Download data

Powerbroker for

Select an assessment year:

  • Overall approach
    6/10
    • Overarching commitment on deforestation
      3/4
      Overall commitment
      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
      Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
      "our Group shall prevent any net loss of biodiversity by ensuring zero deforestation through material procurement"
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Daiwa House Group is a member of the UN Global Compact
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      [Translation] ”Forests have many functions. [...] soil conservation, recreation, CO2 absorption important for climate change control, wildlife habitats, etc.”
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: Not specified
      ”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
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Reduce emissions
      Yes
      0/0
      Type of climate target: Net-zero emissions

      Is this target aligned with/verified by SBTi?: No

      What is the target date for the company to achieve their climate target?: 2050
      "Through collaboration with suppliers, we aim to achieve carbon neutrality in the supply chain by 2050. [...]By 2030, we aim to reduce greenhouse gas emissions (total) in all facilities and all business processes by 50% in comparison to FY2015"
  • Commodity score
    23/90
    • Timber
      30/90
      • Commitment Strength
        13/17
        • Commodity-specific deforestation commitment
          3/4
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            What percentage of commodity production/sourcing is excluded?: NA

            What subsidiaries are explicitly included?: NA

            What subsidiaries are explicitly excluded?: NA

            What is the rationale for any exclusions?: NA
            "regarding the building materials used to constrcut houses and buildings,we are focusing on zero deforestation associated with timber procurement by 2030 and zero deforestation associated with material procurement across all our business by 2055 [...] 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
            Post 2050 or no target date
            0/1
            Target date
            Post 2050 or no target date
            0/1
            What actions or steps are identified for time-bound implementation?: zero deforestation by 2055
            2055 goal is too late to score. "regarding the building materials used to constrcut houses and buildings,we are focusing on zero deforestation associated with timber procurement by 2030 and zero deforestation associated with material procurement across all our business by 2055 [...] 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?: 2030
            "regarding the building materials used to constrcut houses and buildings,we are focusing on zero deforestation associated with timber procurement by 2030 and zero deforestation associated with material procurement across all our business by 2055 [...] 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
          6/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: NA
            "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
            2028-2030
            0.1/1
            Target date
            2028-2030
            0.1/1
            What actions or steps are identified for time-bound implementation?: Ensure all timber can be traced to logging site to verify it is legally sourced
            “We have classified the procured timber into three types: certified timber, recycled timber, and our company’s recommended timber. Any timber that meets certain criteria (scoring at least 90 points on the 110point scale) is evaluated as S-ranked timber” Daiwa House report on p.167 of their 2021 sustainability report that 95.1% of their timber was S-ranked in 2020, their 2021 target is to reach 97%. [...] by 2030, we work with suppliers to eliminate from procurement of housing and construction businesses all timber that cannot be traced to legal harvest”
          • Interim target date
            No
            0/0.5
            Interim target date
            No
            0/0.5
            What date is given for the interim milestone?: 2021
      • Associated Human Rights Abuses
        3/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Their suppliers
          "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
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          No
          0/3
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        14/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          No
          2/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          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

          For what percentage of material produced or sourced by the company has forest risk been assessed?: 100%
          "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 sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Reporting non-certified/non-compliant volume: 60.9%

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Total volume: 282,458m3

          Reporting certified/compliant volume: 39.1%

          What product types/sectors is this in?: Timber
          Daiwa House reported their total usage of timber as 282,458m3 of which 39.1% is certified and 13.5% was recycled
        • Monitor compliance for labour rights and FPIC
          No
          0/5
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          How frequently is compliance assessed?: Annually

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          How is compliance monitored?: Internal monitoring and verification systems

          What percentage of the company's supply chain volume does that represent?: 100%
          [Translation] ”In order to evaluate the legality and sustainability of the timber we procure, the Group annually conducts a timber procurement survey in line with the "Timber Procurement Assessment Report" for all of our timber suppliers. Based on the results of the survey, we rank the timber according to the presence or absence of risk, and we request suppliers who handle timber with low scores to submit an improvement plan, and are making systematic improvements. In addition, from fiscal 2022 onwards, we plan to conduct timber procurement surveys using evaluation criteria that are in line with our newly formulated zero deforestation policy.”
        • 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

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

          What criteria does the policy specify for blacklisting or exclusion?: NA

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: requesting suppliers make improvements to meet Daiwa House procurement policy

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or 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
          Yes, engaged
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 33

          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          “Our use of C-ranked timber decreased to 0.5% […] and has thus been practically eliminated. This was achieved because we requested the 33 suppliers of C-ranked timber to make improvements”
    • Pulp & Paper *
      8/90
      • Commitment Strength
        3/17
        • Commodity-specific deforestation commitment
          2/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            What subsidiaries are explicitly excluded?: NA

            What is the rationale for any exclusions?: Only applies to paper in offices not e.g. paper bags

            What percentage of commodity production/sourcing is excluded?: NA

            What subsidiaries are explicitly included?: NA

            If no, what is excluded?: Product line
            “as part of commitment to sustainable procurement, all our Group companies have been ensuring that the paper used in our offices qualifies as Forest Cultivation Paper […] including paper certified by Forest Certification schemes”
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: “as part of commitment to sustainable procurement, all our Group companies have been ensuring that the paper used in our offices qualifies as Forest Cultivation Paper […] including paper certified by Forest Certification schemes”
            “as part of commitment to sustainable procurement, all our Group companies have been ensuring that the paper used in our offices qualifies as Forest Cultivation Paper […] including paper certified by Forest Certification schemes”
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: current
            “as part of commitment to sustainable procurement, all our Group companies have been ensuring that the paper used in our offices qualifies as Forest Cultivation Paper […] including paper certified by Forest Certification schemes”
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        3/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: Their suppliers

          Details of commitment: ILO; 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
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          No
          0/3
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        2/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          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 sourced/used
          Reporting partial volumes
          2/3
          Report volumes of commodity sourced/used
          Reporting partial volumes
          1.5/3
          Total volume: 861 tonnes

          What product types/sectors is this in?: paper in their offices - but they have paper bags: https://www.daiwahouse.co.jp/sustainable/csr/pdfs/2020/en_Sustainability_All.pdf

          Reporting non-certified/non-compliant volume: NA

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Reporting certified/compliant volume: 861 tonnes
          According to their 2021 report, 861 tonnes of paper were consumed in 2020
        • Monitor compliance for labour rights and FPIC
          No
          0/5
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          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
    9/17
    Avg. score
  • Implementation and Reporting
    10/56
    Avg. score
  • Associated Human Rights Abuses
    3/17
    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 
Forest Products, Paper Packaging
Segments
Manufacturer
HQ
HQ 
Japan
Company Type
Company type 
CO
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.