Sekisui House : Section７ Data

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

SEKISUI HOUSE Value Report

172

Value Creation Story

Mechanisms and Catalysts

Strategies and Initiatives

Mid-Term Management Plan

ManageManagement Foundationndation

ESG Management

Data

CONTENTS

for Creating Value

for Sustainable Growth

7Section

Data

1. Environmental Data

1. Social Data

1. Governance Data
2. Independent Third-Party Assurance Report
3. 10-YearHighlights (Consolidated)

1. Financial Analysis

1. Sales and Operating Income by Segment
2. Company Information
3. Share Information
4. Consolidated Financial Statements

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

SEKISUI HOUSE Value Report

173

Value Creation Story

Mechanisms and Catalysts

Strategies and Initiatives

Mid-Term Management Plan

ManageManagement Foundationndation

ESG Management

Data

CONTENTS

for Creating Value

for Sustainable Growth

Environmental Data

Themes	KPI	Unit	2017	2018	2019	2020		2021	2022
Results	Results	Results	Results	Targets	Results	Targets
	Ratio of detached ZEH homes 1	%	76	79	87	91	89	92	90
	Number of ZEH units for rent 2	%	-	-	-	-	-	-	50
	Housing units	-	380	450	2,976	1,800	8,501	-
	Number of ZEH condominiums for sale	Housing units	-	12	-	32	196	192	540
	Ratio of ZEH condominiums for sale 3	%	-	-	-	-	35.0	39.4	85.0
Contributing to	Idocoro Dan-netsu	Housing units	−	−	−	1,005	1,200	1,338	1,250
a Decarbonized Society	(location-based insulation upgrades) 4
	RE100 achievement rate 5	%	−	−	1	16.4	25	33.5	35
	CO2 emission reduction rate for new housing 6	%	36.1	38.1	41.6	54.7	45% reduction	55.5	45% reduction
	by FY2030	by FY2030
	Rate of CO2 emissions reduction from	%	19.1	22.0	28.2	39.2	75% reduction	46.6	75% reduction
	business operations 7	by FY2030 14	by FY2030 14
Biodiversity Conservation	Biodiversity-friendly tree planting 8	Thousand	14,090	15,020	16,110	17,090	18,000	18,100	19,000
trees
	Waste rate (new construction) 9	%	5.5	5.5	5.8	5.8	5.5	5.4	5.2
Resource Recycling	Waste recycling rate (new construction) 10	%	100	100	100	100	100	100	100
	Waste recycling rate	%	95.5	94.9	94.3	92.8	90% or higher	95.6	90% or higher
	(maintenance and remodeling) 11
	Supplier science-basedtarget-setting rate 12	%	−	−	−	18.6	80% by FY2030	22.2	80% by FY2030
Supply Chain Management
Sustainable wood procurement ratio 13	%	91.9	93.6	95.3	97.0	97.2	97.2	97.4

• 1. ZEH ratio of contracted and for-sale housing in areas other than Hokkaido
• 2. Ratio of orders placed for ZEH Ready or higher units (includes only units for which photovoltaic power is purchased from tenants; number of units through FY2021)
• 3. Cumulative number of completed units ranked ZEH Oriented or higher. Target for ratio to sales increased for FY2022
• 4. Number of units renovated to Idocoro Dan-netsu concept with partial thermal insulation and heating systems
• 5. Ratio of the amount of post-FIT photovoltaic power and other power purchased by Sekisui House Owner Denki to the total amount of electricity consumed in our business operations
• 6. Scope 3 Category 11 emissions reduction rate relative to FY2013 levels. Calculation is based on the current science-based target boundary (excluding Konoike Construction Co., Ltd.)
• 7. Scope 1 and 2 emissions reduction rate relative to FY2013

Konoike Construction Co., Ltd. became a wholly owned subsidiary in FY2019. We enable time series comparability for emissions by retroactively adding Konoike's CO2 emissions for FY2013 to Sekisui House Group CO2 emissions for FY2013, which is the baseline year for the Group's planned CO2 emissions target. We have also adjusted emissions reduction by retroactively adding Konoike's emissions to the Group's for FY2017 through FY2019. In addition, our methodology has changed beginning with this report. We now include energy (electric power, light oil, gasoline, kerosene) that partner companies use in Scope 3. We have recalculated the reduction rate by retroactively adding CO2 emissions from fiscal 2013, which is the baseline year for the Group's CO2 emissions target, and CO2 emissions from FY2017 through FY2020.

