The aim of this primer is to putforth a perspective on - how does sustainability matters in real estate sector and why it should be a prime agenda of firms in making environmental friendly decision making and operations. Real estate sector can showcase their stewardship towards environment via efficient environmental friendly policies. There are varied environmental standards which are applied at the builings or infrastructure level in real estate sector, however what it lacks is uniformity in sustainability applicability to the sector. The type of material used, the design per se, installations and retrofits all matter in real esate sustainability mission and vision. Understanding environmental and climate risks and its real implications is a intricate challenge for property investors.

1. A Primer on - How much
does Sustainability matters
in Real Estate Sector?
Date: 7/6/2019
Volume 1 Issue 1
About Eco Endeavourers Network
At the outset, I take this humble opportunity and with sincere gratitude introduce to you Eco Endeavourers
Network’s pursuit of learning, growing and initiating benchmarking innovation and thought leadership in the
interdisciplinary field of Environmental Science.
Eco Endeavourers Network was started in 2009 with the motto “striving for the planet” in peril. It’s a thought
leadership platform to create awareness, carry out research, disseminate knowledge & capacity building on
Environment, Sustainability, Climate Change and Energy, and promote environmental friendly and sustainable
policies to varied stakeholders. A brief listing and notable mentions of events include: contributed and reviewed
the GRI Sustainability Standards ie; GRI 303: Water; as it was open for public review and feedback, conducted
thought leadership events and authored the publications on: 1. Circular economy, 2. Urban green spaces as natural
capital assets, 3. Water stress areas and water impacts across supply chain, 4. Why Particulates Matter? PM10 and
PM2.5 in spotlight, 5. Blockchain technology in Sustainability and Energy sector, 6."Mind mapping the attitude of
what and how to buy in"? Sustainability Vs Consumers. Treatise on: UN SDGs Goal 2: End Hunger UN SDG Goal 3:
Health and Wellbeing was also published and SDGs awareness was done. Newsletter focusing: Beyond Boundaries
–Deluge connecting the dots in the cities across the world; Are Trees the viable solution towards climate proofing
of our Cities…? ; Infrastructure: How do we perceive the Blue, Green and Grey Space? “Unlocking the Blocks”. The
subject matter contribution for the network include Sustainability, Climate Change, Environmental Impact
Assessment, Environmental Education & Training, Renewable Energy, Greenhouse gases quantification, Remote
Sensing & GIS applications, Environmental Management, Clean Development Mechanism, Corporate Sustainability
Reporting, Ecosystem & Forestry Services—Research & Development, Corporate Social Responsibility (CSR), PIL
and RTI, Urban Greening, Urban Forestry and Biodiversity.
Having a worked in sustainability and climate change domain with requisite research, technical and analytical skills
and learning acumen, the passion for application of sustainability at all levels and across varied sectors and
verticals has motivated me to write this primer on how much sustainability matters in real estate industry as it is
much needed prerequisite for sustainable cities and communities however not much addressed sector in India.
Dr. Prachi Ugle Pimpalkhute,
Founder, Eco Endeavourers Network

2. Table of Contents
I. Foreword
II. Introduction
III. Real Estate and Sustainability
IV. Applicative solutions of sustainability to Real Estate sector
V. Way forward towards Sustainable Real Estate sector

