Realty sector finds green the colour of money

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: While all the real estate companies say that there is a new business opportunity in green buildings arising out of climate change, a majority of the financial sector companies say that carbon trading is the biggest business opportunity. These are the initial trends emerging from the responses of ten companies from the financial sector and eight companies from the real estate sector during the ongoing FE-EVI Green Business Survey.

The new business opportunity in green buildings has arisen because such buildings have more saleability among customers, say all real estate respondents. In fact, they are already taking a cue from the world's first green city, which is coming up in Abu Dhabi. All residential and commercial buildings and properties there are required to comply with internationally recognised environmentally friendly specifications. In fact, India too has around 7 million sq ft of green building space across the country.

Besides, there are long-term intangible benefits, too. For example, all the real estate respondents say that the biggest benefit that accrues by taking action on climate change is earning better reputation among customers and investors. Despite the perceived benefits, 66% real estate respondents say that government and executive management can exert more pressure on companies to act to slow down the process of climate change.

In contrast, 67% respondents from the financial sector say that carbon trading is the biggest business opportunity arising out of climate change. The financial sector respondents are talking for the larger business community. It may be because banks are aggregators and not manufacturers. Fifty per cent banking respondents say that the supply chain is the biggest opportunity for them to reduce their carbon footprint. Banks can influence the supply chain with their climate friendly policies and practices. For example, some banks are taking their role as change makers seriously and have started providing loans for climate friendly projects. Such projects range from harvesting rainwater to replacing lighting.