Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human capital (D&I, human resources development)
• Response to climate change
• Respect of human rights
• Supply chain management

Environmental Achievements

• Achieved 100% renewable energy conversion for electricity used at construction sites by end of May 2023.
• All condominiums developed primarily by the Group (projects with design initiated in fiscal year 2022 and later) meet the net-zero energy housing (ZEH) standard.
• H-BA concrete obtained Special Evaluation Method Certification from the Ministry of Land, Infrastructure, Transport and Tourism, promoting CO2 emission reductions.

Social Achievements

• Proactive appointment of female employees to senior roles.
• Introduction of spouse maternity leave and children leave.
• Workplace Brother-Sister mentoring system and support from experienced employees to ensure personnel retention.

Governance Achievements

• Established various policies and guidelines for material issues (human capital, response to climate change, respect of human rights, and supply chain management).
• Raised minimum annual dividend per share to 80 yen.
• Set total shareholder return ratio at about 40% for five fiscal years of Plan NS.

Climate Goals & Targets

Environmental Challenges

• Steeply rising materials prices.
• Intensified competition for land acquisition.
• Shrinking number of skilled construction workers.
• Adaptation to workstyle reforms.
• Decarbonization initiatives.
• High labor intensity in Service-Related Business leading to low profit levels and productivity per person.
• Rising turnover rate among younger generation.

Mitigation Strategies

• Utilizing exclusive contracts to place orders for materials in large volumes early.
• Balanced land acquisition for commercial use.
• Factoring capital cost into Next Stage Plan acquisition criteria.
• Strengthening DX investment in Service-Related Business.
• Brother-Sister mentoring system and support from experienced employees.
• DX promotion at construction sites and in rental condominiums and paid care facilities for the elderly.

Supply Chain Management

Responsible Procurement

• Kenes Green Supply® environmental value plan of Kanden Energy Solution Co., Inc.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ZEH condominiums and houses
• H-BA concrete

Environmental Metrics

ESG Focus Areas

• Human capital (D&I and human resources development)
• Response to climate change
• Respect of human rights
• Supply chain management

Environmental Achievements

• 100% conversion of electricity used at Haseko Corporation construction sites to renewable energy sources (May 2023), aiming for 100% across all Group construction sites by the end of 2025.
• Development and use of H-BA concrete, reducing CO2 emissions from concrete materials by approximately 20%. Obtained Special Evaluation Method Certification.
• First domestically renovated property to achieve net-zero CO2 emissions during operation: Sustaina Branche Hongyotoku.
• All for-sale Haseko Group condominiums whose design was commenced in or after fiscal year 2022 and all Haseko-owned rental condominiums are being made into Net-Zero Energy Houses (ZEH).

Social Achievements

• Established a D&I Promotion Office (April 2023) to promote women's active participation and create a pleasant working environment.
• Raised wages in fiscal year 2023 to reward employees for their hard work.
• Increased percentage of female employees to exceed 30% since fiscal year 2021.
• Percentage of childcare leave taken by male employees increased from 2.6% in FY2019 to 39.4% in FY2022.
• Employment rate of persons with disabilities at 2.42% as of March 2023.

Governance Achievements

• Established the Haseko Group’s Human Rights Policy (January 2022) and promoting human rights due diligence initiatives.
• Formulated the Haseko Group CSR Procurement Guidelines.
• Reinforcement of corporate governance, including the appointment of outside directors comprising at least one-third of the total number of directors.

Climate Goals & Targets

Environmental Challenges

• Labor shortage in the construction industry due to aging workforce and limited inflow of new workers.
• Rising prices of construction materials.
• Intensified competition for land acquisition.
• Need to address the new regulation with penalties to limit overtime work (introduced in April 2024).
• High turnover rate among younger generation.

Mitigation Strategies

• Improving productivity and operational efficiency through collaboration between HASEKO-version BIM and IoT technology.
• Procuring materials at an appropriate timing, keeping an eye on future order trends.
• Balanced land acquisition strategy that does not compromise business opportunities or financial soundness.
• Promoting initiatives of eight days off per four weeks, shorter overtime hours, and better compensation to improve the working environment.
• Implementing Be3 system (Be-Cube) to support and coach younger workers during their first three years of employment.
• Developing alternative sourcing strategies

Supply Chain Management

Responsible Procurement

• Haseko Group CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Rising average temperatures in summer
• More frequent and intensified meteorological disasters

Transition Risks

• Adoption of carbon taxes
• Tighter regulations

Opportunities

• Increased demand for energy-efficient buildings

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Standards

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

• Goal 7
• Goal 11
• Goal 13

The report highlights the alignment of Haseko's initiatives with SDGs 7 (Affordable and clean energy), 11 (Sustainable cities and communities), and 13 (Climate action).

