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ESG
Working to Improve Corporate Value and Business Value asa Leading Company in ESG Management
For theSekisui House Group, ESG management is simply a way of putting its corporate philosophy into practice. By promoting it at all Group companies, we will make clearer, both inside and outside the Group, our aim of becoming a leading company in ESG management.
ESG Management at the Sekisui House Group
Three Elements of ESG Management Promotion
In order to be continually sought after by society as a leading company in ESG management, it is important to think and act on how we respond to all stakeholders and how we can make them happy.We have therefore identified three key elements for promoting ESG management: participation of all employees, forwardthinking initiatives, and improvement of external evaluations. Forward-thinking initiatives are new challenges that the Group keeps taking on, such as Green First Zero, the Well-Being Survey and childcare leave for male employees. By promoting these key elements, solving social issues, fostering employees who can relate to ESG concept themselves and taking actions with the Participation of All Employees, we will open a path to becoming a leading company in ESG management.
The participation of all employees is the most important of the three elements in ESG management, so we have structured a platform that encourages all employees to recognize, understand and embrace ESG.
A Platform That Links Recognition and Action


ESG Management Basics: The Starting Point for ESG Implementation
We have determined core future themes for each category, and will deploy them when implementing ESG dialogues and other elements of the ESG Basics that are the starting point on action for ESG.

All Employees to Participate in ESG Dialogue in Order to Make ESG a Personal Matter

Participants in ESG dialogue are deepening their understanding of ESG management by internalizing it, in ways such as paying attention to happiness in values other than their own.
Themes for 2022 initiatives are innovation, social contribution activities, individual and workplace happiness, and self-directed ESG. Facilitators who are Group employees will take the lead in selecting dialogue topics from these four themes. Small groups of four or five people will discuss their selected theme to encourage awareness. Ongoing ESG dialogue will instill a personal understanding of ESG management among all employees.

International Business ESG management initiatives
ESG Topics
> Addressing ESG in the U.S. Homebuilding Business > Sekisui House Australia holds “Try’a Trade” work experience event in Queensland (click to launch pop-up window for details) > Woodside Homes collaborates with St. Jude Children’s Research Hospital charity event (click to launch pop-up window for details) > The first SHAWOOD concept home in the U.S.A. was unveiled at IBS 2020.United States
ELeading the way to a decarbonized society
Raising environmental awareness in the community through large-scale park development coupled with the Gohon no ki Project
The ongoing Tehaleh Community Development Project located on
a 19-square-kilometer site near Seattle is a large-scale development
of 9,500 planned dwelling units alongside commercial, office, and
R&D facilities. Discovery Park, an extensive 7.3-hectare project, is
currently under construction. Working together with the residents,
we have created a conceptual plan that creates synergies with other
preservation zones and open spaces in the surrounding area.
In addition, from a location adjacent to the local elementary
school, we have planted native tree species and installed birdhouses as
part of the Gohon no ki Project so that young people in the area can
learn more about the natural environment.
Here, we are developing an environment in which plants
naturally pollinate and
are creating spaces that
make local residents
more aware of the
need to live in harmony
with nature.

The Tehaleh Project
Collaborating with Woodside Homes to develop more environment-friendly products
California, a state committed to environmental conservation,
has been proactive at enacting environmental legislation. Laws
mandating reductions in greenhouse gas emissions have been
enacted, and legislation requiring new homes to be equipped with
photovoltaic panels was introduced in 2020, marking the first
time such a policy has been adopted in the U.S.A.
Our subsidiary, Woodside Homes, is strengthening the
development of environment-friendly products to promote Zero
Net Energy (ZNE, the U.S. equivalent of ZEH) housing in line
with revisions to the state’s environmental and energy-efficiency
standards for buildings.
In Glendale, Arizona, plans are under way to obtain LEED
Certification* for an environment-friendly community that is
scheduled to open in 2022.
*Leadership in Energy and Environmental Design, an environmental performance evaluation and certification system for buildings and sites that was developed and operated by the US Green Building Council (USGBC)

