Achieving Net-Zero Buildings:

A Holistic Carbon Accounting Strategy for Energy

Efficiency in India's Commercial Real Estate

Minimizing ecological footprint stands as a crucial objective for businesses globally. Owners,
occupants, and enterprises in the commercial real estate sector will have to swiftly create
extensive strategies for rapidly decarbonizing their portfolios.

The consequences of climate change are becoming evident, prompting a call for businesses to
take an active part in diminishing their carbon impact. There's a growing emphasis on
environmentally responsible brands among consumers. Potential employees appear more
inclined to join companies that demonstrate sustainability awareness. Governments are
committing to carbon reduction goals, while regulators are signalling their intentions to enact
legal reforms. Investors are seeking proof of companies' dedication to prioritizing
decarbonization.

In India, the Ministry of Corporate Affairs (MCA) has introduced mandatory annual filings
for certain companies that meet specific criteria. The most prominent filing in this context is
the Business Responsibility Report (BRR). The top 1,000 listed companies based on market
capitalization on the BSE and NSE, as well as companies meeting specific financial criteria
will have to file the BRR annually along with the company's annual report. Failure to comply
with the requirement to file a BRR can result in penalties imposed by the regulatory
authorities.

The commercial real estate (CRE) sector in India is a major contributor to the country's
carbon footprint. The sector is responsible for a significant portion of the nation's energy
consumption and greenhouse gas emissions.

As India strives to meet its sustainability goals, it is essential to adopt innovative strategies
that can help to reduce carbon emissions and improve energy efficiency in the CRE sector.
One promising approach is to use a holistic carbon accounting framework. This framework
would track carbon emissions across the entire lifecycle of a building, from construction and
operation to demolition. By taking a holistic approach, it is possible to identify and address
all sources of carbon emissions, from the initial construction of a building to its day-to-day
operations.

Digital Twin and IoT solutions can also play a valuable role in reducing carbon emissions
and improving energy efficiency in the CRE sector. Digital Twins are virtual replicas of
physical buildings that can be used to monitor and analyse energy consumption and
performance in real time. IoT devices can be used to collect data on energy usage, occupancy
patterns, and environmental conditions. This data can then be used to optimize building
operations and identify opportunities for energy savings.

According to the Global ABC Global Status Report 2021 by the Energy Information
Administration (EIA) report, buildings are responsible for a substantial portion of global
carbon emissions, accounting for approximately 40% of the total carbon dioxide emissions.
This alarming statistic underscores the critical importance of addressing emissions from the
building sector to mitigate climate change.

Holistic Carbon Accounting Approach

A holistic carbon accounting approach involves tracking carbon emissions across the entire
lifecycle of a building, from construction and operation to demolition. This approach not only
encompasses direct emissions but also considers indirect emissions associated with energy
consumption, transportation, and supply chains. By accounting for all carbon emissions, real
estate stakeholders can develop informed strategies to reduce their environmental impact.

Digital Twin and IoT Solutions

Digital Twin technology, coupled with the Internet of Things (IoT), offers a transformative
solution for sustainable real estate in India. Digital Twins create virtual replicas of physical
buildings, enabling real-time monitoring and analysis of energy consumption and
performance. IoT devices gather data on energy usage, occupancy patterns, and
environmental conditions, allowing for data-driven decision-making and optimization of
building operations.
Predicted Impact on India's G20 Goals:

Implementing a comprehensive carbon accounting strategy holds the potential to significantly

contribute to India's G20 goals. By reducing carbon emissions in the commercial real estate
sector, India can demonstrate its commitment to sustainable development and climate action,
enhancing its global leadership in environmental stewardship.

Companies that fail to decarbonize their operations are at risk of facing significant financial
and reputational costs. In addition, they could contribute to global socio-economic and
environmental problems.

It is therefore critical for all companies to have a proactive decarbonization plan. This plan
should include clear strategies and roadmaps for reducing emissions across all areas of the
business, including operations, leasing, and capital expenditure (CapEx). The plan should
also include performance targets that will help companies track their progress and ensure that
they are on track to meet their decarbonization goals.

For Business leaders and CxO’s the cost of inaction is too high. The choice to invest in
sustainability within corporate real estate isn't just about doing what's right—it's about doing
what's strategically imperative. The benefits span across financial gains, reputational
enhancement, and the well-being of our planet and communities.

As leaders, it's our responsibility to create a lasting impact, and embracing sustainability
within our corporate real estate operations is a pivotal step toward that goal. Let's not miss
out on the opportunities that sustainable practices bring. Our decisions today will shape the
future of our organizations and the world at large.

Achieving net-zero buildings in India's commercial real estate segment demands a paradigm
shift toward holistic carbon accounting and innovative technologies like Digital Twin and IoT
solutions. By tracking emissions across the entire lifecycle and implementing energy-efficient
measures, the sector can contribute to a more sustainable future, aligning with India's G20
goals and setting a positive example for the world to follow.