Protecting the precious environment
The Haseko Group’s Climate Change Response: HASEKO ZERO-Emission

We pursue initiatives that help to prevent global warming in order to “create an optimal environment for cities and people.”

The Haseko Group’s Climate Change
Response Policy: HASEKO ZERO-Emission

The Haseko Group will strive to respond to climate change with the following as our basic stance.

  1. The Haseko Group as a whole believes that addressing climate change is an important management issue and promotes initiatives in order to “create an optimal environment for cities and people,” as stated in the Haseko Group’s Corporate Philosophy.
  2. Based on the Paris Agreement and the Japanese government’s policies, we are aiming to become carbon neutral by 2050.
    • ・We will make necessary investments while focusing on technological development relating to low-carbon construction and decarbonized housing.
    • ・We will proactively use outside technologies and products that contribute to renewable energy and decarbonization.
  3. In order to expand and create business opportunities from our response to climate change, we will analyze the risks and opportunities of climate change, develop countermeasures based on the analytical results, and manage progress by setting specific targets.
  4. The Haseko Group will utilize its collective capabilities to realize these targets, and as necessary, we will pursue initiatives in collaboration with supply chains, developers, the construction industry, and others.
  5. In order to promote understanding of these initiatives addressing climate change, we will make disclosures and proactively promote strategic communications with internal and external stakeholders.

Established December 16, 2021

Disclosures based on the recommendations of the TCFD

The Haseko Group, as a corporate group for housing to create great living, aims to “contribute to society by creating an optimal environment for cities and people.” However, in recent years, natural disasters have increased in frequency and intensity due to climate change, which is threatening the safety and security of our lives.

Given these conditions, with the belief that addressing climate change is an important management issue, the Haseko Group endorsed the recommendations of the TCFD, as well as developed and announced its policy addressing climate change, HASEKO ZERO-Emission in December 2021. We will continue to make disclosures in accordance with the recommendations of the TCFD*1, as well as monitor and appropriately deal with governmental measures and social trends for reducing the effects of climate change and CO2 and other greenhouse gas emissions, while aiming to realize a sustainable society and improve corporate value.

Governance

The Haseko Group regards CSR to be an important management issue and aims for systemic progress in CSR activities. The “CSR Committee,” which is chaired by the President of Haseko Corporation, has been established under the Board of Directors to promote and instill CSR activities throughout the Group. This Committee’s members include the officers in charge of Haseko Corporation divisions and Haseko Group company presidents.
The CSR Committee meets once a year to deliberate and decide on basic CSR policies and action plans, including the Group’s response to climate change, and to monitor and review CSR activities. Matters deliberated and reported in the CSR Committee are reported to and supervised by the Board of Directors, and significant matters are brought to the Board of Directors for deliberation and decision-making. Climate-related management issues handled by the CSR Committee will be taken into consideration when developing business strategy, investment strategy, and other management strategy of the Haseko Group.
The Haseko Group pursues concrete initiatives regarding environmental issues. In addition to the “CSR Promotion Conference” and the “CSR Promotion Secretariat,” which are subordinate bodies under the CSR Committee for responding to general CSR initiatives, we have established the “Environment Promotion Conference” and the “Environment Promotion Secretariat” to respond to environmental measures such as decarbonization as well as energy and environmental technologies.

Role of Each Body

Body Role Composition Frequency of meetings Secretariat
CSR Committee Deliberates and decides matters on CSR management at the management level [Chairperson] President of Haseko Corporation
[Members] Officers in charge of Haseko Corporation divisions and Haseko Group company presidents
once a year CSR Department
CSR Promotion Conference Deliberates and executes specific policies for CSR management [Members] Officers of Haseko Corporation and Haseko Group companies three times a year
CSR Promotion Secretariat Serves as the secretariat for CSR related bodies [Members] General managers of departments at Haseko Corporation and Haseko Group companies four times a year
Environment Promotion Conference Deliberates and executes specific policies to achieve medium- and long-term environmental targets in CSR management [Members] Officers of Haseko Corporation and Haseko Group companies three times a year Quality and environmental Management Office
Environment Promotion Secretariat Serves as the secretariat for environment related bodies [Members] General managers of departments at Haseko Corporation and Haseko Group companies four times a year

Strategy

(Risk and Opportunity Identification Process)
The Haseko Group established a company-wide working group (WG) to address climate change under the Environment Promotion Conference. This working group identified climate-related risks and opportunities, analyzed the level of impact, and studied responses thereto.
The study results are approved by the CSR Committee after deliberation on the validity of the analysis and the need for additional response, and then reported to the Board of Directors.

(Targeted Sectors/Regions and Impact on Financial Plans)
As a first step, our analysis targeted the Domestic-construction business. Quantitative calculations were not performed regarding financial impact this time. In the future, we will work to expand the scope of analysis and calculate the quantitative impact.

(Explanation of Scenarios and Short-, Medium-, and Long-term Time Horizons)
In our analysis, we established the following two scenarios and studied the impact.

1.5-2ºC scenario A scenario in which rigorous measures to mitigate climate change are taken and temperatures as of 2100 are no more than 1.5-2ºC warmer than before the Industrial Revolution.
(References: SDS of the IEA*2, RCP 2.6 of the IPCC*3, etc.)
4ºC scenario A scenario in which rigorous measures to mitigate climate change are not taken and temperatures as of 2100 are around 4ºC warmer than before the Industrial Revolution.
(References: STEPS of the IEA, RCP 8.5 of the IPCC, etc.)

Studies were also done from short-term, medium-term (through 2030), and long-term (through 2050) perspectives.

