Development and operations of the built environment of real estate and infrastructure results in more than 40% of overall global carbon dioxide (CO2) emissions. These are the biggest demand side contributor to overall global CO2 emissions that are ultimately responsible for global warming and climate change.

1. Building A Sustainable Future: The
Need For Greener Supply Chains In
The Real Estate Industry

2. Development and operations of the built
environment of real estate and infrastructure
results in more than 40% of overall global
carbon dioxide (CO2) emissions. These are
the biggest demand side contributor to
overall global CO2 emissions that are
ultimately responsible for global warming
and climate change. Reducing these
emissions is becoming increasingly critical
with each day, however as they come from
various sources in the supply chain it
requires an assimilation of all stakeholders to
drive market-based low carbon solutions.
To understand the range of sources from
where the emissions arise, we must take a
cradle-to-cradle view of any building:

3. Each of these emissions’ sources are part of
the supply chain, and we need solutions to
make each of these activities greener or low
carbon. It starts with estimating and reporting
the carbon footprint of each of these activities
by each of the supply chain partner, and then
creating decarbonisation roadmaps for each.
Leading developers can ensure greening of the
construction and operation supply chains by
orienting their suppliers to the need of this
transition and gradually transforming their
supply chains with companies that are
compliant and aligned to the net zero roadmap
of the developer. By doing so, developers can
create demand for greener alternatives,
thereby fostering innovation in established as
well as start-up ecosystems.

4. One must note that the Sustainability agenda now
goes beyond just green, and covers social aspects like
human rights, safety of both the individuals and
communities, while also ensuring equal opportunity
for diverse group of employees and workers.
Alignment of supply chain, together on climate and
social parameters, results in a sustainable future and
better life for all.
Challenges in developing a greener, more sustainable
supply chain:
Data scarcity
Unavailability of environmental performance data in
the supply chain. Many companies do not measure
the impact, as the market has started demanding the
environmental data there is an increasing awareness
about the same. Additionally, as the data is getting
measured the companies are becoming more
conscious of the impact of their functions and are
actively trying to improve their environmental
performance.

5. Performance challenges
Greener materials have yet not
withstood the test of time and there is
lack of confidence in the system for
mass adoption. This requires leadership
and sponsorship of the idea that can be
done through pilots and proof of
concept deployments.
Cost premiums
Several green alternatives are
expensive and impact the margins of
the companies, unless companies
responsibly evaluate them with respect
to internal carbon prices.

6. Material Availability
Greener materials even when available many times are
not sufficiently available for scale deployment. With
the increasing demand signals in the market,
manufacturing companies can generate finance and
enhance their production capacities.
Finance
Scaling up of greener material production required
capital inflow at the manufacturer level; however, in
the recent past finance availability on production of
greener materials has improved significantly also
resulting in a positive shift towards a greener low
carbon economy.
Policy gaps
Various innovative green materials and systems require
approvals or inclusion in relevant building codes and
standards which is a time consuming and tedious
process. Leading developers can support the policy
makers through pilot projects to prove efficacy of the
alternatives.

7. By operating through a greener supply
chain an organization not only derisks its
business and improves top and bottom
lines, but also contributes significantly in
nation building.
Net zero targets and regulatory compliance
Greener supply chains support progressive
carbon reduction for any organization,
thereby helping to achieve the committed
net zero targets. Gradually, the regulations
and mandatory disclosure/ reporting
requirements have started to become
more stringent, especially for large
companies. Companies with greener supply
chains have more accurate data to disclose
and achieve improving trends on
sustainability matrices.

8. Brand improvement and sales
Companies operating with greener supply chains
consistently deliver greener and more
sustainable products in the markets thereby
attracting positive sentiments with the brand.
With positive shifts in the market sentiment
towards greener products, markets reward
companies through better sales, that are able to
offer greener and more sustainable products.
Fostering innovations and growth of green jobs
The need to move away from business to
greener alternatives fosters innovation that
ultimately increases the pie for all. With a
demand of greener supplies, there is a whole
new market and industry that’s growing and is
also creating green jobs for millions of people
thereby enabling a transition that’s good for all.

9. Wellness and climate resilience
Sustainable products and sustainable
companies result in better safety, health
and well-being of the product users and
well as the manufacturers work force.
This is truly an approach to help build a
better life for all. And last but not the
least, greener supply chains ultimately
create a mass scale positive impact on
the environment thereby reducing the
risk of climate change and helping the
industry and people to become more
resilient.