In December 2022, Sumitomo Forestry, together with IINO KAIUN KAISHA, LTD. and Kumagai Gumi Co., Ltd., participated in the development of a seven-story wooden ESG-conscious office building near Dallas, Texas, in the United States. These three companies, established a special purpose company (SPC) with Crow Holdings, a leading developer in the United States, to construct a large-scale wooden office building of mass timber construction*¹.

According to estimates using the "One Click LCA*²" software, which can visualize CO₂ emissions, embodied carbon can be reduced by about 2,600 tons compared to an RC structure, and the wood used for the building materials accounts for about 3,400 tons of carbon*³. The use of mass timber will streamline work at the construction site and shorten the construction time compared to RC construction.

This project has obtained LEED certification, which evaluates the environmental performance of buildings, Fitwel certification*⁴, which promotes employee health and well-being, and WiredScore certification*⁵, which assesses a building’s digital connectivity. We provide offices with high environmental and social added value by achieving a high standard of environmental consciousness, user health, and advanced digital infrastructure.

*1Architecture using engineered wood, which is a relatively high-mass material made from multiple pieces of wood

*2Software for which Sumitomo Forestry has concluded a sole agency agreement in Japan. CO₂ emissions during procurement of raw materials for construction, processing, transportation, construction, renovation, and disposal can be calculated precisely

*3CO₂ emissions during constructing the office and parking lot building were estimated. Major structural components such as framing, curtain wall, and foundation were evaluated based on construction drawings. Carbon storage amount is estimated for office building. Tons are converted to metric tons (MT)

*4A system developed by the General Services Administration (GSA) and the Centers for Disease Control and Prevention (CDC) to evaluate and certify the health and working environment of building users

*5An international certification system developed by WiredScore that evaluates and verifies the digital connectivity of office buildings and residential properties

In June 2024, Sumitomo Forestry, together with leading developer Trammell Crow Residential, participated in the development of a wooden multi-family housing project in the city of Montclair, near Los Angeles, California, USA.

This project adopts the wood-frame construction method, and it plans to develop three and four-story apartment buildings using standard 2×4 lumber and three-story townhome-type buildings.

In July 2024, Sumitomo Forestry, together with Tokyo Tatemono Co., Ltd. and Fairfield Residential Holdings LLC, a leading U.S. developer, participated in the development of a three-story pure wood rental multi-family residential project near Denver, Colorado, USA.

This property adopts the wood-frame two-by-four construction method. Additionally, shared facilities (such as a pool, fitness area, and co-working space) and lush landscaping provide a comfortable living environment that contributes to residents’ well-being.

In October 2024, Sumitomo Forestry, together with Chuo-Nittochi Co., Ltd., participated in the development of a seven-story commercial real estate complex in Atlanta, Georgia, USA.

This building adopts a hybrid structure, with the first two floors constructed of reinforced concrete (RC) and the upper five floors made of wood. The upper floors adopt the wood-frame construction method, using standard 2x4 lumber.

Targeting active young adults who seek an urban lifestyle of "live, work, and play" in downtown Atlanta, the property offers extensive shared amenities, such as a rooftop lounge, pool, courtyard wood deck, and a large screen for watching movies. Crescent Inc., a wholly-owned subsidiary of Sumitomo Forestry, which is the lead developer, holds workshops called "Canvas Sessions" when developing rental apartment buildings. During these sessions, they collaborate with all stakeholders involved in the development to create the basic concept. We plan to gain a deep understanding of the local history and characteristics of the area to create a property that is attractive for the community.

In November 2024, Sumitomo Forestry, together with Kyushu Electric Power Co., Inc. (U.S. subsidiary, Kyuden Urban Development America, LLC) and NEC Capital Solutions, Ltd. (U.S. subsidiary, NEC Capital Solutions America, Inc.), participated in the development of a commercial real estate project near Durham, North Carolina.

This building is a six-story hybrid structure of wood and reinforced concrete (RC), with the second to six floors constructed of wood. In addition, with the aim of obtaining the environmental certification "NGBS* Bronze," we are working to improve various environmental performance aspects, such as energy efficiency, water conservation, and indoor environmental quality. Furthermore, through obtaining Fitwel, the well-being certification, we will create a sustainable living environment that also prioritizes residents' health and comfort.

*National Green Building Standard. The only certification recognized by the American National Standards Institute as an evaluation system for environmentally conscious single-family and multi-family housing

In November 2024, Sumitomo Forestry, together with Chuo-Nittochi Co., Ltd. and Fairfield Residential Holdings LLC, a leading U.S. developer, participated in the development of a pure wood rental multi-family residential project near Boston, Massachusetts, USA.

This property consists of one four-story and one five-story pure wood structure. Each unit of the property has a beautiful view of the forest, and there are bicycle paths and a mountain bike park in the surrounding area, thus it combines the richness of the natural environment with the convenience of urban living.

In December 2024, Sumitomo Forestry participated in the development of a new wooden multi-family housing project near Dallas, Texas, USA. This project, the first collaboration with Nomura Real Estate Co., Ltd. in the United States, is located in The Colony in northern Dallas, a rapidly growing area due to its proximity to employment hubs and easy access to downtown Dallas. It aims to develop commercial real estate that targets residents who seek a live-work lifestyle.

This property adopts the wood-frame two-by-four construction method. Offering a variety of floor plans, ranging from studios to three-bedroom units, and featuring high-quality interiors and extensive shared amenities, this property provides a comfortable living environment that meets a diverse range of needs.