• 8. Cumulative number of trees planted under the Gohon no Ki Project
• 9. Waste ratio from raw material production and resource inputs for new industrialized housing products
  10. Waste recycling rate for new industrialized housing products
  11. Waste recycling rate for maintenance and remodeling work
  12. Percentage of our major suppliers who have adopted science-based targets
  13. Procurement ratio of Rank S and Rank A wood products (according to Wood Procurement Guidelines)
  14. We are considering an increase in the target reduction rate including Konoike Construction in line with the 1.5° C scenario.

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

SEKISUI HOUSE Value Report

174

Value Creation Story

Mechanisms and Catalysts

Strategies and Initiatives

Mid-Term Management Plan

ManageManagement Foundationndation

ESG Management

Data

CONTENTS

for Creating Value

for Sustainable Growth

Environmental Data

Material balance (monitoring of environmental impact of business activities in FY2021)

To make its environmental-conservation activities as effective as possible, the Sekisui House Group monitors and reports on environmental impacts at each stage of the housing-product lifecycle, including development and design, factory production, construction and demolition in Japan and overseas.

INPUT

Energy	176,401 MWh		Energy	138,269 MWh		Energy	40,247 MWh
Electricity	49,636	MWh		Electricity	43,027	MWh		Electricity	16,405	MWh
Gasoline	11,433	kl		Natural gas	3,592	thous. m3		Light oil	2,135	kl
Light oil	316	kl		LPG	1,796	t		Gasoline	133	kl
Natural gas	517	thous. m3		LNG	1,471	t		Kerosene	20	kl
Propane gas	46 thous. m3		Kerosene	182 kl
Kerosene	25	kl		Light oil	61	kl
Cold water / hot water / steam	19,526	GJ		Gasoline	20	kl
Water	248 thous. m3		Water	612 thous. m3		Water	216 thous. m3
Municipal water	248	thous. m3		Municipal water	134	thous. m3		Municipal water	216 thous. m3
				Industrial-use water	22	thous. m3
				Groundwater	457 thous. m3

Below are the figures for energy consumption, water consumption, waste, and CO2 emissions resulting from the demolition of old buildings prior to new construction.

Energy

- MWh

Energy, CO2 emissions and other data for demolition for FY2021 are not subject to disclosure due to restrictions on data aggregation. Aggregation is planned from FY2022.

Water	- thous. m3
Municipal water	- thous. m3

Business activities

OUTPUT

Development

Factory

Construction 1

Demolition

and design

production

CO2 emissions

45,887 t-CO2

CO2 emissions

29,304 t-CO2

CO2 emissions

12,997 t-CO2

CO2 emissions

- t-CO2

Waste 2

86 t

Waste

13,228 t

Waste

630,358 t

Waste

377,765 t

(Recycling rate: 76.7%)

(Recycling rate: 100%)

(Recycling rate: 97.1%)

(Recycling rate: 96.7%)

Paper

59

t

Glass/ceramics

4,411

t

Concrete

258,604

t

Concrete

195,199

t

Other

27

t

Metal

5,103

t

Sludge

172,300

t

Wood

78,618

t

Sludge

1,836

t

Debris, etc.

27,919

t

Debris, etc.

37,100

t

Wood

1,034

t

Asphalt concrete

42,407

t

Mixtures

Other

843

t

Other

129,128

t

(including those properly controlled)

20,749

t

Other

46,098

t

1. We have changed the method for recognizing CO2 emissions from energy used during construction by partner companies that have no capital relationship with the Group to Scope 3 Category 1 from FY2021. Therefore, energy used by partner companies during construction is not included in the energy data above. Energy consumption was 160,399 MWh, and the CO2 emissions were 44,689 t-CO2 when calculated using the conventional method.
2. Emissions from the head office building

Notes 1 The unit of energy consumption (total) changed from GJ to MWh in FY2021.

Notes 2 All the figures for waste from business activities include valuables.

Notes 3 Scope: The subjects of this survey are Sekisui House (non-consolidated basis), its major consolidated subsidiaries in Japan (38 companies), and major consolidated subsidiaries overseas (12 companies).

Period: The data is for FY2021 (from February 2021 to January 2022). The figures include estimates in cases where final data was unavailable at the time of calculation.

