Looking beyond net zero: Retrofitting, ESG crucial to meet real estate's sustainable goals

For India, net zero is not just a goal but the limit to be achieved, experts from the real estate sector and the United Nations said on June 22 at a climate change conference in Bengaluru.

Speaking at the 24th International Conference on Environment Management and Climate Change, organised by the Delhi-based Institute of Directors in partnership with Kempegowda International Airport, experts reiterated that while achieving net zero—or achieving a state of carbon neutrality—can be challenging for the real estate sector in the country, other solutions like retrofitting existing buildings with sustainable solutions and incorporating environmental, social, and corporate governance (ESG) is crucial today.

Also Read: With growing need for sustainability, how will Indian real estate look in the long run?

Existing real estate needs to be transformed

"For newer buildings, we have the option of opting for sustainable alternatives. But what happens to existing real estate and public infrastructure that continue to add carbon footprint?" Ovais Sarmad, former deputy executive secretary of the United Nations Framework Convention on Climate Change (UNFCCC) said in an interaction with Moneycontrol.

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He explained that retrofitting is an option that several global economies have picked up to reduce or erase their existing carbon footprints.

Retrofitting is replacing existing private real estate and public infrastructure with more sustainable materials with the help of growing technology like artificial intelligence and the Internet of Things.

Also Read: MC Explains|Are glass façades in Bengaluru skyscrapers contributing to global warming and climate change?

"To make the idea economically sustainable, governments need to prepare a vision and incentivise the process to encourage the public sector towards the change," he added.

ESG holds a major power in a change

Mallanna Sasalu, chief operating officer of Bengaluru-based Provident Housing, said that ESG should be incorporated in every real estate company's governance to visualise the change in line with India's net-zero goal by 2070.

"We do not have control over the construction materials we are using, as today alternative options for concrete, one of the most carbon-intensive materials, are limited. But a conscious ESG from the part of every company can contribute to a change," he said.

Every recycled precast product that has cement/concrete material attracts a goods and service tax rate of 18 percent. For other products, the levy is 5 percent, Moneycontrol reported earlier. Thus, it pushes contractors and companies towards cheaper available building materials in the market.

"From Provident Housing, we have created our own mix of concrete to make it more sustainable and cut down on the carbon footprint, on a par with the concrete mix that is being used for 3D construction printing," he added.