In February 2022, Sumitomo Forestry formed a joint venture with the U.K. real estate developer Bywater Properties Limited to participate in a six-story wooden environmentally conscious office development project in London.

The estimated CO₂ emissions of the project during the procurement of raw materials, processing, transportation, and construction (upfront carbon) are approximately 413kg CO₂e/ per square meter of floor area (m²). The property is expected to achieve a reduction of approximately 31% in CO₂ emissions by 2025, five years ahead of the 2030 target of 600 kg CO₂e/m² set by the Greater London Authority (GLA*¹), making it a pioneering initiative in the United Kingdom. We are also working to reduce CO₂ emissions during building use (operational carbon) by designing buildings to energy conservation and energy creation specifications and combining this with the use of renewable energy.

The project plans to obtain BREEAM*² environmental certification, WELL health-conscious office certification, and WIRED SCORE*³ smart building certification.

*1The local government ranked the highest in Greater London. Composed of the mayor of London and 25 members of the London Assembly

*2BRE Environmental Assessment Method. A method for evaluating the environmental performance of buildings, developed in 1990 by Building Research Establishment (BRE) and Energy and Environment (ECD), an energy and environment consultant

*3An evaluation system that ranks internet connectivity in real estate. It has been introduced in 36 countries and is evaluated based on indicators such as comfort and stability of Internet connection and usage environment

In December 2024, Sumitomo Forestry, in collaboration with Fuyo General Lease Co., Ltd., launched a wooden office building renovation project in the United Kingdom. We are beginning the renovation of a five-story office building in the City of London dating from the early 1900s, as well as the construction of a wooden addition on the fifth and sixth floors.

In this project, instead of demolishing the existing steel-frame building, the plan is to utilize its structure and carry out wooden extensions and alterations. This approach aims to significantly reduce the building's overall lifecycle CO₂ emissions compared to demolition and reconstruction or steel-frame extensions and alterations.

Regarding the embodied carbon associated with material manufacturing, transportation, construction, maintenance, and demolition, preliminary estimates using the CO₂ visualization software One Click LCA indicate that this project can reduce CO₂ emissions by approximately 60% compared to typical new office buildings in the UK. And by using wood construction for the extension, the total carbon storage of the building is estimated to be approximately 220 tons (CO₂e). Furthermore, by installing energy-efficient elevators and high-insulation windows, the project aims to reduce operational carbon associated with energy consumption during occupancy. For the materials, procurement, construction, and other aspects, the project plans to obtain a BREEAM* environmental certification of Excellent or higher.

*BREEAM is a building environmental performance assessment system that was developed in the UK and has been operational since 1990. It is evaluated across ten categories including energy, health and comfort, water, materials, and waste, and it is rated on a scale of one to five: Pass, Good, Very Good, Excellent, and Outstanding

Sumitomo Forestry, together with NTT Urban Development Corporation, started initiatives to realize Net Zero Carbon Building*¹ through a large developer Hines Co., Ltd., which develops globally, and completed a large-scale wooden office in Collingwood near Melbourne City, Australia in October 2023.

This property has a mixed RC and wooden structure with 15 floors above ground and 2 floors below ground (7 to 15 floors are wooden), and is the highest wooden office in Melbourne, Australia*².

Through this project, in addition to achieving the highest level of Green Star environmental certification in Australia (6 stars), we aim to obtain Net Zero Carbon certification based on the Carbon Neutral Standard for Building, an Australian standard. We also estimate that approximately 3,300 m³ of wood will be used in the structural frame, fixing approximately 2,300 tons of carbon (on a CO₂ basis). Including this fixed amount, the CO₂ (Embodied Carbon) emitted during the construction of the building (in the process of raw material procurement, manufacturing, construction, demolition, etc.) is equivalent to a reduction of approximately 40% compared to the case where the entire structure is made of RC (reinforced concrete).

This project is an advanced development that combines the effective use of wood, which has a carbon fixation function, with energy saving, energy creation, and use of renewable energy in buildings, and realizes WGBC*³ target of zero operational carbon in all new buildings by 2030 five years ahead of schedule.

*1The building is designed to save or create energy, and CO₂ (operational carbon) emissions from building use are reduced to virtually zero through a combination of renewable energy use and offsets using carbon credit

*2Survey by Wood Solutions, an organization affiliated with the Australian Government (March 2024)

*3WGBC: World Green Building Council, a member of the UN Global Compact and a global action network of about 70 green building councils around the world

In March 2024, Sumitomo Forestry Australia participated in a Build-to-Rent (BTR)^*1 rental housing project developed by Australia’s Cedar Pacific.

This project involves the development of a 31-story commercial real estate complex with a total of 475 units in Brisbane, Queensland. It is part of a government-supported initiative to promote affordable housing^*2 in the state. Of the total 475 units, 250 will be offered as affordable housing. The project also aims to contribute to decarbonization by achieving operational carbon net zero, in accordance with Australia’s Green Star*³ certification and Net Carbon Neutral*⁴ standards.

*1BTR (Build to Rent) refers to residential properties developed specifically for rental purposes. It is gaining attention as one of the fastest-growing asset classes in Australia

*2Affordable housing refers to rental properties offered at below-market rates through government subsidies

*3Green Star is a rating system developed and administered by the Green Building Council of Australia (GBCA). Rated on a scale from 4 to 6 Stars

*4Operational carbon emissions are minimized through measures such as enhancing the building's environmental performance with solar power generation and entering into green power agreements using renewable energy. Any remaining emissions are offset, achieving net-zero operational carbon from the first day of operations