3. Foreword
The aim of this primer is to putforth a perspective on - how does sustainability matters in real
estate sector and why it should be a prime agenda of firms in making environmental friendly
decision making and operations. Real estate sector can showcase their stewardship towards
environment via efficient environmental friendly policies. There are varied environmental
standards which are applied at the builings or infrastructure level in real estate sector, however
what it lacks is uniformity in sustainability applicability to the sector. The type of material used,
the design per se, installations and retrofits all matter in real esate sustainability mission and
vision. Understanding environmental and climate risks and its real implications is a intricate
challenge for property investors. Many investors, real estate developers and investment
managers have not been vocal publically about their level of sustainability commitments,
however a good number of real estate sector developers have started to develop innovative
strategies to assess and mitigate short term and long term environmental and climate risks. Most
often real estate developers commit to a set of principles and create master plan based on certain
diligent intiatives around which their work progresses. However what needs to be addressed is
having sustainability as core agenda along with other set agenda, rather than just being
obligatory to certain regulatory requirements and external pressures.
Real esate businesses should along with economic rationale embed environmental sustainability
in the sector decisions, policies, strategies and master plans which in turn shall help in long term
cost reduction, enhanced property values, improved returns. Sustainability applicability shall
allow opportunites to opt for newer technolgies and innovation so as to meet environmental
commitments and also enhance the business portfolio performance of real estate sector. Another
applicability agenda is that real estate sector should ensure that all its assets contribute to urban
resilience in cities in terms of project specificities and its activities are aligned with
environmental compliance, reducing greenhouse gas emissions, implementing water/waste
management and clime risks and disaster risk reduction plan.

4. Introduction
Real estate sector is centre to urban development, consumes resources nd are significant
contributors of GHG emissions. However with the goal of creating sustainable cities and
communities which are safe, healthy, inclusive and resilient, real esate sector is making efforts
in its commitments towards sustainability as a way forward to march towards green
infrastructure with better amenities and facilitation. As a matter of fact though, substantial
progress has been made in terms of green buiding technologies like LED, GRIHA etc..the sector
still lags behind other industrial sectors in the way it responds to environmental challenges.
Many real estate firms have come up with its commitment plans and what theeir sustainability
statements lack is consistency and approach. Many still do not have policies and strategies in
place, a just as a matter of obligation report or mention in its green business agenda their
measurements and reporting. However, the feasibility of sustainability solutions, which it
offers and its contribution to the sectoral portfolio is what need to be tracked for setting up
future goals and trajectories. And one way to do so life cycle studies of real estate sector
individual portfolio buildings based on residential land use, commercial landuse and mixed
land use build up.
The key to portfolio management is the sector commitment to environmentally sustainable
practices for the built environment via the following points :
 Embedding sustainability in all aspects of real estate operations, board level
responsibility undertaking and sustainability performance disclosures or reporting.
 Working as cohesive force at all level – city, municipal and ward level with tenants,
owners, city government, urban planners and other stakeholders contributing in the
agenda of achieving sustainability.
 Construction and development, assessment management
 Tracking performance of real estate assets, risks associated
 Maximizing energy efficiency and minimizing GHG emissions
 Identifying sustainability targets and setting goals
Through this primer Eco Endeavourers Network aims to put forth how sustainability matters in
real estate sector and states that, it should be the core agenda in urban planning for building
sustainable, safe, inclusive and resilient cities.

5. Real Estate and Sustainability
The real estate sector uses energy as like other sector and is a growing conributor to CO2
emissions. The construction and demolition waste (C &D waste), type of materials used are all
responsible for the CO2e contributions as a whole and measuring it often complex. As per
World Economic Forum (WEF), real estate sector consumes 40 % of global energy anually,
about 20% of total global greenhouse gases emissions originate from buildings and a projected
56 % increase in building CO2 emissions by 2030. Also the socio-economic factors will make
the environmental impact of real estate sector even more critical to be addressed. By most
projections of World Economic Forum, by 2030, the global population will exceed 8 billion and
over 60% of the world’s population (4.9 billion people) will be living in urban environments.
This will lead to significant growth in the construction and real estate market:
 Global construction output will reach $15.5 trillion (3.9% CAGR) by 2030 – Investable
real estate will reach US$69 trillion (60% growth from 2015)
 The largest 750 cities (representing 61% of global GDP) will require:
o 260 million new homes – 540 million m2 of new office space – 60 million new
jobs in industry
Parties to the UN Climate Change Conference (COP21), which took place in Paris, in December
2015, agreed to keep global warming below 2°C and, ideally within 1.5°C. To stay under the
2°C threshold. According to World Bank estimates, a 36% reduction in total CO2 emissions in
the real estate sector is required by 2030 in order to stay within the 2°C threshold.
Source : IPCC, USBC, 2015
Green buidlings and Infrastructure :
Real estate sector has over the past many years have acknowledged sustainability
commitments in decision making and implementation in terms of LED, BEE certified energy
efficiency devices, installations and by use sustainable building materials. According to World
Economic Forum and CRE, globally 40 – 48% of new buildings are green compared to just 2%
in 2005. Also by 2020, the new commericial built up properties are expected to rise by 55 % as
new construction regulations and compliance specifications are being enforced and are made
to be adhered.
29%
41%
30%
Global Energy Use by Sector
Buidlings
Industrial
Transport

