There is a growing awareness among the companies worldwide to reduce the carbon footprints on the planet and to comply with the climate guidelines. Many businesses in the world have committed themselves to work on reducing emissions, and to invest in the infrastructure development that aligns with the the planet Earth’s sustainability goals.

Corporate real estate plays a huge role in zero Carbon mission because the buildings and entire supply chain of designing buildings and infrastructure contributes heavily to the climate concerns. A report published by United Nations Environment Programme (UNEP) in December 2020 says—”Emissions from the operation of buildings hit their highest-ever level in 2019, moving the sector further away from fulfilling its huge potential to slow climate change and contribute significantly to the goals of the Paris Agreement.” (See the report.)

The construction industry that works closely with the real estate sector has two primary challenges. One, they impact the climate directly by greenhouse gas (GHG) emissions. Two, they need to pay carbon taxes when the buildings are in use. Ironically, the impact on climate comes back to the buildings itself which means on their real estate investment and ROI goals itself.

See related post: How modern real estate prepares itself for climate challenges

Customers understand climate concerns

The climate concerns are traveling to the customers too and the way they evaluate the residential projects are also changing. Does the project owner comply with sustainability goals—do they have a documented policy where they are committed to reduce the carbon footprints. It should be interesting to find if they are willing to pay higher while planning to buy a home.

Green lease and sustainable buildings for real estate owners and investors, as posted by Tick Property.

Same customer sentiment applies for office space too. For example, do the office space buyers of the tenants and their workforce consider investing in such commercial real estate space that might be unfit because there are no green or energy saving credentials?

“Rising emissions in the buildings and construction sector emphasize the urgent need for a triple strategy to aggressively reduce energy demand in the built environment, decarbonize the power sector and implement materials strategies that reduce lifecycle carbon emissions,” said Inger Andersen, Executive Director of the UN Environment Programme (UNEP).

Green lease for the landlord-tenant relationship

Green buildings are entering into the discussions in corporate real estate investment calls. The owners and other stakeholders should use technology-driven systems to plan for realistic targets whether in the building design, vendor selection, construction, maintenance, and the entire supply chain of real estate development.

For project owners who plan to rent out their buildings and office space on lease, green leases are the way forward. In a green lease, the landlords and tenants agree to comply with the building’s low or zero carbon and sustainability goals for the use of energy and other resources. As Tanya Broadfield, Director of Sustainability, Savills UK says—“With occupiers and landlords working together, any green lease will ideally enhance the environmental and social performance of a building, help to mitigate any sustainability regulations and market risk and also foster improvements in data collection for reporting.”

The way commercial real estate and the number of residential projects are growing in Mohali Aerocity and on the Mohali Airport road, sustainable real estate can contribute to the region’s climate goals.

People reacted to this story.
Show comments Hide comments
Comments to: Real estate and climate—Green buildings, green lease, and carbon emissions

Write a response

Your email address will not be published. Required fields are marked *

Attach images - Only PNG, JPG, JPEG and GIF are supported.

Contributing authors

Inviting contributor author for Tick Property: If you want to write for Tick Property, please write to us at [email protected] with the details—your name, email ID, and your current organization (or business name if self-employed).

The Tick Property Newspaper

We publish a daily newspaper for a quick reference to real estate news, insights, and reports: See the Tick Property Newspaper

Good Reads

LandOrc brings lower cost capital to property developers with significant upsides and security to lenders—as reported by this PR Newswire story. The growth in Indian real estate has caught the international investors’ eye with Blackstone, Hines, Berkshire Hathaway, and many others have already announcing big plans and partnerships in Indian real estate market. In India, […]
The institutional investment in the Indian real estate increased by 17 per cent YoY in the July-September period, according to a latest JLL India report. As per this Financial Express story—“Close analysts of investments during Q3 2021 reveals that it has been more balanced with the residential sector accounting for 29% of the total investments, […]

Worlwide

There are no matching posts for this section.

Trending

This post is taken from Forbes India (source). In the commercial property trends in India in the recent years, the new-generation technology parks have emerged particularly in high-potential and high-rewarding cities including in Bengaluru, Hyderabad, Mumbai, Delhi and Pune. Chandigarh and Kolkata are now attracting investments too. This, according to Nasscom, has been due to […]