Corporate Governance

Sekisui House Ltd. (the Company) considers corporate governance as one of the major management priorities in the sense of enhancing the trust of stakeholders. To ensure management transparency and provide for timely and appropriate checking and monitoring, five outside directors and three outside audit & supervisory board members are in place. With the aim of clarifying operational responsibilities and ensuring flexible business execution, the Company has introduced executive officer system.
Regarding the internal control system, the Company is thoroughly implementing and strengthening the operation of the system based on the Basic Policy Concerning the Development of an Internal Control System.
The J-SOX Group within the Accounting Department is responsible for thorough compliance of the group-wide internal controls based on the Financial Instruments and Exchange Act (J-SOX).

The Sekisui House Group publish and disclose the concept and frameworks of corporate governance to stakeholders and strive to continuously improve the system.

In accordance with the Basic Policy on Corporate Governance, Sekisui House creates opportunities for periodic engagement with shareholders and investors with agendas covering such topics as financial results, management plans, ESG management and the status of each business. Through investor relations (IR) activities in and outside Japan, senior management, including representative directors, and staff from the Investor Relations Department, proactively hold meetings with institutional shareholders and investors as well as analysts and conduct briefings for individual shareholders and investors. Furthermore, the Company strives to provide ample direct communication outside of individual meetings by such means as quarterly financial results briefing sessions and semiannual management plan briefing sessions, as well as tours of factories and other facilities. Beginning in FY2023, the Company also holds small meetings of the Outside Directors of the Board with institutional shareholders on such topics as the business execution performance of the current management team and reinforcing governance. These meetings serve as valuable opportunities for active discussion with institutional shareholders and mutually providing input in the form of opinions and other information.

As described above, Sekisui House engages in proactive discussion through direct dialogue with analysts and the fund managers, ESG officers and officers in charge of exercising voting rights of institutional shareholders and investors based in Japan and overseas. The main topics of interest to shareholders and investors in these dialogues include such business-related subjects as the Company’s performance, domestic and overseas business market environments, the Company’s competitive advantages, the Company’s future outlook and policies for the mid-term management plan, including those related to shareholder returns and capital measures. Furthermore, with regard to ESG-related topics, the Company receives numerous opinions related to ESG management and its integration into business strategy, the value creation process and its approach to human capital, among other topics.

 　The opinions and concerns of shareholders and investors, along with insights gleaned from these dialogues, are fed back as appropriate to the Board of Directors and management team via the Investor Relations Department. The Company references such input when making management decisions and reflects them in future dialogues. Furthermore, following discussions at the Management Meetings and the Board of Directors, the Company has reflected such input in the currently underway the Sixth Mid-Term Management Plan(specifically, in capital measures and ROE management reinforcement) and applied it to enhance disclosure materials, such as Value Report .