head office conditions and impact on
initial acceptance training on a rolling, as-needed basis, we have
(for all managerial leaders) company activities also set up a dedicated section in the Sekisui House Construction Partner building contractors 25 1 26
Department to handle the planning effort. The Sekiwa
Total 62 34 96
Construction Group and partner building contractors submit
S Social Strategy and Core Competencies Vision and Goals E Environmental S Social G Governance CSR Management
Contributing to Society Sekisui House Matching Program —support for NPOs and other organizations tasked with resolving social issues
Since FY2006, we have been implementing the Sekisui House Ando), which provides economic support for children orphaned
The Sekisui House Group engages in businesses that touch people’s lives and local communities. Therefore, we not Matching Program, under which the company matches employee by the Great East Japan Earthquake. Up to now, more than
only base our main business activities on our fundamental corporate philosophy of Love of humanity, but also refer to donations (joined by approximately 5,200 employees) to NPOs ¥300 million has been donated to 317 organizations by these
it in our efforts to contribute to society in various ways. As a member of the local community and society, we strive to and other organizations engaged in resolving social issues. four funds.
This system enables employees to have an amount of their Sekisui House Matching Program
create frameworks that enable every individual to act independently.
choice (1 unit = 100 yen) withheld from their salaries for
Desired amount
donations, and Sekisui House matches the donations and withheld from Sekisui Contributes the
Employees salaries for donations House matching amount
contributes an equal amount in the form of grants. We have (Participation in the as grants
program is voluntary.)
established four funds: The Sekisui House Children’s Fund, the
The four policies of social contribution activities Sekisui House Eco-Fund, the Housing Community Fund and the Program for joint donations with employees
Momo-Kaki Orphans Fund Program. An administrative board Sekisui House Matching Program Association
The group carries out our community-based activities, such as Support of areas comprised of employee representatives selects the organizations Sekisui House Sekisui House Housing Momo-Kaki Orphans
Training the Environmental Housing culture Children’s Fund Eco-Fund Community Fund Fund Program
and people affected
next generation awareness improvement
volunteer activities by employees, charity participation, by disasters to support. Grants for activities Grants for ecosystem Supports Economic assistance
cooperation with and support to NPOs and NGOs, and •Volunteer activities by employees •Cooperation with NPOs and NGOs In FY2019, ¥30.24 million from our Children’s Fund,
that contribute to
the healthy
conservation and
other global
urban development
and activities for the
for children
orphaned by the
•Participation in charities •Support of resident activities growth of the environmental regional community Great East Japan
educational support in collaboration with educational institutions, •International cooperation •Educational support in collaboration Eco-Fund and Housing Community Fund was donated to a next generation protection activities Earthquake
based on the four pillars of training the next generation, •Emergency support with educational institutions
total of 31 organizations. In addition,
•Social contribution through business activities Administrative Six board members, auditors, and external advisors engage
board in screening. Secretariat: CSR Department
environmentally conscious, housing culture improvement, and the Momo-Kaki Orphans Fund
Fundamental corporate philosophy of Love of humanity
support for areas and people affected by disasters. Program donated ¥14.30 million (a Application Screening and grants Grants
cumulative total of ¥96.80 million) in Grant recipient Volunteer organizations, NPOs, educational Grant recipient
organizations institutions and others organizations
FY2018 to the Momo-Kaki Orphans Grants for program Grants for organizational Momo-Kaki
Eco-First and Kids-First initiatives Fund (Chairman: Architect Tadao
implementation development Orphans Fund
Environmental education programs and school visits

Note: In addition, we provided organizational development
To promote prevention of global warming and other students learn about the relationship between global warming Project grants in FY2019 (grants for programs applied for by organizations)
grants to help selected organizations build
infrastructure and improve the quality of their activities
environmental conservation activities, we consider it important and lifestyle through experiments, quizzes, and other activities in anticipation of their future development.
to raise awareness among children, the major players in the that enable them to experience the issues while enjoying a Children’s Fund: • Japan Rescue Association • Renewable Energy Shinshu-net
next generation. As an Eco-First company, we are committed playful atmosphere. These activities use the familiar subject of 16 organizations, ¥16.90 million • Foodbank Yamanashi • Eco Future Fund
• Family House • Together
to the three promises of reducing CO2 emissions, restoring housing to help them understand how they can lead an eco- • Asperger Society Japan • Miyagi-Sendai Kodomo-no-oka • FAIR +
ecosystem networks, and resource recycling initiatives. Based friendly lifestyle and encourage them to think what actions • Atopicco Network for Children of the Earth • Mori no Manabiya Shizen Gakko • Maniwa Isan Kenkyukai
on these promises, we hold elementary school visits, events they can take.
• Education Sponsorship in Asia • Midorinodam Kitasagami
• Ikawako Eco-Fund: • The Lifestyle Research Institute of Forests
and other activities, conducting three experiential education At the Sekisui House Eco First Park in Ibaraki’s Koga City, • Kansai NGO Council 12 organizations, ¥11.10 million
programs focused on the children can learn about our environmental activities that are • Parenting Mate Sakuranbo Club Housing Community Fund:
• Kodomo Wakamono Matching • Conference of Earth Environment from Akita 2 organizations, ¥2.10 million
importance of saving energy based on the three themes of the Eco-First Promise. Apart • CPAO • HUTAN Group
in everyday life, preserving from that, they can also • Japan Hair Donation & Charity • Environment TOKUSHIMA Network • Asaza Fund
ecosystems, and effectively learn in a fun way the • 3keys • Groundwork Daisen Hiruzen • PACT
• Nagomi Visit • Sansonjuku
utilizing resources. roles housing can play in
In one of our school visit protecting the global
programs, known as the environment.
House-cology seminar,
The House-cology seminar to learn about
the insulation capabilities of houses The Sekisui House Eco First Park (House of Wind)
Collaborations with the recipients of the Sekisui House Matching Program grants
We hold a grant presentation ceremony (for a specified area recognition of its work. We also actively promote initiatives
nearby) every year for organizations supported by the Sekisui undertaken jointly with the organization, seeking to contribute
The Shin-Satoyama initiative House Matching Program. We introduce the recipient to regional revitalization by executing projects of mutual interest
Our head office is located in the Umeda Sky Building, the main variety of plants, birds, butterflies and other creatures, and is organization’s activities at our office near it and strive to spread and working for the betterment of society and the region.
attraction of Osaka’s landmark and extremely popular Shin loved by residents and office workers alike as a place to feel
Umeda City building complex. On the north side of this building the ecosystem.
Comments from Example of collaboration
complex, we have built the Shin-Satoyama (about 8,000 m2), We are also striving to support child-raising through our Kids- recipient organizations Children’s Fund with recipient organization Eco-Fund
which recreates in the city center Japan’s original Satoyama First initiative. In this program, we collaborate with elementary Grant description: Dispatching therapy dogs to the Grant description: Chikyu Hakase Tanjo Project
landscapes that are fast disappearing. Based on our Gohon no schools and kindergartens to enable children to experience rice Osaka Women’s and Children’s Hospital Conference of Earth Environment from Akita
ki indigenous landscaping concept that shows our concern for planting and other agricultural activities at the Shin-Satoyama. Japan Rescue Association (Planning and PR: Ms. Masako Imai) We held the 3rd My Dream House is the Future Eco-House experiential
ecosystems, we have Our efforts have been Due to this grant, we can now send therapy dogs to the hospital session under the Chikyu Hakase Tanjo Project in collaboration with
recreated the landscapes of valued and we received the twice a month instead of once in two months. This has enabled the recipient organization during the children’s summer holidays.
more children to receive visits by We used the AKT Model Homes in our Akita Sales Office as the venue.
a wooded area, bamboo Prime Minister’s Award at therapy dogs. Our goal is to have At the event, parents and children living in Akita City tried out
forest, rice terrace, the 34th Green City children receive the constant latest eco-houses. Our sales and design
vegetable farm and tea Award*. Shin-Satoyama company of therapy dogs, so we staff took on the role of guides. The
shall push forward and do whatever event was a huge success, with
garden in the small area of has also been recognized
we can to make this happen. elementary school students asking clever
the Shin-Satoyama. After as a SEGES Urban Oasis*. questions on insulation and other issues
its opening in 2006, it has * Organized by the Organization for
Elementary school students experiencing rice
unexpected of their age.
Landscape and Urban Green
become home to a large The Shin-Satoyama viewed from the west side Infrastructure planting at the Shin-Satoyama
A base for spreading housing culture and art Post-disaster restoration and reconstruction
Sekisui House - House of Dialog, a collaborative program with Dialogue in the Dark (DID) Being a business that promotes strategies focused on protecting We also consider it necessary, as housing makers, to act
We have been periodically world and experienced by more than 8 million people. the life, properties and lifestyles of homeowners, the Sekisui promptly in the event of a natural disaster to confirm the
organizing the House of Participants are guided in groups through different settings in House Group recognizes its social responsibility to prevent and safety of the victims and establish a support system.
Dialog program at absolute darkness by visually impaired guides, and make minimize damage from natural disasters.
Sumufumulab (Grand Front discoveries and learn a different way of communication—
Osaka), our base for something they do not experience in their everyday life.
spreading information. This In 2013, we built the House of Dialog, the only program Prompt initial response to natural disasters in each region
program, held in in the world that is based on the theme of house and family. Japan faced various natural disasters in 2018, including ways. More than 2,400 employees from the entire group joined
collaboration with Dialogue Ever since, it has been offering original programs focused on typhoons, heavy rains and earthquakes. On June 18, an hands to repair and remove mud from houses that had suffered
in the Dark (DID), welcomed the family and its lifestyle in different seasons and has been earthquake of a seismic intensity of lower 6 occurred, with the flooding above and below floors and other damage. We worked
its fifth year in 2018, with experienced by more than 18,000 people in these five years. northern parts of Osaka as the epicenter. Then, from June 28 to hard to ensure that normal life could be restored to our
Sumufumulab serving as DID’s the only permanent venue in the We have received a lot of feedback from the participants July 8, western Japan struggled with heavy rains and Typhoon customers at the earliest.
Kansai region. about the warmth of the human voice, the importance of No. 21 raged in September. These and other natural disasters Even in the Kinki Region, which suffered significant damage
The concept of DID was founded by German philosopher communication and the feeling of comfort that is nurtured by caused extensive damage across the country. from Typhoon No. 21, we rushed in aid from all parts of the
Dr. Andreas Heinecke in 1988. It is a social entertainment senses other than vision. Some people said that they would Although houses built by our company were neither totally country and helped recovery by conducting inspections and
program that has been held in over 41 countries around the like to convey the experience of talking with their heart to nor partially damaged by the earthquake in northern Osaka, repairing roofs.
others as well. The initiative is highly popular, with over 80% many employees had trouble reaching their workplaces because * The relief line is a telephone service provided for customers by Customer Service Centers
before and after natural disasters to make advance arrangements, offer advice and
of the visitors who responded to our survey saying that they the earthquake occurred during commuting hours. We promptly confirm current conditions.
would like to visit again. set up a relief line* after the earthquake took place and made
Under our concept of lifelong housing, through research phone calls to the affected regions from our Customer Service
on smart universal design and more, Centers to check the safety of homeowners and the conditions
we will continue to provide platforms of the buildings. We devoted ourselves to recovery activities,
for people to experience this form of including inspection and repairs, with the Customer Service
communication through DID. We also Centers in Kansai region in the forefront and support from
hope to expand the reach of such centers in other regions.
valuable experiences for society for During the heavy rainfalls in western Japan, flooding above
us to foster a revival of relationships, and below floors was experienced at many Sekisui House
a recognition for diversity, and in homes in Chugoku and Shikoku, Kyushu and other areas.
people, the ability to feel. (QR code) Many homeowners were forced to evacuate. To cope with the
House of Dialog by
Sumufumulab where DID is held Dialogue in the Dark situation, we set up a relief line to make phone calls from the
Customer Service Centers and conducted home visits. We helped
in recovery activities by removing furniture from the houses,
Koji Kinutani Tenku Art Museum, a new base for art and culture cleaning below the floors, dismantling the interiors and other
We rushed support in from various parts of the country to help relief activities,
such as removing mud from houses (Hiroshima)
We opened the Koji Kinutani Tenku Art Museum in Umeda paintings and sculptures by Kinutani.
Sky Building (West Tower 27F), where our headquarters is In FY2018, we focused on spreading art education. We held
located, to exhibit the artworks of world famous western-style art appreciation lessons in cooperation with elementary schools Participation in reconstruction support activities in disaster-stricken areas by all new employees
painter and Japan’s top classic fresco painter Koji Kinutani. in the neighborhood and organized fresco painting workshops Since the year after the Great East Japan Earthquake, all new In the Tohoku region, we assisted with the relocation of the
The museum, which seeks to contribute to society by once a month to help numerous children gain deeper employees at Sekisui House go to disaster-stricken areas to Ogatsu Rose Factory Garden and conducted cleanup activities
promoting art and culture, completed two years in December understanding into Kinutani’s works and feel invigorated assist in reconstruction work. Aside from providing the affected at temporary housing and public housing for disaster victims.
2018. It incorporates the world’s first attempt at allowing the through art. areas with needed assistance, the goal of this reconstruction From FY2017, we have also been carrying out similar activities
viewer to delve into the artwork through the use of 3D visuals We also held special exhibitions at the museum three times. effort is to deepen our employees’ understanding of the in areas affected by the Kumamoto Earthquake. After the
in addition to numerous colorful frescos and mixed-media Each special exhibition comprised artworks that were displayed significance of the housing business and have them think and earthquake, we cleaned the trains of the Minami-Aso Railways,
for the first time and attracted 61,407 visitors in total, far act from other people’s perspectives based on the Sekisui House which had suspended operations, and cleaned the fans, tables
exceeding the numbers from the previous fiscal year. Group corporate philosophy and code of conduct. A total of and windows in the coaches. We used the old gymnasium of
3,021 people have participated in the activities over these seven the Tateno Elementary School, which was closed from before
Special exhibitions
years and about 460 are estimated to participate in 2019. the earthquake, as an evacuation center, and cleaned its
(FY2018) Employees work with NPOs active in areas affected by the windows, walls, and floors to ensure that it can continue to
•Special Exhibition: A Message disaster, listening to needs for support and taking action after be used during emergencies.
for Peace – Passion, Vitality,
Prayer considering what they can do to make local residents happy.
• A Special Exhibition
Celebrating the 25th
Anniversary of the Umeda Sky
Powerful 3D visuals Building
Tenku Fantasy – The Amazing
Floating Garden Experience
• 2nd Anniversary Special
Exhibition
The Power to Dream - Grand
Experiencing classic fresco
painting by plastering a brick
Theater of the Imagination -
to create a wall-like surface Relocation of the Ogatsu Rose Factory Cleaning in temporary housing Cleaning the trains of Minami-Aso Railways Cleaning the old gymnasium of the Tateno
and painting on it Flying dragon frolicking around the Sky Building (Sculpture) Garden Elementary School
G
Strengthening Our Corporate Updates on measures taken for We also made external directors ineligible to receive performance-related
remuneration (bonuses/stock remunerations) with the objective to leverage
strengthening governance them as auditors and monitors of the Board of Directors.
We will continue to discuss revisions in the overall remuneration system
Governance System (1) Establishment of the management

