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.

We support the Paris Agreement and the Japanese government’s policies founded on it, and with the President and Representative Director of Haseko Corporation, who also serves as Chairperson of the Sustainability Committee, as the person in charge, we aim to achieve carbon neutrality by 2050.

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.
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.
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.
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.
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

As a subordinate body under the committee, we also have the “Sustainability Promotion Conference” to engage in promoting and instilling CSR activities across the Group, including environmental initiatives such as decarbonization, energy and environmental technologies.

Role of Each Body

Body	Role	Composition	Frequency of meetings	Secretariat
Sustainability 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	twice a year	Sustainability Promotion Department Housing Planning Promotion Department
Sustainability Promotion Conference	Deliberates and executes specific policies for CSR management	[Members] Operating officer and Managers of Haseko Corporation and Haseko Group companies	three 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 Sustainability Committee after deliberation on the validity of the analysis and the need for additional response, and then reported to the Board of Directors.
*Integrated into the Sustainability Promotion Conference in fiscal 2024

(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
Category		Item	Description	1.5- 2℃	4℃	Timeframe
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 harm to nearby third parties due to damage 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 Sustainability 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
Scope	Base year	Medium-term (FY2030)	Long-term (FY2050)
Scope1^5 + Scope2^6	FY2020	(42%)	(100%)
Scope3^*7	FY2020	(13%)	(37%)

*For information on actual emission figures and the calculation method, please see the separately disclosed “ESG Data” (TOP>Sustainability >ESG Data and Disclosures). (Total greenhouse gas (CO2) emissions are calculated according to GHG Protocol.) We are receiving third-party verification of actual figures for FY2022.

*For single year targets, please see the separately disclosed “Environment Targets” (TOP>Sustainability >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)
・Transition to 100% renewable energy sources for electricity use at offices and similar locations (in FY2026)
・Achieve zero Scope 2 emissions (in FY2026)
・Use H-BA concrete (environmentally- friendly concrete) in 80% of proposals (by 2030)
・Achieve adherence to ZEH-M Oriented standard in condominiums developed primarily by the Group (all condominiums designed in FY2022 or later)

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

The Haseko Group’s CO₂ Emissions Reduction Plan (Transition Plan)

The Haseko Group pursues initiatives to reduce CO₂ emissions in accordance with the plan set out below in order to help to prevent global warming, as well as reduce the risks and pursue the opportunities that come with the transition to a decarbonized society.

