Article
Net Zero Revolution: Why India's Real Estate Needs to Go Green
April 25, 2024
India's real estate industry has seen substantial growth due to urbanisation and a growing demand for property ownership. The rise of the middle class and government initiatives for affordable housing further supported this growth. However, this rapid expansion has resulted in an increase in carbon footprint, and the industry is actively taking measures to address its impact by adopting green practices and sustainable solutions. Buildings are a significant contributor to global carbon emissions. Buildings contribute 37% of the world's carbon emissions and account for 34% of global energy consumption. However, the real estate industry is successfully implementing sustainable practices and welcoming transformative reforms. This shift is driven by factors such as investor demand for green buildings and ambitious national net zero targets. A range of eco-friendly initiatives to reduce environmental impact are also being adopted.
CBRE's Commitment to Net Zero
At CBRE, we have an ambitious goal of achieving net zero emissions by 2040. This objective reflects our unwavering commitment to environmental sustainability and responsible corporate citizenship. To ensure a smooth transition and measurable progress, we have established a series of interim milestones to be reached by 2035. Furthermore, we are pursuing two additional strategic initiatives that will be instrumental in achieving our net zero goal:
· 100% renewable energy for our corporate operations by the end of 2025
· 100% vehicle fleet electrification by the end of 2035
These combined efforts represent a comprehensive approach towards achieving net zero emissions by 2040. We recognise the transformative nature of this journey and remain steadfast in our commitment to a sustainable future.
Why Net Zero is important?
Net zero emissions are crucial for the real estate industry for several compelling reasons:
Environmental Responsibility: Buildings are major contributors to greenhouse gas emissions and achieving net zero within real estate directly combats climate change. By focusing on energy efficiency, renewable energy sources and sustainable practices, the industry can significantly reduce its environmental impact.
Financial Advantages: Net zero buildings often lead to lower operating costs due to reduced energy consumption. Additionally, they can attract higher rental rates and property values as tenants and investors increasingly prioritise sustainability.
Regulatory Shifts
Governments around the world are implementing stricter regulations to reduce carbon emissions. Net zero buildings can help real estate owners stay ahead of these regulations and avoid potential penalties or restrictions on non-compliant properties.
Future-proofing Assets: Transitioning towards net zero prepares real estate portfolios for the future. As the world strives for a sustainable future, buildings that are not net zero compliant may become less desirable and potentially face challenges in terms of marketability and financing.
Leadership and Innovation: Embracing net-zero positions real estate companies as leaders in sustainability. This can enhance brand reputation, attract environmentally conscious tenants and investors and foster a culture of innovation within the industry.
Renewable Energy for Realty
The sustainable transformation in the real estate industry can be driven by renewable energy sources like solar, wind, geothermal and hydropower. These clean energy solutions offer a win-win scenario for both the environment and the developers. Buildings can significantly reduce their carbon footprint and combat climate change by replacing fossil fuels with renewable sources. Additionally, renewable energy can lead to cost savings and efficiency through on-site electricity generation and optimised energy use. Properties with renewable energy features and a commitment to net zero goals tend to command higher value and attract tenants who prioritise sustainability, particularly younger generations seeking eco-friendly living and working spaces.
Overall, net zero is not just an environmental imperative but also a smart business decision for the real estate sector. It presents an opportunity to reduce costs, attract tenants and investors and ensure long-term value for real estate assets in the future focused on sustainability.
CBRE's Commitment to Net Zero
At CBRE, we have an ambitious goal of achieving net zero emissions by 2040. This objective reflects our unwavering commitment to environmental sustainability and responsible corporate citizenship. To ensure a smooth transition and measurable progress, we have established a series of interim milestones to be reached by 2035. Furthermore, we are pursuing two additional strategic initiatives that will be instrumental in achieving our net zero goal:
· 100% renewable energy for our corporate operations by the end of 2025
· 100% vehicle fleet electrification by the end of 2035
These combined efforts represent a comprehensive approach towards achieving net zero emissions by 2040. We recognise the transformative nature of this journey and remain steadfast in our commitment to a sustainable future.
Why Net Zero is important?
Net zero emissions are crucial for the real estate industry for several compelling reasons:
Environmental Responsibility: Buildings are major contributors to greenhouse gas emissions and achieving net zero within real estate directly combats climate change. By focusing on energy efficiency, renewable energy sources and sustainable practices, the industry can significantly reduce its environmental impact.
Financial Advantages: Net zero buildings often lead to lower operating costs due to reduced energy consumption. Additionally, they can attract higher rental rates and property values as tenants and investors increasingly prioritise sustainability.
Regulatory Shifts
Governments around the world are implementing stricter regulations to reduce carbon emissions. Net zero buildings can help real estate owners stay ahead of these regulations and avoid potential penalties or restrictions on non-compliant properties.
Future-proofing Assets: Transitioning towards net zero prepares real estate portfolios for the future. As the world strives for a sustainable future, buildings that are not net zero compliant may become less desirable and potentially face challenges in terms of marketability and financing.
Leadership and Innovation: Embracing net-zero positions real estate companies as leaders in sustainability. This can enhance brand reputation, attract environmentally conscious tenants and investors and foster a culture of innovation within the industry.
Renewable Energy for Realty
The sustainable transformation in the real estate industry can be driven by renewable energy sources like solar, wind, geothermal and hydropower. These clean energy solutions offer a win-win scenario for both the environment and the developers. Buildings can significantly reduce their carbon footprint and combat climate change by replacing fossil fuels with renewable sources. Additionally, renewable energy can lead to cost savings and efficiency through on-site electricity generation and optimised energy use. Properties with renewable energy features and a commitment to net zero goals tend to command higher value and attract tenants who prioritise sustainability, particularly younger generations seeking eco-friendly living and working spaces.
Overall, net zero is not just an environmental imperative but also a smart business decision for the real estate sector. It presents an opportunity to reduce costs, attract tenants and investors and ensure long-term value for real estate assets in the future focused on sustainability.