meetings System strengthening 4
for officers (basic remuneration (fixed remuneration), bonuses (short-term
performance-related remuneration) and the weight for medium-to-long-term
performance-related remuneration, KPIs for performance-related
We established management meetings with the objective of contributing to remuneration, process for finalizing the amount of remuneration (standard
Corporate governance is an aggregate of corporate governance frameworks that are appropriate decision making related to the execution of important operations and method of evaluation)) with the Personnel Affairs and Remuneration
Governance necessary to increase the corporate value sustainably while earning the trust of various by an active exchange of opinions from the perspective of consistency with
management policies and strategies before approvals at the meetings of the
Committee at the center.
stakeholders. We consider it an important management issue and are making relevant Board of Directors or through the collective decision-making system on (7) Ensuring independence and strengthening internal checks of chief
important operations, such as key investments, management policy of the managers in charge of general affairs in sales administration
governance reforms. whole group and formulation of management strategies and plans. headquarters and branches System strengthening 7
In fiscal 2018, we held discussions on investments in international We have been holding training for administration managers since November
business and development business as well as evaluation of the effectiveness 2018 to improve their decision-making and management skills, and to build
of the Board of Directors and measures to deal with revisions in the Corporate a collaboration system with the Administration Division of the Head Office.
Governance Code. We also changed the evaluation method to ensure independence of
While internal directors and full-time Audit & Supervisory Board members administration managers.
are required to join these meetings, external directors and outside Audit &
Basic concept Supervisory Board members can also attend them if they request. Many
external directors and outside Audit & Supervisory Board members took
part in the management meetings and enabled constructive discussions and
Corporate governance is an aggregate of corporate governance exchange of opinions. Management structure
frameworks that are necessary to increase the corporate value System strengthening
(2) Clarification of departments under the control of directors
sustainably while earning the trust of shareholders, investors Implemented in fiscal 2018 and structural reforms of the company System strengthening 5 Board of Directors System strengthening 6
and other stakeholders. In accordance with the corporate In April 2018, we reorganized the corporate structure of the head office In principle, the Board of Directors meet once per month. To
1 Introduction of a mandatory retirement age of 70 for
into six divisions (Business Strategy, Supplied Housing Business, Transaction
philosophy espousing the underpinning philosophy of love of representative directors Promotion, Investor Relations, Administration and Technology) and carried improve corporate value over the medium and long term, the
2 Appointment of women as outside officers out structural reforms to share risk information and coordinate between
humanity, the group has put in place a system that enables Board of Directors shall be responsible mainly for establishing
3 Transparency and invigoration of Board of Director meeting departments. This structural reform has enabled us to clarify the reporting
speedy management marked with integrity and released a operations line when issues occur. It will also increase our structural responsiveness by management policies, strategies and plans, and making decisions
Basic Policy on Corporate Governance* that establishes the 4 Establishment of the Management Meeting strengthening human resource development through rotation of personnel on the execution of important operations, as well as for
within divisions in future.
basic concept and framework on this subject. 5 Clarification of departments under the control of directors supervising and evaluating the execution of duties by directors
The Sekisui House Group positioned 2018 as year one of 6 Evaluation of Board of Director efficacy (3) Reform of approval system System strengthening 5 and executive officers and establishing systems, such as internal
We revised our approval rules in July 2018, determined responsible
corporate governance reforms, adopting six items for departments for screening in each category and clarified the roles of each
control and risk management, to ensure the soundness of
New actions
strengthening the corporate governance system. We are 7 Ensuring independence and strengthening internal checks department. The person who makes the proposal as well as the screening management.
promoting steady and concrete measures to take timely and department analyze risks, consider countermeasures and take other steps to To promote constructive exchange of opinions, we decided
of chief managers in charge of general affairs in sales
raise risk awareness. They report projects that entail risk and are conditionally
accurate management decisions while building a sound administration headquarters and branches approved and carry out thorough follow-up afterwards. not to combine the positions of the chairman of the Board of
8 Improving the integrity of branch managers At the same time, we are also introducing an electronic approval system
corporate culture. Directors and the convener. Therefore, the vice chairman serves
9 Introduction of restricted stock remuneration plan and striving for a balance between speedy business decisions and adequate
We also announced new actions and future considerations 10 Abolishing officers’ bonus system for external directors risk management. as the chairman of the Board, while the chairman serves as
to further strengthen the system. the convener. The Board of Directors comprises members who
(4) Transparency and invigoration of Board
* Please refer to our website for detailed information. Future considerations of Director meeting operations System strengthening 2 3 are well-informed and knowledgeable about the company’s
https://www.sekisuihouse.co.jp/english/info/Governance_Guideline_E.pdf 11 Revision in directors’ term of appointment to one year In the general shareholders’ meeting held in April 2018, we appointed women business, and those who are well-versed in financial accounting
from two external directors and outside Audit & Supervisory Board members to diversify and legal compliance. It balances diversity, including that of
12 Drastic revision in officers’ remunerations the Board of Directors and Audit & Supervisory Board. We also revised the
13 Appointment and dismissal of senior management Basic Policy on Corporate Governance and decided that different directors gender, and an appropriate number of people, with three or
will act as the chairman of the Board and the convener. more external directors.
Furthermore, we carried out reforms in the Board of Directors so that
transparent and active discussions take place naturally. To this end, we select In the fiscal year ended January 2019, the Board of Directors
an agenda and clearly categorize deliberation matters and resolution matters met 12 times with an attendance rate of 98.0% (including
when they are raised, based on opinions shared in the evaluation of the
Corporate governance structure (as of April 25, 2019) effectiveness of the Board that constructive and free discussions should be attendance by 96.9% of external directors and 93.3% of
further conducted on the matters, including actual discussions on business external Audit & Supervisory Board members). Moreover, we
General Shareholders’ Meeting strategies and other issues.
are striving to launch self-evaluation activities conducted in
Board of Directors (11, of which 3 are external) Audit & Supervisory Board (6, of which 4 are external) (5) Succession plan for senior management System strengthening 1 8 13 cooperation with attorneys and other experts to analyze and
(10 men, 1 woman) (5 men, 1 woman) We introduced a mandatory retirement age of 70 years for representative evaluate the efficacy of the Board of Directors and promote
directors to encourage generational change in senior management and
worked to build a structure that is always conscious of strengthening ongoing reforms and improvements to strengthen its function.
The Personnel Affairs and development of managerial human resources. We decided to hold periodic
Remuneration Committee Office of Audit &
Supervisory hearing surveys of representative directors in the Personnel Affairs and
(7, including 2 external directors Remuneration Committee about the status of implementation of the Board of Director composition (as of April 25, 2019)
and 2 external Audit & Supervisory Board members
Board members) succession plan for representative directors based on the Corporate Of which Age
Accounting Auditor
Governance Code. Directors are external

