Sekisui House releases report disclosing financial risks of climate change
Sekisui House, Ltd. has released a TCFD (Task Force on Climate-related Financial Disclosures)* report to disclose information on its responses to climate change risk. To meet the needs of investors and stakeholders, the report details its climate change measures and growth strategy, and future risks and opportunities, including financial impacts. This initiative is part of the company’s resolve to manage with a focus on decarbonisation.
As of December 9, 2019, a total of 212 companies and organisations in Japan had endorsed the TCFD, including 141 non-financial companies. Sekisui House was the first** of these to issue a TCFD report disclosing financial information.
- The report discloses climate-related information affecting finances
- It contains analysis based on both 1.5°C and 4°C average-temperature-rise scenarios, and has not identified any major financial risks associated with the physical effects of climate change, or the transition to a decarbonised society.
In 2008, the Sekisui House Group announced its “2050 Vision” aiming to eliminate CO2 emissions from the entire housing life cycle, and quickly shifted management focus to decarbonisation.
Sekisui House’s Net-Zero-Energy House (ZEH) product, which now accounts for more than 40,000 sales in total, 80% of the company’s newly-built detached houses each year. The ZEH product presented the greatest opportunities to increase profits, rather than the financial risks. The Sekisui House Group will proactively disclose information relating to its management strategy and engage in stakeholder dialogue to contribute to the creation of a sustainable society by shifting management focus to decarbonisation while responding to stakeholder expectations.
For more information, The TCFD Report 2019 can be downloaded from: https://www.sekisuihouse.co.jp/sustainable/download/2019/tcfd/TCFD_2019e.pdf
*The Task Force on Climate-related Financial Disclosures encourages companies to understand the financial impact of climate change risk on corporate management.
**First non-financial company endorsing the TCFD in Japan to disclose specific financial impacts in the form of a TCFD report (according to information available to Sekisui House).