Value Report 2023
SEKISUI HOUSEContents

Long-Term Vision andMaterial Issues

Mechanisms andCatalysts for Creating Value

ESG Management

Mid-Term Management Plan for
Sustainable Growth

Financial Data, Company
Information and Share Information

G: Governance E: Environment S: Social

E Contributing to a Decarbonized Society
1

Achieving Comfortable Living alongside
Decarbonization While Strengthening
Disaster Resilience

Promoting ZEH1 through Green First ZERO detached houses
Sekisui House’s Green First ZERO (ZEH) detached houses contribute to
the reduction of CO2 emissions and decarbonization through excellent
energy-saving and energy-generating performance without sacrificing­living comfort.
The foundation of this comfort is excellent thermal insulation that clears
ZEH standards. A home designed with a living room atrium or large windows offers a bright, open space, but these features can be disadvantageous in terms of energy efficiency. By using windows with excellent
thermal insulation, we achieve both an open indoor environment and energy efficiency. Since 2022, the standard specifications for Green First ZERO
houses meet the newly established upper grades of thermal insulation—
grade 5—and primary energy consumption—grade 6—under Japan’s
housing performance indication system.
In terms of exterior appearance, to harmonize with the townscape, creating a beautiful home while also achieving ZEH standards is crucial.
Photovoltaic panels, including tile-shaped photovoltaic panels that blend inbeautifully with ordinary roof tiles, are an essential part of ZEH and are astandard feature on our sloped-roof buildings. In addition to their appearance, these tile-shaped panels make it possible to install a large area ofpanels even on complexly shaped roofs.
ZEH also helps promote everyday comfort and economy. Comfortableliving requires energy for use in air conditioning and electronics. In addition, the spread of telecommuting is leading to an increase in time spent athome and, in turn, home energy consumption. Combined with recent rises
in electricity and gas prices, this could cause an even greater burden on
households. The energy saving and generation of ZEH help significantly
reduce these utility costs so that residents do not have to worry aboutmajor cost increases due to spending more time at home. The combined
effect of this with the Family Suite bright and spacious interior designs werecommend, this makes it possible to live comfortably and free of newstresses arising from new modes of living that incorporate telecommuting.
Thanks to these advantages, Sekisui House’s Green First ZERO (ZEH)
detached houses have been embraced by customers, and in FY2022, 93%2
of Sekisui House’s new detached houses were ZEH buildings, far exceeding
the rate for Japan as a whole of 18.5%.3 In addition, the cumulative numberof ZEH houses we have constructed since the launch of this productreached 76,509 as of March 31, 2023. The Japanese government’s 6thStrategic Energy Plan, announced in 2021, sets the goals of having all new
houses built from 2030 meet the ZEH standard for energy efficiency andinstalling photovoltaic power generation equipment in 60% of new detachedhouses by 2030. Sekisui House already meets both of these targets.
The largest portion of the Sekisui House Group’s CO2 emissions, at 61% of
the total, is from the use of supplied housing (Scope 3, Category 11). Promoting
the adoption of ZEH is therefore indispensable to reducing CO2 emissions.
1 Net zero energy house, a house that aims for an annual primary energy balance of zero through energy efficiency and energy generation while providing a comfortable indoor environment. Green First ZERO is thebrand name of our detached house ZEH with standard adoption of a solar power generation system.
2 The ratio of ZEH, Nearly ZEH, and ZEH Oriented (in areas with snow accumulation of 100 cm or more) dwellings
constructed between April 2022 and March 2023 in all areas excluding Hokkaido. The ratio for Hokkaido was 72%.
3 Source: Net-Zero Energy House Demonstration Project Survey Results (2022 Edition); Ministry of Economy,
Trade and Industry, Agency for Natural Resources and Energy; Sustainable open Innovation Initiative. Figure
for FY2021.

