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Implementation Framework

Through the ESG Promotion Committee, the Sekisui House Group implements initiatives to address climate change–related issues, including water issues, while also considering natural capital and biodiversity conservation. Furthermore, at our factories, we have established a management system under ISO 14001, the international standard for environmental management systems, through which we are promoting water-related initiatives.

The Sekisui House Group’s business activities, in such areas as housing, construction, and remodeling, use only small amounts of water. However, as the impacts of climate change on human society and ecosystems intensify year by year, water resources are becoming a significant global concern. In particular, over the long term, water shortages are seen as a global water risk, and the conservation of water resources, using water stress as a metric, is a challenge going forward. To secure the sustainability of water resources, we not only avoid water risk in our own businesses, but work to promote efficient water use and prevent water pollution based on the understanding that these issues have a tremendous impact on our supply chains. To this end, we assess water risks, set water use reduction targets, and implement measures to promote the effective use of water resources and manage wastewater quality.

Initiatives at Factories in Japan

Our five domestic production factories (the Tohoku Factory, Kanto Factory, Shizuoka Factory, Hyogo Factory, and Yamaguchi Factory) use groundwater in addition to the municipal water supply and industrial-use water in the coating of steel frame members and the manufacturing and painting of exterior walls used in residential construction. All five factories have formulated water management plans. We are making ongoing efforts to ensure appropriate wastewater quality management and the efficient use of water resources in these processes. Specifically, we implement wastewater quality analyses at least once a month and work to reduce water consumption through such efforts as reusing treated water for cleaning. Wastewater from all five factories in Japan is discharged into public sewers and rivers after being purified in the factory’s effluent treatment plant. We manage waste water quality according to voluntary standards set as annual targets that are stricter than the Water Pollution Control Law and local ordinances applicable to domestic factories. In FY2025 the measured water quality of discharge was better than these voluntary standards. In this way, we strive to prevent water pollution and protect the water quality environment in the areas surrounding our factories. We share the results of wastewater quality assessments at all five factories in Japan. In the unlikely event that our voluntary standards are exceeded, we share the information on the actualized water pollution risk at a managers’ meeting to prevent recurrences.

Evaluating Water Stress Levels at Production Sites

We have evaluated the water stress levels of the Company’s production bases using the WRI Aqueduct tools developed by the World Resources Institute (WRI). In FY2024, we revised one of the thresholds of this evaluation from “high” to “medium-high” to raise internal awareness of water resource conservation and accelerate related initiatives. Upon reevaluation, we confirmed that Kanto Factory and Shizuoka Factory fall into the “medium-high” category, while Tohoku Factory, Hyogo Factory, and Yamaguchi Factory are categorized as “low-medium.^*1

Targets for Reducing Water Consumption and Withdrawal in Water-Stressed Areas

The Company is advancing initiatives to set targets for reducing water consumption and withdrawal at our production bases, starting with those sites identified as having relatively high levels of water stress.
　　The Shizuoka Factory is actively working to utilize industrial-use water in processes that previously used municipal water. Furthermore, the factory has set the target of reducing the consumption of industrial-use water by 80% in its internal wastewater treatment facilities from FY2021 levels by 2030. As part of these reduction efforts, we will promote the internal circulation of water by reusing some effluent and by expanding the use of rainwater. The Kanto Factory is also taking a proactive stance on water conservation, setting targets to guide its efforts.

Targets and Progress toward Reducing the Use of Water as a Raw Material

The Group does not use water as a raw material.

Investment in R&D to Mitigate Water-related Risks

Group company Konoike Construction boasts a long track record and advanced technologies in the cleanup of soil contaminated by a variety of pollutants and, in addition to soil, is working in a wide range of areas including water pollution countermeasures and disaster-related waste disposal.

　For other indicators, please refer to the ESG Data Book 2026.

Cooperation with Diverse Stakeholders

Cooperation with customers

We have installed the latest water-saving fixtures (faucets, showers, flush toilets, etc.) supplied by housing device equipment manufacturers as standard equipment in the majority of the Group’s newly built houses since before 2020. In this way, we are helping to reduce water consumption in houses. Furthermore, for existing homes, we are promoting the use of water-saving fixtures, including by replacing existing fixtures, through the remodeling business.

Cooperation at business sites in water-stressed areas

The Shizuoka Factory uses municipal water drawn from the Oi River system. Based on requests from the Toen Industrial Water Business Association, the Shizuoka Factory proactively uses industrial-use water, helping to reduce municipal water consumption.

Cooperation with public entities

Group company Konoike Construction is actively involved in renewable energy projects aimed at contributing to decarbonization and is therefore working with municipalities to develop small-scale local energy distribution. We are engaged in micro hydroelectric power generation projects in Higashinada Ward in Kobe City and in Kami Town, Hyogo Prefecture. In Shimane Prefecture, we have signed a cooperative agreement with Okinoshima Town regarding the promotion of renewable energy.
　　In addition to launching the Minamitani Power Station for micro-hydroelectric power and the Shimonishi Power Station for biomass power in 2024, we opened the Yui Power Station for micro-hydroelectric power in 2025. Through these power generation businesses, we will contribute to the vitalization of regional communities.

Survey on the relationship between water usage at the Company’s production sites and the surrounding natural environment and biodiversity

At the five domestic factories where we are engaged in direct operations, we conducted detailed surveys to understand the characteristics of the natural environment and biodiversity conditions at water withdrawal sources (river water and groundwater) and discharge points (rivers). In doing so, we assessed the degree to which the use of water at each factory depends on and affects the surrounding natural environment. Based on the results of these assessments, we plan to investigate priority water resource conservation measures for each factory. Moving forward, we will further strengthen our water resource conservation measures, with a focus on river basins associated with withdrawal and discharge, and strive for coexistence with the local environment.

Cooperation with other regional companies

When shipping and transporting products to construction sites—whether from our own factories or those of our partner manufacturers—we use the Company’s transport cases. After use, these cases are collected from construction sites, returned to factories, washed, and reused. The water used in this washing is recirculated within the cleaning facilities, helping reduce water consumption. In addition, the employee cafeterias at some factories are operated by external food service contractors. As one part of water conservation efforts in these operations, we proactively use no-wash rice,^*7 which can be cooked without additional washing.

Cooperation with investors

The management of office buildings owned by the Company and its overall real estate portfolio is entrusted to Sekisui House Asset Management, Ltd., which implements appropriate water management, including monitoring and setting numerical targets for the volume of water use.

Initiatives in overseas businesses

Located in Brisbane Australia, the mixed-use development project West Village has received high external praise for its environmentally friendly and socially sustainable initiatives. In 2017, it received the highest 6 Star Green Star Communities Certification from the Green Building Council of Australia (GBCA)^*8 and in 2023 was honored with the Marketing Excellence Award for exemplary projects by the Urban Development Institute of Australia (UDIA).^*9