According to JLL’s report Sustainable Real Estate: India’s response to a greener future, 87% of occupiers in our Pan India survey and 78% of the investors accept that ‘climate risk poses a financial risk’.
Sustainability has gone mainstream for occupiers in India and real estate is at the core of it. 87% of those surveyed say the link between CRE (Corporate Real Estate) and sustainability is a board-level agenda, and 81% say that real estate is a game-changer in achieving the sustainability agenda.
“Sustainable future in general and ambitious net-zero commitments in particular cannot be achieved without the ecosystem coming together with a collaborative approach. 96% of stakeholders in the research survey agree that collaboration among policy influencers, investors, developers, and occupiers will be instrumental in achieving these ambitions. It is not surprising hence, that sustainability has gone mainstream, and real estate is at the core of it. 90% of respondents of our survey believe that the link between CRE and sustainability is a board-level agenda,” said Sandeep Sethi, Managing Director –Work Dynamics, West Asia, JLL.
Occupiers in India are ahead of investors on sustainability ambitions, with the majority of occupiers, 82%, either leading or on the path, against 66% of investors. 7 in 10 occupiers surveyed have carbon emission targets as part of their corporate sustainability strategy. The need for a more sustainable environment has led to greater demand for green buildings, so much so that demand for green buildings risks outstripping supply in India today.
And the good news is that 7 in 10 occupiers are willing to pay a premium to lease green-certified buildings. Due to the higher demand for green buildings, retrofitting today presents the biggest challenge and opportunity. Half of the landlords (5 in 10) want to actively undertake retrofitting and adaptation for building lifespan extension.
However, the need of the hour is a partner ecosystem to accelerate the race to net zero. The majority (9 in 10) surveyed believed that a strong partnership among cities, investors, and occupiers is necessary Closing the technology and data gap will be crucial. 9 in 10 agree that digital solutions will be critical in achieving sustainability goals.
It is also important to note that as per the survey, 65% of corporate occupiers and 50% of polled investors have already incorporated carbon emissions reduction as part of their enterprise sustainability strategy.