Growth in the Number of Detached House ZEH
(%)
100
80
60

71%

74%

76%

79%

87%

91%

(Number of buildings)
93% 100,000

92%

76,50962%

80,00060,00049%

40

40,000

20

11%

13%

14%

17%

19%

8%
2016

2017

2018

2019

2020

2021

20,000

0

0
2013

2014

2015

Ratio of detached house ZEH (left axis)
Cumulative Sekisui House ZEH homes (right axis)

2022(Year)

Nationwide ZEH ratio (left axis)

Note: The ZEH ratio includes contracted and built-for-sale housing. Nationwide figures are rounded to thenearest whole number, from figures published in the Net-Zero Energy House Demonstration Project
Survey Presentation 2022 (sponsored by the Agency for Natural Resources and Energy and the Ministryof Economy, Trade and Industry).

The Family Suite, a spacious living area with large open- Sekisui House proprietary tile-shaped photovoltaic
ings overlooking the garden of the Gohon no Ki Project panels

(FY)

KPI

Unit

2020

2021

2022

2023 target

Ratio of detached ZEH
homes4

%

91

92

93

90

Rate of CO2 emissions
reduction from new
housing5

%

51.26

50.06

55.3

55% reduction
by FY2030

4 ZEH ratio of contracted and for-sale housing in areas other than Hokkaido.
5 Scope 3, Category 11 emissions reduction relative to FY2013 levels. FY2020 and FY2021 figures are calculated based on the boundary of our previous SBT-verified target (excluding Konoike Construction Co., Ltd.).
The scope of emissions was broadened in alignment with the revised SBT-verified target for FY2022 and,for comparison, the scope of emissions in FY2013 was also broadened accordingly. For details on thescope of emissions included, please refer to page 172.
6 Figures have been revised due to more precise calculations of photovoltaic power generated.

Expansion to Group companies
In order to expand its business domain in housing construction, theSekisui House Group is engaged in initiatives for conventional wooden
housing in addition to its mainstay pre-engineered housing. While Group
companies Sekisui House noie and Sekisui House Construction are developing the noie brand and the ki no ie brand, respectively, the commitment
to realizing a decarbonized society through ZEH is common to all Group
companies. In FY2022, 147 of the 472 houses sold under the noie brand,and 13 of the 113 houses sold under the ki no ie brand were ZEH. We areworking to promote ZEH in ways that align with each of these brands,
which propose simple and just-right home building, though such means
as using third-party ownership schemes for photovoltaic power
generation.

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Value Report 2023

Long-Term Vision andMaterial Issues

Contents

SEKISUI HOUSE

Mechanisms andCatalysts for Creating Value

ESG Management

Mid-Term Management Plan for
Sustainable Growth

G: Governance E: Environment S: Social

Financial Data, Company
Information and Share Information

Contributing to a Decarbonized Society

Disaster resilience of Green First ZERO Houses
Comfortable living is only possible if residents feel secure about theirhomes when disaster strikes. To prepare for earthquakes, typhoons andother natural disasters, in addition to the robustness of houses themselves, it is crucial to secure living spaces, food, water and energy for use
in the aftermath of a disaster. In 2004, the Sekisui House Group became
the first house builder in Japan to launch an energy-saving, disaster-­resistant house with facilities for storing supplies of food and water as well
as household power storage cells and photovoltaic power generationequipment. Then in 2011, we launched Green First HYBRID houses,
which enable both optimized energy use every day and power use during
power outages through the coordinated control of these systems with fuelcells. As climate change has caused more frequent and severe natural
disasters, we have enhanced the disaster resilience of our housing so that
residents can live their lives with peace of mind.
Today, we propose disaster-resilient zero energy houses that combine
Figure 1. Power Use during a Power Outage