6.  Penetration of building management systems (BMS) for energy efficiency, regulation
 Uptake of green building activity driven by resource coservation ; often client and
market demand are important drivers; branding and marketing, PR are the latest
factors influency green building and infrastructure investment decisions.
 According to a report by World Economic Forum Industry Agenda Council on the
Future of Real Estate & Urbanization - The GRESB (Global Real Estate Sustainability
Benchmark) survey assessed the environmental, social and governance (ESG)
performance of 707 property companies and private equity real estate funds that
represent 61,000 assets and $2.3 trillion in asset value. Recent results show that: – 288
out of 707 property companies and funds have long-term carbon reduction targets –
The average reduction target is a 21% decrease in carbon emissions over a period of 7
years ; 10 – 37 companies and funds have reduction targets of 50% (or more), over an
average period of 13 years – Short-term reduction targets (for one year) are in place for
247 companies and funds, with an average reduction target of 7% – However, 28% of
the 707 property and companies and funds reporting to GRESB in 2015 did not provide
data on the environmental performance of their real estate.
 As regard to sustainability efforts, construction and engineering and construction
materials , purchase of raw materials, design and demolition an integrated one stop
framework with multifacet dimensions applied is lacking and this results in lower
sustainability outcomes. So a more refined and integrated approach with a step by step
approach culminating into a one stop solution towards appying sustainability across all
levels in the sector is required.
Green Building activity drives
 High building value
 Lower operating costs
 Environmental regulations and compliance
 Corporate commitment
 Marketing and communications ; Public relations
 Competition
 Market revolution ; renovation requirement / upgradation
 A number of companies have extensive sustainability initiatives and actions in place, but do
not explicitly report or have disclosures publicy available
 A few real estate sector indicate that they are currently in the process of developing
policies aligned to sustainability
 A few among indicate that they are engaged with other companies and in collaboration
conduct sustainability programmes
 Fostering innovation in technology and building management practices
 Buildings generate emissions in all phases of their life cycle, from manufacturing to use
up to their end of life.The aim should be to reduce buildings’ emissions throughout their
entire life cycle as possible as can be.

7. Sustainability agenda points for real estate include : 1. Climate change 2. Raw materials
used 3. Waste 4. Water 5. Energy . Land Use 6. Biodiversity 7. GHG emissions
Various institutions who initiated sustainabilty in real estate sector :
 Urban Land Use Greenprint – Building owners/operators / users
 GRI – CRESS : Global Reporting Initiative – Construction and Real Estate Sector
Supplement Those of who invest in/develop/construct/ manage buildings or
infrastructure
 United Nations – Principles for Responsible Investment (UN-PRI) : Institutional
investors
 Global Real Estate Sustainability Benchmark (GRESB) : Institutional investors
 US Green Building Council – Leadership in Energy and Environmental Design
(USGBC) - Developers and building owner/ operators/users
 Building Research Establishment Environmental Assessment Methodology
(BREEAM) - Developers and building owner/ operators/users
 World Business Council for Sustainable Development – Energy Efficiency in
Buildings (WBCSD-EEB) - Building portfolio owners/managers

