World Environment Day 2025: India’s Real Estate Sector Drives the Green Transformation

As the world observes World Environment Day with the theme “Ending Plastic Pollution,” the conversation around sustainability has moved beyond policy to on-ground transformation—and the real estate sector is emerging as a critical driver of this change.

With over 430 million tonnes of plastic produced each year globally, and a significant portion ending up in landfills and oceans, industries across the board are being challenged to rethink their impact. Among them, real estate holds a unique position, contributing close to 40% of global carbon emissions, but also possessing the power to reverse that trend through sustainable development.

India, one of the fastest-growing real estate markets in the world, has an even greater responsibility. As the country prepares to urbanize over 400 million people by 2050, the infrastructure being built today will define the carbon footprint of tomorrow. This puts Indian developers at the heart of the climate conversation.

Encouragingly, many have already begun integrating green building practices, embracing certifications like IGBC (Indian Green Building Council) and EDGE (Excellence in Design for Greater Efficiencies), while also committing to nature-positive urbanism.

According to Knight Frank India, more than 35% of new real estate launches in 2024 were green-certified, a sharp rise from just 12% in 2020.

Among the notable voices driving this transformation is Signature Global, one of India’s leading real estate brands. Known for its focus on mid-income and premium housing, the company has placed sustainability at the core of its operations.

Mr. Lalit Aggarwal, Co-founder & Vice-Chairman of Signature Global, said “Green has been our priority and focus since inception. In 2025, we are intensifying our Go Green vision by planting 25,000 trees across Gurugram and across our project sites. Most of our developments are either IGBC or EDGE certified. Sustainability is not an afterthought—it’s embedded in our design, planning and execution. As developers, we have a responsibility to build not just for the present, but for the planet.”

Signature Global’s roadmap includes the integration of smart water and energy management systems, use of rainwater harvesting as standard infrastructure, and a commitment to reducing plastic and construction waste across all project sites. The company has also aligned its practices with India’s national climate goals and global ESG frameworks, reinforcing its position as a green-first developer.

Globally, the real estate sector is undergoing a shift. A recent McKinsey study confirmed that companies actively adopting ESG practices not only contribute to climate resilience but also enjoy higher long-term returns and investor confidence. The built environment, according to the International Energy Agency, holds the potential to deliver more than 20% of the emissions reductions needed to keep global warming below 1.5°C. As a result, countries are now framing urban development not just as an economic priority, but as a climate mission.

Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “The real estate sector bears a significant responsibility towards the environment, particularly as India’s housing segment accounts for over 30 percent of greenhouse gas emissions. This makes it imperative to embrace practices that support development while fostering sustainable living. As the nation advances towards its goal of net-zero carbon emissions by 2070, every industry, including real estate, must play a proactive role in shaping a greener future.”

“At Krisumi, sustainability is at the core of our philosophy. Our projects are meticulously designed with eco-friendly features and sustainable architectural principles to minimise environmental impact. This commitment not only nurtures ecological balance but also enhances the overall living experience for our residents,” Mr. Kapur added.

India’s broader vision for the future includes transitioning towards net-zero emissions by 2070, with the real estate and infrastructure sectors playing a defining role. Policy support, such as FAR incentives for green buildings, fast-track environmental clearances, and increasing access to green finance, are helping accelerate this shift. States like Maharashtra, Haryana, and Gujarat are leading the charge with progressive frameworks that reward sustainable construction.

The green transformation of India’s real estate sector will be shaped by four major trends: wider adoption of climate-linked real estate financing instruments, the use of AI and data analytics in building energy management, incorporation of biodiversity corridors within large-scale projects, and the circular use of materials through modular construction and recycling.

As the world calls for urgent action to end plastic pollution and reduce emissions, India’s real estate sector has begun to redefine its role—from being a source of environmental pressure to becoming a core part of the solution. World Environment Day 2025 is not just a reminder of the challenges, but a recognition of the opportunities to build better.