In December 2019, Sekisui House became the first company in Japan to issue TCFD Report in non-financial company sector to disclose information on its responses to climate change risk. To meet the needs of investors and other stakeholders, we published the report verifying the appropriateness of its climate change measures and growth strategy and detailing future risks and opportunities together with financial information as part of corporate efforts to manage with a focus on decarbonization.
For current and potential shareholders
What are your growth strategies moving forward?
With the global vision of make home the happiest place in the world, we will work to realize a sustainable growth of the Sekisui House Group through the organic growth of six business pillars in Japan and overseas, by promoting business expansion by offering integrated proposal of technologies, lifestyle design and services.
Along with the expansion of corporate value, we will implement ESG strategy aiming to realize social value and will work to build a foundation for sustainable growth based on the financial strategy.
Value Creation Process
Under the management direction of deployment of growth strategies focused on the residential business domain, we are promoting initiatives to achieve sustainable growth through the organic growth of the business pillars of built-to-order, supplied housing and development businesses in and outside Japan.
Initiatives in new businesses
The Platform House Concept for the Era of the 100-Year Lifespan
To realize the long-term vision, we are developing the proprietary housing concept for delivering houses that assist in residents’ life services over the long term. Under this concept, Sekisui House offers homes in which many services can be installed to focus on health, connectedness and learning.
The first step in our efforts is health. Sekisui House has conducted focused efforts with the esteemed partners in development of a service to achieve the early detection of acute diseases that are likely to develop at home. As a result, we have developed the world’s first in-home early detection network, or HED-Net. Sekisui House will start social implementation in a pilot project involving residents in 2020.
Regional Revitalization Business: The Trip Base Michi-no-Eki Stations Project
Sekisui House and Marriott International have teamed up with various regional governments throughout Japan in a regional revitalization business that creates Michi-no-Eki travel hubs. This business proposes completely new travel experiences under a concept of “quest to discover Japan.”
Utilizing the strengths of Sekisui House to provide high-quality accommodations in a short period of time and the strengths of Marriott International's high hospitality and global network, we are promoting initiatives to create new travel styles for regional revitalization, collaborating with alliance partners.
In the first stage, 15 roadside hotels in six prefectures will begin offering approximately 1,000 rooms in fall 2020 or later.
Aiming to be a leading company in ESG management, we are promoting E (environment), S (social improvement), and G (governance) strategies with three themes.
- Drive global initiatives through net zero energy housing and make a global contribution through our RE100 commitment
- Turn diversity into a growth driver
- Innovation and Communication
We are working to foster an organizational culture in which innovation is born by promoting the creation of a workplace environment in which employees who work together recognize and utilize each other's diversity, values, and working styles, where free and open communication is carried out.
Strengthening Governance Structure
The Sekisui House Group positioned fiscal 2018 as the first year of governance reforms. Innovation and communication as a slogan, we are steadily implementing each initiative to build a resilient management base for long-term, sustained growth in corporate value.
Major initiatives since 2018
- Introduction of a mandatory retirement age of 70 for representative directors
- Transparency and invigoration of meetings of the Board of Directors
- Clarification of departments under the control of directors
- Ensuring the independence and strengthening the check-and-balance functions of the Chief Manager of the General Affairs Department, Sales Administration Headquarters and general managers of the branches
- Introduction of a restricted stock remuneration system
- Revised term of office for directors
- Fundamentally revised the remuneration system for officers
- Established provision for recovering stock remuneration (malus and clawback)
- Improved independence of the Board of Directors
- Appointment of women as outside officers
- Establishment of the Management Meeting
- Evaluation of the effectiveness of the Board of Directors
- Increasing the integrity of branch managers
- Abolition of the bonus system for outside directors
- Abolished the executive advisor/advisor system
- Introduced shareholding guidelines
- Formulated criteria and procedures for appointing and dismissing senior management
Under the Fifth Mid-Term Management Plan, we will lay the strong financial foundations for the next 10 years and will strive sustainable improvement in corporate value by making investment for growth and strengthening shareholder returns. More specifically, we will target an average payout ratio of at least 40% over the medium term and continuous dividend growth, and will flexibly acquire Company stock in a bid to improve shareholder value.