Management Meeting We also started the Sekisui House Management Training in November directors Under 30 30–50 Over 50
CSR Committee (internal directors, full-time Audit & 2018 to develop, evaluate and select candidates who can be potential heads
(includes 2 external members) Supervisory Board members) 11 3
of branches. The 1.5 year-long training includes programs on Integrity (10 men,one woman) (two men, one woman)
0 0 11
Business Management, Strategy Planning and Organizational Management and New
Execution Value Creation and Innovation, among others. It provides the participants Note: There are no members belonging to minority groups that require special mention.
Function with the opportunity to acquire knowledge, personal qualities, management
Risk Management Committee
skills, and leadership qualities suited to the next generation of branch
Representative Directors managers and helps determine whether the participant should be appointed
(4 members) Business Execution Function
for the position.
Divisions
Board of Executive (6) Revision of the remuneration system
Officers Internal Audit System strengthening 9 10 12
for officers
Department
To share more value with our shareholders, we decided to abolish the existing
Executive Officers
Subsidiaries stock compensation-type stock option system and introduce the restricted
(25 members)
stock remuneration plan in the general shareholders’ meeting held in April
2019.
Audit & Supervisory Board to officers, management policy of the whole group and Governance awareness survey In fiscal 2018, we paid 2 yen more as dividend year-on-year,
The Audit & Supervisory Board formulates audit plans, regularly formulation of management strategies and plans. amounting to 79 yen for the year.
inspecting offices and conducting hearings regarding risks and While internal directors and full-time Audit & Supervisory Every year, a governance awareness survey is conducted
other issues pertaining to the assigned duties of directors and Board members are required to join these meetings, external targeting all group employees. Regularly conducting surveys Dividend
executive officers based on those audit plans. directors and external Audit & Supervisory Board members can on corporate ethics awareness and workplace environments (Yen)
In addition, Audit & Supervisory Board members exchange also attend them if they request. provides an opportunity to exchange opinions in organizational 100
opinions and work in close coordination with the Internal Audit units and focus efforts on creating a more open work climate. 79 81
80 77
Department, hold regular meetings with accounting auditors Risk Management Committee 64
60 54 40 41
and engage in mutual cooperation to ensure that all audit As a consultative body to the Board of Directors, the Risk 50 40
32
activities are carried out efficiently and effectively. Management Committee creates appropriate risk management Remuneration and incentives 40 25 27
Furthermore, we established the Office of Audit & systems and provides opinions to the Board of Directors on
Supervisory Board Members as a dedicated organization to matters relating to the maintenance of risk management systems Policies and procedures for determining remuneration 20 37 39 40
25 27 32
which several employees including full-time staff are allocated with the aim of ensuring effective operating conditions. for directors 0
for assisting Audit & Supervisory Board operations. If said In principle, the committee meets once per month. In fiscal Policies for determining remuneration for directors, the total 2014 2015 2016 2017 2018 2019 (FY)
employees are concurrently assigned other duties, they must 2018, it focused on the deliberation of medium to long term amount of remuneration and individual amounts shall be (Plan)
2Q Year-end
not be influenced by guidance and commands from the other issues including (1) maintaining and strengthening compliance, (2) resolved at the meetings of the Board of Directors with due
division to which they are concurrently assigned and, with enhancing quality management systems and (3) BCP formulation. regard for the opinions of the Personnel Affairs and
regard to human resource matters pertaining to these It also revised screening and decision-making rules and suggested Remuneration Committee.
employees, the opinions of auditors must be considered to and executed the establishment of the Quality Control Committee. Remuneration for directors shall consist of basic Constructive dialogues with shareholders
ensure the independence of their duties with regard to Audit In addition, the main departments are monitored regarding remuneration, bonuses as short-term performance-related and investors
& Supervisory Board operations. (1) compliance with labor laws, (2) compliance with operational remuneration and restricted stock remuneration as medium-
rules, (3) IT security and other issues to grasp and verify the and long-term performance-related remuneration whose aim Appropriately reflecting shareholder and investor
Audit & Supervisory Board composition (as of April 25, 2019) operational status of risk management systems in each division. is to grant incentives to sustainably boost corporate value and opinions in management
Of which are Age
share more value with shareholders. We use company briefings, seminars and other events held in
Audit &
Supervisory external Audit & different regions to inform individual investors about our
Board members Supervisory
Board members Under 30 30–50 Over 50
Internal control systems business activities. We have created a page on our website,
Basic remuneration (fixed remuneration)
6 4 Basic remuneration as fixed remuneration shall be determined within
which contains information on our company and IR, to explain
(Five men, one woman) (three men, one woman)
0 0 6
Based on the Companies Act and the Ordinance for Enforcement the scope of resolutions of the general meetings of shareholders by our business activities and achievements to individual investors
of the Companies Act, Sekisui House created and manages considering the company’s management situation, in addition to the and potential shareholders. We also provide information on
Note: There are no members belonging to minority groups that require special mention.
importance of roles and the scope of responsibilities of each position.
internal control systems, with internal control system basic our management strategy and plan in the Business Report for
Training for directors and Audit & Supervisory Board members
polices deliberated by the Board of Directors. Bonuses (short-term performance-related remuneration) shareholders.
Directors and Audit & Supervisory Board members are provided with
Bonuses shall be determined based on general consideration by referring
opportunities to acquire necessary and useful knowledge to fulfill their The Auditing Department, a specialized internal audit to qualitative factors, such as the strengthening of the management As a new initiative in fiscal 2018, we have started publishing
respective roles and responsibilities on an appropriate and ongoing basis.
In the fiscal year ended January 2019, newly appointed directors took department, conducts onsite audits to confirm whether internal foundation, etc., in addition to quantitative factors, such as sales and the summary of briefings on financial results and management
income of each fiscal term, etc.
part in external seminars for new directors. The company held training camps controls and internal management are being conducted plan on the Corporate Information Site*. Anyone can now
for internal directors, executive officers and others, invited external instructors
appropriately and properly based on laws and regulations and Restricted stock remuneration check the details of the question-answer sessions and other
to conduct study groups for directors and Audit & Supervisory Board members,
(medium- and long-term performance-related remuneration)
and took other initiatives. internal rules to ensure effective management, and when contents of the briefings for institutional investors.
Stocks shall be granted according to each position within the scope of
necessary suggests corrective actions. Results of these audits resolutions of the general meetings of shareholders. We started facility tours for shareholders from fiscal 2014
Selection of outside officers
To ensure objectivity and fairness in company management and corporate are reported to directors and Audit & Supervisory Board and held it at our Comprehensive Housing R&D Institute in Kyoto
governance, Sekisui House appoints persons who satisfy the Criteria for members as well as related departments. Moreover, the Auditing for fiscal 2018. Shareholders mainly visited and experienced
Independence of Outside Officers as external directors and external Audit &
Supervisory Board members who have no conflicts of interest with general Department and accounting auditors cooperate to execute Remuneration amount Sekisui House’s R&D sites, including an experience of sub-zero
shareholders. effective internal audits. The type of remuneration and the total amount of consolidated temperatures at the artificial climate room where research on
Sekisui House dispatches directors and others for internal remuneration for each director and Audit & Supervisory Board insulation is conducted in life-size mock-up houses and of
Personnel Affairs and Remuneration Committee control of group companies, including those overseas, and member are disclosed in the Securities Report. The total amount soundproof environment in our anechoic room where the
As a consultative body to the Board of Directors, the Personnel receives reports on their management status and work of consolidated remuneration and the type of remuneration interiors are surrounded by sound absorbing material. They also
Affairs and Remuneration Committee provides opinions on execution. In addition, the company’s internal audit department are reported individually for individuals with a total amount of toured our hands-on learning centers, such as Housing Dream
matters relating to the directors and executive officers and their periodically audits important subsidiaries. An Overseas Audit consolidated remuneration of 100 million yen or more. Factories and Nattoku Kobo Studio, and saw from various angles
remuneration to ensure the fairness and transparency. Office was set up in the Auditing Department in April 2019, the tangible and intangible technologies that support safe,
A majority of the members of the committee are either strengthening the audit system for overseas group companies. reliable and comfortable living in houses we build.
external directors or external Audit & Supervisory Board members. Capital policies We also hold periodic study groups and tours for institutional
At present, it comprises three representative directors, two investors. In fiscal 2018, we held a briefing on Sekisui House’s
external directors and two external Audit & Supervisory Board Accounting auditors Aiming to maximize shareholder value ESG management and a tour of the Shizuoka Factory to help
members. The president serves as the head of the committee. Sekisui House regards the maximization of shareholder value investors deepen their understanding on the company’s
The accounting auditor evaluates whether the Audit & as one of its most important management issues. Accordingly, competitive advantage.
Management Meeting Supervisory Board possesses independence and expertise in we strive to enhance shareholder return by increasing earnings * https://www.sekisuihouse.co.jp/english/financial/library/info/index.html
We established management meetings with the objective to accordance with the selection criteria for accounting auditors per share through sustainable business growth and improving
contribute to appropriate decision making related to the as well as internal rules and determines items for election based asset efficiency. So doing, we take into account the overall
execution of important operations by an active exchange of on relevant assessments. status of profits and cash flows in each fiscal year and future
opinions from the perspective of consistency with management If the accounting auditors discover fraud, a report will be business development, among other factors, as well as making
policies and strategies before approvals at the meetings of the made to the Audit & Supervisory Board, and if they discover growth investments, implementing a shareholder return targeting
Board of Directors or through the collective decision-making deficiencies or problems, a report will be made to the Board a dividend payout ratio of 40% over the medium- and long-term,
system on important operations, such as key matters related of Directors, who will then take corrective actions. and acquiring and canceling shares in a timely manner.
G Governance Strategy and Core Competencies Vision and Goals E Environmental S Social G Governance CSR Management
Messages from External Directors Hisako Makimura (Corporate Auditor)
and Corporate Auditors Q What are your impressions