A home office setting in a model home
SPursuing the potential of the home
Offering options for healthy home living
In October 2020, Woodside Homes introduced the Healthy Home Package, which embodies the idea that the health of residents is of paramount importance. Furthermore, in December, the company released the Conscious Comfort Package, an option that combines solar panels, high-performance thermal insulation, and high-efficiency home appliances to offer a comfortable way of life that is also eco-friendly.
Our “concept home” exhibit at IBS 2020 paved the way to our new SHAWOOD pilot project.
In January 2020, we became the first* Japanese house builder to
exhibit at the largest U.S. trade show for the housing industry,
the International Builders’ Show (IBS) in Las Vegas. There, we
constructed and opened to the public the first SHAWOOD
concept home in the United States (Sekisui House’s original
wooden house model). Built to the U.S. equivalent of ZEH
housing, it incorporates Bellburn porcelain panels for exterior
walls that offer fire protection and low maintenance. It also
features high seismic resistance, solar power generation, and
storage batteries. It was highly evaluated by the participants for
suggesting ways to address societal issues that have arisen in the
United States.
Following the display of this concept home project at IBS,
a new SHAWOOD pilot project was launched in April 2020.
These efforts represent a valuable opportunity for us to convey
our commitment to making a better society through housing
while aiming to resolve issues through the export of SHAWOOD
technology to the U.S.A.
*Our research of various display materials suggests we were the first Japanese housebuilder to exhibit at IBS, an annual housing fair that attracts more than 85,000 participants involved in the construction industry as well as institutional investors from around the world. A “concept home” is a full-size model home exhibited by a selected company. We constructed our concept home exhibit at IBS 2020 in collaboration with Woodside Homes.

Interior view of the SHAWOOD concept home built to ZEH specifications and featuring high seismic resistance
SCoexisting with local communities
Contributing to local communities by participating in charities and other events
Since 2019, Woodside Homes has been contributing to the Dream
Home Giveaway*¹
, a series of charity events held by St. Jude
Children’s Research Hospital*²
. After its initial participation in Las
Vegas, the company added the Sacramento event in 2020 and
continued participating in 2021.
These events are held in about 40 cities across the U.S.A.
Woodside Homes covered almost all the construction and material
costs associated with construction of the lottery homes in Las
Vegas and Sacramento. By supporting the activities of St. Jude
hospital, it is helping to improve pediatric medical services in the
U.S.A.
Woodside Homes also contributes to local communities by
participating in various charity events, while its employees take
part in local cleanup events.
*1: A charity lottery in which a portion of solicited donations, in the form of houses and
land, are awarded to the lottery winners
*2: Established in Memphis, Tennessee in 1962, this globally renowned pediatric
treatment and research facility provides medical treatment to children and supports
their families free of charge.

Groundbreaking ceremony for the home provided by Woodside Homes to the Dream Home Giveaway charity event
SBringing together diverse capabilities
Appointments of first female corporate officer and division head announced
The percentage of female employees tends to be higher in companies outside Japan, and the number of women appointed to management positions is also increasing year by year. In 2020, the Central Valley Branch of Woodside Homes in California appointed the company’s first female branch manager; moreover, in April 2021, a female employee was appointed to the position of Chief Insight and Marketing Officer (CIMO), representing the first woman named to the position of corporate officer.
Australia

The Central Park Project features aerial gardens, impressive green walls, and reflectors to take advantage of natural light. In 2019, one of the project’s high-rise condominium buildings received the world’s highest award from the Council on Tall Buildings and Urban Habitat (CTBUH), having been evaluated as “world’s best” in both name and reality.
ELeading the way to a decarbonized society
SHINKA House, a project built to ZEH specifications
The standard specifications for SHAWOOD buildings greatly
exceed the standards for local houses in terms of sustainability
indicators; the high thermal insulation and airtightness of the
structure contribute significantly to this performance. In 2020,
SHINKA House, a pilot home built to ZEH standards equipped with
solar power generation facilities, was completed in The Hermitage,
a residential area offering for-sale housing that is currently under
development in suburban Sydney.
All our projects in Australia, whether SHAWOOD housing,
residential land development, or condominium development,
incorporate the Shin-Satoyama biodiverse garden concept and
the Gohon no ki Project that we are promoting in Japan. At the
initial stage of studying the development plan, we investigate
the topography of the planned site in detail, leave existing trees
untouched as much as possible, and devise a plan for streets and
buildings that takes advantage of local features to the maximum.
In addition, when planting trees, we focus on native species to
conserve the local ecosystem.

