The Japanese government is promoting the policy “Green Growth Strategy Through Achieving Carbon Neutrality in 2050” to achieve carbon neutrality.It was launched to promote significant innovation in the private sector and support companies that are tackling a new era, with the lofty goal of carbon neutrality by 2050.Specifically, the government made action plans for 14 key areas with growth potential, providing future projections for each area.
The Green Growth Strategy identifies key areas that are expected to be growth industries and provides specific plans and forecasts.For example, the government has been working on the use of perovskites in home and office applications.Perovskite solar cells are solar cells that use the crystal structure of a mineral called perovskite. They are attracting attention as next-generation solar cells because they can be produced in a light and flexible way at lower production cost.
Because of their characteristics, perovskite solar cells can be installed anywhere. Research and development to overcome limitations pertaining to installation sites, a longstanding problem in solar power generation, is ongoing.Misawa Homes also actively promotes housing aimed at achieving carbon neutrality, stretching back to the development and marketing of the world's first “Zero-energy Home^®” in 1998.

Figure: 14 Growth Sectors

Source: “Green Growth Strategy Through Achieving Carbon Neutrality in 2050,” Ministry of Economy, Trade and Industry (METI)

To accelerate the adoption of homes that contribute to carbon neutrality, Misawa Homes has added "Smart Tech GX Plus" specifications to its lineup of earthquake-resistant, prefabricated wooden homes (both detached and rental homes). These offerings meet standards for green transformation (or “GX”) housing.Misawa Homes' prefabricated homes use our proprietary thermal insulation technology. Smart Tech GX Plus Features come standard with highly energy-efficient equipment, such as the Floor Central Ventilation System HEPA95 which achieves a maximum heat exchange efficiency of 95%, as well as a photovoltaic power generation system and HEMS.By combining these technologies effectively, we can significantly reduce primary energy consumption and achieve the standards required for green transformation housing.
Misawa Homes is working to promote the increased uptake of next-generation high-performance homes by providing comfortable homes that reduce energy consumption and environmental impact, such as the Smart Tech GX Plus Features, contributing to a more sustainable society.

The Noto Peninsula Earthquake in January 2024 caused extensive damage.The disaster combined a number of exacerbating factors: severe winter weather, aging demographics, and an overall depopulation of the peninsula.In another case in January 2025, part of a road in Yashio, Saitama collapsed into a sinkhole. This incident highlighted the importance in disaster-preparedness of measures to cope with aging infrastructure.To ensure a reliable response to such contingencies as well as to protect the lives and property of citizens from the increasing severity and frequency of natural disasters, a new Disaster Management Agency is being considered for establishment in Japan. The agency would play a leading role in a cycle of government disaster response measures, covering from normal times to the time of disaster, and to the phase of recovery and reconstruction.In this context, activities to accelerate and enhance national resilience are needed, such as promoting initiatives in line with the Five-Year Acceleration Plan for Disaster Prevention, Disaster Mitigation, and Building and National Resilience policy.One aspect of national resilience is preparing for disasters in advance.To protect human lives while minimizing societal and economic damage, we must focus on resilience to create a safe and secure country, region, economy and society capable of recovering quickly.
Misawa Homes continues to make a committed effort to provide safe and secure lives to consumers by building homes able to cope with such disasters.

Figure: Initiatives to Build National Resilience

Source: National Resilience website of the METI

Misawa Homes won the Enterprise Category's Audience Choice Award for its "SMART STYLE Roomie Large Roof Type Detached House" at the PHASE FREE AWARD 2024In normal use, the design offers highly insulated and airtight homes and also uses natural energy sources such as photovoltaic power generation systems, making for a comfortable living space. To prepare for a disaster, Misawa Homes' Resilient × LCCM sustainable living solution addresses worrying what-if scenarios. The house is structured with a highly earthquake-resistant wood panel adhesion system and equipped with an MGEO vibration damping device, supporting an independent energy cycle while protecting occupants.As a Housing Manufacturer, Misawa Homes has responded to the more frequent and intensified occurrence and severity of natural disasters by proposing homes that protect families and support them in the wake of disaster, in addition to providing ordinary comforts.