of the Sekisui House Group?
For most of my career, I have been studying community- and
Q How do you think the 2018 governance reforms
are playing out?
The governance reforms were the most important developments
The Sekisui House Group has been working to bolster and reform its corporate governance since 2018, a year that city-building with a focus on demographics and global at the Sekisui House Group in FY2018. The company set out to
environments. When you explore changes in communities and make the board of directors a group of “well-balanced members,
also saw the group welcome a new external director and two new corporate auditors. In addition to energizing the lifestyles, you find that gender is one of the key issues. Sekisui such as those familiar with the company’s business and owning
board of directors, their diverse perspectives are propelling the group’s governance reforms forward. House is remarkable in that regard; the company has been tackling knowledge and experts specializing in finance, accounting,
diversity and encouraging female employees to pursue career statutory compliance and others, ensuring both the compatibility
development. It also emphasizes coexistence with nature, an with diversity including gender and proper headcount,” and I
element evident in its green, eco-friendly housing. The group’s voiced my thoughts from the gender-oriented perspective—a
collective strengths are impressive: Sekiwa Real Estate and Sekiwa crucial issue not only for the global community but also ESG
Construction are great examples. Seeing the successes of the investment. Creating the Personnel Affairs and Remuneration
group’s luxury hotels, condominium business, and international Committee and formulating a successor-development plan are two
business, too, shows me that company employees are driven to more important elements that the company has tackled. As the
create business where needs are. group continues to train future executives, I want to propose ideas
for long-term, systematic development procedures for putting the
Q What are your thoughts on how the Sekisui right people—women included—in the right leadership positions.
House Board of Directors works and functions?
One important thing is that the company now holds management Q What kind of role do you want to play as an outside
meetings (with outside officers) before meetings of the board of officer? What do you hope to see from the company?
directors. That approach is uncommon and, in my opinion, Gender issues abroad, environmental education, and climate
extremely beneficial. Boards normally do Q&A sessions on matters change are three areas that my career has taken me into—and
Yukiko Yoshimaru External Director Hisako Makimura Corporate Auditor Ryuichi Tsuruta Corporate Auditor that come up at executive councils and the like before making overlap with the United Nations’ SDGs. I want to see Sekisui House
resolutions. Management meetings, however, help bring practical make the SDG targets part of its management approach, weaving
Professional background Professional background Professional background
management issues into the discussion—and that enhances tangible approaches to new social value into operations. The
October 2004: General manager of the Diversity April 2000: Professor in the Faculty of August 1990: Representative director of a UK-based meetings of the board of directors. A big part of that is the input potential is huge; efforts to meet RE100 goals are already
Development Office at Nissan Motor Contemporary Society at Kyoto finance subsidiary of Panasonic
Co., Ltd. Women’s University Corporation
from outside officers, who enrich discussions by expanding the underway. As a corporate auditor, I plan to address whatever
June 2014: Executive officer, deputy director of the June 2011: Outside Audit & Supervisory Board November 2014: Corporate adviser at Panasonic overall conversation. I think the board of directors might need to needs attention—be it strengthening and rebuilding the auditing
Management Division, general manager member at the Kansai Electric Power Corporation narrow down its agenda to help clarify functions and roles with framework or optimizing the size of the personnel force. Sekisui
of the Diversity Promotion Office, and Co., Inc. (current) May 2015: Outside Audit & Supervisory Board
personnel administrator at Nifco Inc.
management meetings. House is cultivating diversity and encouraging female employees
April 2013: Visiting researcher at the Kyoto member at ZUIKO Corporation
April 2018: Director at Sekisui House (current) Women’s University Institute of (current) to take more active roles, but it needs to flesh out the efforts on
Religion and Culture (current) April 2018: Corporate Auditor at Sekisui House a deeper level. As Sekisui House pushes onward, I look forward
April 2017: Visiting professor at Kansai University (current) to offering the company an objective perspective.
(current)
April 2018: Corporate Auditor at Sekisui House
(current)
Yukiko Yoshimaru (External Director) Ryuichi Tsuruta (Corporate Auditor)
Q What are your impressions the “evaluation of board of director efficacy”—third-party Q What are your impressions Q How do you think the 2018 governance reforms
of the Sekisui House Group? evaluations will be instrumental in enhancing overall transparency. of the Sekisui House Group? are playing out?
When I became an external director, the Sekisui House Group was A big challenge will be fortifying governance at locations abroad, The group has powerful business-promotion capabilities, with They are doing what they need to do, but governance is
right in the middle of its governance reforms. It was easy to see however. Japan is important, of course, but navigating the sales at the core, and a firm foundation in planning, development, complex—you have to mold principles, strategies, and practices
how serious the group was about it, too: at the general meeting challenges of governance abroad is a challenge: things overseas and production. Sales representatives make sure customers’ needs into one. That requires a fair, open organizational framework
of shareholders, executives fielded questions from attendees are often different from things in Japan, complicating the issue are met, too. That dedication reflects the group’s fundamental and quick-moving operations. The group needs to stand against
and gave answers with an earnest sincerity. In terms of business, further. The group needs aggressive governance and defensive philosophy: love of humanity. The workforce embraces that mutual backscratching, keep the governance structure from losing
I think that the group is doing a great job of meeting needs and governance. For me, the group’s competitiveness depends on strand of the corporate DNA. If the group wants to make good substance, and keep everything moving along. It comes down
providing added value that goes beyond what competitors can bringing women with proven track records, people with local on its management strategies by building more cornerstones to embodying the real meaning of the group’s fundamental
offer. From my experience in international business, I would expertise, and diverse human resources into management. of business and expanding its scope into the global arena, it philosophy—love of humanity.
definitely say that Sekisui House has a competitive advantage on has to uphold that identity and a strong governance structure.
the global scene. The group also sees ESG as business itself, which Q What kind of role do you want to play as an outside Diversifying business will hinge on diversifying leadership, achieving Q What kind of role do you want to play as an outside
is distinctive. Having taken part in the UN Framework Convention officer? What do you hope to see from the company? world-class capital cost, and optimizing procurement methods. officer? What do you hope to see from the company?
on Climate Change and made the Dow Jones Sustainability World I want to translate my experience into meaningful contributions The synergy between strategy and governance is a vital piece of Companies are “public institutions.” Every company—including
Index for three years running, the group is in position to showcase with a global dimension, an area where Japanese companies still the puzzle—as is the constant openness to rethinking approaches. Sekisui House—should live up to that ideal. As a corporate auditor,
itself to a global audience—and I hope to see that happen. have a lot of ground to cover. Sekisui House knows what the I fill two roles: balancing between corporate management and
challenges are, but there are so many challenges waiting on the Q What are your thoughts on how the Sekisui society, first of all, and keeping an eye on operations in the interest
Q What are your thoughts on how the Sekisui horizon. The group is also hard at work on the SDGs, a common House Board of Directors works and functions? of shareholder profits. Those responsibilities take on a deeper
House Board of Directors works and functions? language for the entire globe. From the environment and housing The 2018 reforms have helped define directors’ responsibilities significance during efforts to bolster governance structures, like
I think the directors are really engaging in lively discussions. People design to community development, those efforts are delivering more clearly, giving the organization a more transparent, open the Sekisui House Group is doing right now. For the company to
say that transparency makes board meetings better, and the same benefits to society and company business alike. If the group can dynamic. Management meetings, meanwhile, have helped the grow in a global, sustainable way, every employee at home and
goes for the Sekisui House Group. While the discussions are go even deeper, I think it will be able to reach investors and other company accept input from outside officers. While the board of abroad needs to embody the group’s corporate culture. Any
great, there are also potential issues to address. If the directors stakeholders with a more unique, meaningful message. Sekisui directors currently concentrates on management decision-making, Japanese company looking to communicate its core philosophy
can keep speaking even more openly about their own interests House, with its eco-friendly focus and impressive environmental touching on more topics—like internal controls, compliance, and to global audiences encounters plenty of challenges. Getting
and topics outside their areas of expertise, the discussions will track record, can be a world-leading enterprise. As a female risk management—will make discussions even better. I hope people to understand principles across borders is never easy.
take on a more diverse depth. external director, I look forward to adding my input—from my the Board takes strategic steps to enhance the governance The same goes for Sekisui House’s concept of “love of humanity.”
cross-disciplinary experience in global business, diversity structure, too. I want to see the group engage audiences in full awareness of
Q How do you think the 2018 governance reforms management, and different industries—toward sustainable value those issues and commit to effective cross-cultural communication.
are playing out? improvement. I will use my diverse network of connections, fresh perspectives,
Progress on the “six items for strengthening the corporate and specialized knowledge to fill out the group’s governance
governance system” is solid. From my perspective, a key facet is framework and boost shareholder value.
G Governance Strategy and Core Competencies Vision and Goals E Environmental S Social G Governance CSR Management
Compliance and Risk Management Fair business practices
The Sekisui House Group positions compliance and risk management as important issues to be addressed at all times. In the third chapter of the Sekisui House Corporate Ethics thoroughly fair.
In addition to establishing the Risk Management Committee as a consultative body to the Board of Directors, in 2017 Guidelines, “Relationships with customers, suppliers and We also established a checklist item related to the Act
we revised our CSR promotion system and established the Governance Committee under the aegis of the CSR Committee. competitors,” the group specifies appropriate business against Delay in Payment of Subcontract Proceeds, Etc. to
In 2018, we formed the Management Meeting to promote compliance and handle risk management. This body engages practices, adherence to the Act against Delay in Payment of Subcontractors as one of the internal audit checklist items
in vigorous exchanges of opinion about important investment projects before resolutions are made by the Board of Subcontract Proceeds, Etc. to Subcontractors and prohibition to confirm business practices are conducted fairly.
of entertaining and gifts to ensure business practices are
Directors or decisions are approved internally.
Statement on fair transactions in the Sekisui House Corporate Ethics Guidelines (excerpt)
Promoting Compliance Chapter 3 Relationships with customers, suppliers and competitors