SHINKA House, a SHAWOOD project built to ZEH standards
Three Green Star-certified projects
Ecco Ripley, a large-scale mixed-use development in the suburbs of
Brisbane, is focused on reducing power consumption in common
areas by installing solar panels on the roofs of a commercial
parking garage. Customers are encouraged to monitor the
amount of power generated and consumed. In this way, we are
promoting our corporate policy of visualizing global warming
prevention measures. Under the Green Star rating system*
introduced by the Green Building Council of Australia (GBCA),
Ecco Ripley earned a 5 Star Green Star rating in 2015 and again in
2020. The Ripley Town Center on the site also acquired a Green
Star rating.
Together with West Village, which received a 6 Star Green
Star rating, the highest rating available, in 2017, three of our
projects have earned Green Star ratings.
*An internationally recognized sustainability rating system that evaluates buildings, equipment, communities, and other attributes of a project

Ecco Ripley’s townscape earned a 5 Star Green Star rating.
Large-scale projects utilizing Sekisui House environmental technology are under way in several locations
Brisbane’s West Village preserves the exterior structure of a former ice cream factory on the site that has been designated a historic building. Leftover tiles from the repair project were reused as sidewalk tiles. We collect 100% of the food scraps from the food service tenants in the commercial section and reuse them for biofuel and compost (a method of using microorganisms to decompose organic matter into usable compost).

West Village incorporating historic buildings
SBringing together diverse capabilities
Progress in diversity & inclusion: A female employment rate of 50%, with 8% female management
In 2020, our sales and marketing representative for West Village won the “2020 Women in Leadership Award for Excellence” sponsored by the Urban Development Institute of Australia Queensland (UDIA Queensland).
GEmbodying integrity
Initiatives to Strengthen Corporate Governance
For each project, local management and employees in charge
attend monthly project control meetings held to provide an
opportunity for reporting and decision-making.
Training on how to deal with power harassment and sexual
harassment and maintain compliance is provided on an ongoing
basis at the time of hiring and thereafter. Both local employees
and Japanese employees take these courses and work together.
A statutory accounting audit is conducted at the end of the
fiscal year, and an annual internal control audit is conducted by
Sekisui House head office.
China
We have a deep understanding of China’s history and culture, and we demonstrate our appreciation as we build sustainable housing and engage in urban development.
ELeading the way to a decarbonized society
Addressing national issues by supplying environment-friendly housing
China has the world’s highest CO2 emissions. While the entire
country is addressing its environmental issues, we are also evaluating
our building materials and specifications in order to develop projects
offering environment-friendly housing. In our Taicang I Project, we
achieved a 2 star class rating for Green Buildings in both the design
and operation divisions, the highest grade for residential construction
under the environment-friendly building evaluation system in China.
In adopting the Gohon no ki Project, we are planting a
combination of native species on the grounds of our projects. We
strive to produce a satoyama-type biodiverse landscape while creating
an environment conducive to the natural cycles of birds and butterflies.