Photovoltaic cells

Photovoltaic cells

Fuel cells

Emergency power
supply board

Fuel cells

Power supply via emergency outlets

Supply though an emergency power supply board

Figure 2. Measures to Prevent Underfloor Flooding

4

1

2
3

5

1 Raised installation height of equipment (toprevent costly equipment repairs due to water
damage)2 Water stop that can be set up at the front
door during emergencies to keep water out
3 Reinforced concrete foundation slab to preventthe entry of water from below the foundations
4 Sewerage pipe air pressure release valve toprevent water spraying from toilets during
sudden heavy rains, etc.
5 R aised building foundation to prevent theentry of water over the foundation

three features: securing living spaces after major earthquakes with highseismic resistance; space and facilities to store a three-day supply of food,drinking water and water for hygiene; and energy self-sufficiency. Suchhouses offer photovoltaic power generation systems to generate electricity
when the sun is shining, fuel cells that can generate electricity in cloudy
weather or at night as long as they have gas and water supply, storage
cells that store excess power generated by photovoltaic and fuel cell systems, a strong structure, and excellent thermal insulation and energy-­saving performance. Through this combination, these houses allow
residents to live in a way that is closer to normal after disasters, making
home an effective disaster shelter.
In April 2022, we further enhanced our resilience offerings with new
emergency power supply boards for use in power outages and reinforced
measures to prevent water from entering underfloor spaces during sudden
heavy rains or flooding. In a home that has only photovoltaic panels andfuel cells, during a power outage, power is only available from specificemergency outlets. With an emergency power supply board, however,appliances that need to stay powered, such as refrigerators, can stayplugged into their normal plugs (Figure 1). In addition, to address increasingly common flooding damage, we raised the installation height of equipment, added water stops that can be set up at front doors during flooding
emergencies, adopted reinforced concrete foundation slabs, added sewerage pipe air pressure release valves, and raised the height of building
foundations. Through the combination of these five measures, we havereinforced measures to prevent underfloor flooding (Figure 2).
In addition to prevention, recovery measures after a disaster are also
important. Sekisui House leverages its Company-wide organizational

Disaster-resilient Zero Energy House
Sekisui House ZEH
Green First ZERO
Stringent specifications for seismic
resistance and independence in disaster

The house itself protects the residents.

strength to quickly assess the safety of the residents and the state ofdamage, make its nationwide factories available as bases to support
regional restoration, and work with partner construction companies nationwide to provide the construction capabilities necessary for recovery.
Through this recovery support framework, we aim to help customers getback to their normal lives as quickly as possible.
In this way, we are continuously working to better protect the lives ofour customers by balancing comfortable living with the realization of adecarbonized society in normal times and providing a recovery support
system that leverages the resilience of buildings themselves and the organizational strength of our nationwide operations in times of disaster. These
efforts encompass both the mitigation and adaptation approaches necessary to address climate change.
Based on its global vision to make home the happiest place in theworld, Sekisui House will continue to evolve Green First ZERO while developing and spreading the value of ZEH, which contributes to the happinessof residents and society at large. By doing so, we will lead the way in the
decarbonization of the housing industry.

Promoting ZEH in Sha Maison rental housing
Approximately 30% of the CO2 emissions attributable to the residential
sector in Japan come from multi-unit housing complexes. Of this, rental
housing accounts for a large fraction, approximately two thirds. Therefore,
the conversion of rental housing to ZEH is essential for decarbonization.
We have designated ZEH under the Sekisui House rental housing brand
Sha Maison as Sha Maison ZEH, and have been promoting its full-scale

Disaster recovery support system
In the eventof a disaster Data management system for individual customer
residences (Disaster Visit app)Self-reliant bases in the event of adisaster (Nationwide factories)
Distribution network

Factories, employees and partner companies protect
the area under their care.

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Value Report 2023
SEKISUI HOUSEContents

