Sekisui House Ltd.

Overall approach

4/10
- Overarching commitment on deforestation
  
  0/4
  
  Overall commitment
  
  Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
  
  0/4
  
  Which commodities does the commodity-specific commitment apply to?: Timber
  
  Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
  
  "We get approximately 250,000 m3 of wood annually from building materials manufacturers. For this reason, we have positioned the impact on biodiversity in logging areas as an important risk for business continuity, and have declared the goal of zero deforestation to avoid this risk."[...]"The zero deforestation concept is in line with our FairWood procurement policy, and we have declared zero deforestation for all Group companies in our plan"
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  Which initiatives?: UN Global Compact
  
  Sekisui is a signatory to the UN Global Compact
  
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Such illegal logging causes wide-spread destruction of ecosystems and exacerbates climate change, not only adversely impacting the multifaceted environmental protection of forests, but also society, as it harms the lifestyle of local residents, creates instability in the lumber market, and hinders sustainable forest management."
  
  Open source document
- Deforestation as a business risk
  
  1/1
  
  Business risk
  
  Yes
  
  1/1
  
  What type of risk is recognised?: Financial; Operational
  
  What revenue comes from industries relevant to each forest risk commodity?: NA
  
  What poportion of a company’s annual revenue depends on each forest risk commodity?: NA
  
  Type of risk if Other. Also add any relevant details: NA
  
  What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: NA
  
  "In response, the Sekisui House Group has sought to analyze medium- and long-term issues that affect value creation with relation to sustainability, identify risk factors, and position them as opportunities for future business development" Risks are outlined, including: "Change in the ecosystem due to climate change and loss of biodiversity"
  
  Open source document
- 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?: NA
  
  Which commodities does it apply to?: Timber; Pulp & paper
  
  ”The Sekisui House Group has established the ESG Promotion Committee as an advisory body to the Board of Directors to set and promote action policies while checking whether all initiatives related to ESG management are consistent with social norms and expectations. It is held once every three months. Addressing climate change is positioned as one of the important agenda items of this committee, which evaluates the adequacy and progress of action policies and reports important matters to the Board of Directors. Under the auspices of the ESG Promotion Committee, we have established a company-wide "Environmental Business Subcommittee" centered on the responsible general managers of the head office departments involved in environmental management and the environmental managers of each business department. We are conducting a more specific and detailed study. In addition, decisions made by the ESG Promotion Committee are developed and disseminated throughout the Group, including affiliated companies, through the Environmental Business Subcommittee. In order to ensure the effectiveness of management oversight through the ESG Promotion Committee, we promote initiatives through daily reports and instructions to the directors in charge of each business and management, ensuring Timely Monitoring and Supervision Functions."
  
  Open source document
- 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
  
  What is the target date for the company to achieve their climate target?: 2030 . 2050
  
  Type of climate target: Net-zero emissions
  
  Is this target aligned with/verified by SBTi?: Yes
  
  "In 2008, the Sekisui House Group introduced Vision 2050, which outlines a variety of effective initiatives to achieve zero CO2 emissions from a house throughout its life cycle. As milestones for achieving this objective, we will compare our 2030 emissions against our 2013 emissions, specifically in terms of emissions from corporate activities (Scope 1, Scope 2)*1 and emissions during the residential stage of supplied housing (Scope 3, Category 11). In 2019, we revised our SBT certification*2 with the goal of reducing these amounts by 50% and 45%, respectively."
  
