Moving ahead, this year’s Biodiversity Day serves as a poignant reminder of the sector’s responsibility to minimise its environmental footprint and embrace sustainable practices
As we acknowledge the lasting impact of climate change and engage in the commercial real estate sector (CRE), it's imperative to recognise that India holds a distinctive position to emerge as a leading developing economy by adopting noteworthy sustainability measures. This emphasis on sustainability isn’t merely a passing trend; rather, it has evolved into a crucial driver of investor value. Indeed, many investors now deliberately seek out assets that meet specific sustainability criteria, recognising the dual benefits of environmental responsibility and financial viability.
In the CRE sector, a notable shift is underway towards embracing eco-efficiency initiatives across the entirety of the property lifecycle. This encompasses everything from initial design and construction to ongoing property management and investment endeavours. Speaking of a project’s lifecycle, CRE organisations are now employing a product life cycle profiler that serves as a vital sustainability management tool. It assesses the ecological impact of their products and services throughout the entire value chain. This in turn enables informed decisions and fosters sustainable practices across the entirety of operations, as new buildings aim to achieve net zero on a whole lifecycle basis.
Moving ahead, this year’s Biodiversity Day serves as a poignant reminder of the sector’s responsibility to minimise its environmental footprint and embrace sustainable practices. From implementing energy-efficient measures to mitigating greenhouse gas emissions, commercial real estate stakeholders have a critical role to play in advancing the biodiversity theme, Be Part of the Plan,and safeguarding the planet for generations to come.
With respect to this, let us understand how CRE players are leading the charge towards a greener future.
Design and Development Phase: Realty companies are revolutionising the way buildings are designed and constructed. At the design phase, they’re prioritising eco-friendly practices such as utilising sustainable building materials, optimising building orientation for energy efficiency, and implementing passive design strategies to maximise natural lighting and ventilation. By incorporating green building standards like LEED (Leadership in Energy and Environmental Design) or BREEAM (Building Research Establishment Environmental Assessment Method), CRE players are setting the stage for sustainable development from the ground up. Biodiversity spaces to protect native vegetation and fauna are also included to ensure tenants can access natural spaces within built environments.
Construction and Renovation: During the construction and renovation phase, real estate companies are leveraging cutting-edge technologies and green insulation practices to minimise the environmental impact. This includes adopting modular construction methods to reduce waste and construction time, implementing energy-efficient HVAC systems and lighting management systems, and incorporating onsite renewable energy generation such as solar panels or wind turbines. Additionally, companies are also prioritising the use of recycled and locally sourced materials such as reclaimed wood or bamboo to reduce embodied carbon and promote circularity in construction practices.
Operational Phase: Once a property is operational, commercial real estate companies ensure that they continue their commitment to eco-efficiency through sustainable operations and maintenance practices. This involves implementing energy management systems to monitor and optimise energy usage, conducting regular audits to identify areas for improvement, and investing in energy-efficient appliances and fixtures.
STPs and rainwater harvesting systems, also reduce the dependence on freshwater sources, along with the installation of water-efficient fixtures. Implementation of good waste management practices reduces the amount of landfill waste generated from the CRE and improves recycling of the materials. CRE players are also introducing various systems and technologies to address the indoor environmental quality of tenants by installing air filters, glare free lighting systems, access to daylight, and encouraging mobility among the tenants.
Tenant Engagement: Engaging tenants in sustainable practices is another key aspect of eco-efficient property management. Companies are actively encouraging tenants to participate in energy-saving initiatives, waste reduction programmes, and water conservation efforts. This may include providing educational materials, organising sustainability workshops, or offering incentives for adopting eco-friendly behaviours.
End-of-Life Phase: Even as a property nears the end of its lifecycle, commercial real estate companies are mindful of its environmental impact. During the decommissioning process, companies prioritise the responsible disposal and recycling of construction and demolition materials to minimise waste and maximise resource recovery. This may involve salvaging reusable materials, repurposing building components, or deconstructing the property in a manner that minimises environmental harm. By adopting “circular economy” principles, companies aim to close the loop on their properties’ lifecycles and reduce their overall environmental footprint.
As we look into the future, let us all continue to harness the momentum of Biodiversity Day to drive further innovation and collaboration, ensuring that commercial real estate remains at the forefront of building a more sustainable and resilient planet for future generations.
(Ritesh Sachdev, Sr. Vice President, Head of Leasing and Asset Management at TATA Realty and Infrastructure Ltd)