3-4 Fair transactions with business partners and compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc.
to Subcontractors
The company shall deal soundly and sincerely with partner building constructors and carry out fair and just transactions with them.
Sekisui House Group attempts to promote thorough compliance, each group company. Sekisui House 1. When selecting a business partners from among multiple businesses, the company shall make a fair comparison of their
which it positions as an ongoing management concern that We are moving ahead with broadening the Sekisui House Corporate Ethics quality, price, delivery time, technical development abilities, stability of supply and various other factors, evaluate them and
Guidelines select the best deal.
includes not only an adherence to laws and regulations, but Corporate Ethics Guidelines’ scope of application and revising
2. The company shall not use any power that grants special treatment to any business partners regarding selection and evaluation.
also the promotion of CSR initiatives as important issues to be the information contained within from the standpoint of 3. The company shall ensure adequate understanding of the Construction Business Act and the Act against Delay in Payment of
addressed at all times. changes in social environment, development in corporate Subcontract Proceeds, Etc. to Subcontractors and refrain from delayed payments and other acts in its contracts and transactions
with business partners.
The Risk Management Committee, established in 2016 activities and group management (In 2018, we added items
as a consultative body to the Board of Directors, and the on maintaining and improving employee health). Additionally, Note: The full Sekisui House Corporate Ethics Guidelines are available on our website. https://www.sekisuihouse.co.jp/company/info/ethics.html
Governance Committee, established in fiscal 2017 under the since 2005, we have held a Compliance with Corporate Ethics
aegis of the CSR Committee based on a CSR promotion system, Check every October in which all executives and employees
work together to improve issues pertaining to the promotion submit a Pledge Regarding Compliance with, and the Essentials Legal compliance status Personal information protection initiatives
of compliance incorporated into the PDCA cycle. of, Corporate Ethics. This submission is made to thoroughly
The Sekisui House Group formulated the Sekisui House enforce our policy on corporate ethics throughout the entire There was no major violation of laws or voluntary standards in Sekisui House Group worksites, such as housing exhibitions and
Corporate Ethics Guidelines in October 2003 and currently group. the relevant fiscal year. land sales offices, handle customers’ personal information. We
applies these guidelines as common items related to corporate Moving forward, we will continue to work together to created a system corresponding to the Personal Information
ethics. These ethics must be observed by the company, its proactively apply our corporate ethics policy. Penalty for non-compliance of the anti-corruption policy Protection Law, regularly implement e-learning and repeatedly
directors and employees to promote the corporate activities of No disciplinary action or dismissal took place against any conduct educational training for employees to ensure the proper
employee for non-compliance of the anti-corruption policy in handling of customer information. The e-learning activities
the relevant fiscal year. To the best of our knowledge, no cost include tests to confirm how well employees understand the
Statement on compliance in the Sekisui House Corporate Ethics Guidelines (excerpt) was incurred on penalties, surcharges or settlement related to proper protection of personal information. We also established
corruption. the Customer Information Service Office, a dedicated
Chapter 2 Relationship with society department unifying responsibility for the protection of personal
2-3 Compliance with various business laws and related regulations
1. The company shall comply with regulations related to houses, housing materials and manufacturing, development, Infractions and penalties related to the environment information led by the CS Promoting Department manager who
import, storage, design, construction, sale, transport, export and repair of housing related equipment as well as sale In the fiscal year under review, there were no major infractions is also an executive officer. This structure enables the entire
and purchase, renting, mediation, trading partnership, management, residential land development and urban of environmental laws or regulations. There were no accidental group to comply with the Personal Information Protection Law.
development of real estate. Apart from properly executing all procedures for acquiring permits and submitting
documents, it shall take due care to ensure that there is no violation in any business activity. spills or other incidents impacting the environment surrounding On the other hand, in the event of the loss or theft of customers’
2. The company shall comply with related regulations for other connected businesses also and ensure that all activities our factories. personal information, in addition to informing customers
follow the law.
2-4 Rules for political and other donations about the issue immediately, we post information concerning
1. When donating to political parties or other organizations, the company shall comply with the Public Office Election Infractions and penalties related to products and what information was lost or stolen, and notices regarding our
Law, Political Funds Control Law and other regulations and follow regular methods.
2. The company shall receive prior approval for all donations following internal regulations. services, safety and hygiene future handling of the situation, on our website. At the same
3. The company shall strictly refrain from bribery, interest sharing and illegal political donations, along with any act In the fiscal year under review, there were no legal or regulatory time, we make every attempt to recover this information.
that can cause misunderstandings, such as close connections with the government or authorities, and build sound
and transparent relationships.
infractions or penalties paid related to the provision and use Going forward, we will continue the implementation of
Sekisui House 2-7 Compliance with import and export regulations of our products and services. There were also no infractions of personal information protection-related e-learning and repeated
Corporate Ethics 1. The company shall carry out appropriate import, export and customs procedures in accordance with related regulations health and safety-related regulations or voluntary standards. educational guidance on the handling of personal information,
Guidelines
for importing and exporting products or materials.
2. The company shall not export or import prohibited products. while making efforts to heighten knowledge and awareness
3. The company shall not deal in products or raw materials produced, manufactured or transported in conditions, such Infractions and penalties related to customer privacy regarding personal information protection.
as child labor and forced labor, that violate human rights.
Chapter 3 Relationships with customers, suppliers and competitors In the fiscal year under review, there were no substantiated We will also strengthen personal information protection
3-3 Compliance with Antimonopoly Law petitions for redress related to customer privacy infringements initiatives corresponding to each region overseas in line with
In no circumstances shall the company indulge in any act, such as cartels or rigging, maintaining resale price or
abusing superior status, that violates the Antimonopoly Law. It shall engage in fair and free competition with other or customer data loss. the expansion of international business.
companies.
1. The company shall not consult or fix prices, quantity or production equipment with other companies or Concerning Legal Action Related to Monopolistic Practices
organizations in the same industry or engage in unfair trading restrictions such as bid rigging.
2. The company shall not reject transactions with a specific company or new company in cooperation with other During the fiscal year ended January 31, 2019, Sekisui House
companies or organizations in the same industry or engage in unfair dealing methods, such as restraining the Group faced no legal action, substantial fines or punitive
sellers’ selling price.
measures in connection with violations of laws or regulations
Note: The full Sekisui House Corporate Ethics Guidelines are available on our website. https://www.sekisuihouse.co.jp/company/info/ethics.html related to competition and monopolistic practices.
Internal reporting system and whistleblower protection Business continuity planning (BCP) Response in the event of a natural disaster
maintenance
The Sekisui House Group has an internal reporting system, Though it would be ideal to solve problems through The Sekisui House Group recognizes that it is the mission of
known as the Sekisui House Group Compliance Support (SCS discussions in the workplace, we also believe it is important to Sekisui House maintains preparedness for business continuity housing manufacturers to quickly restore the lives of customers
System), based on the Whistleblower Protection Act. It is have an internal reporting system in place that employees can planning (BCP) to cope with major natural disasters. We revised affected by large-scale natural disasters and provide new
designed to ensure that an employee who has witnessed an freely turn to for help. Efforts are made to familiarize employees traditional guidelines emphasizing recovery and released and housing, including emergency temporary housing. To this end,
unlawful act or any conduct that violates our corporate ethics with this system through leaflets and human relations training. began implementation of a disaster manual in February 2013 for we have established the Action Program for Handling Natural
policy can report it in confidence to the Compliance Office of At the same time, in October 2016, we established the the Sales Divisions and head office stipulating a focus on the Disasters that prescribes company-wide policies and measures.
the Legal Department by phone, e-mail, or other channels. Our Sekisui House Group Supplier Company Corporate Ethics continuation of business activities. In August 2018, we concluded The first step toward recovery is to quickly ascertain the
SCS System guidelines on internal reporting explicitly stipulate Helpline as system for handling consultation regarding concerns the Emergency Fueling Agreement and are also securing gasoline condition of employees and their families in the affected region.
that the identity of whistleblowers and the detail of their pertaining to legal and corporate ethics infractions and for commercial vehicles in disaster-stricken areas. The speed of initial responses is linked to the formation of
reports shall be treated as classified information and that such transaction-related issues connected to Sekisui House Group Additionally, in the increasingly likely event of a Nankai support systems for worksites and the rapid response to
information shall not be used against their interests. business activities from directors or employees of partner Trough Megathrust Earthquake in the near future, enormous company-wide needs, which in turn enables us to promptly
In October 2016, we added our corporate law office as an building constructors and supplier companies with whom the damage is expected in Osaka, where our head office (Umeda provide support to customers. For this reason, we not only
external point of contact. We also provide helplines that group has an ongoing business relationship. Similar to the Sky Building) is located. In preparation for the likelihood of conduct periodic evacuation drills at each worksite, but also
provide counseling on labor management issues in general SCS System, the Legal Department Compliance Office is the business continuity challenges at our head office, we are creating require all employees to always carry an initial response card
and hotlines dedicated to consultation regarding sexual and internal point of contact and our corporate law office is the a manual to establish and operate a disaster countermeasures to be used when natural disaster strikes. This card contains
power harassment. external point of contact. office at our head office and formulating BCP. In the event of information on measures to be taken and safety reporting in
a disaster at the head office, we will continue business the event of a natural disaster.
Sekisui House Group internal reporting system activities with the Tokyo office (Akasaka, Minato-ku) and the Fiscal 2018 was fraught with various natural disasters
Contactee Method Content of report Comprehensive Housing R&D Institute (Kizugawa, Kyoto) as throughout Japan, including typhoons, heavy rains and
Compliance Office, Legal Phone substitute head offices. We will continue to regularly conduct earthquakes. However, we took prompt initial action and
SCS (Sekisui House
Department E-mail Witness account of an unlawful act or any conduct that training and drills to verify and revise manuals. responded based on experiences and lessons learned from the
Group Compliance
(External) Sekisui House Postal mail (registered mail violates laws or our corporate ethics policy
Support) System We are also focusing efforts on business continuity Great East Japan Earthquake (2011). There was extensive
corporate law office receivable only by the addressee)
Compliance Office, Legal When partner building constructors or supplier companies management (BCM) at supplier companies that provide damage from heavy rains in west Japan, which lasted from
Sekisui House Group Phone
Department suspect illegal activities, are uncertain about or have concerns numerous components and parts necessary for the June end to early July. More than 1,300 of our houses were
Supplier Company E-mail
(External) Sekisui House regarding the Sekisui House Group and its transactions and
Corporate Ethics Helpline Written correspondence manufacturing of houses and conducting disaster response also damaged due to flooding under and above the floor. We
corporate law office business activities
Consultation pertaining to sexual/power harassment and system drills. These drills enable us to confirm the BCM status ascertained the condition of our employees and their families,
Sexual and power Human Relations Office, Legal Phone
other human rights issues, including concerns and of supplier companies while attempting to enhance systems able while promptly setting up local response headquarters and
problems related to
harassment hotline Department E-mail
interpersonal relationships. Consultation aimed at creating to quickly gather information and formulate countermeasures. checking the safety of the house owners and damage caused
a comfortable workplace for disabled employees, etc. We conduct business activities at the global level, which to the buildings. We also quickly transported stockpiles from
Personnel related
Personnel Department Intranet
Labor management issues in general, such as work hours puts our local staff and employees on international business our Yamaguchi Factory as relief supplies to Okayama and
hotline and working on scheduled days off
trips at risk of natural disasters, terror attacks and riots. In such Hiroshima Prefectures that acted as the base for recovery
Note: We also provide an external (outside the company) contact for counseling by a professional for group employees and their families. event, the related divisions of the head office will promptly activities. Relief teams arrived from different part of the country
gather information and take initial action. and helped repair or remove mud from customer houses that
had been flooded.
Risk management system enhancement Activities of the Governance Committee In addition, we also set up reception centers for holidays
under the CSR Committee in Osaka and Yokohama to respond to repair requests from
Sekisui House Group’s risk management is conducted by the house owners on days when our offices are closed. We carry
head office and in all departments, with initiatives conducted Based on our system for promoting ESG management, we out integrated and complementary operations to ensure that
according to work duties within technical department and established the Governance Committee under the aegis of the worksites can fill-in for each other in the event of a large disaster
administrative department manager meetings. Through our CSR Committee (refer to p.84) and are conducting top-down and support customers by serving as Disaster Reception Centers
structural reforms in April 2018, we set up departments that activities, middle-up-down activities by managers and leaders, coordinated with the Customer Service Center in the affected
include multiple head office departments and clarified the and bottom-up activities by young employees to ensure risk Disaster prevention drill region and remodeling offices.
responsibilities and authorities of directors and executive officers. management and establishment of corporate ethics from these (AED training) at Umeda
Sky Building
The Risk Management Committee (headed by the Vice three directions.
President), which we established as a consultative body to the
Major activities in FY2018
Board of Directors, collects and inspects information on the
Theme: Promoting governance reforms
condition of risk management systems in each Sekisui House – Creating positive, open workplaces –
Group division, receiving reports when a risk incident occurs and I.Top-down
verifying recurrence countermeasures in an effort to strengthen Provided information related to the top management’s message and
risk management. We also established the Management the company’s vision on the internal website.
Meeting, which, in order to offset risk, vigorously discusses II.Middle-up-down
opinions regarding the consistency of management policy and Added Integrity Management to the curriculum of the Sekisui
House Management Training.
business strategy before resolutions are made by the Board of III.Bottom-up
Directors or decisions are made via circular letter. Furthermore, 1 Created a corner on the internal website for receiving emails with
under the aegis of the CSR Committee, the Governance suggestions on creating positive, open workplaces.
Committee discusses independent countermeasures from the 2 Based on the results of the Governance Awareness Survey, we
created opportunities for discussion to build good workplaces at Drill using EVAC chair to safely and speedily evacuate persons requiring special help
side of employees.
each worksite and formulated action plans. Progress in the from upper floors through the staircase at the time of emergency, when the elevator The meeting room of an office in a disaster-stricken area being used as a station for
cannot be used support staff from all over Japan
action plans is confirmed in the Compliance with Corporate
Ethics Check held every October.
G Governance
CSR Management
Occupational Health and Safety Management CSR Policies and the ESG Management Framework
At the Sekisui House Group, nothing is more important than the health and safety of employees, subcontractors, and Positioning ESG management as a foundation of company operations, in line with its corporate philosophy and CSR
everyone else who plays a role in the group’s business activities. If a worker-related accident ever occurs in the policies, the Sekisui House Group pursues its goal of becoming a leading company in ESG management through its
administrative, production, or construction departments, we provide the relevant details to the Health and Safety everyday business activities.
Committee and incorporate the corresponding information into its PDCA cycle for improving The group’s concrete action plans take shape through the efforts of the CSR Committee and its three subordinate ESG
workplace health and safety. committees.
The CSR Committee includes four representative directors from within the company organization and two outside experts
(outside members) to enrich the relevant initiatives from a diversity of perspectives.
Operating under the CSR Committee, three ESG committees and various CSR department subcommittees serve to help
Accidents resulting in lost worktime and outdoor workers accounted for over 90% of the heatstroke
initiatives take root within the company structure.
occupational-illness frequency rates cases, our action plan focuses on improving working
environments for outdoor workers.
While the production department was free of any occupational Efforts to curb increases in external-scaffolding accidents Corporate philosophy and CSR policies The framework for the CSR Committee
accidents or illnesses resulting in lost worktime in FY2018, the have proved successful thanks to improvements in scaffolding and promoting ESG management
construction department saw a year-on-year increase in such installations (on the equipment side) and scaffolding-assembly At the core of the Sekisui House Group’s corporate philosophy
accidents and illnesses. We will continue to make thorough training programs (on the human side). is a love of humanity: a fervent hope for the wellbeing of others The Sekisui House Group CSR Committee, comprising
analyses of causal factors to improve safety and health The risks of heavy machinery toppling affect workers and and a sense of joy in others’ joy, doing whatever we do in good members appointed via resolutions by the Board of Directors,
awareness, prevent unsafe conduct, and minimize long working the surroundings alike. In order to minimize these risks, we faith and a spirit of service. That philosophy took root in 1989 meets regularly. The CSR Committee formulates effective
hours, which can lead to accidents and illnesses. train our employees in selecting the optimal equipment during with the unanimous approval of every group employee. Striving action policies by discussing how well the group’s ESG
planning, adhering to rated-load standards, and other safety to ensure the wellbeing of all of our stakeholders—customers, management and other CSR initiatives align with social norms
Accidents resulting in lost worktime and occupational-illness measures. employees, and shareholders—we pursue a CSR policy that and expectations, for example, and how the group’s business
frequency rates (Total of one or more days of lost worktime) focuses on maximizing customer satisfaction (CS), employee activities are contributing toward solutions to social issues.
Frequency rate of Initiatives for FY2019 satisfaction (ES), and shareholder satisfaction (SS) in harmony The CSR Committee fuses inside and outside perspectives.
Frequency rate of
accidents resulting
Department occupational illnesses Our efforts for FY2019 will focus on avoiding serious accidents with our corporate philosophy. On the internal side are the Chairman and Representative
in lost worktime
FY2017 FY2018 FY2017 FY2018 and slowing the rise of accident occurrence. Coming off a Director, serving as Committee Chair, and the Vice Chairman
Administrative department
(employees)* 0.10 0.19 0.07 0.03 year that saw an increase in our total number of occupational Corporate philosophy
Our stance
and Representative Director and the President and
Employees* 0.00 0.00 0.00 0.00 accidents, our Annual Company-Wide Construction Health Our fundamental philosophy, a Truth and trust Representative Director, acting as Vice Committee Chairs. The
Production love of humanity, means doing
department and Safety Plan for this year will concentrate on preventing whatever we do in good faith outside perspective comes from two experts: Haruo Tsuji (former
Subcontractors 0.51 0.00 0.00 0.00 and a spirit of service. Recognizing
accidents through three core measures: preventing recurring the irreplaceable value in each Our president of Sharp Corporation) and Hiroya Masuda (former
Construction department fundamental
(subcontractors only) 1.89 2.42 0.20 0.63 accidents, enhancing awareness of basic rules, and eliminating and every person, we maintain a philosophy Minister of Internal Affairs and Communications and former
fervent hope for the wellbeing
* On a nonconsolidated basis (Sekisui House only) unsafe conduct. of others and a sense of joy in
Love of governor of Iwate Prefecture).
others’ joy. humanity
Three ESG committees operate under the CSR Committee
Annual Company-Wide Construction Health
Occupational health and safety activities to develop action policies, promote activities, and help efforts
and Safety Plan essentials Our objective Our business focus
at worksites Superior quality and Comfortable housing and take root. The framework also features subcommittees, which
Devote even more attention to tracking trends in and taking leading technology ecologically soundcommunities meet on a department-specific basis and serve to enhance
At the Sekisui House Group, ensuring the occupational health measures against major (life-threatening) accidents. awareness and implementation of the initiatives at business
and safety of all of our construction employees is an important As certain types of accidents, such as falling, cutting and locations across the group. We also assign CSR-promotion
social responsibility and one of our key focus areas as a business. rubbing, flying and falling objects, and toppling, remain representatives to each business location to promote activities
We organize and implement a variety of activities to make common despite widespread awareness, re-analyze the with site managers, thereby embedding the elements of ESG
sure that our construction employees are as safe and secure as relevant accidents that have occurred at business sites, management in the workforce on an employee-to-employee basis.
possible on the job. implement preventive measures, work to help the measures
These efforts helped prevent any major accidents from take root, and establish a framework that eliminates accidents ESG management promotion structure
occurring in FY2018, but the overall number of occupational before they occur. Board of Directors
accidents over the course of the year surpassed the FY2017 total. Strive to prevent unsafe
conduct, which is gradually 3 ESG committees CSR Department Subcommittee
Accidents in FY2018 小さな安全の積み重ねが、大きな安心へ CSR Committee
CSR Sekiwa Construction Subcommittee