Long-Term Vision andMaterial Issues

Mechanisms andCatalysts for Creating Value

ESG Management

Mid-Term Management Plan for
Sustainable Growth

G: Governance E: Environment S: Social

Financial Data, Company
Information and Share Information

Contributing to a Decarbonized Society

popularization since FY2020.
Two types of ZEH standards, each with different targets, are used for
multi-unit housing complexes. The first is known simply as ZEH andapplies the net zero energy standard to individual housing units in muchthe same way it applies to detached houses.1 The second is known as
ZEH-M and applies the net zero energy standard to entire residential buildings, including common areas. In ZEH-M, the building as a whole isjudged against the ZEH standard, and it may clear the standard even if
individual units within it do not. For this reason, from a resident-first perspective, we offer systems in which photovoltaic panels are connected toeach unit so that residents can sell their own electricity individually, thus
promoting unit-level ZEH that allows residents to enjoy the benefits of
ZEH, including comfort and reduced utility costs. By making as many units
ZEH as possible within each building, we are working to popularize rental
housing that also meets the ZEH-M standard as a result.
In order to promote ZEH in rental housing businesses, which entails
higher costs, it is also crucial to create business benefits for owners. We
believe that as society as a whole progresses toward decarbonization,
demand for ZEH will eventually increase in rental housing, as well. As the
merits of residential units with unit-level ZEH are immediately clear before
move-in, unit-level ZEH can be expected to help prevent occupancy rates
and rents from declining, leading to long-term stable management.
A survey we conducted in FY2021 of young people, who are the mainusers of rental housing, found that respondents were familiar with the effects
of climate change, and we were able to discern an ethical-​mindedness
among them in terms of choosing to live in an environmentally friendly
manner in order to combat such effects. Because this type of thinking is
expected to increase in the near future, the conversion of rental housing to
ZEH can be considered a good investment.
Furthermore, a FY2022 survey of Sha Maison ZEH residents found that88% of respondents were satisfied and, of these, 78% said that theywould choose ZEH for their next home after moving out. Rental housing
residents often move out after a few years, meaning that over time, Sha
Maison ZEH is helping increase the total number of people who prefer
ZEH. In this way, Sha Maison ZEH, with its clear benefits to residents, is
expected to have knock-on effects in popularizing ZEH throughout society.

The Sha Maison ZEH approach has been well received by numerous
owners and residents, leading to orders received for 15,064 ZEH residential units in FY2022, up significantly year on year.
In recognition of these efforts to popularize ZEH, Sha Maison ZEH
received the Energy Conservation Center Chairman’s Award in the FY2022
Energy Conservation Grand Prize.
1 For a multi-unit housing complex, four types of ZEH standards are defined, depending on the difference inenergy efficiency. “ZEH” is capable of reducing net primary energy consumption by 100% or more; “Nearly
ZEH” represents a reduction of more than 75%; “ZEH Ready” represents a reduction of more than 50%, and“ZEH Oriented” represents a reduction of more than 20%. In addition, ZEH-M and ZEH differ in their definitions of evaluation targets, which are “residential building” for the former and “residential units” for the latter.

 ews release: Conducted a Survey on Residential Awareness of Global Warming
N
Prevention Among People in their 20s and 30s (Japanese only)

In its condominiums, Sekisui House designs ZEH with an emphasis onlivability, which is a benefit for the tenants. For example, sweeping vistas
are part of the appeal of high-rise condominiums. The large windows typically used to maximize this appeal are disadvantageous in terms of energy
conservation, but we have achieved both ZEH and comfort through innovations such as the use of vacuum double-glazed windows with extremely
high thermal insulation performance.
In FY2022, 88.8% of condominiums sold were ZEH. We plan toincrease this to 100% from FY2023 onward.
4 Residential units that meet the ZEH Oriented standard or higher grade ews release: All GRANDE MAISON Condominiums to Adopt ZEH-Specifications
N
by FY2023 (Japanese only)

(FY)

KPI
Number and ratio of
ZEH units for rent2
Number and ratio of
ZEH condominiums
for sale3

Unit

2020

2021

2022

2023 target

%

—

—

65

70

Housing
units

2,976

8,501

15,064

—

%

—

39.4

88.8

100

Housing
units

32

192

585

Uemachi 1-chome Tower: Residential units feature high-performance vacuum double-glazed windows for beautiful views.

2 Ratio of orders received for ZEH Ready or higher grade units (includes only units in which individual residents can sell electricity to the grid; number of units was used as a KPI through FY2021)
3 Cumulative number of completed units ranked ZEH Oriented or higher grade. The percentage is that of ZEH
Oriented or higher grade units among all units sold in the fiscal year.

