Green initiatives for sustainable construction practices

The real estate and construction sector is set to play a greater role in the country’s growth story. Estimated to be of around $477 billion, the real estate sector contributes to around 7.3% of GDP. Over 250 ancillary industries are associated with the sector, accounting for 18% of total employment in the country, which is only next to agriculture. Despite strong headwinds due to global factors, such as international conflicts, the climate crisis and economic recession, the Indian real estate sector is poised to accelerate rapidly and will end up contributing 15% to the GDP alone by 2030, crossing the $1 trillion mark in the process.

A sector of such size, engagement, and generator of economic activity is bound to have a sizeable carbon footprint. As per United Nations Environment Programme (UNEP), the buildings and construction sector is by far the largest emitter of greenhouse gases, accounting for a staggering 37% of global emissions. India is responsible for around 7.2% of global CO2 (2021). Consequently, a sustainable real estate sector will contribute tremendously in bringing the country’s carbon emission intensity down. Towards that end, the real estate sector has undertaken the implementation of various sustainability strategies. Developing green buildings is one of the most fundamental strategies of the real estate sector, which has found broad acceptance across the sector and has met with considerable success.

Green building involves the construction, development, designing, and managing of operations and maintenance of buildings in an environmentally responsible way. Developing green buildings contributes to reducing the negative impact of the real estate and construction sector on the environment and human health. It also includes maximising its positive impact on energy efficiency, water conservation, indoor air quality, and overall sustainability.

As per industry reports, the Indian green building market held a revenue of $29.2 billion in 2022, growing with a compound annual growth rate (CAGR) of 7.5% between 2017 and 2022. The biggest share of green buildings is accounted by the residential segment, which helped in generating total revenues of $20.5 billion. The strong inclination of the public towards green building can be gauged by the fact that India ranked second in the list of top 10 countries and regions for bagging maximum LEED certifications by United States of America Green Building Council’s (USGBC) in 2022. With over 323 projects, India developed over 10 million sqm of gross area of LEED-certified space.

Beyond 2022, last year, the real estate market recorded a 83% growth in green office stock. Cities like Navi Mumbai, Hyderabad, Bengaluru, and Chennai had the majority share in developing green buildings. For doing so, the industry has adopted several strategies, which include using low carbon or sustainable, recycled materials; leveraging renewable energy sources like solar; adopting water conservation, recycling of gray water, and rainwater harvesting practices; implementing ambient air quality control mechanisms, and so on. The sector is utilising sustainable construction methods with biodegradable materials, integrating digital technologies to construct energy-efficient buildings, and prioritising efficient waste management practices essential for green building initiatives, with the goal of minimising construction and operational waste through the principles of reduce, reuse, and recycle.

Despite the progress made, there is a long way to travel for the real estate sector to completely turn sustainable. A robust policy framework with a long-term vision would be important for guiding the sector to greater collaboration between industry players, facilitating knowledge, technology, and experience sharing. Green building endeavours by industry players are paving the way for sustainable construction practices to become the norm. In doing so, the real estate sector has the potential to go green taking the nation closer to its sustainability objectives. While we are turning eco-conscious, it is the customers who benefit the most. Green buildings not only have a higher appreciation of value, they provide a healthier ecosystem to customers, have a lower operating cost, and attract incentives and rebates.

This article is authored by Lalit Kumar Aggarwal, co-founder & vice chairman, Signature Global (India) Ltd.