Sustainable Products & Innovation

• H-BA concrete
• ZEH condominiums

Awards & Recognition

• Nadeshiko Brand (FY2021)
• Certified Health & Productivity Management Outstanding Organizations Recognition Program (White 500) (2023)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Digital Transformation (DX)
• Sustainability
• Employee Well-being

Environmental Achievements

• Completed switch to renewable energy sources for all Haseko Corporation construction sites in May 2023. Planning to complete the same switch for all Group construction sites by the end of 2025.
• Using wood in condominium construction to reduce CO2 emissions. Aiming for 45% wood in interior fixtures.
• Developing H-BA concrete, an environment-conscious concrete.

Social Achievements

• Increased wages in fiscal year 2023.
• Fostering autonomous human resources and career development.
• Developing innovative human resources and global human resources.
• Providing DX education.
• Formulated Haseko Group Diversity & Inclusion Promotion Policy in May 2023.
• Increased number of women on construction sites.

Governance Achievements

• Established a climate change response policy, HASEKO ZERO-Emission, in 2021, aiming for carbon neutrality by 2050.
• Launched DX Promotion Committee with Group-company presidents as members.
• Launched DX training initiatives like “DX Academy”, “DX Changing The Mindset Program”, “Innovation Leader Development Program”, and “DX Literacy Course”.

Climate Goals & Targets

Environmental Challenges

• Shortage of workers in the construction industry.
• Introduction of an upper limit on overtime with penalties for violations in fiscal year 2024.
• Aging population leading to shortage of people to fill committee positions in management associations.

Mitigation Strategies

• Increasing productivity by 20% by the fiscal year ending March 31, 2025 through DX.
• Developing software to manage large numbers of condominiums appropriately with a small team.
• Developing software to support management associations' activities.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• H-BA concrete
• Wood in condominium construction

Environmental Metrics

ESG Focus Areas

• Creating attractive living spaces
• Building a company worth working at
• Protecting the precious environment
• Nurturing a culture of trust

Environmental Achievements

• CO2 reduction rate of 10% or higher in design and reduction of CO2 emissions intensity to 8.5 t-CO2/¥100 mil. or below in construction activities (Haseko Corporation)
• 100% adoption rate of renewable energy sources in worksites (Haseko Corporation)
• 100% of properties developed by Haseko Corporation meet ZEH standards
• Mixed waste reduction to 5 kg/m2 or less and mixed waste recycling rate of 83% or more (Haseko Corporation)

Social Achievements

• 100% implementation rate for the foreign technical intern trainee questionnaire survey
• 100% participation in harassment training course
• 100% adoption of (newly built) “Renai” with the specification for the proposal of hazard-resistant condominium
• Promotion of workstyle reform including telework

Governance Achievements

• Strengthening of the governance structure with outside directors comprising at least one third of the total number of directors
• 100% participation in compliance e-learning course
• 100% implementation rate of drills for checking disaster damage to properties and facilities

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions across Scope 1, 2, and 3
• Maintaining a safe and healthy working environment
• Ensuring compliance with environmental regulations

Mitigation Strategies

• Implementing reduction initiatives aimed at achieving SBT targets
• Developing a thorough safety and health management system
• Strengthening risk management including environmental and social risk management

Supply Chain Management

Supplier Audits: 100% questionnaire survey implementation rate (organizations of cooperating companies of the Construction work-related group companies)

Responsible Procurement

• CSR Procurement Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000, SDGs, Ten Principles of the Global Compact

Certifications: ISO 14001, ISO 9001, Health & Productivity Management Outstanding Organizations Recognition Program

UN Sustainable Development Goals

• 1
• 7
• 8
• 9
• 11
• 12
• 13
• 17

10 out of 17 SDGs identified as closely related to Haseko Group's business

Sustainable Products & Innovation

• ZEH properties
• Environment-conscious designs

Awards & Recognition

• 13 awards (incl. ABINC Certification)