September 28, 2021
Sumitomo Realty & Development Co.,Ltd.

Promoting Decarbonization in the Development of New Condominiums

A First in the Industry!*¹ For All New Condominiums*2 ,■“ZEH-M Oriented” Energy-Saving Performance Will Be the Standard■ Green Power Usage Will Be Requested at the Construction Site
*1：Based on research by Sumitomo Realty, using public information. *2：All properties except for joint venture properties, etc.

Sumitomo Realty & Development Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo; President: Kojun
Nishima; hereinafter “Sumitomo Realty”) has been working to solve social issues through its businessactivities under its fundamental mission of “Create even better social assets for the next generation.”
Decarbonization is a part of our focus in the effort for “Environmental Protection” upheld in our code ofconduct.
In our condominium sales business, we have decided to adopt “ZEH-M Oriented” energy-saving
performance as the standard for all the condominiums*2 we design and develop in the future, without
reducing their quality and living comfort. Furthermore, in order to promote decarbonization inconstruction sites, we have decided to arrange for and request the use of green power by theconstruction companies we partner with.

*3: Image of our condominium, not a specific property to which this release applies.

Sumitomo Realty enjoys a large share of the new condominium market. As part of our efforts to reducecarbon emissions in delivering new condominiums, we have been engaged in extensive research on
how to improve energy savings performance without impacting comfort of living, and＜シティハウス下目黒外観＞
have concluded tomake “ZEH-M Oriented” the standard for all our properties.
As one of its targets for 2030, the Ministry of Land, Infrastructure, Transport and Tourism isaiming for all new residential housing to offer energy-savings that meet ZEH standards*⁴. In linewith such target, we will adopt the design standard that satisfy ZEH standards ahead of theindustry.
Furthermore, we have decided to actively urge our partner construction companies to use green
power at their construction sites. For construction companies without measures to do so, we will
request their collaboration by providing a framework that enables the introduction of green power.
Through these efforts, we will promote decarbonization of our condominium sales business infuture throughout the value chain, from upstream to downstream.
*4: Compliance with reinforced exterior standards (for thermal insulation performance) + 20% or more reduction in primary energy consumption in comparison to current energysaving standards

≪Reference≫
1: What is “ZEH-M Oriented”?
ZEH stands for “net zero energy house.” ZEH has dramatically improved exterior thermal insulation
performance provided by their external walls, use highly efficient equipment, and materially improveenergy savings while maintaining the quality of indoor environments. They are combined withenergy creation that introduces renewable energy, such as solar energy, with the aim of achieving
net zero primary energy consumption. Separate standards are defined for each level of primaryenergy consumption reduction.
ZEH-M Oriented, which Sumitomo Realty will make the standard for its future condominiums, is astandard that requires compliance with reinforced exterior standards (for thermal insulation
performance) and which reduces primary energy consumption by 20% in comparison to current
energy-saving standards.
<Definition of ZEH for housing complexes>
Residential building evaluation
Energy saving rate
Exterior thermal(the below must be achieved by theinsulation
entire residential building including
performanceshared spaces)(the below must beachieved by allExcluding
Includingdwelling units)
renewable energy renewable energy“ZEH－M”

100% or more

Nearly ZEH-M

75% or more

ZEH-M Ready

Reinforced exterior
standards(ZEH standards)

20% or more

ZEH-M Oriented

Dwelling unit evaluation
Exterior thermal
Energy saving rateinsulation(the below must be achieved by theperformance
relevant dwelling unit)(the below must beachieved by theExcluding
Includingrelevant dwelling
renewable energy renewable energyunit)

Target“ZEH”

Buildings with 3 or
fewer stories

100% or more

Nearly ZEH

50% or more

Buildings with 4 or
5 stories

ZEH Ready(Renewableenergy notrequired)

Buildings with 6 ormore storiesZEH Oriented

Reinforced exterior
standards(ZEH standards)

75% or more
20% or more

50% or more
(Renewableenergy notrequired)* Quoted from “ZEH Design Guidelines for Housing Complexes” by the ZEH Roadmap Follow-up Committee for Housing Complexes.

2: The number of new condominiums supplied and the market share<Number of properties supplied during past five years (top five companies nationwide)>2016
Company nameSumitomo Realty

2017
No. of units

Company name6,034 Sumitomo Realty

No. of units

Company name7,177 Sumitomo Realty

No. of units

Company name7,377 Sumitomo Realty

No. of units

Company name

No. of units

Pressance
Corporation
5,305 Nomura Real Estate
Development

4,342

3,941 Sumitomo Realty

3,512

3,365 Mitsui Fudosan
Residential

2,334

2,365 Eslead

2,151

5,690

Nationwi de t ot al

76,993 Nationwi de t ot al

77,363 Nationwi de t ot al

80,256 Nationwi de t ot al

70,660 Nationwi de t ot al

59,907

Sumitomo Realty
market share

Sumitomo Realty
7.8%
market share

Sumitomo Realty
9.3%
market share

Sumitomo Realty
9.2%
market share

Sumitomo Realty
8.1%
market share

7.2%

3,225
3,215

5,158
3,787
3,101

5,267
5,224
3,614
3,198

Pressance
Corporation
Nomura Real Estate
Development
Mitsubishi Estate
Residence
Mitsui Fudosan
Residential

2020

4,320

5,267

Pressance
Corporation
Nomura Real Estate
Development
Mitsubishi Estate
Residence
Mitsui Fudosan
Residential

2019

Mitsui Fudosan
Residential
Nomura Real Estate
Development
Pressance
Corporation
Mitsubishi Estate
Residence

4,056

Pressance
Corporation
Nomura Real Estate
Development
Mitsui Fudosan
Residential
Mitsubishi Estate
Residence

2018

The initiatives related to this release contribute to the following SDGs’ objectives:

Goal 7 AFFORDABLE AND CLEAN ENERGY
Goal 9 INDUSTRY, INNOVATION AND
INFRASTRACTURE
Goal 11 SUSTAINABLE CITIES ANDCOMMUNITIES

Goal 12 RESPONSIBLE CONSUMPTION AND
PRODUCTION
Goal 13 CLIMATE ACTION
Goal 17 PARTNERSHIPS FOR THE GOALS

Sumitomo Realty has been working to solve social issues through its business activities under its
fundamental mission to “Create even better social assets for the next generation.” Going forward, theCompany will further contribute to realizing a sustainable society by creating high-value social assets withenvironment and social awareness.
(Our Initiatives on ESG and SDGs: https://www.sumitomo-rd.co.jp/english/sustainability/ )3,791