(Climate-related Issues That Have a Significant Impact, Resilience)
As a result of analysis, we identified as significant risks the increase in construction costs due to the adoption of a carbon tax and tighter regulations in connection with the transition to a decarbonized society, labor shortages due to rising average temperatures in summer, and delays in construction projects due to more frequent and intensified meteorological disasters.
Our analysis also indicates that an increase in demand for ZEH (Net-Zero Energy Houses) and disaster-resistant houses may lead to an increase in opportunities to receive orders for new construction and renovations.
Based on these analytical results, we checked the current state of initiatives addressing these risks and opportunities and studied their adequacy and the need for additional measures. As a result, we confirmed that the current direction of our initiatives is appropriate and that further acceleration is required for several measures, such as decarbonization technology for concrete and steel, which comprise the greater part of CO2 emissions from construction materials, and energy-saving technology for houses and buildings. Going forward, we will specify actions to accelerate these measures and move forward with further initiatives.
Please see the chart below for details on significant risks and opportunities, their impact, and our response.

Risks and Opportunities

*“Impact” means the impact as of 2030.

Category Item Description Impact Timeframe
1.5-
2℃
  4℃  
Impact of the transition to a decarbonized society Risk Adoption of carbon tax If a carbon tax is adopted, materials with high CO2 emissions intensity and transport costs may rise. Medium Low Medium-term
Risk Tighter regulations If the Building Energy Efficiency Act is applied more widely, energy saving standards are increased/mandated, or regulations are otherwise tightened, construction costs may increase. Medium Low Medium-term
Opportunity Increased demand for energy-efficient buildings Demand for ZEH may increase in new construction and give us a competitive advantage. Demand for energy-efficient renovations of existing buildings may also increase and lead to business opportunities. High Medium Medium-term
Physical effects Risk Rising average temperatures in summer If average summer temperatures rise, the risk of heat stroke among construction site workers and the tendency to avoid outdoor work will increase, which may lead to labor shortages. High High Short-term
Risk More frequent and intensified meteorological disasters Due to an increase in the frequency of typhoons and intensified torrential downpours, there may be an increased risk of work interruptions and damage to nearby third parties due to harm to buildings under construction and construction delays from difficulties in procuring materials and labor as a result of damage to suppliers. Medium Medium Short-term
Opportunity Increase in disaster prevention and mitigation demand Due to more frequent and intensified meteorological disasters, demand for disaster-resistant housing may increase and lead to an increase in opportunities to receive orders for new construction and renovations. High High Medium-term

Countermeasures

Risk Management

We have established a company-wide working group to sort out climate change risks and analyze their impact on business. The risks analyzed by the working group are deliberated by the CSR Committee and reported to the Board of Directors.

As a first step, we did not perform quantitative calculations regarding financial impact this time, but we qualitatively evaluated the chance of risks materializing, their timeframe, impact if they do materialize, and the state of current countermeasures, and we categorized the impact as high, medium, and low.

In anticipation of a variety of risks, Haseko endeavors to collect risk-related information and prepares preventive measures and appropriate countermeasures in advance against risks according to their magnitude and possibility of arising. Through these efforts, Haseko aims to minimize the potential losses and to systematically cope with risk management centering on the Risk Management Department.
Specifically, Haseko has set up a system in which respective sections of the Management Division coordinate with each other and check the status of business operations in accordance with the roles they are assigned, while the Internal Auditing Department conducts further checking. For the corporate approval system that serves as a record of decision-making for work implementation, the Company has introduced an electronic system which enables auditors and the Management Division to view and check the content at any time.
Furthermore, of the issues forwarded to the Board of Directors, the Management Council and the two operation councils (the Business Operation Council and Technology Operation Council), those involving many departments or requiring specialized knowledge are subject to sufficient verification in advance by the adequately established advisory meetings and committees. Periodical results reports are also mandatory for issues that require monitoring.
On top of these, the Company established the Risk Management Council under the chairmanship of the President with the aim of strengthening the risk management system of Haseko and its entire Group, and conducts cross-sectional collection of information, analysis, valuation and handling of risks in accordance with the internal rules on risk management.

Going forward, we will continue to strengthen the risk management system, with the aim of further enhancing risk management.

Metrics & Targets

The Haseko Group has set reduction targets with total greenhouse gas (CO2) emissions as an indicator in order to evaluate and manage the impact of climate issues on management.
(Haseko is aiming to obtain SBT*4 approval for these targets.)

Scope Base year Target
Medium-term
(FY2030)
Long-term
(FY2050)
Scope1*5 + Scope2*6 FY2020 (42%) (100%)
Scope3*7 (13%) (37%)

*For information on actual figures for FY2020 and calculation method, please see the separately disclosed “ESG Data” (HOME>CSR>ESG Data and Disclosures). (Total greenhouse gas (CO2) emissions are calculated according to GHG Protocol.)

*For single year targets, please see the separately disclosed “Environment Targets” (HOME>CSR>Protecting the precious environment>Environmental management system).

We have also set the following targets to achieve these targets.
・Transition to 100% renewable energy sources for electricity use on construction sites (by 2025)
・Use H-BA concrete (environmentally- friendly concrete) in 80% of proposals (by 2030)

All Group companies will continue to study measures for achieving greenhouse gas emission reduction targets (and targets for promoting these measures).

*1 TCFD: Task Force on Climate-related Financial Disclosures

*2 IEA: International Energy Agency

*3 IPCC: Intergovernmental Panel on Climate Change

*4 SBT: Science Based Targets

*5 Scope 1: Direct emissions from burning fuel, etc.

*6 Scope 2: Indirect emissions from the use of electricity, etc.

*7 Scope 3: Supply chain emissions related to business activities

Related information

Concrete initiatives in response to climate change

For details on concrete initiatives in response to climate change, please use the following links.

Related information