1. The plan until FY2030
(1) Scope 1 and 2 (FY2030 target: achieve a 42% reduction compared to FY2020)
(i) Scope 1
As described below, our policy is to prioritize reduction of Scope 2 emissions for the time being, but we will also promote reduction of Scope 1 emissions in order to meet the FY2030 target.
a. Construction sites
Scope 1 emissions from construction sites are generated by the combustion of fossil fuels used by heavy machinery and transportation vehicles. In addition to thoroughly implementing our existing energy-saving activities such as using idle start-stop systems, ensuring appropriate maintenance and servicing of heavy machinery and vehicles, and reducing the number of transportation vehicles required by making effective on-site use of soil generated from construction, we aim to achieve further reductions in emissions by promoting the introduction of low carbon fuels and electric forklifts. Commercialization of electric backhoes and other large-scale heavy machinery has yet to progress beyond the prototype stage, but we aim to officially introduce these in the late 2020s based on the rate of industry adoption.
b. Offices, etc.
Scope 1 emissions from offices, etc. are generated by the combustion of fossil fuels used by the various Group companies’ sales vehicles, the Senior Living Business’s shuttle vehicles, and for cooking services and hot water supply in senior living facilities. In addition to thoroughly implementing our existing energy-saving activities such as using idle start-stop systems and ensuring appropriate maintenance and servicing of vehicles, we aim to achieve further reductions in emissions by promoting the adoption of hybrid vehicles and EVs, and target to fully introduce EVs in the late 2020s.
(ii) Scope 2
Currently, our initiatives prioritize the reduction of Scope 2 emissions as described below, with the aim of achieving zero Scope 2 emissions by FY2026. Scope 2 emissions comprised 36% of our total Scope 1 + Scope 2 emissions in FY2020, and achieving zero Scope 2 emissions will be a great step towards achieving our FY2030 target of reducing total Scope 1 + Scope 2 emissions by 42% compared to FY2020.
a. Construction sites
In December 2021, with the establishment of “The Haseko Group’s Climate Change Response Policy: HASEKO ZERO-Emission”, we announced a target of switching to 100% renewable energy sources at construction sites by the end of 2025. Initiatives for achieving this are progressing steadily, and for construction sites solely managed by Haseko Corporation, we have successfully switched 100% of electricity used at the sites to renewable energy sources as of May 2023. We will continue with these efforts at each Group company’s construction sites as well, in order to achieve our target.
b. Offices, etc.
Beginning with the Group’s major facilities, we are also progressively transitioning to renewable energy sources at the offices and rented properties of each Group company. We will reduce our emissions in stages, including by purchasing non-fossil certificates to achieve substantial conversion to renewable energy in respect of rented properties where switching to renewable energy sources is difficult, and continue with our aim to achieve zero Scope 2 emissions in FY2026.
(2) Scope 3 (FY2030 target: achieve a 13% reduction compared to FY2020)
The bulk of the Haseko Group’s Scope 3 emissions are emissions generated from the manufacture of construction materials purchased (Category 1) and generated by day-to-day electricity and gas consumption by the tenants of the properties designed or developed by the Group (Category 11). Our initiatives for reducing these emissions are described below.
(*) In FY2020, Category 1 emissions made up 33% of Scope 3 emissions, while Category 11 emissions made up 60% of the same. In total, both categories made up 93% of Scope 3 emissions.
(i) Category 1
We promote the use of “H-BA Concrete,” an environment-conscious concrete that was developed in-house, in buildings developed primarily by the Group companies. In addition, we have set a target of achieving an 80% adoption rate for project proposals involving H-BA Concrete in FY2030 and are promoting our proposals to various project owners. We also pursue initiatives to promote wood use in construction. As collaboration with suppliers of construction materials and project owners is essential for reducing Category 1 emissions, we will continue to enhance our collaboration and proposals with them with the aim of reducing emissions.
(ii) Category 11
We are continuing with initiatives to promote ZEH-M. In particular, all new condominiums (for-sale and rental) developed primarily by the Group designed in FY2022 or later adhere to the ZEH-M Oriented standard. In addition, we are improving our proposals to project owners with specifications that meet the ZEH-M Oriented standard. As collaboration with project owners is essential for reducing Category 11 emissions, we will continue to enhance our collaboration and proposals with them with the aim of reducing emissions.
(*) ZEH-M is an abbreviation for Net Zero Energy House Mansion. ZEH-M condominiums are equipped with features to reduce energy consumption by virtue of improved exterior thermal insulation, highly efficient equipment, and adoption of renewable energy. ZEH-M Oriented condominiums meet specified thermal insulation and energy consumption standards.

2. Toward achieving our FY2050 targets
In order to achieve our FY2050 reduction targets, it is essential to utilize the advanced technology being researched and developed (or that will be researched and developed in the future) at various sites.As a business, implementation of the emissions reduction measures must align with the intentions of condominium residents and other end users. In this regard, another key element will be trends in available government schemes and other support measures. The Group will monitor these external trends while investigating specific emission reduction measures, and will continue its research and development activities as well as its collaborations and joint efforts with its various corporate stakeholders.

3. System for implementing and managing the plan
A company-wide working group established under the Sustainability Promotion Conference formulates and implements the CO₂ Emissions Reduction Plan, the details of which are reported to Haseko Corporation’s Board of Directors for approval. The status of progress on the plan is also periodically reported to the Board of Directors. Where changes in the Company’s internal or external environment require changes to the plan, we will revise the plan using the same processes described above.

CO₂ Emissions Reduction Roadmap　［PDF：154KB］

Concrete initiatives in response to climate change

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

Related information

Responses to CDP Climate Change Questionnaires

Please see below for our responses to CDP climate change questionnaires.
*CDP is a non-governmental organization that runs the global environmental information disclosure system for companies and other organizations. It discloses responses by individual companies and others to CDP questionnaires.

Response to CDP Climate Change Questionnaire 2023　[PDF：759KB]

Response to CDP Climate Change Questionnaire 2022　[PDF：570KB]