ESG Policy
Sustainability Policy
As a company, SHR and SHA have a responsibility to contribute to the resolution of social issues, that are becoming increasingly diverse and complex day by day, through business activities. We believe that fulfilling this responsibility not only enhances the sustainability of the society and SHR, but also ultimately maximizes unitholder value.
SHR has a vision, “managing assets to better provide for people, society and the future” and conducts business activities from a medium to long term perspective. Based on the Sustainability Policy established by SHA, we will strive to contribute to the realization of a sustainable society and increase corporate value by complying with and implementing this policy.
- 1.Enhancement of Governance System
In addition to complying with laws, regulations, and other rules, we ensure appropriate management to prevent conflicts of interest and work to enhance our governance system. We also conduct education / training and awareness-raising activities for directors, and employees to ensure thorough compliance. - 2.Responding to Climate Change
We actively and continuously promote the efficient use of energy and aim to achieve net zero greenhouse gas (GHG) emissions, toward the creation of a decarbonized society.
As part of our response to climate change, SHR will also implement measures to raise the awareness of both internal and external stakeholders. - 3.Water and Resource Saving Measures
We shall actively contribute to the creation of a recycling-based society by promoting measures and public awareness activities for reducing water use and implementing the three Rs (reduce, reuse and recycle) in relation to resources. - 4.Biodiversity Conservation
In accordance with the Gohon no Ki (“five trees”) Project promoted by Sekisui House, we aim to realize harmony with nature and the surrounding environment by conducting maintenance and management of planting and other greenery measures, centering on tree species with consideration given to the ecosystem matters. - 5.Providing Comfort and Safety
We shall provide high quality homes where residents can lead their lives in comfort and safe. We shall also provide convenient, safe, and comfortable spaces that contribute to enhancing the productivity of tenant companies. - 6.Contributing to Regions and Communities
We create activity and prosperity in an effort to find common interests with the regions and communities as well as to invigorate them. - 7.Practicing Human Capital Management in Action
By respecting diversity, personality and individuality, and promoting work-life balance, we aim to create an organizational culture in which each employee can work in a healthy and lively manner.
We also encourage the autonomy of our employees, and work to improve the value of our human resource value based on their happiness. - 8.Cooperating with Stakeholders
In order to promote environmental and social considerations throughout the supply chain, we seek the understanding and cooperation of property management companies, other business partners, residents, tenant companies and facility users. - 9.Information Disclosure and Acquisition of External Certifications
We will actively disclose ESG-related information to stakeholders.
We will also continue to acquire environmental certification and appraisals from external evaluation organizations.
Signing of the PRI (Principles for Responsible Investment)
Since SHR and SHA have conducted real estate investment management taking ESG into consideration to realize a sustainable society and believe that such management policies share objectives with the PRI (Principles for Responsible Investment) advocating incorporation of ESG issues into investment analysis and decision-making processes, SHA decided to support the basic approaches of the PRI and became a signatory in March 2019.
The Six Principles
- We will incorporate ESG issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.
Overview of the PRI
The PRI is a set of six principles listed above, established for the financial industry in 2006 under the leadership of the former United Nations Secretary-General, Kofi Annan, together with an international network of investors working to realize said principles.
Signatories to the PRI pursue improvement of investment performance from the long-term perspective for their beneficiaries to further fulfill their fiduciary responsibilities by incorporating ESG issues into investment analysis and decision-making processes.
For details of the PRI, please click here.
Endorsement of Advance
SHA is committed to ensuring that all directors and employees fulfill their responsibilities to respect human rights in accordance with the “Sekisui House Group Human Rights Policy” formulated by Sekisui House. Believing that the objectives of Advance, an initiative that calls for action on human rights and social issues, are in line with the “Sekisui House Group Human Rights Policy”, SHA has signed on as an endorser in March 2023.
(Note)Endorsers are PRI signatory institutions that publicly endorse Advance by signing the Advance investor statement.
Overview of Advance
Advance is a stewardship initiative where institutional investors work together to take action on human rights and social issues. Investors use their collective influence with companies and other decision makers to drive positive outcomes for workers, communities and the society.
For details on Advance, please click here.
Supporting the Recommendations of the TCFD (Task Force on Climate-related Financial Disclosures)
SHR and SHA recognize that efforts to tackle environmental issues, such as climate change, are one of the key issues in real estate investment management that take into account ESG, and SHA, in July 2020, has declared support for the Recommendations of TCFD, and joined the Japan TCFD Consortium, a body of TCFD supporters in Japan. Based on the TCFD's recommendations, SHA analyzes the risks and opportunities posed by climate change and promotes actions that are consistent with the TCFD framework.
Recommendations of the Task Force on Climate-related Financial Disclosures
Expressed Support for the UN Global Compact
Sekisui House Group, which SHA belongs, has spelled out our commitment to respective human rights in the Sekisui House Group Corporate Code of Conduct and Corporate Ethics Guidelines, which are the explicit foundations of our corporate activities. Further, Sekisui House Group has expressed support for the 10 principles of the UN Global Compact.
Initiatives of SHA
SHA, as a member of the Sekisui House Group which is aiming to be a leading company in ESG management, shall conduct real estate investment management with due consideration given to the ESG in accordance with the Sustainable Vision advocated by Sekisui House and the Sustainability Policy established by SHA and SHR.
We recognize that our employees are an important management resource, and are implementing the following initiatives.
For details, please refer to the SHR's website.
- ・Promoting Diversity
- ・Initiatives on Cultivation of Human Resources
- ・Creating a Comfortable Working Environment
- ・Employee Satisfaction Survey
- ・Internal Reporting System and Whistleblower Protection
- ・Promoting Employment of the Elderly
- ・Promoting Work-Life Balance
- ・Initiatives for the Health of Employees
- ・Improvement of Operational Efficiency and Productivity Utilizing IT
- ・Social Contribution Activities
Sekisui House Group Human Rights Policy
All employees in the Sekisui House Group to which SHA belongs, by properly understanding and implementing the group's corporate philosophy, which is rooted in a fundamental love of humanity, meet their responsibility to respect human rights through their actions. To ensure respect for the human rights of all stakeholders in our business activities, we are working to establish a corporate culture that strictly prevents discrimination, harassment, and infringements of human rights based on compliance with international rules on human rights such as the United Nations' Universal Declaration of Human Rights and a thorough understanding of the SDGs (Sustainable Development Goals) and the Ten Principles of the UN Global Compact.
SHA strives to ensure that there are no infringements of human rights, including harassment, in order to contribute to the creation of a workplace environment where all directors and employees can thrive and lead to growth, according to the Sekisui House Human Rights Policy.