Promoting ZEH in GRANDE MAISON condominiums
As with rental housing, we are promoting the transition to ZEH at the unit
level in condominiums for sale.
In February 2019, Sekisui House built GRANDE MAISON Kakuouzan
Kikuzakacho (Nagoya City, Aichi Prefecture), the first condominium buildingin Japan with all ZEH units connected to photovoltaic power generation
systems. In FY2022, we completed construction of four buildings with 393
ZEH condominiums, bringing the cumulative total of ZEH condominiums to
11 buildings and 585 units,4 exceeding the target of 540 set under the Fifth
Mid-Term Management Plan. In FY2023, we plan to complete constructionof 16 GRANDE MAISON buildings with 880 units, all of which will be ZEH.

Uemachi 1-chome Tower: 43% of the property’s surface area is green space, designed
to be environment-friendly with expansive
green walls.

The Sumiyoshi Honmachi: Common lounge featuring materials and motifs that harmonize with the granite masonry of theneighborhood known for its old estates.

Promotion of ZEB for non-residential construction
In addition to detached houses and multi-unit residential buildings, we arealso promoting ZEB5 in non-residential construction. In FY2022, we actively
promoted a style of proposal for office buildings called Green First Office.
5 Net zero energy building, a building that aims for an annual primary energy balance of zero through energy
efficiency and energy generation while providing a comfortable indoor environment.

138

Value Report 2023
SEKISUI HOUSEContents

Long-Term Vision andMaterial Issues

Mechanisms andCatalysts for Creating Value

Mid-Term Management Plan for
Sustainable Growth

ESG Management

Financial Data, Company
Information and Share Information

G: Governance E: Environment S: Social

Contributing to a Decarbonized Society

These proposals meet ZEB standards based on excellent thermal insulation performance that leverages ZEH design expertise and technologies
developed in the housing business. These office buildings include proposals for spaces that improve worker productivity and help reinforce BCPs1
with highly seismically resistant structures, thereby undergirding the sustained growth of companies. Reflecting customer needs related to reducing utility costs, promoting carbon neutrality and increasing employee
satisfaction, FY2022 orders were up year on year. Outside of office buildings, we are also rolling out proposals suited to other building uses, suchas clinics and nursing care facilities.
In FY2022, we completed 89 ZEB buildings, bringing our cumulative
total to 173.
Under the ZEB planner registration system, our target is for a majority oforders received in FY2025 to be for ZEB. We are reinforcing efforts toreach this target.
Furthermore, to reduce CO2 emissions from our business activities (Scope
1 and 2), since FY2021 we have ensured that all new offices and facilities
built for the Group’s use are ZEB. For example, at Tomorrow’s Life Museum
Kansai, a facility where visitors can experience the kinds of living that theCompany proposes, the Welcome Hall opened in February 2023 meets the
Nearly ZEB standard. Including buildings designed, built and occupied by
the Sekisui House Group, we now have a total of 14 ZEB buildings.

Tomorrow’s Life Museum Kansai Welcome Hall
1 Business continuity plan, an emergency plan for corporate survival or for business continuity that makes
strategic preparations to avoid an interruption of critical operations in the event that a disaster or other risk
transpires. Since the Great East Japan Earthquake in 2011, such plans have been attracting attention and,as major earthquakes and large typhoons have caused substantial damage in recent years, an increasing
number of companies and local governments have been strengthening related efforts.

