Utkal Builders

Going Green, Going Gold: How ESG Strategies Can Boost Your Property Value

ESG factors in real estate encompass Environmental (E), Social (S), and Governance (G) aspects. Environmental considerations focus on sustainability practices, such as energy-efficient features, sustainable construction methods, and green certifications. Social responsibility involves community engagement, occupant well-being, diversity, and inclusion. Governance evaluates leadership, transparency, and ethical decision-making.

Benefits of ESG Adoption in Real Estate

Adopting ESG strategies offers significant operational cost savings through energy-efficient technologies and sustainable practices. It enhances property attractiveness to tenants with stringent ESG commitments and fosters stronger relationships between landlords and tenants. ESG adoption also supports long-term sustainability goals, such as decarbonization, which is crucial for achieving net-zero targets by 2030. Collaborative efforts between landlords and tenants in implementing sustainability measures can lead to green premiums and improved asset valuations.

ESG in Regional Commercial Real Estate

In Asia, interest in ESG issues has surged, with sustainable buildings and practices emerging in countries like Australia, Hong Kong, Japan, New Zealand, and Singapore. China and Vietnam are progressing rapidly, with Hong Kong aiming to reduce commercial building electricity consumption by 30-40% by 2050. In Vietnam, 28% of Grade A stock in Ho Chi Minh City had green certifications by December 2023, and 80% of Grade A and B office stock is expected to be green certified by 2026.

Global ESG Reporting Requirements: An Overview

The landscape of mandatory ESG reporting is rapidly expanding worldwide, impacting countries and businesses across various sectors. ESG reporting, which involves the public disclosure of an organization’s environmental, social, and corporate governance data, has become essential for transparency and sustainability performance, allowing stakeholders to make informed decisions.

 The growing importance of ESG considerations has transformed them from niche investments into critical factors for business success. Numerous countries have introduced mandatory ESG regulations, with more expected to follow, underscoring the permanence of ESG reporting. The UK, for instance, enacted laws in April 2022 requiring certain large companies and LLPs to provide climate-related financial disclosures. Similarly, the EU replaced its Non-Financial Reporting Directive with the Corporate Sustainability Reporting Directive, significantly broadening the scope of required disclosures. In the US, proposed SEC amendments aim to establish ESG disclosure requirements for funds and advisers. Canada has mandated climate-related reporting for federally regulated financial institutions starting in 2024. In Asia, Malaysia has mandated ESG reporting for public companies since 2016, and China introduced voluntary guidelines in 2022, hinting at potential future mandates. New Zealand has also adopted legislation for mandatory climate-related disclosures for significant financial institutions from 2023 onwards. These regulations highlight the critical need for businesses to start their ESG reporting journey, regardless of current legal obligations, to stay ahead of regulatory changes and meet stakeholder expectations. Leveraging digital tools can simplify this process, ensuring alignment with established frameworks like TCFD and CSRD.

RERA and Environmental Sustainability in Real Estate Projects

Environmental sustainability is now pivotal in real estate, bolstered by the Real Estate (Regulation and Development) Act, 2016 (RERA). RERA mandates green building practices, including eco-friendly materials and energy-efficient designs, to reduce carbon emissions and conserve resources. It ensures developers obtain environmental clearances pre-construction, promoting responsible development. Emphasizing rainwater harvesting, waste management, and green spaces like parks enhances biodiversity and air quality. RERA also prioritizes energy efficiency and renewable energy integration, reducing fossil fuel reliance and climate impacts, advancing sustainable real estate practices significantly.

Discover Thriving Prospects: Odisha’s Real Estate On The Rise

In the evolving urban landscape of India, Odisha has marked its presence with rapid infrastructural development, balancing cultural heritage with modernization, and evolving into a promising destination for real estate investments. Bhubaneswar, the capital, leads the state’s real estate market with a steady demand for residential and commercial properties, complemented by significant projects from leading developers. However, this growth extends beyond Bhubaneswar to cities like Cuttack and Rourkela and coastal areas like Puri, where there is a rising demand for vacation and second homes. Government policies, such as the ‘Ease of Doing Business Policy,’ and infrastructure improvements like roads and flyovers, have significantly boosted the property market. The focus on affordable housing aligns with the central government’s “Housing for All” mission, with initiatives from the Odisha State Housing Board making homeownership more attainable. Commercial real estate is also gaining momentum, driven by IT companies and prestigious educational institutions setting up bases in the state. The Covid-19 pandemic has influenced trends, with an increased interest in larger homes and properties in less populated areas, and the industry has embraced digitization to facilitate virtual tours and online property bookings. Sustainability is becoming a significant trend, with a growing demand for green buildings featuring eco-friendly designs and energy-efficient systems. With positive economic implications and ongoing development, Odisha’s real estate market is set to grow further, presenting opportunities for investors, homebuyers, and developers. However, investment decisions should be based on a nuanced understanding of local market trends and individual risk appetite, making Odisha an exciting arena for real estate market watchers and participants alike.

Utkal Builders: Pioneering ESG Strategies in Real Estate Development

Utkal Builders is actively integrating Environmental, Social, and Governance (ESG) strategies into its real estate endeavors, demonstrating a steadfast commitment to sustainable development. With a focus on Environmental responsibility, Utkal Builders implements green building practices, utilizing energy-efficient designs and sustainable materials to reduce ecological footprints and enhance operational efficiency. Socially, the company engages closely with local communities, ensuring its projects contribute positively through community amenities and development initiatives. Governed by principles of transparency and ethical conduct, Utkal Builders upholds rigorous standards, fostering trust and accountability among stakeholders. By embedding ESG principles into its operations, Utkal Builders not only aims for environmental stewardship but also strives to deliver enduring social benefits and uphold exemplary governance practices in the real estate industry.



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