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

SEKISUI HOUSE Value Report

175

Value Creation Story

Mechanisms and Catalysts

Strategies and Initiatives

Mid-Term Management Plan

ManageManagement Foundationndation

ESG Management

Data

CONTENTS

for Creating Value

for Sustainable Growth

Environmental Data

Data calculation standards

Activities	Environmental index	Calculation method
		• Energy consumption and CO2 emissions at Sekisui House (non-consolidated basis), 38 major domestic consolidated subsidiaries and 12 major overseas consolidated subsidiaries
		• Beginning with FY2021, the unit for energy consumption (total) has changed from GJ to MWh. Energy consumption (GJ) = [ (Purchased electricity) + ∑ [(Fuel consumption) × (Calorific value per unit of fuel ] ] ÷
		3.6 (GJ/MWh)] + ∑ (Heat consumption ÷ 3.6 (GJ/MWh) (including the calculated performance of U.S. offices, which is partially estimated). Calorific values per unit of electricity/fuel refer to those specified in the Law
	Energy and CO2	Concerning the Promotion of the Measures to Cope with Global Warming*.
Development and design		• CO2 emission (t-CO2) = [ (Purchased electricity) × (CO2 emission factor) + ∑ [(Fuel consumption) × (Fuel CO2 emission factor)] + ∑ [(Heat consumption) × (Heat CO2 emission factor)] ]
		Domestic CO2 emission factors refer to those specified in the Law Concerning the Promotion of the Measures to Cope with Global Warming* while overseas electricity CO2 emission factors are based on the "CO2
		Emissions from Fuel Combustion 2019 (IEA)."
	Waste	• Amount of waste generated from Sekisui House (non-consolidated basis) head office including consolidated subsidiary offices in the same building
		• Energy consumption and CO2 emissions at Sekisui House's (non-consolidated basis) five domestic factories, and the Ingleburn Manufacturing and Quality Control Centre (Australia)
		• Beginning with FY2021, the unit for energy consumption (total) has changed from GJ to MWh. Energy consumption (GJ) = [ (Purchased electricity) + ∑ [(Fuel consumption) × (Calorific value per unit of fuel) ] ÷ 3.6 (GJ/MWh).
	Energy and CO2	Calorific values per unit of fuel refer to those specified in the Law Concerning the Promotion of the Measures to Cope with Global Warming.*
	• CO2 emission (t-CO2) = [ (Purchased electricity) × (CO2 emission factor) + ∑ [(Fuel consumption) × (Fuel CO2 emission factor)] ]. CO2 emission factors for electricity and fuel refer to those specified in the Law
Factory production
	Concerning the Promotion of the Measures to Cope with Global Warming while electricity CO2 emission factors at the Ingleburn Manufacturing and Quality Control Centre (Australia) refer to those specified in the
		"CO2 Emissions from Fuel Combustion 2019 (IEA)."
	Waste	• Amount of waste generated from Sekisui House's (non-consolidated basis) five domestic factories
		• Electricity, fuel and other inputs that Sekisui House (non-consolidated basis), Sekiwa Construction (15 companies), and Konoike Construction use in construction and civil engineering work. Data for Konoike
		Construction include demolition work associated with construction and civil engineering work and discrete demolition projects.
		• Beginning with FY2021, the unit for energy consumption (total) has changed from GJ to MWh. Energy consumption (GJ) = [ (Energy consumption mentioned above) × (Calorific value per unit of energy use) ] ÷
		3.6 (GJ/MWh)
	Energy and CO2	• Energy consumption and CO2 emissions resulting from construction by Konoike Construction refer to those resulting from domestic construction/civil engineering work it supervises (excluding demolition work).
		The fuel consumption by construction machinery is calculated from the number of operating days of construction machinery using the Japan Construction Machinery and Construction Association's loss table for
Construction		construction machinery. Energy consumption and CO2 emissions are only estimated for small-scale construction work at contracted amounts of less than ¥100 million.
	• CO2 emissions are calculated by multiplying the energy consumption mentioned above by the CO2 emission factor for each energy type.
		(CO2 emissions resulting from commuting by construction employees of partner companies that have no capital relationship with the Group are based on FY2020 results and included in Scope 3, Category 7.)
		• Amount of waste generated from new construction, maintenance and remodeling by Sekisui House (non-consolidated basis), 15 Sekiwa Construction companies and Sekisui House Remodeling.
	Waste	• Amount of waste generated from Konoike Construction's domestic construction/civil engineering work. Data for Konoike Construction include demolition work associated with construction and civil engineering
		work and discrete demolition projects.
Demolition	Waste	• Amount of waste generated from demolition of houses and buildings by Sekisui House (non-consolidated basis), 15 Sekiwa Construction companies and Sekisui House Remodeling.

