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Here’s what the real estate sector is doing to tackle the looming threat of climate change

The cost competitiveness in the real estate sector is fierce, and perhaps customer awareness is not as high as is the case with other sectors, experts say

Representative Image

Representative Image

There is good news and bad news for the real estate sector: With rising awareness of numerous challenges posed by environmental degradation, real estate companies in India are rising to tackle the threat of climate change. Yet, the sector remains a significant contributor to environmental pollution and greenhouse gas emissions (GHG). And when it comes to compliance and reporting, many companies are still laggards.In a recent update for 2021, for example, CDP showed leading real estate companies to have scored between an A and F, with A denoting "leadership level" and an F standing for "failure to provide sufficient information to be evaluated'. To be sure, an F score does not indicate failure in environmental leadership. 

Mahindra Lifespace Developers Ltd bagged leadership status with a ranking of A- and DLF Ltd scored an F. CDP is a global non-profit that runs a disclosure system for companies, cities, states and regions to report their environmental impacts. Global Reporting Initiative (GRI), Sustainability Accounting Standards Board and Task Force on Climate-Related Financial Disclosures (TCFD) are some of the internationally accepted reporting frameworks for disclosure of environmental impact.

Company NameCountryScore: Climate Change
DLF LtdIndiaF
Godrej Properties LimitedIndiaC
Housing Development & InfrastructureIndiaF
Mahindra Lifespace Developer LimitedIndiaA-
Oberoi RealtyIndiaF

*The above table represents some of the top Indian real estate firms scored on CDP Annual list.

Source: CDP Annual Score; https://www.cdp.net/en/companies/companies-scores#446647786929955804cc9a3a08ef1eb4

Why are real estate companies important?

According to World Economic Forum (WEF) data, the built environment amounts to massive amounts of energy usage and about 40 percent of global carbon dioxide (CO2) emissions. While there are upsides like huge employability and contribution to  economic output, the world needs to bring about a transformation and create sustainable habitats. So the need for stricter compliances.