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Powerbroker for

Select an assessment year:

  • Overall approach
    4/12
    • Overarching commitment on deforestation
      0/4
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      "We are committed to procuring 100% FairWood products to contribute to Zero Deforestation"
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Sekisui is a signatory to the UN Global Compact
    • Awareness of the value of forests
      1/1
      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."  
    • 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, financial
      "As social conditions continue to shift at an accelerated rate, formulating plans to create value through a business based on current predictability can be an inadequate approach. 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. These solutions are then reflected in medium- and long-term planning of our business strategies. [...] Ecosystem conservation [...] Next 30 Years [...] Change in the ecosystem due to climate change and loss of biodiversity [...] Risks [...] During construction, growing demand for consideration of local ecosystems and changing vegetation [...] Opportunities [...] Increasing need for tree planting and other ecosystem conservation initiatives Growing awareness of material certification and ease of procurement"
    • High-level management of deforestion
      1/1
      Yes
      1/1
      Within the CSR Committee are the Sustainability and Evironment committees. They are responsible for "Promot[ing] major initiatives based upon the sustainability declaration" and "Promot[ing] environmental measures through company environment meeting"
    • 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
      What is the target date for the company to achieve their climate target?: 2050

      Type of climate target: Net-zero emissions
      "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."
  • Commodity score
    21/88
    • Timber
      27/88
      • Commitment Strength
        6/20
        • Commitment to protect priority forests
          7/11
          • Commitment details
            Zero-gross deforestation
            5.3/8
            Commitment to protect priority forests
            Zero-gross deforestation
            5.3/8
            "We are committed to procuring 100% FairWood products to contribute to Zero Deforestation. [...] 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 fiscal 2006. In fiscal 2020, it reached 97%, exceeding the target of 95.5%. One of the characteristics of our guidelines is that we do not make the adoption of forest-certified materials an absolute or sole procurement standard. This is because we must consider producers who are working on sustainable community forestry, such as agroforestry under the guidance of experts, even if they cannot obtain certification due to the onerous cost of doing so."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "We are committed to procuring 100% FairWood products to contribute to Zero Deforestation. [...] 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 fiscal 2006. In fiscal 2020, it reached 97%, exceeding the target of 95.5%. One of the characteristics of our guidelines is that we do not make the adoption of forest-certified materials an absolute or sole procurement standard. This is because we must consider producers who are working on sustainable community forestry, such as agroforestry under the guidance of experts, even if they cannot obtain certification due to the onerous cost of doing so."
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • 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: UNGP; Discrimination; Forced labour; Child labour; Freedom of association
          "We strictly prohibit any form of forced labor and child labor. We shall continue to promote the creation of a corporate structure with zero tolerance for any discrimination [...] We respect the freedom of association and the right to collective bargaining."; "We therefore ask that you consent to Sekisui House’s separately established Human Rights Policy* and that you kindly submit a confirmation of consent to these guidelines, indicating your understanding of their purpose and content. We also ask that you inform your trading partners of these guidelines. In addition, please note that we may conduct periodic reviews or audits of the status of your efforts, and ask for your cooperation at such times."
        • 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
        16/50
        • 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
            "We are committed to procuring 100% FairWood products to contribute to Zero Deforestation. [...] 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 fiscal 2006. In fiscal 2020, it reached 97%, exceeding the target of 95.5%. One of the characteristics of our guidelines is that we do not make the adoption of forest-certified materials an absolute or sole procurement standard. This is because we must consider producers who are working on sustainable community forestry, such as agroforestry under the guidance of experts, even if they cannot obtain certification due to the onerous cost of doing so."
          • Commitment to a traceable supply chain
            No
            0/2.5
        • 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 tools, approaches, third-party verification, including certification, schemes are used?: FSC and PEFC

            Which processes or groups does the company use for third party verification?: FSC and PEFC
            "The utilization rate of certified materials is managed as a reference value, and 65% of all our wooden building materials, including interior equipment, and 94% of our structural materials alone are certified materials such as FSC/PEFC (including certified processed materials)"
          • 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
          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 total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 251,000 m3
          Sekisui House Ltd. report 124,000 tonnes and 251,000 m3 of lumber input into production in 2020.  
        • Report verified volumes of commodity
          80-99%
          4/6
          Report verified volumes of commodity
          80-99%
          4/6
          What is the compliant volume?: 97%

          What is the certified volume?: 65%

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 97%

          What third-party verification is used?: FSC/PEFC
          Sekisui House Ltd. report 124,000 tonnes and 251,000 m3 of lumber input into production in 2020.  "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 fiscal 2006. In fiscal 2020, it reached 97%, exceeding the target of 95.5%. [...] The utilization rate of certified materials is managed as a reference value, and 65% of all our wooden building materials, including interior equipment, and 94% of our structural materials alone are certified materials such as FSC/PEFC (including certified processed materials)."
        • 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
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: not disclosed
          "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. "  
        • 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
          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 *
      8/88
      • Commitment Strength
        1/20
        • Commitment to protect priority forests
          1/8
          • Commitment details
            Sustainability commitment/other
            1/6
            Commitment to protect priority forests
            Sustainability commitment/other
            1/6
            "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
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Location
            Japan only, and 70% coverage
          • Target date
            No target date
            0/0.7
          • 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: UNGP; Discrimination; Forced labour; Child labour; Freedom of association
          "We strictly prohibit any form of forced labor and child labor. We shall continue to promote the creation of a corporate structure with zero tolerance for any discrimination [...] We respect the freedom of association and the right to collective bargaining."; "We therefore ask that you consent to Sekisui House’s separately established Human Rights Policy* and that you kindly submit a confirmation of consent to these guidelines, indicating your understanding of their purpose and content. We also ask that you inform your trading partners of these guidelines. In addition, please note that we may conduct periodic reviews or audits of the status of your efforts, and ask for your cooperation at such times."
        • 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
        3/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            Commitment to protect priority forests
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            "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
            0/1.7
          • 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
          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
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • 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
    4/20
    Avg. score
  • Reporting and Implementation
    12/50
    Avg. score
  • Social considerations
    4/18
    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.