  Open source document
Commodity score

16/90
- Timber
  
  20/90
  - Commitment Strength
    
    6/17
    - Commodity-specific deforestation commitment
      
      2/4
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "We get approximately 250,000 m3 of wood annually from building materials manufacturers. For this reason, we have positioned the impact on biodiversity in logging areas as an important risk for business continuity, and have declared the goal of zero deforestation to avoid this risk."[...]"The zero deforestation concept is in line with our FairWood procurement policy, and we have declared zero deforestation for all Group companies in our plan"[...]"The ratio of Rank S and Rank A wood, which represent our management targets, has been gradually increasing from 47% before the guidelines were implemented in FY2006. In FY2021, using wood ranked A and S reached 97.2%, which exceeded our target. We view the forest certification system as an effective third-party certification. On the other hand, we do not see our ranking as absolute because we believe it is necessary to consider the producers working on community forestry and small farmers who cannot obtain certification for economic reasons. The utilization rate of certified materials is managed as a reference value, and 64% of all our wooden building materials, including interior equipment, and 93% of our structural materials alone are certified materials such as FSC/PEFC (including certified processed materials)."
        
        Open source document
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
    - 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
    
    4/17
    - 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?: Throughout their supply chain
      
      Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
      
      "In order to put CSR procurement into practice not only within our company but also throughout the supply chain, we will establish CSR procurement guidelines and strive to make them widely known and instilled in and outside the company"[...]"Prohibition of discrimination in employment"[...]"freedom of association"[...]"Prohibition of child labor"[...]" Prohibition of forced labor"
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "In order to put CSR procurement into practice not only within our company but also throughout the supply chain, we will establish CSR procurement guidelines and strive to make them widely known and instilled in and outside the company"[...]"We will respect human rights, and will not make decisions or conduct business activities on the basis of birth, nationality, race, ethnicity, creed, religion, gender, sexual orientation, gender identity, age, disabilities, hobbies, educational background, family, etc."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
      
      Commitment to remediation
      
      No
      
      0/1
      
      "If we identify that we have caused or contributed to negative impacts on human rights, we strive to remediate such impacts by appropriate means."
      
      Open source document
    - 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
    
    11/56
    - Reporting proportion of compliant volumes
      
      0/0
    - Reporting is independently verified
      No
      
      0/2
      
      Reporting is independently verified
      
      No
      
      0/2
      
      Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC
      
      What methods are used for verification?: FSC, PEFC
      
      Which processes or groups does the company use for third party verification?: FSC, PEFC
      
      Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA
      
      What percent of the company's supply volume is verified using company verification systems?: NA
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA
      
      "We get approximately 250,000 m3 of wood annually from building materials manufacturers. For this reason, we have positioned the impact on biodiversity in logging areas as an important risk for business continuity, and have declared the goal of zero deforestation to avoid this risk."[...]"The zero deforestation concept is in line with our FairWood procurement policy, and we have declared zero deforestation for all Group companies in our plan"[...]"The ratio of Rank S and Rank A wood, which represent our management targets, has been gradually increasing from 47% before the guidelines were implemented in FY2006. In FY2021, using wood ranked A and S reached 97.2%, which exceeded our target. We view the forest certification system as an effective third-party certification. On the other hand, we do not see our ranking as absolute because we believe it is necessary to consider the producers working on community forestry and small farmers who cannot obtain certification for economic reasons. The utilization rate of certified materials is managed as a reference value, and 64% of all our wooden building materials, including interior equipment, and 93% of our structural materials alone are certified materials such as FSC/PEFC (including certified processed materials)."
      
      Open source document
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      " However, by encouraging suppliers to provide sustainable timber, manufacturers will be able to work in concert with suppliers to address social issues, thus establishing a collaborative relationship instead of a competitive one. In the future, we intend to practice due diligence covering all supply chains explicit in our procurement guidelines"
      
      Open source document
    - 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
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "In order to put CSR procurement into practice not only within our company but also throughout the supply chain, we will establish CSR procurement guidelines and strive to make them widely known and instilled in and outside the company"[...]"In addition to complying with domestic and international laws and regulations, we will respect social norms."
      
