Download data

Powerbroker for

Select an assessment year:

  • Overall approach
    6/12
    • Overarching commitment on deforestation
      3/4
      Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
      3/4
      "In order to preserve and improve our natural capital, our Group shall achieve no net loss of green space by ensuring zero deforestation through material procurement and by developing communities filled with greenery."
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Which initiatives?: UN Global Compact
      Daiwa House Group is a member of the UN Global Compact
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "Globally, forests currently account for about 4 billion hectares, or about 31% of the total land area, but they continue to recede*2. The deforestation and deterioration of forests are having serious impacts on global warming and loss of biodiversity; therefore, we must take steps to implement sustainable forest management while eliminating illegal logging, one of the aggravating factors."
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Operational
      "The business operations of the Daiwa House Group are dependent on the abundant natural capital provided by our environment. In particular, our procurement activities can have a major impact on biodiversity and the natural environment. The aspect of our natural capital that is most affected by our Group is timber. So in light of the status of logging areas, we are working to promote the adoption of certified timber and recycled timber as part of our timber procurement in consideration of the legality and sustainability of logging areas with the goal of meeting our Biodiversity Guidelines [Timber Procurement] in terms of reducing deforestation to zero. "
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      Type of climate target: Other or unclear

      What is the target date for the company to achieve their climate target?: 2030
      "We have also set a goal (SBT certified) to reduce our own supply chain emissions (Scope 1, Scope 2) by 30% compared to 2017 by 2030"
  • Commodity score
    33/88
    • Timber
      43/88
      • Commitment Strength
        14/20
        • Commitment to protect priority forests
          8/11
          • Commitment details
            Zero-gross deforestation
            5.3/8
            Commitment to protect priority forests
            Zero-gross deforestation
            5.3/8
            Which certification schemes are used?: FSC; PEFC
            "2030 goal - Zero deforestation resulting from timber procurement as a building material for houses and buildings, 2055 goal - Zero deforestation arising from material procurement for all business segments [...] "Procure timber certified by the FSC (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forestry Certification) and SGEC (Sustainable Green Ecosystem Council). [...] When procuring timber that is not classified as certified or recycled, verify if it meets or exceeds certain standards in terms of legality and sustainability and procure only timber that is judged to meet a certain minimum level"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "2030 goal - Zero deforestation resulting from timber procurement as a building material for houses and buildings, 2055 goal - Zero deforestation arising from material procurement for all business segments [...] "Procure timber certified by the FSC (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forestry Certification) and SGEC (Sustainable Green Ecosystem Council). [...] When procuring timber that is not classified as certified or recycled, verify if it meets or exceeds certain standards in terms of legality and sustainability and procure only timber that is judged to meet a certain minimum level"
          • Target date
            2031-2050
            0/1
            Target date
            2031-2050
            0/1
            "2030 goal - Zero deforestation resulting from timber procurement as a building material for houses and buildings, 2055 goal - Zero deforestation arising from material procurement for all business segments [...] "Procure timber certified by the FSC (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forestry Certification) and SGEC (Sustainable Green Ecosystem Council). [...] When procuring timber that is not classified as certified or recycled, verify if it meets or exceeds certain standards in terms of legality and sustainability and procure only timber that is judged to meet a certain minimum level"
          • Interim target date
            Yes
            0.5/0.5
            Interim target date
            Yes
            0.5/0.5
            What date is given for the interim milestone(s)?: 2030
            "2030 goal - Zero deforestation resulting from timber procurement as a building material for houses and buildings, 2055 goal - Zero deforestation arising from material procurement for all business segments [...] "Procure timber certified by the FSC (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forestry Certification) and SGEC (Sustainable Green Ecosystem Council). [...] When procuring timber that is not classified as certified or recycled, verify if it meets or exceeds certain standards in terms of legality and sustainability and procure only timber that is judged to meet a certain minimum level"
        • Commitment to a traceable supply chain
          9/9
          • Commitment details
            Traces to Point of production
            5.3/5.3
            Commitment to a traceable supply chain
            Traces to Point of production
            5.3/5.3
            "Ensure the source of supply has been clearly identified (traceable to the logging site)".
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Ensure the source of supply has been clearly identified (traceable to the logging site)".
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            "Ensure the source of supply has been clearly identified (traceable to the logging site)".Daiwa House stated the target as 97% by 2021.
          • Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            "Ensure the source of supply has been clearly identified (traceable to the logging site)".
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; Discrimination; Forced labour; Child labour; Freedom of association
          "And, in accordance with the “Guiding Principles on Business and Human Rights” of the United Nations, we shall strive to discharge our responsibility on the respect for human rights through our response to negative impacts against human rights that may occur in our business operations and transactions" "We not only tackle issues related to labor practices that are highlighted in Japan, but also measures to improve global labor issues, such as preventing forced labor and child labor through compliance with the Core Labor Standards of the International Labour Organization (ILO)"; "For our business partners, we have established the CSR Procurement Guidelines as comprehensive social and environmental standards concerning human rights, labor practices, environmental protection, and bribery (including anticorruption), and which clearly states about respecting human rights as one of the codes in the Business Partner Code of Conduct, so we will respond to human rights issues that occur in our supply chain in a responsible manner. "
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        23/50
        • Reporting against commitments
          3/3
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            "The results for fiscal 2019 indicate that 94.3% (94.9% in FY2019) of the timber used, including certified and recycled timber, was S-ranked, showing a slight decrease of 0.6% from FY2018 and falling short of our target of 95%. Meanwhile, our use of C-ranked timber decreased to 0.6% (2.1 % in FY2018), thus coming close to zero. This was achieved because we requested the suppliers of the pieces of timber categorized as C to make improvements by procuring more pieces of timber from the low-risk areas so that we could switch the sources, in addition to asking the suppliers of pieces of timber of which legality we did not confirm through the survey conducted in FY2018, to check the official documents thoroughly for legal compliance."
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            2.5/2.5
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            2.5/2.5
            Daiwa House stated that their commitment to reduce "S-ranked timber" had been achieved to a rate of 90% but not 100%, and their target to reduce "C-ranked timber" had been achieved. "For timber deemed in the previous fiscal year's timber procurement survey to have a "C" rank and timber that we were unable to sufficiently confirm traceability back to its source area, our response was to work with suppliers and change sources of procurement and other efforts in our aim to conduct timber procurement that paid consideration to sustainability. As a result, in the fiscal 2019 survey, although the rate of S-ranked timber was essentially unchanged from the previous fiscal year and fell below the target, the rate of C-ranked timber fell to 0.6%, an improvement that helped us reach our target."
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Which processes or groups does the company use for third party verification?: FSC