Energy efficient remodeling of existing houses

the government to promote the decarbonization of existing housing.
P.209 SumStock quality housing stock system

We make energy efficient remodeling proposals to owners through Group
company Sekisui House Remodeling, Ltd. Energy efficient remodeling is
general term for remodeling that entails the installation of photovoltaic panels or storage cells to increase energy self-sufficiency, improving thermal
insulation performance, or replacing existing air conditioning and water
heating equipment with high-efficiency models. In particular, we focus on
housing that is more than 20 years old, which is typically much less thermally insulated than ZEH. In this area, we propose Idocoro Dan-netsu insulation remodeling, which emphasizes the living room, dining room andkitchen area, where people spend most of their time, and promote replacement of equipment with highly energy efficient models. For owners ofhomes equipped with solar power generation systems that have reached
the post-FIT period (past the end of the feed-in tariff system’s purchaseperiod), we emphasize the merits of adding storage cells to their systems.
Specifically, in addition to increasing the rate of self-consumption of surplus
power, thereby helping reduce utility costs, we highlight the enhanced resilience that such an addition provides by enabling the use of electricity during
power outages caused by natural disasters, which are increasing due to climate change. In FY2022, we received 1,601 orders for Idocoro Dan-netsu
as we worked to promote both comfort for owners and decarbonization.
As part of our efforts to decarbonize existing housing, we are also
focusing on SumStock, an initiative to promote the proper recognition of
the value of existing houses and create an active market for them. We
believe that the proper assessment of the value of existing housing canhelp create more opportunities for investment in energy-saving remodelingand thus contribute to the decarbonization of hosing stock.
The Japanese government’s goal of reducing greenhouse gas emissions
attributable to the residential sector 66% compared with the FY2013 baseline by 2030 depends on decarbonizing existing housing. As such, initiatives in this area are expected to receive a range of policy support going
forward. Sekisui House has supplied more than 2.5 million housing units todate. For our approximately 800,000 detached houses and 230,000 rental
housing Sha Maison buildings that are more than 10 years old, we will
make remodeling proposals and promote market circulation based on
proper valuation while taking advantage of various forms of support from

(FY)

KPI

Unit

2020

2021

2022

2023 targets

Idocoro Dan-netsu
houses (location-based
insulation upgrades)2

Housing
units

1,005

1,338

1,601

1,800

2 Number of units remodeled using Idocoro Dan-netsu with partial thermal insulation and heating systems

2

Decarbonization of Business Activities andResponse to Climate Change

Promoting RE100 through Sekisui House Owner Denki
In an effort to decarbonize its business activities, in 2017, the Sekisui
House Group became the second Japanese company and the first company in the housing industry to join the international initiative RE100. The
Group is working to switch to power derived from renewable energy
sources for use in its business operations. Most companies procure
renewable energy through the purchase of green power certificates andthe installation of photovoltaic power generation systems. In contrast, we
procure surplus solar power from our customers under the post-FIT mechanism through Sekisui House Owner Denki.
Because we were an early adopter of solar power generation systems in
our houses, the annual amount of power generated by all of the solar
power generation systems we had installed was estimated to be over 700
GWh when we joined RE100, more than five times the 120 GWh annual
power consumption of the entire Group at that time. Based on this, weestimated that we would be able to achieve RE100 by around 2040 if we
could procure surplus power from 20%–30% of our customers under the
post-FIT mechanism, and established this as a target. In actuality, we havebeen able to procure such power from roughly 50% of our customers, andexpect to achieve RE100 earlier than originally anticipated. The amount of
renewable energy purchased in FY2022 through Sekisui House Owner
Denki was approximately 60.7 GWh, accounting for roughly 55.1% of theGroup’s total power consumption.

139

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Long-Term Vision andMaterial Issues

Contents

SEKISUI HOUSE

Mechanisms andCatalysts for Creating Value

ESG Management

Mid-Term Management Plan for
Sustainable Growth

G: Governance E: Environment S: Social

Financial Data, Company
Information and Share Information

Contributing to a Decarbonized Society

In addition, Sekisui House Owner Denki also creates benefits for cooperating electric power companies by making large contracts for theGroup’s business use power. This makes it possible to set the unit pricefor purchasing surplus power higher than the market price, leading tohigher customer satisfaction. In addition, we expect to be able to achieve
RE100 while controlling the cost of adopting renewable energy.
Overview of Sekisui House Owner Denki
Dispelling the anxiety of
homeowners with solar
power generation systems

