Wood is one of the most fully renewable building materials, so wood instead of non-renewable materials produced from organic energy sources significantly reduces the environmental impact. Construction products can be replenished at the end of their working life and their elements and components deconstructed in a closed-loop manner to act as a material for potential construction. Materials passports (MPs) are instruments for incorporating circular economy principles (CEP) into structures. Material passports (MPs) consider all the building’s life cycle (BLC) steps to ensure that it can be reused and transformed several times. The number of reuse times and the operating life of the commodity greatly influence the environmental effects incorporated. For a new generation of buildings, the developing of an elegant kinetic wooden façade has become a necessity. It represents a multidisciplinary region with different climatic, fiscal, constructional materials, equipment, and programs, and ecology-influencing design processes and decisions. Based on an overview of the material’s environmental profile (MEP) and material passport (MP) definition in the design phase, this article attempts to establish and formulate an analytical analysis of the wood selection process used to produce a kinetic façade. The paper will analyze the importance of environmentally sustainable construction and a harmonious architectural environment to reduce harmful human intervention on the environment. It will examine the use of wooden panels on buildings’ façades as one solution to building impact on the environment. It will show the features of the formation of the wooden exterior of the building. It will also examine modern architecture that enters into a dialogue with the environment, giving unique flexibility to adapt a building. The study finds that new buildings can be easily created today. The concept of building materials passport and the environmental selection of the kinetic wooden façade can be incorporated into the building design process. This will improve the economic and environmental impact of the building on human life.