            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC
            "The results for fiscal 2019 indicate that 94.3% (94.9% in FY2019) of the timber used, including certified and recycled timber, was S-ranked, showing a slight decrease of 0.6% from FY2018 and falling short of our target of 95%. Meanwhile, our use of C-ranked timber decreased to 0.6% (2.1 % in FY2018), thus coming close to zero. This was achieved because we requested the suppliers of the pieces of timber categorized as C to make improvements by procuring more pieces of timber from the low-risk areas so that we could switch the sources, in addition to asking the suppliers of pieces of timber of which legality we did not confirm through the survey conducted in FY2018, to check the official documents thoroughly for legal compliance."
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Annually
          "Survey results evaluated according to timber procurement assessment criteria Using the results of the procurement of timber survey, our Group evaluates and categorizes procured timber according to the timber procurement assessment criteria into four ranks: S, A, B, and C. First, recycled timber and timber certified by one of the three forest management certification bodies (FSC, PEFC or SGEC)*1 is categorized as rank S. Next, if the timber is sourced from a high-risk area, it is categorized as rank C. For timber not sourced from a high-risk area, we evaluate the legality and sustainability, and assign rank S for scores of 90 points or more, rank A for scores of 80-89 points, rank B for scores of 70-79 points, and rank C for scores below 70 points, out of a potential total of 110 points. We grasp the situations regarding risks (compliance, biodiversity, human rights, etc.) of the countries of our suppliers by using a risk assessment tool, the Global Forest Registry operated by Forest Stewardship Council (FSC) that certifies timber and timber products."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "to ensure none of our business partners are procuring illegally felled timber, etc., we conduct a CSR procurement of timber survey every April that helps us to monitor their procurement practices. "
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 282,458m3
          Daiwa House reported their total usage of timber as 282,458m3 of which 39.1% is certified and 13.5% was recycled 
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          What is the certified volume?: 110,441m3

