87% of Office Occupiers Aim for Green Energy in Commercial Portfolios by 2030: JLL Survey Reveals

In a monumental stride towards sustainability, the latest survey conducted by JLL has unearthed a remarkable statistic: 87% of office occupiers harbor aspirations to power at least half of their commercial portfolios with renewable energy sources by the year 2030. This bold proclamation is in perfect alignment with the overarching net zero carbon (NZC) objectives, epitomizing a paradigm shift towards environmental consciousness within the realm of commercial real estate.

The survey, spanning across major Indian metropolises, provides a fascinating glimpse into the collective mindset of office occupiers. Notably, 43% of respondents hail from Delhi, followed closely by Mumbai at 27%, with Bengaluru and Chennai accounting for 17% and 13% respectively. This geographical distribution underscores a nationwide consensus on the imperative need to transition towards sustainable energy practices, driven by a shared commitment to combat climate change and reduce carbon emissions.

Delving deeper into the survey data unveils the prominent role played by the banking and finance sectors in championing sustainability initiatives. These sectors exhibit a burgeoning appetite for on-site renewable power sources, particularly in green spaces. Furthermore, industries such as construction, manufacturing, and consultancy are fervently embracing the sustainability ethos, amplifying the momentum towards renewable energy adoption across diverse segments of the economy.

A particularly compelling revelation from the survey is the growing perception of on-site renewable energy as non-negotiable by 2030, as opined by one in three office occupiers (33%). This attitudinal shift underscores the evolving narrative surrounding renewable energy, transforming it from a mere option to an indispensable pillar of corporate sustainability strategies.

However, amidst this fervour for sustainability, the survey highlights a glaring demand-supply gap for sustainable buildings. Office occupiers express an expectation that more than half of their energy needs should be fulfilled by renewables, signaling an urgent call to action for the real estate sector. This imperative necessitates a concerted effort towards ramping up green building construction and retrofitting endeavors to meet the escalating demand for sustainable office spaces.

Radha Dhir, CEO and Country Head, India, JLL, emphasizes the pivotal role of green energy in advancing sustainability objectives within office portfolios. She underscores the transformative potential of the real estate sector in shaping renewable energy infrastructure and propelling India towards a greener, more sustainable future.

Echoing this sentiment, Kamya Miglani, Head of ESG Research, Asia Pacific, JLL, underscores the manifold benefits associated with strategic renewable energy investments. Miglani advocates for a holistic approach encompassing both on-site generation, such as solar PV installations, and off-site renewable energy procurement through Renewable Energy Certificates (REC) and Power Purchase Agreements (PPA), as indispensable components of a comprehensive renewable energy strategy.

The survey's recommendations advocate for a meticulous assessment of sites for solar PV installation feasibility and local grid connections, alongside an exploration of opportunities for energy sharing within office portfolios. By leveraging renewable energy sources strategically and embracing sustainable building practices, the real estate sector can emerge as a trailblazer in India's journey towards sustainability, driving positive environmental impact and fostering a brighter, greener future.

The survey findings serve as a clarion call for heightened sustainability efforts within the commercial real estate sector. With renewable energy poised to take center stage in commercial portfolios, the stage is set for a transformative shift towards a more sustainable and environmentally conscious future.