Aiming for RE100

Purchase of post-FIT
electricity for 11 yen/kWh
Application
submitted
Payment forpurchased electricity

Homeowner

Sekisui HouseGroup

Proxy contract

Post-FIT power

Cooperating
electric powercompany

Application submitted to Sekisui House

Used to powerbusiness operations

Initiatives aimed at 100% electrification of Company vehicles
Company vehicles account for roughly 30% of the Sekisui House Group’s
CO2 emissions. We thus regard reducing these emissions as an important
aspect of realizing a decarbonized society.
We are promoting the switch to and adoption of electric vehicles, suchas hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs), andhave set the target of 100% electrification of Company vehicles by 2030
and begun initiatives to achieve this goal. This rate stood at approximately
7% in 2022. As a start, the pilot introduction of BEVs was launched in
February 2022. In addition to HEVs, which are being introduced at a rapid
pace, we are actively working to introduce BEVs. By utilizing electricity
derived from renewable energy through Sekisui House Owner Denki, we
aim to further significantly reduce CO2 emissions from Company vehicles(25,277 t-CO2 in FY2022) and contribute to the realization of a decarbonized society.

Post-FIT power Factories/offices/model houses

Used by Sekisui House

(FY)Roadmap for Electrification of Company Vehicles
(%)
100

KPI

Unit

2020

2021

2022

2023 targets

80

RE100 achievement rate1

%

16.4

33.5

55.1

100% by FY2040

60

Rate of CO2 emissions
reduction from business
operations2

%

39.2

46.6

50.9

75% by FY2030

1 Ratio of the post-FIT photovoltaic power purchased by Sekisui House Owner Denki and other renewable
power to the total electricity consumed in business operations
2 Scope 1 and 2 emissions reduction rate relative to FY2013. Konoike Construction Co., Ltd. became a wholly
owned subsidiary in FY2019. To enable time series comparability for emissions, we have retroactively added
Konoike’s annual CO2 emissions to those of the Sekisui House Group for FY2013 (the baseline year for theGroup’s planned CO2 emissions target).

100%

Gasoline-fueledvehicles

40
20

n
atio
trificElec e target
rat

65%

32%

HEV

7%

BEV

0

FY2022–2024

FY2025–2027

FY2028–2030

Company vehicle electrification targets (% of stock)

3. Other Initiatives
Public policy collaboration on climate change in Japan
Through the Japan Federation of Housing Organizations, which supervises
the housing industry, and the Japan Prefabricated Construction Suppliersand Manufacturers Association, we endorse practical policies such as tax
incentives and the expansion of various subsidy programs to promote climate change mitigation in all aspects of buildings, including housing, formulated by the government, particularly the Ministry of Land,
Infrastructure, Transport and Tourism; the Ministry of Economy, Trade andIndustry; and the Ministry of the Environment. We actively cooperate withand make recommendations to these entities.

Collaboration with international public organizations
In 2008, Sekisui House declared that it would aim to be carbon-free in its
operations and value chain by 2050. Since then, we have been focusedon promoting the adoption of net-zero energy houses. The United Nations
Framework Convention on Climate Change (UNFCCC) has proposed thaturgent action is needed to reduce carbon emissions from the building andconstruction sector, which accounts for about one-third of global energy
consumption. An urgent need exists to achieve this objective with innovative buildings and construction methods.
Against this background, we joined the Global Alliance for Buildings andConstruction (GlobalABC), which was established at the UN’s COP21 conference in Paris. We later participated in and submitted reports to the UN’s
COP22 conference in Marrakech, Morocco. At COP23 in Bonn, Germany,
we made a presentation advocating the development of sustainable cities at
SDG 11 Day, a ministerial meeting on SDG 11, highlighting the rationale andbackground for the mass adoption of ZEH. Since FY2022, we have participated in the Building Materials Working Group. In conjunction with COP26,
we participated in the international Race to Zero campaign for decarbonization organized by the UNFCCC through our membership in the Business
Ambition for 1.5°C campaign organized by Science Based Targets (SBT).

