ESG In Indian Real Estate: From Green Buildings To Holistic Sustainability

The Indian real estate industry is undergoing a pivotal shift as ESG (Environmental, Social, and Governance) principles gain traction across the sector. Forward-thinking developers, asset managers, and REITs are taking concrete steps to embed sustainability and responsibility into their core strategies.

As real estate developers under the purview of listed companies are mandated by SEBI to adhere to ESG frameworks such as BRSR, the trend in sustainability has shifted focus to ESG in a more holistic manner. The popular benchmark for the last 20–25 years, if you agree with me, has been green building certifications such as USGBC-LEED, IGBC, GRIHA, EDGE, etc., for any building voluntarily showcasing its commitment to environmental sustainability. However, ESG frameworks have now gained significant momentum and become more than just tools – they are statements of intent for organizations. Lead Consultancy & Engineering Services, being a Global Real Estate Sustainability Benchmark (GRESB) Asia Partner, understands through its frequent interactions with clients that investors are aggressively conducting asset risk assessments before investing. This is to understand the company’s impact on E, S & G and the mitigation measures adopted to demonstrate real-time reductions in carbon emissions. Hence, many leading real estate companies are participating in GRESB to benchmark their ESG performance against peers and drive continuous improvement.

Real estate companies are leveraging technologies such as smart metering and Environmental Management Systems (EMS) to optimize energy and water usage, while integrated water management systems – such as rainwater harvesting, treated greywater reuse, and water metering – are increasingly becoming standard components in building design. The focus on waste management is also evolving, with more projects aiming for zero waste to landfill through better segregation, on-site composting, circularity in construction, and partnerships with recyclers and waste aggregators.

Carbon accounting methods like GHG emissions tracking are becoming more structured, with developers beginning to measure Scope 1, 2, and 3 emissions – often as a precursor to formalizing net zero roadmaps aligned with the Science Based Targets initiative (SBTi).

Lead Consultancy is a pioneer in formulating master-class strategies for clients in terms of their overall decarbonization roadmaps. This can be achieved if either their assets individually strive towards Net Zero status or the organization itself commits to SBTi targets. One of our most prestigious projects, the Kempegowda International Airport Terminal 2, recently achieved IGBC Net Zero Energy (Operational Rating) status from the Indian Green Building Council.

The project achieved 23% energy savings compared to ccccc by implementing Energy Conservation Measures (ECMs) and additionally installed on-site and off-site renewable energy to offset 100% of the annual operational energy consumption. Some of the ECMs include high-performance building glazing, an insulated roof with 14% skylight (of the total roof area), a large canopy for effective shading of external glazing, reduced lighting power density and advanced lighting controls, and energy-efficient HVAC systems with advanced filtration media.

A second case study is L&T TC4 Chennai – the first facility to achieve IGBC Net Zero Carbon (Design). The project achieved a 28.71% reduction in embodied carbon and a 100% offset of the operational carbon footprint through on-site and off-site renewable energy sources.

Social aspects are no longer secondary. Real estate companies are now actively measuring and reporting human capital metrics, including workforce diversity, health and safety performance, and training and development initiatives. Corporate Social Responsibility (CSR) programmes are increasingly aligned with broader ESG goals, supporting education, housing, and infrastructure development in surrounding communities. Tenant and employee satisfaction surveys, once considered optional, are now becoming key tools for gauging impact and informing strategy. Certain countries where Environmental and Social Impact Assessment (ESIA) is gaining momentum still lack sufficient implementation continuity to demonstrate how these assessments translate into value for organizations or communities.

Governance structures around ESG are also evolving. Several companies have established ESG steering committees and integrated ESG KPIs into leadership performance reviews. Ethical conduct, anti-corruption frameworks, and stakeholder grievance mechanisms are being institutionalized as part of responsible governance. Transparency is increasing through the adoption of global reporting frameworks such as GRI, SASB, and TCFD, alongside compliance with India’s SEBI-mandated Business Responsibility and Sustainability Report (BRSR), which is pushing companies to better organise and disclose their ESG data.

At the same time, emerging areas such as carbon credit generation, green leasing, and sustainable finance are opening up new opportunities. Companies are exploring carbon markets, renewable energy procurement, and registration of green projects for credit monetization. Green lease frameworks are fostering greater landlord–tenant collaboration on sustainability goals.

A consultant’s role often fades into the background when ESG is driven by financial institutions, which typically exert limited influence over the ‘E’ (environmental) aspect of ESG. This is where technical consultants like Lead Consultancy play a pivotal role through deep subject expertise. Our role doesn’t stop at reporting – we help clients integrate ESG deeply into operations, culture, and strategy to unlock long-term value and resilience. In a landscape where regulatory demands are intensifying and stakeholder expectations are evolving rapidly, we help real estate players stay ahead of the curve by streamlining ESG processes, enhancing transparency, and building a more responsible and regenerative built environment.

As ESG consultants with deep experience across the Indian real estate sector, Lead Consultancy & Engineering Services has been at the forefront of driving sustainable transformation. We’ve partnered with developers, REITs, asset managers, and investors at various stages of their ESG journey, empowering them with the tools, strategies, and systems needed to embed sustainability into their core business.