Sumitomo Forestry Creates J-Credits from CO2 Emission Reductions in "Sumitomo Forestry Homes" - Launches "Sumitomo Forestry Energy-Saving Housing Club" to Periodically Return Sales Profit to Owners -

Sumitomo Forestry Co., Ltd. (President: Toshiro Mitsuyoshi; Headquarters: Chiyoda-ku, Tokyo) launched the "Sumitomo Forestry Energy-Saving Housing Club" (hereinafter, the Club) on July 1, targeting owners of "Sumitomo Forestry Homes," and began accepting applications for membership.

"Sumitomo Forestry Homes" are more energy-efficient and have higher energy-saving performance compared to general housing . In this Club, the act of owners residing in these homes will be considered a CO2 emission reduction activity, and the environmental value corresponding to the reduction amount will be collectively converted into carbon credits through the J-Credit System . The created credits will be sold to third parties under our company's name, and the sales profit will be distributed to each owner once a year according to the CO2 reduction amount. This is the first initiative in the industry by a housing manufacturer to create energy-saving J-Credits and periodically return them to owners based on the reduction amount.

In addition to reducing "CO2 emissions during construction (embodied carbon)" for housing, Sumitomo Forestry is also working to reduce "CO2 emissions during occupancy (operational carbon)" by providing energy-saving and energy-generating homes. By visualizing CO2 reduction amounts through this Club and establishing a system that allows owners to feel their environmental contributions, we aim to promote the realization of a decarbonized society.

Overview

Our company's detached custom-built homes and detached pre-owned homes undergo BELS evaluation applications for all units, which is an objective indicator of the building's energy-saving performance. This initiative will create J-Credits by calculating the reduction amount from the difference in CO2 emissions between general housing and our company's housing, based on the BELS evaluation report. Our company, as the secretariat of the Club, will compile the reduction achievements of each owner and collectively credit the reduction activities of multiple owners. After certification, we will sell them to third parties under our company's name and return the sales profit through owner-exclusive points or other means.

Scheme diagram from emission reduction activities to returns

※1 Individual owners who meet all the following requirements are eligible.

1) Construction of a detached custom-built home or purchase of a detached pre-owned home for which a BELS evaluation report has been issued.

Rental housing (including mixed-use), commercial buildings, and properties under corporate name are not eligible.

2) The owner themselves must have started residing in the aforementioned housing within 2 years prior to the membership application date.

3) Properties delivered on or after August 1, 2024.

4) Properties for which subsidies utilizing the J-Credit System, such as ZEH/water heating energy-saving subsidies from the Ministry of the Environment and the Ministry of Economy, Trade and Industry, have not been applied for or received.

※2 Refers to the standard housing specifications set as a baseline for comparison with energy-saving housing, based on the calculation rules defined by the J-Credit System. Details of the baseline can be confirmed from the link below.

Reference: EN-S-039_v5.3.pdf

※3 A system certified by the government that allows trading of "credits" for the absorption of CO2 and other substances through appropriate forest management and afforestation, and the reduction of CO2 and other emissions through the introduction of energy-saving equipment and the use of renewable energy. By purchasing credits, it is possible to financially support the absorption and emission reduction activities of credit creators, thereby effectively promoting emission reduction and absorption activities of CO2 and other substances throughout society.

Reference: https://japancredit.go.jp/faq/

※4 Based on publicly available information and to the extent confirmed by our company, this is the first initiative by a domestic housing manufacturer targeting owners.

※5 Abbreviation for "Building-Housing Energy-efficiency Labeling System," it is one of the third-party certification systems based on the "Guidelines for Energy-Saving Performance Labeling System for Buildings at the Time of Sale and Lease under the Building Energy Efficiency Act" established by the Ministry of Land, Infrastructure, Transport and Tourism. The system operator is the Institute for Building Environment and Energy Conservation, which objectively evaluates energy consumption performance and displays it with star marks, etc.

※6 Calculation based on data from randomly sampled properties from our company's delivered homes.

Background and History

"Sumitomo Forestry Homes" come standard with "360° TRIPLE Insulation" , which achieves high insulation performance and contributes to suppressing energy consumption for heating and cooling. We also promote the introduction of energy-saving and energy-generating equipment, such as high-efficiency equipment for air conditioning, ventilation, and water heating, as well as solar power generation systems, to provide housing with a low environmental impact.

We have initiated this program with the belief that by converting the CO2 emission reduction effect due to such housing performance into environmental value and returning it to owners, we can raise owners' awareness of climate change countermeasures and enhance the added value of our housing.

We aim to further improve customer satisfaction by positioning this initiative as an opportunity for continuous communication with owners and by enhancing after-sales follow-up.

※7 Reference: https://sfc.jp/ie/technology/dannetsu/

The Sumitomo Forestry Group operates globally with "wood" as its core, encompassing forest management, wood and building material manufacturing and distribution, contracting for detached houses and medium-to-large wooden buildings, real estate development, and biomass power generation. In its medium-term management plan "Mission TREEING 2030" through 2030, the Group aims to increase forest CO2 absorption and sequester carbon long-term through the widespread use of wooden buildings by operating its "WOOD CYCLE" value chain, thereby contributing to the decarbonization of society as a whole. We will continue to accelerate decarbonization by reducing CO2 emissions from both construction and occupancy through the promotion of ZEH, ZEB, LCCM housing, and net-zero carbon buildings.