By Ananya Agarwal
Climate change is one of the biggest threats to humanity in today’s world. Despite a series of global catastrophic events that we have witnessed this year; when it comes to on-ground climate action, we are still busy passing the ball. Floods in Pakistan, extreme heat waves in Europe, wildfires in the US, reduction in the Greenland ice sheet, and rising sea levels across the globe are all but indicators of what lies ahead if we DON’T ACT NOW!
After our extensive research and interaction with multiple stakeholders, we realised that landlords at the grassroots level were unaware that even smaller buildings can adopt sustainable practices and get transformed into green buildings. A property as small as 50,000 Sq.Ft. could generate 25% of its energy from Solar power, reduce its freshwater consumption by 80%, improve indoor air quality by 30%, increase natural lighting by 50%, and improve its space efficiency by 20-25%. All this can be achieved at an investment of $ 6 – $10 per Sq.Ft.
This investment not only helps in achieving sustainability goals but also results in tangible monetary benefits to the landowners. From a 10-15% increase in rental to a healthier building occupancy by 10-15%, savings between $1 – $2 per Sq.Ft. from power and reduced water usage; the payback of all the green initiatives is less than 36 months. Also, the lifespan of most of the initiatives including Solar is around 20 years.
According to a recent poll by a leading property consultant firm in India, occupiers and investors of commercial real estate believe that real estate would be a game changer in attaining net zero carbon goals, with sustainability ranking among the top three factors alongside location and rents. With the commercial real estate sector accounting for over 40% of total GHG emissions, it is time to think green, and the industry needs a push to convert itself into a more responsible asset class.
Globally companies have shown extra attention to sustainability in their property selection-making. Indian real estate is well on its way to becoming more sustainable and green certifications are a clear indication of this change. There are tangible benefits of being a green-certified building. These are not limited to just lower operational costs and efficiencies in running the building, but also adding a premium to the asset value. Sustainability in Indian Commercial Real Estate will soon no more be a pipe dream.
(The author is a student at The International School Bangalore. She is passionate about sustainability and entrepreneurship.)