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 that can visualize CO₂ emissions, the CO₂ emissions when built compared to the RC structure can be reduced by about 2,600 tons, and the wood used for the building materials fixes about 3,800 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.

The company also aims to obtain LEED environmental certification and Fitwel*⁴ wellness certification, and will provide socially and environmentally added value offices to ESG-conscious tenants.

*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 (CO₂ emissions during construction) 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

*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

In July 2023, Sumitomo Forestry, together with Fuyo General Lease Co., Ltd. and Odakyu Electric Railway Co., Ltd, participated in development of an eight-story commercial real estate in Shoreline City, near Seattle, Washington, with Trammell Crow Residential, a leading developer in the United States.

The 2nd basement to the 3rd floor above ground of the property are reinforced concrete (RC) structures, and the 4th to 8th floors are wooden structures with wood-frame construction. Compared with steel (S) construction and RC construction, wooden construction produces less CO₂ emissions (embodied carbon) during construction, and contributes to decarbonization because wood continues to fix carbon at a stable level for a long time.

In September 2023, Sumitomo Forestry, together with: Chuo-Nittochi Co., Ltd., and leading developer Trammell Crow Residential, participated in development of a five-story pure wooden structure commercial real estate development near Denver, Colorado, USA.

Wood is also used for the interior, providing a high-quality residence with a wooden feel. In general, wooden constructions are characterized by less CO₂ emissions (embodied carbon) when they are built compared to steel and reinforced concrete buildings. In addition, wood fixes absorbed CO₂ as carbon inside, and harvested wood products (HWP) continue to fix carbon for a long period of time. By utilizing a large amount of wood in this property, both provision of a high-quality residence and contribution to a decarbonized society will be achieved.

In November 2023, Sumitomo Forestry, together with Tokyo Tatemono Co., Ltd., Chuo-Nittochi Co., Ltd., and Fairfield Residential Holdings LLC, a leading U.S. developer, participated in development of an eight-story commercial real estate in suburbs of Washington, D.C.

The property has a hybrid structure in which the lower third floor is made of reinforced concrete (RC) and the upper fifth floor is made of wood, and is both economical and environmentally sound. A wooden two-by-four construction method using standard products of 2×4 or 2×6 timber materials similar to a detached house is adopted, and the cost is suppressed as compared with the case where the whole building is made of RC construction. This property using a large amount of wood continuously fixes carbon for a long period of time, thereby contributing to realization of a decarbonized society.

Crescent Communities, LLC, a wholly owned subsidiary of Sumitomo Forestry, has decided to develop a logistics facility near Richmond, Virginia, USA.

Impact of this property on environment such as CO₂ emissions during construction is quantified and evaluated through life cycle assessment of building using "One Click LCA" software. We also aim to acquire LEED environmental certification for our buildings and promote environmentally sound development.

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, construction, renovation, and disposal (embodied carbon) is approximately 491 kg CO₂e/ per unit floor area (m²). The property is expected to achieve a reduction of approximately 35% in CO₂ emissions by 2025, five years ahead of the 2030 target of 750 kg CO₂e/m² set by the Royal Institute of British Architects (RIBA*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.

Sumitomo Forestry will continue to deepen the knowledge of advanced environmental measures and develop medium- to large-scale wooden constructions overseas in order to realize a decarbonized society.

*1Royal Institute of British Architects. An association of leading British architects. Developing guidelines for setting, designing, and evaluating sustainability in architecture, and other activities

*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