• Calorific value per unit of energy and CO2 emission factor are based on the Law Concerning the Promotion of the Measures to Cope with Global Warming. "Emission Factors by Electric Utility Operator" announced by the Ministry of the Environment and the Ministry of Economy, Trade and Industry on January 7, 2022 and partially revised on February 17, 2022) are used for the emission factors for specified emitters.

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

SEKISUI HOUSE Value Report

176

Value Creation Story

Mechanisms and Catalysts

Strategies and Initiatives

Mid-Term Management Plan

ManageManagement Foundationndation

ESG Management

Data

CONTENTS

for Creating Value

for Sustainable Growth

Environmental Data

Value chain greenhouse gas (GHG) emissions (FY2021)

Scope 1 and 2 GHG emissions					(t-CO2e)
Scope		Description	CO2 1	HFC 2	Other 3	Total emissions	Targets
Scope 1	CO2	emissions from use of primary fuels	52,844	73	0	52,917	Sekisui House (non-consolidated basis) and 50 major consolidated subsidiaries
Scope 2 4	CO2	emissions associated with purchased electricity and heat	35,270	-	0	35,270	Sekisui House (non-consolidated basis) and 50 major consolidated subsidiaries
Total			88,114	73	0	88,187	-

1. Energy-derivedCO2 emissions resulting from Sekisui House Group's development, design, production, construction and demolition work. (CO2 emissions from energy used during construction by partner companies that have no capital relationship with the Group are recognized in Scope 3 Category 1 beginning with FY2021. Calculated using the conventional method, Scope 1 emissions were 79,782 t-CO2, Scope 2 emissions were 40,024 t-CO2, and their total was 119,806 t-CO2.)
2. Hydrofluorocarbon released by Sekisui House (non-consolidated basis)
3. CH4 (methane), N2O (nitrous oxide), PFC (perfluorocarbon), SF6 (sulfur hexafluoride), etc.
4. Calculated based on market standards (Location-based: 59,606 t-CO2 in FY2018, 55,313 t-CO2 in FY2019, 54,318 t-CO2 in FY2020, 47,337 t-CO2 in FY2021 / Market-based: 58,259 t-CO2 in FY2018, 50,808 t-CO2 in FY2019, 48,928 t-CO2 in FY2020, and 35,270 t-CO2 in FY2021)

Scope 1 and 2 GHG emissions by region					(t-CO2e)
Japan		United States	Australia	United Kingdom	China	Total
86,227	601	367	8		983	88,187
Scope 3 GHG emissions						(t-CO2)
Scope		Target category		Emissions*		Targets
		Category 1	Purchased goods and services (raw materials)	1,833,964	Sekisui House (non-consolidated basis), Konoike Construction
		Category 2	Capital goods		135,148	Sekisui House (non-consolidated basis)
		Category 3	Fuel- and energy-related activities not included in	15,564	Sekisui House (non-consolidated basis), 50 major consolidated subsidiaries
		Scope 1 or Scope 2
Upstream		Category 4	Upstream transportation and distribution (transport)	30,544	Sekisui House (non-consolidated basis), Konoike Construction
	Category 5	Waste generated in operations (business waste)	128,392	Sekisui House (non-consolidated basis), Konoike Construction
		Category 6	Business travel		5,575	Sekisui House (non-consolidated basis)
		Category 7	Employee commuting		22,385	Sekisui House (non-consolidated basis)
		Category 8	Upstream leased assets		-	(Not applicable)
			CO2 emissions from leased vehicles (Company vehicles) are included in Scope 1.
		Category 9	Downstream transportation and distribution	-	(Not applicable)
		Category 10	Processing of sold products		-	(Not applicable)
		Category 11	Use of sold products (occupancy)		2,748,656	Sekisui House (non-consolidated basis)
Downstream		Category 12	End-of-life treatment of sold products (product waste)	156,782	Sekisui House (non-consolidated basis), Konoike Construction
		Category 13	Downstream leased assets		4,785	Sekisui House (non-consolidated basis)
		Category 14	Franchise		-	(Not applicable)
		Category 15	Investment		-	(Not applicable)
			Total		5,081,794

* (CO2 emissions from energy used during construction by partner companies that have no capital relationship with the Group are recognized in Scope 3 Category 1 beginning with FY2021. Calculated using the conventional method, Scope 3 Category 1 emissions were 1,802,272 t-CO2 and Scope 3 Category 3 emissions were 18,072 t-CO2.