Sustainability

The OPEN HOUSE Group is keenly aware both of the social responsibility associated with our business activities and of our contribution to achieving the Sustainable Development Goals (SDGs). As such, the OPEN HOUSE Group accordingly promotes initiatives through our business activities to address issues involving the environment, society, and governance (ESG).
Meanwhile, the OPEN HOUSE Group provides products and services to our customers through efforts that involve working with numerous stakeholders. Recognizing that the OPEN HOUSE Group's business activities can affect the human rights of various stakeholders, including employees, throughout the entire value chain, we will strive to thoroughly adhere to Respecting Human Rights stance throughout the Group. At the same time, we will clearly convey our Group's policies to the supply chain through the distribution of our basic policies, and strive to respond responsibly to human rights issues in the supply chain.

In addition, we explicitly stipulate respect for human rights in our Employee Code of Conduct, which serves as action guidelines that are to be followed by all employees and officers of the OPEN HOUSE Group.

Sustainability Committee, chaired by CFO, is responsible for Initiatives to Respecting Human Rights in our group. We are working with the relevant departments of Group companies to advance our activities.
Important human rights issues are reported to the Board of Directors.
Our Group has clearly stated that we do not discriminate on the basis of race, religion, gender, age, gender orientation, disability, or nationality, and we strive to ensure thorough implementation.
Although these discriminations have not occurred so far, they are checked in daily business inspections to prevent future occurrences.
In addition, we have a system in place for reporting to the Company if discovered through a whistleblower system.
In addition, Open House Group Human Rights Policy sets out the items of "respect for human rights" to ensure that each employee takes action in consideration of human rights.
To respecting fundamental human rights based on the United Nations Universal Declaration of Human Rights and the laws and regulations of business locations, we also promote management training and other measures to prevent discriminatory conduct, words and actions, sexual harassment, power harassment, and bullying. We also strive to respect the diverse values, individuality, and privacy of individuals.
For children, we expect that all stakeholders will effectively abolish child labor and respect human rights, in support of UNICEF's Children's Rights and Business Principles.

Based on the Open House Group Human Rights Policy, the Group has established a human rights due diligence mechanism and is implementing ongoing initiatives. In fiscal year 2025, under the guidance of experts, the Group conducted a human rights risk assessment and evaluation for its business operations, targeting the Group and its stakeholders, and identified priority issues.
Moving forward, the Group will continue to review risk assessments and priorities in response to changes in social conditions and business environments, aiming to strengthen its efforts. Additionally, the Group will strive to promote regular employee training and develop guidelines, ensuring thorough risk management in its business activities.

1. Identification and Assessment of Human Rights Risks

The Group conducted an assessment of human rights risks by identifying potential negative impacts on human rights that could be caused by its activities and transactions across various business operations. Based on these assessment results, the Group created a risk map with "severity" on the vertical axis and "likelihood of occurrence" on the horizontal axis, visualizing the human rights issues that should be addressed as priorities.

*Severity: Evaluated based on scale (severity of impact), scope (extent of impact), and irremediability (difficulty of restoring to a state of equivalent to before the impact occure)
*Likeliness of occurrence: Evaluated based on likelihood (certainty that the risk will actually occur) and frequency (how often it occurs, e.g., once every n years)

2. Identification of Priority Issues and Future Initiatives

Based on the above risk map, the Group identified human rights issues that should be addressed as a priorities, starting with items that pose high human rights risks.

In fiscal year 2024, no cases of human rights violations were identified within the Group. Going forward, risk mitigation measures will continue to be implemented to prevent such occurences.

In January 2022, we announced our support for the “United Nations Global Compact” and became a member company of the “Global Compact Network Japan,” the Japanese local network for the United Nations Global Compact. We support the “Ten Principles of the United Nations Global Compact” in the four fields of “Human Rights,” “Labour,” “Environment,” and “Anti-Corruption,” contributing to the realization of a sustainable society.

The Group recognizes that any discrimination or harassment based on birth, nationality, race, ethnicity, creed, religion, gender, sexual orientation, gender identity, age, disabilities, hobbies, educational background, family, etc. is an issue that affects corporate activities. The Group believes it is essential to create awareness throughout the company to "not do and not allow" such behaviors. In identifying human rights issues, understanding the perspective of potentially affected stakeholders is considered important, leading to ongoing dialogue with relevant parties.
A challenge specific to the construction industry is respecting foreign technical interns' human rights. While not currently employing such interns, appropriate measures will be taken to avoid, prevent, and mitigate human rights violations if they are accepted in the future. Collaboration with contracted businesses to survey working conditions and improve the workplace enviroment is also planned.
Acknowledging the low female representation in the real estate sector, a Work Design Promotion Committee has been established under the Board of Directors. This includes a "Women's Empowerment Working Group" that provides support, training, and networking events to promote an environment conducive to women building long-term careers.

The OPEN HOUSE Group is strengthening human rights education for employees, recognizing that the risk that human rights issues may arise may also expand as stakeholders expand as a result of business growth.
Compliance training, including the content of the Human Rights Policy and harassment, is held regularly for all employees and managers to deal with issues specific to the industry and topics that suit the current situation, and to incorporate a check on the form of responses, thereby raising awareness of Respecting Human Rights among employees.

Although labor unions have not been formed within the OPEN HOUSE Group, we maintain stable labor-management relations. Furthermore, we engage in labor-management dialogues annually through worker representatives.

Based on the Whistleblower Protection Act, the OPEN HOUSE Group has established a compliance hotline for consultations and reports from our employees and business partners. Consultations and reports from both employees of the Group and our business partners are received either by an external hotline supervised by a lawyer who is well versed in our internal reporting system, or by our internal staff members who handle public interest reporting duties.
The compliance hotline is also available as a hotline for consultation and reporting on human rights concerns such as issues related to harassment and the work environment.
When using the counter, confidentiality will be strictly observed, and the user will not be disadvantaged in any way by reporting.

In the event of policy violations

With regard to the content of reports, the OPEN HOUSE Group conduct investigations and respond to them by our Group representatives or third-party specialist organizations, and take corrective and relief measures as necessary.