Career education has been attracting attention in Japan in recent years.Career education is education that promotes the development of careers by fostering the basic abilities and attitudes necessary for the social and occupational independence of each individual.Through career education, people gain skills to discover the value of their role and their relationship with themselves.The backdrop to this increased awareness is significant changes in Japan's socio-economic and industrial structure seen as information technology increased on a global scale in the latter half of the 20th century.This impact brought about structural changes in Japan's industrial and occupational sectors, profoundly impacting everyday life.These changes have a huge impact on the environment children grow up in as well as on their future. The importance of career education is only increasing.Hands-on activities in nature and social situations are used in many schools as opportunities to recognize the value of others, awaken interest in society, and learn about civic duty, thereby building a foundation for future working adults.Furthermore, for children to mature into independent members of society, they need a holistic and integrated environment of school, family, and the wider community cooperating to support them.In this context, Misawa Homes is continuing its endeavors to ease social issues by providing housing and services that reduce the burden of housework, child rearing, and nursing care through housing and community development.

Figure: Competencies to be developed through career education

Source: “Guide to Career Education,” Ministry of Education, Culture, Sports, Science and Technology (MEXT)

Misawa Homes co-sponsored the Children Career Summit 2024, a career event for children held in Tokyo in August 2024.
About 100 participants ranging from elementary school students to university students attended the event, where they could freely brainstorm and collaborate to think about their careers, things they would like to achieve in the future and jobs they would like to do.
The Misawa Homes Group has worked on various activities for children in the past, with a sincere focus on what we can do for them.In 2011, we held the first Antarctic Class, an educational support program that opens children's minds to new possibilities through talks from our employees who have participated in the Japanese Antarctic Research Expeditions.As of last fiscal year, 2,514 schools had held one of these events, with a total of more than 240,000 participants. By introducing activities in Antarctica, an unfamiliar place, the program provides opportunities for children to learn about the global environment and to think about their dreams, hopes, and futures.

Group photo of participants on the last day

Deforestation is progressing around the world and is one of the factors that threatens biodiversity.
There are many reasons for increased deforestation,including extreme weather caused by climate change leading to more forest fires and droughts, excessive logging for commercial purposes, and clear-cutting of forests pushed by an increase in demand for land.Slash-and-burn agriculture in developing countries can also lead to deforestation.
According to the Global Forest Resources Assessment 2020 (FRA2020) published by the Food and Agriculture Organization (FAO) of the United Nations, the world's forest area was approximately 4.06 billion hectares in 2020, accounting for approximately 30% of total land area.Deforestation increases the likelihood that much wildlife will be pushed to the brink of extinction.This wildlife is connected to life outside forests through food chains and other links, and therefore affects the ecosystem of the entire planet.
Misawa Homes is also devoting considerable energy to forest maintenance and other activities to fulfill its social responsibility as a company that handles timber.

Figure: Changes in Global Forest Area, 1990–2020

Source: Global Forest Resources Assessments, Food and Agriculture Organization of the United Nations (FAO)

Misawa Homes undertook forest maintenance work in October 2024 at Misawa Homes Forest Matsumoto in the Nagawa district of Matsumoto City, Nagano Prefecture.As a company that benefits from forest resources, Misawa Homes has made biodiversity conservation and social contribution activities the main themes of its environmental initiatives. In addition to sustainable wood procurement and efficient use of wood, we are engaged in forest conservation work.Established in 2014, Misawa Homes Forest Matsumoto is a 6.9 hectare municipal forest in Matsumoto City, utilizing the Nagano Prefecture's “Forest Foster Parent Promotion Project,” which was formed to encourage sustainable forest development.This year marks the 10th anniversary of this area in Matsumoto. In cooperation with the city of Matsumoto and Furusato Nagawa Co., Ltd., a total of 27 people participated in maintenance work. After planting the Gotenzakura cherry trees for commemoration and thinning the forest, our staff members and local people deepened the friendship through an exchange meeting.
Misawa Homes will continue to engage in forest maintenance initiatives in various regions to contribute to the revitalization of local communities and making a sustainable society.

