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Powerbroker for

Select an assessment year:

  • Overall approach
    8/16
    • Overarching commitment on deforestation
      4/6
      Deforestation commitment
      Zero-deforestation
      4/6
      "We will procure 100% FairWood products to realize Zero Deforestation, which is linked to the destruction of ecosystems."
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Which initiatives?: UN Global Compact
      Company is a signatory to the UN Global Compact
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: operational, financial
      "As societal circumstances change at an accelerated pace, corporate operations are also exposed to various evident and potential impacts. In order to create value with a business, it is not enough to make a plan based on the current forecast. With a focus on sustainability, the Sekisui House Group analyzes medium- and long-term trends that may affect value creation, identifies risk factors, and positions itself for opportunities through future business development. [...] Change in the ecosystem due to climate change and loss of biodiversity [...] During construction, growing demand for consideration of local ecosystems and changing vegetation"
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Not specified

      Which commodities does it apply to?: Timber
      Protect ecosystems and Sustainable wood procurement ratio are listed as ESG initiatives covered by the committee - "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. [...] Members of the CSR Committee are chosen through a resolution of the Board of Directors. The Chairman and Representative Director serves as the Chair, and the Vice Chairman as well as the President and Representative Director serve as Vice Chairs."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
    • Disclosure of conservation activity
      No
      0/0
      How many hectares of conservation area are being supported or facilitated by the company on land it does not own or manage?: 1.09 million trees
    • Disclosure of reforestation activity
  • Commodity score
    21/84
    • Timber
      27/84
      • Commitment Strength
        11/28
        • Commitment to protect priority forests
          11/17
          • Commitment details
            Zero-gross deforestation
            8/10.7
            Commitment to protect priority forests
            Zero-gross deforestation
            8/10.7
            Which certification schemes are used?: FSC
            "We will procure 100% FairWood products to realize Zero Deforestation, which is linked to the destruction of ecosystems." "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
          • Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            "We will procure 100% FairWood products to realize Zero Deforestation, which is linked to the destruction of ecosystems." "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
          • Target date
            2031-2050
            0/2
            Target date
            2031-2050
            0/2
            "We will procure 100% FairWood products to realize Zero Deforestation, which is linked to the destruction of ecosystems." "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
          • Interim target date
            No
            0/1
            Interim target date
            No
            0/1
            "We will procure 100% FairWood products to realize Zero Deforestation, which is linked to the destruction of ecosystems." "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          No
          0/4
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Certification
          "We also embarked on the revision of the social aspects of our Wood Procurement Guidelines [...] One of the objectives of the revision is to give greater consideration to small-scale wood producers who have difficulties obtaining certification for their wood products due to economic restraints, but contribute to the economic independence of their local communities by engaging in sustainable forestry (known as agroforestry) supported by NGOs. We revised our point allocation criteria in a manner that recognizes the contribution of such small-scale producers"
        • 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 commitment
          0/4
      • Reporting and Implementation
        12/38
        • Reporting against commitments
          3/6
          • Commitment to protect priority forests
            Yes
            3/3
            Commitment to protect priority forests
            Yes
            3/3
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          2/4
          • Commitment to protect priority forests
            Yes: third-party
            2/2
            Commitment to protect priority forests
            Yes: third-party
            2/2
            Which tools, approaches, third-party verification, including certification, schemes are used?: Certification scheme

            Which processes or groups does the company use for third party verification?: FSC
            "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
          • Commitment to a traceable 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
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Source wood products from areas with relatively low risk of illegal logging [...] Since 2006, we have been conducting annual surveys on the procurement status of about 50 suppliers of wood building materials, receiving reports on the legality of the procured lumber"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the compliant volume?: 95%

          What is the non-certified/non-compliant volume?: 5%

          Which certification schemes are used?: FSC

          What is the certified volume?: 66%
          Company reports in 2019 of using 28,800 m3 of wood products of which 81% is ranked S and 15% as being rank A - "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: annually
          "In order to deepen mutual understanding and ensure compliance with our procurement policies, 150 of our major suppliers participate in our annual policy briefings. We offer opportunities for mutual motivation at these briefings by explaining our newest management plans, procurement policies and product strategies, sharing information intended to act as guiding principles for our suppliers, honoring outstanding companies and viewing presentations regarding successful initiatives."
        • 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
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: consultancy and collaboration

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "In recent years, we have been working on reducing our Rank C lumber [3rd lowest rank out of 4, scoring poorly on Sekisui's guidelines] and through improvement efforts and collaboration with our suppliers, we lowered our ratio of Rank C lumber by two points. Supplier awareness regarding procurement is growing in line with the enforcement of the Clean Wood Act and broadening concern for SDGs, so we will use this opportunity to strengthen consulting for each of our suppliers while promoting the spread of [Corporate Social Responsibility] procurement."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper *
      10/84
      • Commitment Strength
        2/28
        • Commitment to protect priority forests
          2/12
          • Commitment details
            Sustainability commitment
            2/8
            Commitment to protect priority forests
            Sustainability commitment
            2/8
            "verify that at least 70% of the wood used in construction was certified in Japan, and that other wood-derived materials were obtained from appropriately managed forests, including paper products such as wallpaper and fusuma paper. A confirmation effort was undertaken to ensure that this material was derived from appropriately managed forests. We were able to gain knowledge and expertise regarding forest certified houses through our efforts to obtain detailed information from all suppliers; this included tree species, production areas, and whether local NGOs had indicated any issues. We are considering using this experience to provide new choices in the housing we offer in the future."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to reduce use of virgin wood fibre
          0/8
          • Commitment details
            No
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        0/18
        • Labour rights in the supply chain
          No
          0/4
        • 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 commitment
          0/4
      • Reporting and Implementation
        8/38
        • Reporting against commitments
          2/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            "verify that at least 70% of the wood used in construction was certified in Japan, and that other wood-derived materials were obtained from appropriately managed forests, including paper products such as wallpaper and fusuma paper. A confirmation effort was undertaken to ensure that this material was derived from appropriately managed forests. We were able to gain knowledge and expertise regarding forest certified houses through our efforts to obtain detailed information from all suppliers; this included tree species, production areas, and whether local NGOs had indicated any issues. We are considering using this experience to provide new choices in the housing we offer in the future."
          • Commitment to reduce use of virgin wood fibre
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • 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
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Source wood products from areas with relatively low risk of illegal logging [...] Since 2006, we have been conducting annual surveys on the procurement status of about 50 suppliers of wood building materials, receiving reports on the legality of the procured lumber"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the certified volume?: 66%

          What is the non-certified/non-compliant volume?: 5%

          What is the compliant volume?: 95%
          Company reports in 2019 of using 28,800 m3 of wood products of which 81% is ranked S and 15% as being rank A - "In fiscal 2019, we were able to achieve our management target of a 95% ratio for Rank S and Rank A lumber. Although we do not set targets for use of certified materials alone in consideration of the healthy development of community forestry, 66% of all our wood building materials, including those used for interior installation, and 93% of structural wood we use, are FSC/PEFC certified (including certified processed wood)."
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          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
    8/28
    Avg. score
  • Reporting and Implementation
    11/38
    Avg. score
  • Social considerations
    3/18
    Avg. score

Profile

Sekisui House is a Japanese construction company with numerous subsidiaries spanning real estate, remodelling, manufacturing and financial management, among others. It specialises in the construction of prefabricated housing, offering both steel and timber frame solutions. As a market leader in this field Sekisui House is exposed to the forest risk commodity timber. Sekisui House Ltd. 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

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.