Author: Ritu Patil
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India is in the grip of an unprecedented urbanization wave, and its real estate sector is all set to grow exponentially in the coming years. The challenge and opportunity therein, of course, come with a lot of need from a sustainability perspective. Understanding the need to have a strategic approach, Urban Land Institute (ULI) hosted the first-ever Product Council preview meeting in Mumbai that seeks to channel the real estate sector of India onto a more sustainable and environmentally responsible future path. ULI: A Global Perspective with Local Impact Founded over 80 years ago, ULI is a global organization set up in 86 countries and comprising over 45,000 members. It is a leading, multidisciplinary platform bringing real estate developers, architects, planners, investors, and other stakeholders together in one place for the future built environment. The priorities for the organization in India are three-fold: decarbonization, housing attainability, and education of young leaders. This will be achieved through a collaborative approach by ULI, aiming to bring leading global practice and defining solutions by Indian leaders on local and relevant issues. Sustainability and the Real Estate Sector At the heart of ULI's vision for India is sustainability. With the contribution of 40 percent to global greenhouse emissions from the real estate sector, sustainability needs to be integrated at each branch of the industry—from design to construction and to asset management. For instance, in its five-year program, the Office Council of ULI intends to focus on the mainstreaming of sustainability as part of a bigger objective of decarbonization and environmental responsibility. Corporates across India are already including sustainability in their corporate strategy, and the larger organizations are demanding carbon neutrality from real estate partners. Companies are adjusting their ways of operating and collaborating with developers, landlords, and corporations. Green office spaces, graced with plenty of natural light, renewable sources of energy, and social spaces, are not only environmentally good but also appeal to the modern workforce. This focus on green spaces reduces attrition and motivates employee engagement, hence making for a healthier and more productive work environment. ESG: The Future of Real Estate From being an option, ESG has moved to a compulsive necessity in India's real estate landscape. According to the ULI Product Council preview, significant steps toward carbon neutrality have already been taken at the industry level. The next step will be its application across all levels of real estate development. In growing urban centres across India, the only kind of growth that can be achieved is by practicable actions that reduce the impact on the environment while tackling the needs of a rapidly evolving society. As more and more companies turn toward ESG standards, this demand will only continue to grow. Employees are now seeking workspaces that reflect their values and promote a cultural change in business practices that are sensitive to the environment. This challenge must be accepted by all stakeholders in real estate—right from the developer to the architect—and worked on collectively, so that one gets to see a green, sustainable urban landscape in the future. This urban expansion of India provides an extraordinary opportunity for setting new standards of sustainability in the real estate sector. Now, with the introduction of ULI product councils, comes the most necessary step toward bringing industry leaders together in order to exchange knowledge, push innovation, and establish ESG principles. As the country now rapidly moves forward on its journey of urbanization, these efforts are going to play a vital role in ensuring that this growth is as environmentally responsible as it is socially responsible. ULI is the platform through which India will be building sustainable and future-ready cities, meeting needs of the present while curbing demands made on the country in times to come—this is the power of collaboration and cross-learning.
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This blog post is based on the article from Live Mint: ULI India’s First Product Council to Drive Sustainability, ESG Goals for New Office Spaces.