140

Value Report 2023

Long-Term Vision andMaterial Issues

Contents

SEKISUI HOUSE

Mechanisms andCatalysts for Creating Value

Mid-Term Management Plan for
Sustainable Growth

ESG Management

Financial Data, Company
Information and Share Information

G: Governance E: Environment S: Social

Contributing to a Decarbonized Society

We will continue to work with experts from around the world to decarbonize the building and construction sector.

Reduction of CO2 emissions at procurement stages forcomponents and raw materials

Global share of buildings and construction operational and process
CO2 emissions, 2021

To reduce lifecycle CO2 emissions from homes, Sekisui House has beenpromoting the uptake of ZEH and other energy-efficient housing with theaim of reducing CO 2 emissions at the residential stage (Scope 3,
Category 11). These efforts have led to significant reductions. However,CO2 emissions from the procurement of components and raw materials inthe supply chain (Scope 3, Category 1) account for 30% of the Group’s
total emissions (FY2022 figure). We cannot address this significant portionof emissions alone, so we have begun collaborative efforts with suppliers.
First, in October 2020 we surveyed our suppliers to determine the state of
their initiatives to reduce CO2 emissions. Based on the results, we held aseminar in February 2021, which 135 suppliers attended. We positioned
this event as the kickoff of initiatives to reduce CO2 emissions in our supply
chain, subsequently holding additional seminars with 61 participating companies in April 2021; 242 in October 2021; 260 in September 2022; and157 in February 2023. We use these events to promote awareness of theneed to acquire SBT validation1 and to provide training for procurement
staff. The seminars also feature keynote speeches by speakers from the
SBT organization, and major suppliers as well as small- and medium-sized
suppliers present about how they acquired SBT validation. Sharing positive examples of how even small companies can obtain SBT validation
helps more suppliers get validated. We have also set up a consultation
service within the Company for small- and medium-sized suppliers to provide specific advice and answers to individual questions.
We have set the medium-term target of raising the SBT‑​setting rate ofour major suppliers to 80% by 2030 and are steadily raising the current
rate. Around 20% of the Sekisui House Group’s Scope 3, Category 1 CO2emissions attributable to procurement come from small- and medium-sized suppliers and, in 2022, a total of 19 such companies acquired

Residential (direct)

6%
Residential (indirect)

11%

Other

Non-residential (direct)

8%
Transport

22%

3%

37%

Non-residential (indirect)

8%
Buildings constructionindustry - concrete,
aluminium and steel

Other industry

30%

6%

Other building andconstruction industry

Estimated emissions forbricks and glass

6%

~3%

Global share of buildings and construction final energy demand, 2021

Other

Residential

6%

21%

Transport

26%

Other industry

31%

34%

Non-residential

9%
Buildings constructionindustry - concrete,
aluminium and steel

Other building andconstruction industry

3%F rom the UNEP 2022 Global Status Report for Buildings and Construction

4%
Materials such as
bricks and glass~1%

SBT validation. In addition, as our suppliers set decarbonization targets
and begin initiatives, these efforts contribute to the decarbonization of theconstruction industry as a whole. By promoting effective CO2 reduction
across the supply chain in cooperation with our suppliers, we will ​contribute to the realization of a carbon-free future.
1 Validation by the Science Based Targets Initiative (SBTi) of corporate greenhouse gas reduction targets as
being aligned with the requirements of the Paris Agreement

(FY)

KPI

Unit

2020

2021

2022

2030 targets

Supplier SBT-setting rate1

%

18.6

22.2

31.9

80

1 Percentage of our major suppliers (by portion of CO2 emissions) who have adopted science-based targets

Environmental certifications acquired by suppliers
We confirmed our suppliers’ acquisition status of environmental certifications, including ISO 14001 (environmental management).
(FY)Status of acquisition

Unit

2020

2021

2022

%

—

70

79

Note: Percentage based on annual CO2 emissions

141