becoming a more E Environmental Committee
CSR House Remodeling Subcommittee

CSR Sekiwa Real Estate Subcommittee
Occupational accidents at worksites rose 30% from FY2017 to conspicuous contributor to Creation of • Prevent global warming
CSR Manufacturing Subcommittee

“four values”
CSR Headquarters Subcommittee

(Chair Person) • Protect ecosystems
FY2018, with a rise in the number of falling-related accidents accidents occurring at our Chairman • Recycle resources
ヨシ！
CSR Supplier Subcommittee

(Secretariat: Environment Improving Department)
contributing to the increase. As a large number of accidents sites, by emphasizing and
CSR Sales Subcommittee

(Vice Chair Person) Approval
were attributable to human error, we will address the issues enforcing basic rules more Vice Chairman Instruction Environmental Homeowner S Social Improvement Committee Deployment
President
不安全行動排除
基本ルール徹底
value
くり返し災害防止
in full recognition of the needs both to safeguard against value • Improve CS, ES and SS • Human rights
thoroughly.
全社共通重点目標
3 2 1 • Diversity (active participation by women,

各事業所での対応！
休業日以上の災害減！
死亡災害ゼロ！
workstyle innovations) • Health management

unsafe conduct through instructions and to encourage To safeguard against 4 • Social contribution activities (training the next
Referral Sustainability generation,environmental awareness,housing Progress
workers to take independent action as the situation dictates. heatstroke, work even Report culture improvement,support of areas and report
people affected by disasters)
We continued to encourage workers to wear air-conditioned harder to encourage the use (Secretariat: CSR Department)
Economic Social
clothing through the provision of subsidies and other measures of air-conditioned clothing value value Approval Proposals
in order to help prevent heatstroke, a policy that we instituted and enhance on-site G Governance Committee Recommendations Opinions
69期（2019年）全社施工安全衛生年間計画 • Risk management
in 2017, but cases of heatstroke increased in FY2018 due to working environments. (Secretariat: • Establishment of corporate ethics CSR promotion meetings in
A poster highlighting the three safety CSR Department) (Secretariat: Legal Department & CSR Department) each area/company
record-breaking summer temperatures. Considering that slogans for FY2019
Identifying Material Topics Stakeholder Engagement

The Sekisui House Group is committed to fostering sustainable development with a focus on fulfilling ESG management The Sekisui House Group’s main stakeholders include customers, consumers, business partners, employees, shareholders,
through our core business and creating value—all while living up the expectations of stakeholders and society in investors, and communities.
accordance with its CSR policies. Through dialogues with all of our stakeholders, we work to address issues and meet expectations—an effort that hinges
To us, value creation is all about molding our activities around what matters to stakeholders and society. on staying connected and engaged through meaningful, active communication.
Identifying material topics with stakeholders and social impact in mind Main stakeholders and overview of actions
In 2015, we selected 30 of the 46 Specific Standard Disclosure company’s impact in economic, environmental, and social Main stakeholders and Examples of
Actions Response for such themes Refer to
items in the GRI Sustainability Reporting Guidelines (G4) as contexts. overview of actions proposed themes
material aspects. The CSR Committee, on which representative As a result of that reanalysis, the group identified 19 topics Customers (owners) Customer surveys Extending the lifespan of houses Operating “Commons,” a
directors serve as Committee Chair and Vice Committee Chairs, as material aspects. Subsequent examinations in 2017 brought We maintain communications with Communication through and increasing homeowner value townscape-assessment system
customers under our “customer first” newsletters and publications Enhancing after-sales support Strengthening group-wide Pages
validates the selection process. To reflect changing social that list to 17 material topics, bringing the topics into compliance policy in order to ensure that their Kizuna (Detached homes / Proposing and constructing collaborations to nurture the 53–60
conditions, needs, and other factors, we then prioritized the with GRI Standards (see the chart below). We will continue to valuable assets (their homes, for semiannual), Maisowner (Rentals / exteriors that are easy to maintain exterior business
example) have long, cherished lives. semiannual),gm (Condominiums / and use Pursuing customer satisfaction WEB
material aspects the following year by reanalyzing their impact address the material topics, which represent vital elements of three issues per year) through our value chain
Net Owners Club website (Sustainability Report: Social)
on stakeholder assessments and decision-making and also the our ESG management, in FY2018 and beyond.
Consumers Consumer dialogues via: Disclosing housing manufacturing Recruiting Sumufumulab research
(potential customers) Comprehensive Housing R&D processes and sites members and holding workshops
Page
Material Topics (Critical Issues) as Seen from Effects on Stakeholders and Impacts on Society We proactively disclose information to Institute Visualizing methods of Opening research facilities to the
Indicates one of the specified 17 topics build trusting relationships with the aim Sumufumulab environmental problem solving public 50
of “creating comfortable housing and Housing Dream Factories through housing Conducting workshops and events Page
The Remarkable Impact of the Organization on the Economy, the Environment and Society
ecologically sound communities.”

