Companies in climate-vulnerable countries, such as India, cannot afford to be idle with regards to climate issues, according to Aun Abdullah, head of Lodha ESG (Environmental, Social, and Governance).

Companies in climate-vulnerable countries, such as India, cannot afford to be idle with regards to climate issues, according to Aun Abdullah, head of Lodha ESG (Environmental, Social, and Governance).

In a significant stride towards sustainability, India has emerged as a global leader in sustainable construction, with over 370 projects receiving LEED certification in 2024 alone, covering 8.5 million gross square meters. This places India third globally, ahead of markets like Hong Kong and South Korea. Green-certified buildings now account for over 700 million square feet across key metros, with Bengaluru leading the green building inventory.

The uptake of Environmental, Social, and Governance (ESG) principles in India's construction sector is rapidly gaining momentum. Three key drivers are propelling this shift: energy efficiency and cost savings, ESG compliance and investor pressure, and technological and policy support. Green-certified buildings offer 30–50% energy savings, a significant incentive as electricity costs rise. Rising global scrutiny on sustainability has pressured corporate occupiers to meet ESG benchmarks, including in real estate. India's tech and policy push is driving innovation in sustainable construction, alongside stringent environmental regulations.

However, whether this is enough to meet India's net-zero ambitions by 2070 remains uncertain. While progress is being made, the scale and pace of transformation required to achieve net-zero by 2070 are significant. India's net-zero target includes a major role for carbon dioxide removal (CDR), which suggests that while ESG adoption in construction is a crucial step, broader strategies involving multiple sectors are also needed.

Aun Abdullah, head of ESG at Lodha, emphasises the need for indigenous solutions for sustainability and climate action. He believes that the integration of energy efficiency and energy transition in real estate or building products can increase their affordability and resilience, leading to increased market demand. Abdullah, who started his career in sustainability accidentally while working in the real estate and construction sector, is now working on the masterplan for Palava City, Lodha's climate-resilient concept city northeast of Mumbai.

Abdullah questions whether enough is being done at the required speed, particularly in his sector. He states that while there is no pushback against ESG in India, the question is whether uptake has been fast enough. He believes that sustainability offers a huge opportunity for India to become a market leader in the low carbon material and energy economy.

The biggest risk facing India's real estate sector is not acting fast enough on known solutions. The Indian government is pushing for climate action through initiatives like the Business Responsibility and Sustainability Reporting (BRSR) and energy policy. The Lodha Net Zero Urban Accelerator, a team of researchers working in the Palava City living lab, is working to solve for a sustainable urbanization template for India.

Sustainability is critical to how projects are conceptualized, with KPI-based design and rigorous research feeding into the building process. Sustainability teams should become invisible in organisations, with sustainability integrated into all aspects of a company's products, operations, and engagement. Abdullah advises sustainability professionals to avoid being prescriptive with solutions and take time to understand the needs of stakeholders.

India's construction sector could unravel the country's net zero ambitions. A key part of Abdullah's job is researching how to limit the built environment's emissions. Sustainability is not just about reducing carbon footprint, but also about creating resilient cities that can withstand the impacts of climate change, such as heatwaves and flooding.

Indian corporates generally support climate action. However, Abdullah states that climate-vulnerable countries like India cannot push back on climate action, as the United States has done. More women are needed in the workforce to boost productivity and support the real estate sector's growth. Productivity growth in India can be secured and enhanced by upskilling and increasing the number of women in the workforce.

In conclusion, while India is making significant strides in sustainable construction, consistent and accelerated efforts across all sectors will be necessary to ensure the country meets its ambitious climate goals. The integration of sustainability into all aspects of a company's operations is crucial, and indigenous solutions tailored to India's unique challenges and opportunities are key to success.

1. India's construction sector is rapidly adopting Environmental, Social, and Governance (ESG) principles, with green buildings accounting for over 700 million square feet across key metros.
2. Sustainable construction in India is being propelled by three key drivers: energy efficiency and cost savings, ESG compliance and investor pressure, and technological and policy support.
3. Green-certified buildings offer significant energy savings, with 30–50% savings being a major incentive as electricity costs rise.
4. Corporate occupiers are being pressured to meet ESG benchmarks, including in real estate, due to rising global scrutiny on sustainability.
5. India's net-zero ambitions by 2070 might not be achievable solely through ESG adoption in construction, as carbon dioxide removal (CDR) is also crucial.
6. Aun Abdullah, head of ESG at Lodha, believes that sustainability offers a huge opportunity for India to become a market leader in the low carbon material and energy economy.
7. The biggest risk facing India's real estate sector is not acting fast enough on known solutions, and the Indian government is pushing for climate action through initiatives like the Business Responsibility and Sustainability Reporting (BRSR) and energy policy.
8. Sustainability is not just about reducing carbon footprint, but also about creating resilient cities that can withstand the impacts of climate change, such as heatwaves and flooding.
9. Productivity growth in India can be secured and enhanced by upskilling and increasing the number of women in the workforce, particularly in the real estate sector.

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