Effective sustainable real estate strategy optimises economic, social, and environmental aspects of investments, while minimising risks and maximising returns
Global action to combat climate change has given rise to a wave of national and corporate commitments to reach net zero. Sustainability is no longer an option but one of the foremost priorities of all businesses today. A business’s sustainability mission has a direct bearing on brand value, customer choices, employee support, and investment decisions. Business leaders are integrating sustainability and ESG considerations across their value chains to set up their companies for long-term success and resilience.
While companies focus on their business-centric decarbonisation strategies, the real estate aspect is often overlooked. According to reports, nearly 40% of global carbon dioxide emissions come from the real estate sector. By virtue of its nature, real estate requires long-term thinking, so businesses have a responsibility to invest with conviction and build a legacy for future generations. Flexible workspaces are uniquely placed to not only offer a sustainable approach for large companies to transform their real estate portfolios but also possess the potential for innovation to effectively align with their emerging green agenda.
Flex spaces operate on the fundamental principle of efficient allocation of resources on a large scale. Due to their shared value proposition, they reduce inherent wastefulness and hold significant potential to promote environmental sustainability. This can further be reduced by measuring the per occupant energy, water usage, and waste generated in each location and identifying areas of improvement. By offering members the option of taking only what they need, flex operators contribute to the betterment of the environment without compromising on the experience.
The green real estate revolution owes much of its success to technological progress. Renewable energy technologies like solar panels and advanced, energy-efficient air conditioning are becoming commonplace features in buildings. These systems tap into clean and sustainable energy sources, reducing our reliance on fossil fuels and contributing to a reduction in greenhouse gas emissions. Integration of cutting-edge energy management systems and smart building technologies are revolutionising energy utilisation in real-time. These sophisticated systems vigilantly oversee and regulate multiple facets of a building's functionality, encompassing everything from lighting to heating, ventilation, and air conditioning, all with the singular goal of minimising energy wastage.
Furthermore, the extensive network of flex spaces enables members to choose workspaces most conveniently accessible to them, thereby reducing commute times, the carbon footprint as well as the pollution generated by travel. Consequently promoting energy efficiency and reduction in carbon footprint both inside and outside the workplace.
In today's world, where caring for the environment is a top priority, an effective sustainable real estate strategy optimises economic, social, and environmental aspects of investments, while minimising risks and maximising returns. Flex spaces are steadily emerging as the preferred partner for businesses to deepen their commitments to safeguard the environment. They not only efficiently address the industry's carbon footprint but also facilitate members to embark on the journey toward a green economy. It's a testament to the power of collective action, where flex spaces become a driving force to shape a more environmentally responsible and resilient future for all by fostering a sustainable ecosystem.
--Raghuvinder Singh Pathania is Head of Community and Operations at WeWork India.