Sekisui House Eco First Park for parents and children at the 56
Supplier Environmental Assessment Customer Health and Safety Sekisui House Eco First Park
Housing seminars WEB
Training and Life Literacy Book
Education
Employment Business partners Integrated network of Sekisui Improving worksite environments Improving indications of parts and Pages
House Association and Sekisui (via labor-saving measures and promoting the use of combined,
Socioeconomic Compliance We strive to conduct transactions on a
House Partners’ Association measures to deal with aging pre-cut, and pre-set parts
53–60
fair, equal basis and foster amicable Pages
partnerships, always working to promote Policy briefings (annual) construction technicians, for Sharing process charts online with
Procurement Biodiversity example) manufacturers and making 67-68
Practices Human Rights Assessment mutual growth and deliver customer Supplier evaluations
Emissions Energy satisfaction. CSR Supplier Subcommittee Improving delivery-date accuracy information as thorough as possible Page
(materials and parts delivery) Pursuing customer satisfaction
SDG-based procurement 83
through our value chain
Customer Privacy (Sustainability Report: Social) WEB
Supplier social assessments
Diversity and Equal Employees Internal open recruitment Contributing to women’s career Promoting diversity, encouraging
Opportunity development workstyle reforms, training human
Marketing and Labeling We respect the diverse individuality of Internal qualification system
Economic Performance our employees to ensure that they can Human-relations training (annual) Pursuing workstyle reforms resources, and respecting human
flourish in their professional capacities Supporting healthy work-life rights (Sustainability Report: Social)
Materials Governance-awareness survey
and achieve creative growth through (annual) balance Operating the Sekisui House
Effluents and Waste Women’s College, a training Pages
meaningful work. To make good on that Promoting employment of the
Environmental Compliance Occupational health and safety program for management
commitment, we develop workplace
management system disabled 61–68
Anti-competitive behavior environments and programs that nurture candidates
Freedom of association and Creating open workplaces WEB
collective bargaining Local communities employees and ensure fair treatment, Sekisui House Group internal Organizing Diversity Exchange
thereby enhancing employee satisfaction magazine (six issues per year) Respect for Human Rights events
Labor/management Indirect economic impacts Non-discrimination Occupational Health (ES). Health management
relations and Safety Offering the ikumen leave program
Anti-corruption
Formulating a health-management
policy
Shareholders and investors Basic policy on information Disclosing management strategies Holding management briefings
Presence in regional economies Water We ensure fair and transparent corporate disclosure and plans in a clear, straightforward and releasing Q-and-A summaries Pages
management to maintain our value in General shareholders’ meeting manner Offering tours of factories and 05-34
Child labor society, aiming to enhance our corporate Shareholder preferential gift other facilities
value by achieving healthy growth and programs Conducting one-on-one Page
Security practices Public policy
returning fair profits to our shareholders. Business Report (semiannual) and interviews and ESG dialogues 76
Indigenous rights Forced or compulsory labor Annual Report (annual) Sustainability Report: Value WEB
Online IR newsletter Creation Vision and Strategy
The Magnitude of the Impact on Stakeholder Evaluation and Decision-Making
Communities Sekisui House Matching Program, Promoting safe lifestyles that Helping build communities through
a company-employee joint provide peace of mind neighborhood bonds
Boundaries of the 17 Material Topics We make an effort to cooperate and
donation system Pursuing community development Creating recovery support systems
participate toward social returns,
Sekisui House Group, Customers, Employees, Shareholders and investors, leveraging our strengths as a housing Collaborative relationships with that prevents crime and damage when natural disasters strike
Economic Performance Employment Sekisui House Group, Employees, Regional communities
Supplier companies company to nurture rich local cultures non-profit organizations like Kids from disasters Implementing the Disaster Risk
Sekisui House Group, Employees, Shareholders and investors, Supplier Occupational Health and realize abundant and humane Design Association and Uzo Training the next generations Reduction Factory of the Future plan Pages
Procurement Practices Sekisui House Group, Employees, Supplier companies
companies, Regional communities and Safety lifestyles for all people while protecting Nishiyama Memorial Library Helping disaster victims and Enlisting the help of newly hired 69-72
Energy Sekisui House Group, Employees, Shareholders and investors, Supplier Training and Education Sekisui House Group, Employees, Supplier companies the environment. The Kobe Machizukuri Rokko disabled persons develop employees in reconstruction efforts WEB
companies
Island Fund charitable trust self-reliance in disaster areas
Sekisui House Group, Customers, Employees, Supplier companies, Regional Diversity Sekisui House Group, Employees, Regional communities
Biodiversity Supporting companies affected
communities and Equal Opportunity
Sekisui House Group, Customers, Employees, Shareholders and investors, Human Rights Sekisui House Group, Employees, Shareholders and investors, Supplier companies, by disasters and workers with
Emissions
Supplier companies, Regional communities Assessment Regional communities disabilities by purchasing their
Effluents and Waste Sekisui House Group, Employees, Supplier companies, Regional communities Customer Health Sekisui House Group, Customers, Consumers, Regional communities
products
and Safety
Marketing and Labeling Sekisui House Group, Customers, Employees, Shareholders and investors, Customer Privacy Sekisui House Group, Customers, Employees, Consumers, Supplier companies Pages 05-08
Consumers, Supplier companies, Regional communities
Pages 50-52
Environmental Sekisui House Group, Customers, Employees, Shareholders and investors, Socioeconomic Sekisui House Group, Customers, Employees, Shareholders and investors, All stakeholders Ensuring full compliance, eco-friendly practices, and accountability
Compliance Consumers, Supplier companies, Regional communities Compliance Consumers, Supplier companies, Regional communities Pages 79-82
Supplier Environmental Sekisui House Group, Shareholders and investors, Supplier companies WEB
Assessment
Comments from External Members Independent Third-Party Assurance Report

of the CSR Committee KPMG AZSA Sustainability Co., Ltd. was engaged to provide assurance on Sekisui House, Ltd.’s Sustainability Report
2019 and verify that the report provides reliable information on the company’s energy consumption, waste and
The CSR Committee meets regularly to develop and promote important CSR policies and verify the relevancy and
greenhouse gas emissions volumes, water used in factor production and social reporting (frequency of accidents resulting
effectiveness of current CSR activities.
in lost worktime and occupational illnesses).
During these meetings, two external members are asked to share their opinions, which provide the basis for discussion
among Committee members.
Fiscal 2018 CSR Committee recommendations are as follows.
CSR Committee recommendations

Sekisui House seeks to become the leading company in ESG management. With this vision at
the helm and the strength of a high ZEH ratio, the company should devise ways to break
through various constraints and aim for greater heights.
It is important to convey the company’s painstaking efforts to the customers. The company
should further promote the cutting-edge initiatives it takes for the environment because
common people are yet unaware of them.
As a company, it is essential to display a stance of making improvements in work hours and
acquisition rate for paid leaves. Although the people working on-site understand the company’s
stance, they have their own difficulties. Therefore, monthly follow-ups are important.
Stakeholders are focused on the company’s actions in the “year one” of governance reforms.
Fiscal 2019 is crucial and it is important to tackle it with a solid PDCA cycle. Haruo Tsuji
Former President
It is important to properly manage overseas subsidiaries and deal with cyber-attacks. The Sharp Corporation
company must set up and strengthen mechanisms for this purpose.
The middle management feels stuck between its superiors and subordinates. This is a challenging
issue that the management must resolve. The company also needs the strength of young
employees to take on challenges in new domains. It is important from the viewpoint of
governance for the middle management to listen to the opinions of young employees.
The company must consider how it can harness IT, IoT and AI in management to raise
productivity.
CSR Committee recommendations

Japan’s position in the field of environment has started to lag behind at the global level.
The “E” in ESG is changing fast. For instance, cars are shifting to electric power and investors
are avoiding thermal power stations, forcing the market to shrink. Companies that do not
promote eco-friendly business activities will not be able to survive as this public opinion
grows stronger.
“Quality” will be crucial, including a change from procurement based on CSR to that based
on SDGs. It is important to flexibly incorporate new technology with a view to constantly
improving quality, rather than continuing with existing ways of thinking.
I am the chairman of an expert panel on regional revitalization and I feel that the company
must work on two focal points: SDGs and Society 5.0. Speed is key to these two fields, and it
Hiroya Masuda
is important to consider how to effectively incorporate these into regional revitalization. The Former Minister of Internal Affairs
company should also consider this point in its corporate management. and Communications
Former Governor of Iwate Prefecture
The company needs to increase its value by raising issues on various fields in society, such as
paid childcare leaves for men. Activities that generate high level of sympathy can connect to
the future vision of the company and help social development. If the paid childcare leaves for
men prove effective, it will also lead to self-reliance and growth of subordinates and workstyle
reforms. The company should conduct surveys on employees, their families and colleagues to
consider future actions. It is a progressive system and I would like to introduce it in a meeting
of government officials also.
GRI Content Index for “In Accordance” Items

The Sekisui House Sustainability Report 2019 has been prepared in accordance with the Core options of the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards (GRI Standards).
General disclosures General disclosures

Disclosure Refer to External assurance Disclosure Refer to External assurance
Organizational profile Economy
Page 9 Economic performance
102-1 Name of the organization
[WEB] Corporate Profile Pages 9-10,11,14,15,17,25-26,27-28
Page 9-20 Securities Report / Financial Results Summary
102-2 Activities, brands, products, and services 201-1 Direct economic value generated and distributed
[WEB] Corporate Profile Pages 66,70 (Community lnvestment)
Page 9 201-2 Financial implications and other risks and opportunities due to climate change Pages 21-22, 35-42
102-3 Location of headquarters
[WEB] Corporate Profile 201-3 Defined benefit plan obligations and other retirement plans Securities Report
Page 9 Procurement practices
102-4 Location of operations
[WEB] Corporate Profile [WEB] Communicating with Business
204-1 Proportion of spending on local suppliers
Page 9 Partners
102-5 Ownership and legal form
[WEB] Corporate Profile Environment
Pages 9-20 Energy
102-6 Markets served
[WEB] Corporate Profile Pages 51-52
Pages 9-20. 27-28
302-1 Energy consumption within the organization
[WEB] Material balance •(Page 88)
102-7 Scale of the organization
[WEB] Corporate Profile Pages 51-52
302-2 Energy consumption outside of the organization
Page 9 [WEB] Material balance
102-8 Information on employees and other workers
[WEB] Corporate Profile 302-3 Energy intensity [WEB] Material balance
102-9 Supply chain Pages 47-49, 53-60 Pages 51-52
102-10 Significant changes to the organization and its supply chain N/A [WEB] Energy consumed during
302-4 Reduction of energy consumption
Pages 67, 79-84 production/transportation
102-11 Precautionary Principle or approach [WEB] Prevention of pollution from [WEB] Material balance
harmful chemical substances Pages 51-52
Pages 21-22, 34-36, 50, 57, 91 302-5 Reduction in energy requirements of products and services [WEB] Energy consumed during production
102-12 External initiatives
[WEB] Kids Design Association [WEB] Material balance
Biodiversity
102-13 Membership of associations [WEB] Industry Proposals
Operational sites owned, leased, managed in, or adjacent to, protected areas
304-1 N/A
Strategy and areas of high biodiversity value outside protected areas
102-14 Statement from senior decision-maker Pages 5-8 Emissions
Ethics and integrity Pages 51-52
Pages 1,29-30,57,79-80,84
305-1 Direct (Scope 1) GHG emissions
102-16 Values, principles, standards, and norms of behavior [WEB] Corporate Philosophy & Ethics Pages 51-52
Guidelines
305-2 Energy indirect (Scope 2) GHG emissions
Governance Pages 51-52
Pages 73-76
305-3 Other indirect (Scope 3) GHG emissions
102-18 Governance structure
[WEB] Corporate Governance [WEB] Material Balance
305-4 GHG emissions intensity
Stakeholder engagement [WEB] Energy consumed during production
Page 86 305-5 Reduction of GHG emissions Pages 37-38, 40, 42, 51-52
102-40 List of stakeholder groups
[WEB] Stakeholder Engagement Effluents and waste
102-41 Collective bargaining agreements N/A 306-1 Water discharge by quality and destination [WEB] Amount of water used by the group
Page 86 Pages 47, 49, 51-52
102-42 Identifying and selecting stakeholders
[WEB] Stakeholder Engagement
306-2 Waste by type and disposal method
[WEB] Material Balance •(Page 88)
Page 86 Page 52
102-43 Approach to stakeholder engagement 306-3 Significant spills
[WEB] Stakeholder Engagement [WEB] Material Balance
Pages 86, 87 Environmental compliance
102-44 Key topics and concerns raised
[WEB] Stakeholder Engagement Pages 52, 80
307-1 Non-compliance with environmental laws and regulations
Reporting practice [WEB] Material Balance
Pages 3-4, 9 Supplier environmental assessment
102-45 Entities included in the consolidated financial statements
Securities Report Page 57
308-1 New suppliers that were screened using environmental criteria
102-46 Defining report content and topic Boundaries Pages 3-4, 85 [WEB] Communicating with Business Partners
102-47 List of material topics Page 85 Society
102-48 Restatements of information N/A Employment
102-49 Changes in reporting N/A 401-1 New employee hires and employee turnover [WEB] Initiatives for new graduate hires
102-50 Reporting period Pages 3-4 Pages 63-64
401-3 Parental leave
102-51 Date of most recent report Pages 3-4 [WEB] Support for Work and Childrearing
102-52 Reporting cycle Pages 3-4 Occupational health and safety
102-53 Contact point for questions regarding the report Pages 3-4 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities Page 83 •(Page 88)
102-54 Claims of reporting in accordance with the GRI Standards Pages 3, 89-90 Training and education
102-55 GRI content index Pages 89-90 404-1 Average hours of training per year per employee Page 66
102-56 External assurance Page 88 Pages 65-66
404-2 Programs for upgrading employee skills and transition assistance programs [WEB] Information on recruitment of fresh
graduates
Management approach
Diversity and equal opportunity
Disclosure Refer to External assurance
405-1 Diversity of governance bodies and employees Pages 28, 61-62, 74
Management approach
103-1 Explanation of the material topic and its Boundary Pages 33-34, 85, 89-90 Human rights assessment
103-2 The management approach and its components Pages 33-34, 57, 73-76, 79-84 Pages 67-68
412-2 Employee training on human rights policies or procedures [WEB] Human Relations Training
103-3 Evaluation of the management approach Pages 77-78
Customer health and safety
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Page 80
Marketing and labeling
417-1 Requirements for product and service information and labeling Pages 35-49, 53-60
417-2 Incidents of non-compliance concerning product and service information and labeling N/A
417-3 Incidents of non-compliance concerning marketing communications N/A
Customer privacy
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data Page 80
Socioeconomic compliance
419-1 Non-compliance with laws and regulations in the social and economic area Page 80
FY2018 Accolades and Achievements

