Download data

Powerbroker for

Select an assessment year:

  • 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"
    • 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
    • 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."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      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

      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
      "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"
    • 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."
    • 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."
  • Commodity score
    16/90
    • Timber
      20/90
      • Commitment Strength
        6/17
        • Commodity-specific deforestation commitment
          6/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            When was this commitment set?: 2006

            Which certification schemes are used?: FSC; PEFC
            "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)."
          • 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)."
          • 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"
        • 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."
        • 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."
        • 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
        • 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"
        • 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."
        • 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
          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          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
          "Volume of wood procured 2021 285,722 m3 97.2% of which is S and A lumber"
        • 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
          What percentage of the company's supply chain volume does that represent?: NA

          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
          "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"
        • 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."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper *
      7/90
      • Commitment Strength
        1/17
        • Commodity-specific deforestation commitment
          1/9.5
          • Commitment details
            Sustainability commitment/other
            1/6
            Commodity-specific deforestation commitment
            Sustainability commitment/other
            1/6
            Type of sustainability commitment: Reduce the volume of virgin wood fibre used in paper and packaging products through usage of recycled content

            When was this commitment set?: NA

            What paper/pulp product does their commitment apply to?: Paper products
            "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
            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
          • 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"
        • 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."
        • 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."
        • 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"
        • 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."
        • 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
HQ
HQ 
Japan
Company Type
Company type 
CO
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.