Risks and Opportunities
Risks and Opportunities for 2050
As societal circumstances change at an accelerated pace, corporate operations are also exposed to various evident and potential impacts. In order to create value with a business, it is not enough to make a plan based on the current forecast.
With a focus on sustainability, the Sekisui House Group analyzes medium- and long-term trends that may affect value creation, identifies risk factors, and positions itself for opportunities through future business development. This is then reflected in our strategic planning over the medium and long terms.
With a focus on sustainability, the Sekisui House Group analyzes medium- and long-term trends that may affect value creation, identifies risk factors, and positions itself for opportunities through future business development. This is then reflected in our strategic planning over the medium and long terms.
- Our response to TCFD
The TCFD (Task Force on Climate-related Financial Disclosures) recommends that companies issue climate-related financial disclosures in an effective manner in order to encourage investors to make appropriate investment decisions. In December 2019, Sekisui House published a TCFD Report dedicated to disclosing information on its response to the risks of climate change. - Important ESG themes and material items
The essential themes related to ESG adhere to the GRI Guidelines (G4) and reflect important issues related to the environment, society and the economy.
Risks and opportunities in the "environment"
Climate change
| Next 30 Years | Business Environment for the Housing and Construction Industries | Risks | Opportunities | Main ESG Themes |
|---|---|---|---|---|
| Ongoing climate change | Ongoing temperature rise | Living difficulties caused by extreme heat | Increasing need for living environments resistant to extreme heat | Decarbonized society |
| Decreased productivity at production and construction sites due to extreme heat | Increasing competition for comfortable workplaces | |||
| Increase in abnormal weather events | Increasing severity of natural disasters | Growing need for durable housing | ||
| Acceleration of the decarbonization trend | Mainstreaming of decarbonization housing | Introduction of carbon taxes | Increasing competitiveness of decarbonization businesses |
Ecosystem conservation
| Next 30 Years | Business Environment for the Housing and Construction Industries | Risks | Opportunities | Main ESG Themes |
|---|---|---|---|---|
| Change in the ecosystem due to climate change and loss of biodiversity | Changes in vegetation range and adaptation range of plants for afforestation | During construction, growing demand for consideration of local ecosystems and changing vegetation | Increasing need for tree planting and other ecosystem conservation initiatives | Society in which humans and nature coexist |
| Growing awareness of material certification and ease of procurement | ||||
| Increasing numbers of regions with a lack of fresh water | Increase in regional differences in water resources | Increasing requirements for buildings and facilities to be designed for water conservation | Increasing need for housing designed for water conservation |
Resource recycling
| Next 30 Years | Business Environment for the Housing and Construction Industries | Risks | Opportunities | Main ESG Themes |
|---|---|---|---|---|
| Ongoing natural resource depletion | Resource depletion and changing selection in natural resources | Increasingly stringent recycling regulations | Increasing competitiveness among resource-recycling businesses | Circular economy |
| Increasing awareness of the need to reduce plastic usage | Increasing development and spread of innovative materials and recycling technologies | Growing cost of processing fossil fuel-derived plastic waste |
Risks and opportunities in "economy and society"
Demographic change
| Next 30 Years | Business Environment for the Housing and Construction Industries | Risks | Opportunities | Main ESG Themes |
|---|---|---|---|---|
| Growing world population | Increase in housing demand in emerging and housing-deficient countries | Growing country risk and likelihood of labor shortages at construction sites | Expanding market potential. Demand for housing construction technologies that reduce construction labor requirements and shorten the construction period | Compliance and risk management; Pursuing customer satisfaction through our value chain |
| Increased numbers of countries with aging populations | Increase in ratio of elderly customers and employees, and changing requirements for living environments | A growing shortage of construction, nursing care, and health care workers as health and safety needs increase with the aging of the population | Increasing competitiveness of housing and workplaces with consideration for the health of the elderly, and increasing need for support for nursing care and health care businesses | Contributing to health, longevity and wealth; Human resources development |
| Growing influx of immigrants and migrant workers around the world | Increase in customers and employees immigrating from other countries | Growing numbers of people with unstable housing circumstances, and increased cost of communication | Growing demand for workplaces that accept diverse workers who invigorate housing and labor markets | Promoting diversity; Respect for human rights |
| Population decline in Japan due to the declining birthrate | Change in social capital as the market shrinks in size and demand for buildings decreases | A decline in the number of housing starts, a decrease in the occupancy rate of managed properties, and an increasingly serious problem with vacant houses | Ongoing trends toward high-quality housing, urban migration, and compact cities | Contributing to health, longevity and wealth; Pursuing customer satisfaction through our value chain |
Societal and economical change
| Next 30 Years | Business Environment for the Housing and Construction Industries | Risks | Opportunities | Main ESG Themes |
|---|---|---|---|---|
| Ongoing urbanization | Ongoing depopulation in local regions | Increasingly intense competition in cities | Growing need for regional revitalization | Pursuing customer satisfaction through our value chain; Respect for human rights; Contributing to society |
| Ongoing transition from ownership to usage | Expansion of the real estate rental market | Fewer business serving property owners | Rising need for good rental housing | |
| Increasing disparity between the rich and poor and widening income disparity among households | Shrinkage of the middle class and growing differentiation of the market | Increasingly intense business competition for the wealthy, and the emergence of low-cost housing | Increasing need to provide housing brands by target and range | |
| Shrinking of the gender pay gap | Ongoing outsourcing of housework | Inadequate numbers of workers available for working at home, including child-care and nursing care | Expanding demand for childcare and educational facilities, and expansion of markets related to housework (childcare, nursing care, etc.) | |
| Diversification of working styles | Increasing employee needs for diverse working styles | Increased employee turnover when needs are not met | Increasing competitiveness in workplaces with high employee satisfaction | Workstyle reforms; Human resource development |
| Acceleration of corporate globalization | Increasing localization of core competencies and local partnerships | Increasing disagreement with local requirements for employment and business practices | Use of proprietary technologies to solve social issues | Contributing to health, longevity and wealth; Respect for human rights; Contributing to society; Promoting diversity |
| Increasing diversification of personal values | Growing numbers of customers and employees who value the environment and sociability | Growing risks to environmental reputation and social reputation | Growing need for housing that contributes to sustainability | Contributing to health, longevity and wealth; Contributing to society |
Technological innovation
| Next 30 Years | Business Environment for the Housing and Construction Industries | Risks | Opportunities | Main ESG Themes |
|---|---|---|---|---|
| Increasing utilization of big data and the speed of information and communications technologies | Major transformations in financial markets through financial technology and ongoing corporate collaboration on technology | Increasing social demand for customer management and other security measures | Increase in technologies that contribute to sustainability | Strengthening our corporate governance system |
| Increasing opportunities for using advanced medical care | Increasing numbers of customers and employees returning after recovering from illnesses | Increasing need for familiarity with medical technology | Enhanced competitiveness of housing and workplaces focused on health and safety | Occupational health and safety management |