Environment Kids Design Awards
The “Higashi-Matsushima, Disaster-Ready Smart 3R activities at small-scale construction sites through (Designs to support comfortable child-rearing) Honorable Mention (Kids Design Association Award)
Grand Prize (Minister of State for Measures for Declining Birthrate Award)
Eco-Town” project, an environmentally friendly, coordinated efforts with clients/outstanding TOMOIE: Houses for dual-income families
resilient community revitalization initiative waste-disposal operators and proprietary checklists Berry Bear Fukagawafuyuki (Daycare center)
February 2018 October 2018 * Joint entry with NESS Corporation
“cocotas” Multi-cassette-type air conditioner for
27th Grand Prize for the Global Environment Award FY 2018 3Rs (Reduce, Reuse, and Recycle) Promotion Merit small spaces (Smart patrol+)
Organizer: Fujisankei Communications Group Awards MLIT Minister’s Prize * Joint entry with Daikin Industries, Ltd.
Organizer: 3Rs Promotion Council
* Joint entry with Kumagai Gumi Co., Ltd. (Designs that develop children’s creativity and shape their future)
Ease Handle
* Joint entry with Fujisash Co., Ltd.
Reductions in CO2 emissions from commercial-use
vehicles: Using telematics to promote safe, September 2018
eco-friendly operations Organizer: NPO Kids Design Association
December 2018
2018 Environment Minister’s Award

for Global Warming Prevention Good Design Award
Activity (Implementation of
Countermeasures Category)
Condominium [Minato-Ku Condominium [TAICANG
Organizer: Ministry of the Environment Kaigan 2-chome Project] YUQIN GARDEN] in China
* Joint win with Sakakura Associates architects * Joint win with Sakakura Associates architects
Greenhouse gas-reduction objectives and engineers and engineers
April 2018 Activities to combat climate change
October 2018
Company targets validated by the January 2019
Organizer: Japan Institute of Design
Science Based Targets (SBT) Initiative Included in CDP Climate Change A List Promotion
Wood Design Award

Community building and landscape
(Lifestyle Design Category: Technology and Research) (Social Design Category: Communication)
Community-building efforts in Teriha, Grand Maison Misonoza Honorable Mention (Award Committee Chair Award)
Wood-procurement guidelines, a product
Island City, Fukuoka Tower Research on wood bond-durability
October 2018 December 2018
of collaboration with suppliers
assessments for longer-lasting
November 2018
Asian Townscape Awards Prize winner at the Chubu housing
Organizer: UN-HABITAT Regional Office for Asia and the Pacific – Architecture Awards * Joint entry with Shizuoka University Organizer: Wood Design Award Secretariat
Fukuoka, Asian Habitat Society, Fukuoka Asian Urban (General Category)
Research Center, Asia Townscape Design Society Organizer: Chubu Architecture
* Joint entry with Fukuoka City and related organizations Awards Conference
CSR and other initiatives
Sekisui House Limited October 2018
March 2018 Gold Award in work with Pride's “PRIDE

Selected as a “Nadeshiko Brand 2018” Index 2018,” a system for evaluating
company by the Ministry of Economy, companies’ LGBT-related initiatives
Trade and Industry and the Tokyo Organizer: work with Pride
Stock Exchange
September 2018 February 2019
Products and technology
Selected by U.S. S&P Dow Jones Indices and Swiss Selected by RobecoSAM as “Silver Class” in the homebuilding
RobecoSAM for inclusion in the Dow Jones Sustainability category in the RobecoSAM Sustainability Award 2019
Otona HOUSE “awai” Sekisui House constructed in 1963
March 2018 Yamazaki house and Usui Family Villa World Index (DJSI World) and
Sustainability Award
(Sekisui House Model A) the Dow Jones Sustainability Silver Class 2019
IAUD Award 2017
June 2018
Asia Pacific Index (DJSI Asia
IAUD Award (Housing and Architecture Category) Pacific)
Organizer: International Association for Universal Design Karuizawa Blue Plaque certification
Organizer: Karuizawa, Kitasaku District, Nagano
October 2018 Sustainability Report 2018
Prefecture Included in all four ESG indices* selected by the February 2019
Government Pension Investment Fund (GPIF) 22nd Environmental Communication Awards

* FTSE Blossom Japan Index, MSCI Japan ESG Select Leaders Index, MSCI Japan Environmental Report Category
Empowering Women Index (WIN), and S&P/JPX Carbon Efficient Index Award of Excellence
(Global Environmental Forum Chairman’s
Award)
Organizer: Ministry of the Environment and Global
Environmental Forum
Summary of Initiatives
Environmental management
There was hardly a day in 2018 when we did not see the icons for incorporates climate change and
Sustainable Development Goals (SDGs) in the media. This shows other issues in our business model
that incorporating SDGs in corporate management was not a and ensuring happiness for our
passing trend among a large number of companies, but a sign customers and society, so that we
that minimizing negative impact on the environment and society can remain a company the society
and growing sustainably had become essential for them. needs.
Additionally, even institutional investors are evaluating the Our Sekisui House Owner Denki
response to SDGs through ESG management to determine where proposal, under which we purchase
to invest. Response to the Task Force on Climate-Related Financial excess electricity from customers
Disclosures (TCFD) on climate change is considered particularly whose specified time for selling Toshiharu Miura
important. The Sekisui House Group has already implemented net- renewable energy has expired, is part Director and Managing Officer
In Charge of Technical Divisions
zero energy house (ZEH) in a high 79% of its newly constructed of our lifelong support to customers
detached houses and is working actively toward achieving the SDGs. who have bought houses from our
In FY2018, the company became part of the highest ranking A List company. At the same time, using the renewable energy purchased
in CDP Climate Change, which rates companies for ESG. from them helps make the company’s operations more eco-friendly,
We are aware that we must not stop at delivering houses with leading to co-creation of value.
improved environmental performance, but also maintain a balance In FY2019 too, we will continue to work on new proposals to
between building a roadmap to ensure corporate growth that improve sustainability in society.
Improvement in sociability
Improvement in sociability is an important factor for becoming a management, also lead to improved
leading company in ESG management. We are engaged in various productivity and sustained growth of
activities with the objective to contribute to building a happy 100- the company.
year-life society. To build a happy society and provide houses to our We also continue to hold
customers where they can be happiest in the world, the Sekisui activities for the community under
House Group must become a company where employees are our Sekisui House Matching Program
happiest in the world. To achieve this, we wish to continue focusing and for environmental education of
on promoting diversity, reforming workstyle and developing human children, who are the major players
resources, while working on health management as well. In FY2018, of the next generation, under our
we steadily increased the number of women managers in the Eco-First and Kids-First concepts. Takashi Uchida
effort to promote diversity, declared that male employees must We believe that steady efforts such Executive Vice President
and Representative Director
take more than one month off for childcare and gradually raised as these will help achieve SDGs, Management of Administration
their number to aid workstyle reform. In the field of health improve the company’s brand value Division
management, we started a “walking challenge” to encourage and build a happy society.
employees to improve their health by making conscious effort to We will continue to listen to our stakeholders’ opinions and
walk. These activities meant to make employees aware of health intensify activities to become a company the society needs.
Governance
We positioned 2018 as “year one” of governance reforms, adopting leaders on-site and take steps to
six items for strengthening our corporate governance system. We formulate the next plan of action by
have also started new initiatives for strengthening governance in monitoring employees with a view
2019 and are considering the direction for 2020, while working to to building a happy workplace.
spread the governance reforms throughout the group. Additionally, as the leader of the
We think that creating positive, open workplaces is important Investor Relations Division, I would
to strengthen the governance system. For this, we are working like to keep enhancing the
top-down with the Governance Committee under the CSR transparency and timeliness of
Committee, middle-up-down with managerial positions and leaders, information disclosure and explain
and bottom-up with young employees to ensure a three-directional to various stakeholders in an easy- Shiro Inagaki
approach. We have started a blog by the top management on our to-understand manner how the Vice Chairman and
Representative Director
internal website and a system of “proposal emails” to receive Sekisui House Group’s financial and Management of Investor
constructive opinions with the objective to create a positive, open non-financial information as well as Relations Division
workplace. We have included “integrity” to the training curriculum initiatives for ESG and SDGs are connected to the sustainable
for managerial positions (leaders). We would like to repeatedly development of the enterprise.
convey the importance of raised awareness of governance among
93 Sekisui House Sustainability Report 2019

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Housing innovation to make your heart feel at home

Sustainability Report 2019

Creating value for sustainable growth

Corporate website: https://sekisuihouse.co.jp/english

Messages from Top Management Strategy and Core Competencies E Environmental

Activities of high importance

Tackling social challenges head-on

health. Environmental controls and a bevy of sensing

Our growth strategy Built-to-order

in four business domains business Main affiliates

Rental housing Total number of orders received for

Other businesses (exterior business, etc.) Custom detached houses

Houses for sale

Corporation name Sekisui House, Ltd.

Strategies for the rental Growing through area marketing

Strategies for the custom Providing high-value-added houses

30%* of our customers have adopted it ever since. In April 2019, we

on providing a spacious area under the eaves in addition to a spacious

Business Focus 3 Urban redevelopment Houses for sale

Overseas Business 166.6 245.9 China

In Australia, we strive to create value for society and the region

We will continue to respect the unchanging universal value of

serve as an asset for the country or region.

Business Focus 1 Business Focus 2

United States Community business, multifamily business

Cinco Ranch, Houston Bexley, Tampa

Analyzing risks and opportunities from a sustainability perspective

Strengthening the Green First ZERO product strategy

Reduced workforce due to declining employee

Maximizing value for customers using our core competences

Technical Capabilities Construction Capabilities Customer Base

Creating economic and social value with unique business models

¥ 6,041 million Approximately 25,000 man-hours

¥ 15,892 million Supplied housing

About 720,000 Customer base

on seasonal care so that customers can enjoy a long stay and

Improving financial Indicators by creating value sought by society

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Non-financial data Financial data

Promoting sustainable management through our four key values

Our stance Energy Longevity

Truth and trust Resources

with the unanimous approval of every group employee.

1960 1982 1999 2003 2007 2010 2014 2017

Sustainability Vision 2050

Leading the Way to a

Leading the Way to Leading the Mainstreaming Maximizing Ecosystem Networks

Recycling Business System

• Built Japan’s first model house for people

Aiming to be a leading company in ESG management, and creating a sustainable society

Material Topics ESG Incorporated in the Fourth Medium-Term

Diversity and equal

In 2015, we endorsed the Paris Agreement, which aims Highlights

How our activities impact society

Launched models Launched net-zero Acquired SBT

ZEH for collective housing, in addition to detached houses

Strengthen energy-saving and energy-generation proposals for remodeling

New proposal – Idokoro Dan-netsu based on Green First Renovation

Key performance indicators (KPIs)