87% of Property Developers in Asia Pacific Targeting 100% Green Certified Portfolios by 2030

• Sommana Yan
• 14 April 2024
• Uncategorized
• 2251 Views

A recent study by JLL unveils a significant trend in the Asia Pacific region, with nine out of ten commercial real estate occupiers striving to achieve 100% green-certified portfolios by 2030, driven by corporate net zero carbon (NZC) goals. This revelation comes from Retalkasia’s report dated 26 March 2024.

According to global real estate consulting firm JLL (NYSE: JLL), 87% of occupiers surveyed across Asia Pacific are aiming for complete green certification by 2030, a substantial increase from the current 4% of certified portfolios. Notably, countries such as India, Malaysia, and Thailand exhibit particularly strong sentiments, with over 95% of occupiers targeting fully green-certified portfolios.

However, JLL’s analysis reveals a challenge: for every 5 sq. ft of demand across Asia Pacific, only 2 sq. ft of low carbon space is projected for development from now until 2028.

This groundbreaking research builds upon JLL’s Sustainability Offices City Index from October 2023, which evaluated 20 cities in Asia Pacific on various sustainability themes, including green stock, physical risk to buildings, city competitiveness, and city administrations’ proactiveness with NZC targets.

Kamya Miglani, Head of ESG Research, Asia Pacific, JLL, underscores the evolving landscape, stating, “Today, leasing office space in green-certified buildings is no longer a differentiator but a minimum criterion for most occupiers in Asia Pacific.”

The transition to renewable energy emerges as a critical step for the real estate industry to redefine buildings as active contributors to environmental sustainability. Currently, 74% of occupiers anticipate meeting half of their energy needs through renewables, compared to just 9% from renewable sources today.

Collaboration between landlords and occupiers will be pivotal in meeting sustainable building demand, especially as fit-outs, contributing to around one-third of emissions, are often overlooked. Presently, many occupiers rely on Renewable Energy Certificates (RECs) and Power Purchase Agreements (PPAs) to procure renewable energy sources.

Fit-outs of buildings significantly contribute to emissions, with approximately one-third of emissions attributed to these interior changes. Considering that the average office undergoes interior modifications at least 20 times throughout its life cycle, addressing fit-out emissions becomes imperative in achieving sustainability goals.

• Energy and Environment