8. Applicative solutions of sustainability to Real Estate sector
 According to Stockholm Environment Institute, city-scale actions by the real estate sector
could decrease global GHG emissions by 3.7 Gt CO2e from a reference scenario in 2030 and
by 8.0 Gt CO2e in 2050. This corresponds to roughly 6% of global business-as-usual GHG
emissions by 2030, and 11% by 2050, without damaging bottom line profits. Similarly,
improvements in space and water heating could reduce urban housing emissions by 1.1 Gt
CO2e annually in 2030 and by 2.0 Gt CO2e annually in 2050. Introduction of low energy
appliances and lighting (LED lighting) has reduced emissions and so have solar PV
technologies on rooftops and buildings.
The basic hierarchy of real estate includes –
Design Construct Buy, sell, rent Manage Retrofit
End of life
Reuse of waste material
 Smart Asset Optimization – For higher applicability of sustainability in real estate and
infrastructure, smart asset optimization is a best fit solution being applied in terms of
sensor based, app based smart metering across building, water saving devices, trip
planning etc…what benefit does it do ?
 Value addition to property owners
1. Reduction in energy consumption and spend
2. Reduction in carbon emissions
3. Improved inhabitant comfort, health and well-being
 Value addition to estate managers :
1. Reduction in energy consumption and spend
2. Reduction in carbon emissions
 Value addition to tenants :
1. Better comfort level
2. Reduction in emissions
3. Enhanced connectivity
4. Good health and well-being
 Building design - should be such that construction results in minimum waste or zero
waste ; it should also consider how buildings wastes can be dismantled in a way that
their embodied carbon be reused in another building. This shall enhance sustainability
perdformance of real estate sector

9.  Existing buildings be modified as per the environmental and associated climate risks,
the duration of a building can be extended. Furthermore, changes include energy
efficiency measures. By changing the internal layouts significant changes are being
made without the need for new structure.
 Residents /tenants are expected to pay higher rents, if their energy costs are lower over
a period of their stay (presuming that they are directly responsible for utility expenses),
lower costs shall increase profits.
 Owners/residents/investors get greater benefits from investing in green buildings
 People work more efficiently in eco-friendly environment; and when they stay in close
proximity to work area; as they avoid travel time and this shall allow more time to
spend with family, enhancing overall health and well-being and increased work
produtivity.
 Energy efficient building and those abiding environmental regulations and compliance
are highly likely to get maximum ROI.
 Sustainable buildings reduce risk, lower risk premium reducing cap rates
 Green buildings are less vulnerable to institutional investors moving to
environmentally sustainable investment policies –
Way forward towards Sustainable Real Estate sector
 Thee key issue about sustainbility in real estate sector is while opting for sustainable
buildings, the extent to which the cost is recouped with increase in capital value.
 Estate managers/owners/builders/investors /developers be provided with incentive
for improving the environmental performance of buildings and same returns or credits
be used for maximizing further benefits and investing other key areas where
sustainability as an agenda shall allow goodwill portfolio to the organization/developer.
 Real estate sector commit to sustainability strategies and create cities housing and
communities planners with sustainability as a key requirement for construction sector.
 Sustainability Design Performance and enable O&M Sustainability Certification (ex.
LEED
 Increased material efficiency : Allows reduced labour costs ; Reduction on site health
and safety risks by replacing on site jobs with off-site manufacturing.
Sustainability matters the most in real estate sector as its applicability in this sector has not
been applied at the rate it should be in developing countries. Moreover, it has got wider
scope in lowering the operation costs, reducing carbon emissions, enhancing the portfolio,
being an asset with manximized return on investment, provide health and well-being, and
enhanced work productivity.
This primer is the first volume and first issue, on how does sustainability matters in real
estate sector; the next primer continuation will focus on sustainability tools and its
application in real estate sector.