Healthy life expectancy has been attracting attention, while there are expectations for improving the quality of life of the elderly and curbing social care costs.It is said that the trend was triggered by the then-named Ministry of Health and Welfare which established the “National Health Promotion Movement in the 21st Century (Healthy Japan 21)” in 2020 to encourage extending healthy life span.Also in recent years, the Cabinet of Ministers approved the Basic Policy for Economic and Fiscal Management and Reform 2019, which set forth the extension of healthy life expectancy as a measure to prepare for the “age of 100-year life expectancy,” highlighting several themes.For example, the Basic Policy proposes that improving the health of individuals will improve their quality of life and eliminate their concerns about their future, and that increasing the number of people who can work in good health by extending healthy life expectancy will increase the number of people responsible for social security.
In addition, the Healthy Japan 21 initiative aims to extend healthy life expectancy by focusing on nutrition and eating habits, physical activity and exercise, and the elderly, with continued efforts in each area.Misawa Homes also aims to develop businesses that lead to increased customer satisfaction in light of these changes in living environments.

Figure: Extension of Healthy Life Expectancy

Source: “Healthy Life Expectancy in 2022,” MHLW

Misawa Homes has been working to further enhance the value of the knowledge and technologies it has developed through the operation of aged-care facilities as part of its nursing care business. It has also renamed this sector to the “Wellness Business,” aiming to extend healthy life expectancies, and expanded its proposals in October 2024.We have enhanced our renovations proposals by incorporating the Misawa Wellness Plan, which aligns with the perspectives of customers experiencing life stage changes. Through strengthened cross-business collaboration with our Existing Home Business, we will enrich our portfolio of renovation solutions for unexpected needs. This contributes to solving housing challenges in our super-aged society, offering space proposals that enable healthy, comfortable living tailored to each individual.Leveraging our accumulated expertise and skilled personnel with proven caregiving knowledge and techniques in our wellness business, we will further promote talent development to strengthen home renovation proposals through collaboration with our Existing Home Business.Misawa Wellness Plans are now an option for customers aged 50 and older, encouraging them to consider remodeling while they are still healthy as a way to prepare for potential care needs in the future. We promote remodel proposals that will help them live longer and healthier lives.

Health management is an approach that allows companies to strategically implement measures to maintain and improve employee health from the perspective of increasing future profitability.Implementing policies based on the philosophy of health management is widely considered to have a positive impact on the profit margin of companies.
In addition, Health and Productivity Management Stock Selection (KENKO Investment for Health) has been identified in the securities market.This initiative aims to promote health management by selecting companies with excellent health management from those listed on the Tokyo Stock Exchange and introducing them to investors who place importance on improving corporate value in the long term.Companies included in the Health and Productivity Management Stock Selection are required to analyze how health management can improve their productivity and corporate value, and to actively communicate this information to stakeholders.Misawa Homes will continue to promote work-style reforms and health management, while working to resolve social issues through its business operations, and will create an environment where the company and its employees can grow together.

Figure: Concept of Health Management

Source: “On the Future of Health and Productivity Management,” METI

In 2018, Misawa Homes began conducting employee health management, to create a vibrant workplace environment where employees can enjoy a long and vigorous career.In FY2024, we implemented the Healthy Team of the Year 2024 program, which aims to mitigate lifestyle-related diseases through improved health literacy. The program awarded the teams that achieved overall excellence in health, combining multiple measures for consideration.The new initiative was well-received, and the company was included in the “Excellent Health Management Corporation 2025 White 500” list, out of more than 3,800 corporate entries.
11 Misawa Homes group companies and the Misawa Homes Health Insurance Society were also certified as “Excellent Health Management Corporations 2025” in its Small and Medium-sized Corporate Category list.Of these 12 companies, three were recognized as “Next Bright 1000,” a class newly established this fiscal year for those ranked 501st through 1500th of the list. These companies are Techno Factories and Construction Co., Ltd., Hokkaido Housing Industries Co., Ltd., and Misawa Homes Health Insurance Society.

Misawa Homes recognized as a “2025 Excellent Health Management Corporation Large corporate category　White 500”

Eleven Misawa Homes Group companies and the Misawa Homes Health Insurance Association certified as “2025 Excellent Health Management Corporations　Small and medium-sized corporate category