Be prepared for stricter ‘green’ rules, real estate sector told
Anticipate a shift in regulatory frameworks towards stricter sustainability requirements within the real estate sector, said Andermatt Swiss Alps regional director Maureen Yeo (pic).
Along with stricter requirements, she added, there will also be measures put in place to encourage and reward developers and stakeholders to adopt environmentally friendly construction methods and practices.
“The concept of green buildings will expand to not just cover energy and water efficiency but also to encompass occupant health and wellbeing, biodiversity, and resilience to climate change,”Yeo told SunBiz.
She said more transparency on sustainability practices and performance data from developers is needed.
“True sustainable efforts usually come with a high level of openness and detailed information sharing,” she added.
The challenge in the real estate sector, Yeo said, is that its sustainability impacts are measured over years, even decades.
“The technical nature of building sustainability .. factors like energy efficiency and materials sourcing ... requires specialised knowledge, making it harder for consumers or investors to assess claims accurately,” she remarked.
To navigate these challenges, Yeo said, transparency and education are crucial.
“Developers should aim to provide detailed, accessible reports on their sustainability practices – including metrics such as energy consumption, water usage and materials used.”
Yeo said warning signs or red flags that indicate the potential presence of greenwashing in real estate projects include the use of vague environmental claims, such as the term “green”, without any specifics or evidence of real sustainability measures.
Another warning sign is the absence of third-party certifications from recognised standards such as Malaysia’s green rating system Green Building Index, which can validate a project’s environmental claims.
“Projects that emphasise minor green features as major achievements are also suspect. Genuine sustainability involves integrating environmental considerations from the beginning rather than as an add-on.
“Finally, an over-reliance on promises about future sustainability features, without a clear implementation plan, is a significant indicator of greenwashing,”she added.
Yeo said awareness of these indicators can assist consumers and investors in distinguishing truly sustainable real estate projects from those that use green claims merely as a marketing strategy.
In Malaysia, there are standards such as the Leadership in Energy and Environmental Design, the Green Building Index and the Building Research Establishment Environmental Assessment Method. Switzerland follows the Minergie Standards – a Swiss quality certification for buildings designed with a focus on sustainability and reduced energy needs.
Yeo said these tools are effective in combating greenwashing, offering a level of assurance to stakeholders that a project developer’s sustainability claims are not only sincere but also substantiated.