Sumitomo Corporation to Develop Commercial Facility for Swarovski Employing Nippon Steel's GX Steel "NSCarbolex Neutral"- Cutting greenhouse gas emissions by approximately 74% in main structural steel components -

Sumitomo Corporation, together with Swarovski Japan (hereinafter "Swarovski"), the global crystal manufacturer and retailer, announced that Nippon Steel Corporation (hereinafter "Nippon Steel") will supply its GX Steel*1 NSCarbolex(R) Neutral*2 for the new Swarovski store in Osaka, the "Shinsaibashi Minamisenba 3-chome Project" (hereinafter "the Property").

As Japan advances toward its 2050 carbon-neutral goal under the national GX (Green Transformation) agenda, the real estate and construction industries are likewise accelerating efforts toward net zero. In recent years, the focus has expanded beyond energy saving and energy generation during building use to encompass greenhouse gas (GHG) reductions throughout the entire lifecycle – from manufacturing and construction to disposal and recycling. As a result, efforts to reduce embodied carbon*3 are seeing increased momentum, and demand is rising for construction materials, including structural steel, that generate lower GHG emissions during production.

For the Property, measures were implemented to reduce GHG emissions during construction in line with the carbon-neutral and environmental policies of the companies involved. As part of this effort, NSCarbolex Neutral has been selected for multiple key components, including Nippon Steel's wide-flange beams, NSHYPER BEAM® and heavy plate steel, as well as roll columns from Nippon Steel Metal Products. These materials accounted for approximately 65% of the Project’s main structural steel components. According to estimates, this will reduce GHG emissions – from raw material procurement through steel production – by around 74% compared with conventional steel*4.

Sumitomo Corporation (project owner), Swarovski (tenant) and Nippon Steel (GX steel supplier) are driving progress toward carbon neutrality through their respective roles and will continue working together to help realize a sustainable future.

Sumitomo Corporation remains committed to reducing GHG emissions by more than 50% across the Sumitomo Corporation Group by 2035. Measures include the introduction of high-efficiency equipment, the use of renewable energy and a broad range of initiatives in development and renovation projects.

Swarovski, the Austrian crystal brand, has already achieved a 46% reduction in Scope 1, 2 and 3 GHG emissions by 2024 compared with 2019 levels, in line with its commitment to mitigating climate change. For new store construction, Swarovski is also actively pursuing the adoption of more sustainable materials.

Nippon Steel, recognizing the urgent need for GHG reduction across all industries, will continue to contribute to decarbonization, enhanced competitiveness for its customers and the achievement of a carbon-neutral society through the provision of NSCarbolex Neutral.

1. GX Steel
   Defined in the January 23, 2025 report by the Ministry of Economy, Trade and Industry's "Study Group on Green Steel for Green Transformation," as "green steel to drive the green transformation."
2. NSCarbolex Neutral
   A steel product supplied with a certificate, in which Nippon Steel pools the amount of GHG (greenhouse gas) and CO₂ emissions reduced through additional reduction projects it has implemented, and allocates those reductions to specific projects.
   The product complies with the guidelines established by The Japan Iron and Steel Federation. Customers who purchase NSCarbolex Neutral are considered able to report the GHG emission reductions indicated on the certificate as deductions from their organization-level emission (GHG Protocol Scope 3, Category 1) as well as from upstream emissions at the product level, as calculated by the customer.
3. Embodied carbon
   Refers to GHG/CO₂ emissions generated over the building process, including material transport, construction and disposal.
4. Based on estimates by Nippon Steel Corporation.

Property Overview (Shinsaibashi Minamisenba 3-chome Project)

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