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          Daiwa House reported their total usage of timber as 282,458m3 of which 39.1% is certified and 13.5% was recycled 
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Annually

          Details of monitoring: Using internal monitoring and verification systems
          "every year since fiscal 2011, we have audited timber suppliers as per our "Biodiversity Guideline" (Timber Procurement). These audits determine if the Group is procuring timber logged in a way that illegally violates the rights of indigenous people. They are required to verify the legality and sustainability of timber they procured in the previous fiscal year and then are instructed to make improvements highlighted in audit results. Beginning in fiscal 2017, we started monitoring compliance with our "CSR Procurement Guidelines" by having our business partners conduct self-assessments "
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
           "Moreover, every year since fiscal 2011, we have audited wood suppliers and made those results public as per our "Biodiversity Guidelines" [Wood Procurement] (Guidelines for Products). They are required to verify the legality and sustainability of wood they procured in the previous fiscal year and then are instructed to make improvements highlighted in audit results." "This was achieved because we requested the suppliers of the pieces of timber categorized as C to make improvements by procuring more pieces of timber from the low-risk areas so that we could switch the sources, in addition to asking the suppliers of pieces of timber of which legality we did not confirm through the survey conducted the previous year, to check the official documents thoroughly for legal compliance. In terms of switching the sources, we had an issue that we could not secure a sufficient quantity of timber from the low-risk areas, but we have been able to procure more pieces of timber from the low-risk areas by having the suppliers understand our Group's idea of sustainable timber procurement."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper *
      14/88
      • Commitment Strength
        5/20
        • Commitment to protect priority forests
          5/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            2055 goal - Zero deforestation arising from material procurement for all business segments [...]
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            2055 goal - Zero deforestation arising from material procurement for all business segments [...] "Procure timber certified by the FSC (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forestry Certification) and SGEC (Sustainable Green Ecosystem Council)
          • Target date
            2031-2050
            0/0.7
            Target date
            2031-2050
            0/0.7
            2055 goal - Zero deforestation arising from material procurement for all business segments [...] "Procure timber certified by the FSC (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forestry Certification) and SGEC (Sustainable Green Ecosystem Council)
          • Interim target date
            No
            0/0.3
        • Commitment to reduce use of virgin wood fibre
          0/5
          • Commitment details
            No
            0/3
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; Discrimination; Forced labour; Child labour; Freedom of association
          "And, in accordance with the “Guiding Principles on Business and Human Rights” of the United Nations, we shall strive to discharge our responsibility on the respect for human rights through our response to negative impacts against human rights that may occur in our business operations and transactions" "We not only tackle issues related to labor practices that are highlighted in Japan, but also measures to improve global labor issues, such as preventing forced labor and child labor through compliance with the Core Labor Standards of the International Labour Organization (ILO)"; "For our business partners, we have established the CSR Procurement Guidelines as comprehensive social and environmental standards concerning human rights, labor practices, environmental protection, and bribery (including anticorruption), and which clearly states about respecting human rights as one of the codes in the Business Partner Code of Conduct, so we will respond to human rights issues that occur in our supply chain in a responsible manner. "
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        5/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            According to their 2021 report, 861 tonnes of paper were consumed in 2020
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.7
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            No
            0/1
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 861 tonnes
          According to their 2021 report, 861 tonnes of paper were consumed in 2020
        • Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          What is the non-certified/non-compliant volume?: 861 tonnes

          What is the certified volume?: 0 tonnes
          According to their 2021 report, 861 tonnes of paper were consumed in 2020
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    11/20
    Avg. score
  • Reporting and Implementation
    17/50
    Avg. score
  • Social considerations
    4/18
    Avg. score

Profile

Daiwa House Industry is a Japanese construction company, constructing residential homes and flats, business premises, and hotels. It is one of the largest homebuilders in Japan, which is an industry that uses large amounts of timber. Daiwa House Group is selected as a powerbroker for timber and paper packaging.

Sector
Industry sector 
Construction
Segments
Manufacturer
HQ
HQ 
Japan
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Deco & Style, Core Conception, Heart One Reform, Daiwa, Premist, Initia, Grace Roi, Solasia

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.