Taicang Yuqin Garden, highly regarded as an environment-friendly building
SPursuing the potential of the home
Interior planning from the residents’ perspective and enhanced after-sales maintenance
In the Chinese housing market, houses are typically sold in a barebones state with minimal appointments. When building a home,
we believe it is essential for the builder to take responsibility for
completing the interior. We thus provide high-quality interiors and
dwelling units equipped with storage facilities adhering to a detailed
storage plan that takes into account the residents’ perspective. In
addition to our focus on construction and quality, we also offer aftersales maintenance and strive to provide reliability, safety, and peace
of mind throughout the period of residence, ensuring the satisfaction
of the homeowners.
After-sales service is provided by customer service employees who
have been assigned to each location. Among the wealthy in China,
expectations for construction management and after-sales service are
extremely high, and we are striving to establish the Yuqin brand by
providing a value experience that exceeds customer expectations.
GEmbodying integrity
Transforming our systems to strengthen corporate governance and anti-corruption measures
In fiscal 2021, we began strengthening cooperation with our
International Business Department and transformed our approval
system to require double- and triple-checking without allowing
for independent decision-making. This initiative has helped to
strengthen our corporate governance.
We are also promoting compliance by conducting audits
through our International Auditing Office and third-party
organizations. We also hold various workshops and have instituted
an internal reporting system.
As for finance, the people responsible for financial reporting
at each special purpose company were appointed as Deputy
General Managers in fiscal 2021 in an effort to strengthen our
financial soundness.
Singapore
Our objective is to create sustainable communities in all our developments, including the One Holland Village project, which is attracting attention as a large-scale residential and commercial mixed-use development.
We are creating value by introducing Sekisui House housing developments, urban development concepts, and designs in styles that suit local environments and ways of life.
ELeading the way to a decarbonized society
Waterway Point: An energy efficiency and water conservation initiative
Featuring a beautifully landscaped promenade and large shopping mall, Waterway Point is a commercial facility that benefits from its exceptional setting alongside a canal. We developed this project in collaboration with a joint venture partner. We have implemented energy-efficiency and water conservation measures by upgrading facade lighting and sanitary equipment. In addition, following our certification of registration with the ISO 14001 international standard for environmental management systems, we are working toward registration with ISO 50001, the standard for energy management systems. In compliance with these international standards, we are promoting the construction of environmental and energy management systems as we focus on efforts targeting continuous improvement.

The Waterway Point Commercial Facility and Water Town Condominiums offered for
sale have earned a Gold-Plus rating under Singapore’s Green Mark* certification system.
*An environmental performance evaluation that defines building specifications and
performance
SPursuing the potential of the home
Suggesting ways to enhance lifestyles
One Holland Village is a multi-development project offering
housing, serviced apartments, commercial facilities, and offices.
We are promoting this project with our joint venture partners by
introducing our “slow living” concept. In Singapore, marketing
of residences typically tends to focus on room size, finishes,
appliance specifications, and the like, but we are working with our
local partners on a sales approach we call “lifestyle proposal” that
enables us to differentiate our offerings from our competitors.
In light of the changes brought by the COVID-19 pandemic,
we are providing value to our customers by preparing model
rooms incorporating the Sekisui House child-friendly housing
design concept of Kodomo idokoro as well as innovative ideas for
those working from home.
Common to All Countries
GEmbodying integrity
Strengthening governance through close collaboration with Japan
To maintain open communication, we hold separate meetings twice monthly with our local subsidiaries in each country in which we operate.
Providing a full English-language edition of our corporate philosophy
As we expand our business into other countries, we have published our corporate philosophy in an English-language edition for the benefit of employees outside Japan. We believe it is essential that all employees develop a deep understanding of our corporate philosophy as they engage in their business activities. Going forward, we intend to develop a related training system as we disseminate our corporate philosophy across the globe.
Activities of the International Auditing Office and establishment of our internal reporting system
We established our International Auditing Office in April 2019, and in June 2020 we set up the Sekisui House Global Helpline as an internal reporting system for employees of subsidiaries in English-speaking countries. It provides a point of contact with third-party law firms, while a separate point of contact has been established for employees of our subsidiaries in China.
Strengthening risk management by formulating response guidelines for crises occurring outside Japan
As part of our efforts to strengthen our risk management, we are developing guidelines for responding to crises that occur outside Japan. We have also developed a common understanding and attitude toward crisis response. The system we are building enables our head office and locations outside Japan to respond in a timely manner with a broad multifaceted approach.