      Open source document
    - 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
      
      Total volume: 285,722 m3
      
      Reporting non-certified/non-compliant volume: NA
      
      What product types/sectors is this in?: Wood Products
      
      Reporting certified/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
      
      "Volume of wood procured 2021 285,722 m3 97.2% of which is S and A lumber"
      
      Open source document
    - 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
      
      How is compliance monitored?: Internal monitoring and verification systems
      
      How frequently is compliance assessed?: 'Periodically'
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
      
      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
      
      What percentage of the company's supply chain volume does that represent?: NA
      
      "We monitor suppliers flagged by the assessment results for risks involving the environment or human rights or other issues. Through on-site interviews we provide advice concerning evaluation standards and how to meet those standards, and confirm the current status of compliance as part of due diligence. In 2020, we were unable to visit sites to perform due diligence because of the global pandemic, so we used a teleconferencing system for 15 companies."[...]"We are now actively pursuing the cooperation of partner companies, both through a written agreement to adhere to the guidelines, and through periodic follow-up reviews and inspections to track the actions being taken toward adherence. Such processes help us raise awareness of social responsibility among partner companies, encourage sustainable practices, and intensify our CSR procurement effort"
      
      Open source document
    - 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 work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Advice on how to meet compliance standards
      
      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
      
      "For existing suppliers whose CSR evaluation results reveal environmental risks, we conduct due diligence by monitoring them using onsite interviews, providing advice on evaluation standards and how to meet those standards, and confirming the current state of compliance."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Pulp & Paper *
  
  7/90
  - Commitment Strength
    
    1/17
    - Commodity-specific deforestation commitment
      
      0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/2
        
        What is the rationale for any exclusions?: NA
        
        What subsidiaries are explicitly excluded?: NA
        
        What percentage of commodity production/sourcing is excluded?: NA
        
        What subsidiaries are explicitly included?: NA
        
        If no, what is excluded?: Location
        
        Japan only, and 70% coverage
        
        Open source document
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
    - 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
    
    4/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      Details of commitment: Discrimination; Forced labour; Child labour; Freedom of association
      
      How far back in the supply chain does this commitment apply?: Throughout their supply chain
      
      "In order to put CSR procurement into practice not only within our company but also throughout the supply chain, we will establish CSR procurement guidelines and strive to make them widely known and instilled in and outside the company"[...]"Prohibition of discrimination in employment"[...]"freedom of association"[...]"Prohibition of child labor"[...]" Prohibition of forced labor"
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "In order to put CSR procurement into practice not only within our company but also throughout the supply chain, we will establish CSR procurement guidelines and strive to make them widely known and instilled in and outside the company"[...]"We will respect human rights, and will not make decisions or conduct business activities on the basis of birth, nationality, race, ethnicity, creed, religion, gender, sexual orientation, gender identity, age, disabilities, hobbies, educational background, family, etc."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
      
      Commitment to remediation
      
      No
      
      0/1
      
      "If we identify that we have caused or contributed to negative impacts on human rights, we strive to remediate such impacts by appropriate means."
      
      Open source document
    - 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
    
    3/56
    - Reporting proportion of compliant volumes
      
      0/0
    - Reporting is independently verified
      No
      
      0/2
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      " However, by encouraging suppliers to provide sustainable timber, manufacturers will be able to work in concert with suppliers to address social issues, thus establishing a collaborative relationship instead of a competitive one. In the future, we intend to practice due diligence covering all supply chains explicit in our procurement guidelines"
      
      Open source document
    - 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
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "In order to put CSR procurement into practice not only within our company but also throughout the supply chain, we will establish CSR procurement guidelines and strive to make them widely known and instilled in and outside the company"[...]"In addition to complying with domestic and international laws and regulations, we will respect social norms."
      
      Open source document
    - Accessible grievance mechanism
      No
      
      0/4
    - Report volumes of commodity sourced/used
      No reporting
      
      0/3
    - 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

4/17

Avg. score
Implementation and Reporting

8/56

Avg. score
Associated Human Rights Abuses

4/17

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

Forest Products, Paper Packaging, Paper Products

Segments

Manufacturer

Japan

Company Type

Company type

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.

Full corporate sector performance data Forest 500 assessment methodology

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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.

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