Incorporating waste treatment facilities in residential buildings is a practical and impactful way for the real estate sector to contribute to sustainability
In today’s business landscape, sustainability and environmental considerations have become essential pillars of operation. The growing awareness and concern for the environment are reshaping industries and consumer expectations. This shift towards sustainability isn't just a trend; it's a fundamental change in how businesses operate and define their success.
The World’s Growing Consciousness
As global awareness of environmental issues intensifies, the measure of a good business extends far beyond the quality of its products or services. All stakeholders including consumers, investors, and lenders increasingly value “how” organisations achieve their business objectives. A responsible approach to business practices has become a significant differentiator, influencing purchasing decisions, investment opportunities, and credit extensions.
Today's consumers are more inclined to engage with organisations that are perceived as responsible. Investors are more likely to back sustainable ventures, and lenders prefer extending credit to companies with robust environmental, social and governance policies. This paradigm shift is transforming all sectors of the economy including real estate.
Beyond Green Buildings
The real estate sector has made notable progress in building sustainable buildings. Focusing on buildings that are energy-efficient, as well as conserving water by providing sewage or waste water treatment plants for recycling of water and providing greener landscapes. However, there lies a significant, often overlooked, opportunity in solid waste management. This aspect of sustainability can substantially reduce carbon footprint of residential buildings.
A typical household generates between X grams of waste per person per day (500 grams to five kilograms of waste daily). In a city like Mumbai, this results in over thousands of tonnes of refuse each day. The Central Pollution Control Board estimates that Mumbai generates around 11,000 tonnes of solid waste daily, but only 20 percent is processed, with the rest ending up in landfills. This presents a massive opportunity for the real estate sector to make a meaningful impact by reducing waste sent to landfills.
Targeting Food Waste
Food waste accounts for nearly a third of household garbage in Mumbai, according to the Municipal Corporation of Greater Mumbai's Environmental Status Report 2022-23. Being biodegradable, food waste is relatively easy to treat, significantly reducing landfill contributions. Real estate companies can implement solutions like organic waste converters or compost pits to process food waste onsite for all projects irrespective of their size or as a part of the mandatory compliance to Ministry of Environment and Forests (MoEF) regulation for getting approvals.
Onsite waste treatment facilities can process all food waste, ensuring none of it goes to landfills. While mechanized organic waste converters require a higher initial investment compared to compost pits, they offer considerable benefits. These solutions convert organic waste into manure, that can be used in-house stored or sold, creating cost savings and new revenue streams for housing projects. This manure can be also be utilised to maintain lush, green landscapes within the residential complex, enhancing the aesthetic appeal and providing a tangible benefit to residents.
Financial and Environmental Benefits
Implementing these solutions supports environmental sustainability and enhances the marketability of real estate projects. With an increase in awareness, consumers are increasingly likely to purchase apartments in buildings equipped with green facilities. This preference aligns with a growing trend towards sustainable living options, making such projects more attractive to environmentally conscious buyers. A recent industry report by Xynteo reiterates the same by highlighting how residential consumers are willing to pay 5 percent to 10 percent premium for green buildings.
Community Engagement and Education
An essential aspect of successfully implementing onsite waste management solutions is educating residents. Real estate developers should invest in community engagement programs to inform residents about the benefits of waste segregation and onsite treatment. Workshops, informational brochures, and regular updates can help ensure that residents are active participants in sustainability efforts.
Additionally, developers can partner with local governments and environmental organisations to promote broader community awareness. By demonstrating a commitment to sustainability in turn enabling, developers to enhance their reputation and build stronger relationships with local stakeholders.
Future Prospects and Innovations
The future of waste management in real estate holds promising prospects. Innovations such as smart waste bins that automatically segregate waste and advanced composting technologies can further streamline onsite waste management. Real estate companies should stay abreast of these developments and continually seek ways to integrate cutting-edge solutions into their projects.
Incorporating waste treatment facilities in residential buildings is a practical and impactful way for the real estate sector to contribute to sustainability. By reducing the burden on city waste management systems and creating new economic opportunities, consciously building homes which can lead the way toward a greener, more sustainable future. Embracing these practices not only benefits the environment but also aligns with the evolving preferences of consumers, investors, and lenders, ultimately driving business success in the modern world.
(Chandresh Dinesh Mehta, Executive Director, Rustomjee Group)