Driving Sustainability in the Real Estate Industry: Best Practices for Energy and Sustainability Management

Many multinational corporations and local companies in Singapore are increasingly prioritising sustainability in their office buildings and other physical assets. Over 4,600 building projects have met the Building and Construction Authority’s (BCA) Green Mark standards as at end-2023 and reflects a broader industry shift towards sustainable development.1

The built environment sector accounts for 60% of energy use in 20222, this shift is crucial for the country’s green initiatives. To drive sustainability in the real estate industry by 2030, it's important to understand and implement best practices for energy and sustainability management.

1. Obtain green certifications

Obtaining green certifications is a powerful way to demonstrate your organisation’s commitment to sustainability and energy efficiency in real estate.

Many green certifications such as BCA Green Mark or LEED include requirements for energy and water efficiency improvements. Implementing these measures can lead to significant reductions in operating costs through lower utility bills.

2. Use sustainable building materials

Sustainable building materials, such as recycled steel, bamboo, and low-impact concrete, minimise the depletion of natural resources and lower greenhouse gas emissions associated with construction. This aligns with Singapore’s green building standards and supports the nation’s environmental goals.

Additionally, using sustainable materials in retrofitting offices, like high-performance insulation and energy-efficient windows, can enhance a building’s ability to maintain optimal temperatures. This reduces the need for excessive heating and cooling, leading to lower energy consumption and reduced utility bills.

3. Upgrade to energy-efficient systems

Upgrading to energy-efficient systems is crucial for effective energy and sustainability management. By reducing energy consumption, these systems help lower operational costs and minimise environmental impact.

Efficient systems use less energy to perform the same tasks as traditional ones, leading to significant reductions in greenhouse gas emissions and energy use. This not only supports global sustainability goals but also aligns with regulatory requirements and green certifications that can enhance property value and appeal.

Some examples of energy-efficient systems to consider include:

● Cooling systems: Replace outdated HVAC systems with energy-efficient ones such as those with variable-speed motors or high SEER ratings, provide better temperature control and use less energy.

● Smart thermostats: Install smart thermostats that automatically adjust heating and cooling based on occupancy and time of day.

● Energy-efficient appliances: Choose appliances with high energy ratings, such as those certified by ENERGY STAR.

● LED Lighting: Replace traditional incandescent bulbs with LED lights, which use up to 80% less energy and last longer.

4. Adopt water conservation measures

Implementing water-saving technologies and practices helps significantly lower water consumption, decrease water bills, and reduce strain on water systems.

Properties equipped with water-efficient fixtures and systems are often more attractive to tenants and buyers who are increasingly aware of environmental issues. This can enhance marketability and potentially increase property value.

In addition to meeting the Singapore Green Plan 2030’s target for at least 80% of all buildings (by gross floor area) to be certified green by 2030, these certifications signal to tenants, investors, and stakeholders that a property meets rigorous environmental standards. This commitment can differentiate a property in a competitive market and attract environmentally conscious clients.

By embracing these strategies to meet new regulations, property owners, investors, and real estate professionals can continue supporting Singapore’s sustainability goals, and contribute to a more sustainable future.

¹https://www.cim.io/blog/the-green-mark-certification-scheme-explained

²https://www.mse.gov.sg/files/resources/greengovsg-report-fy2022.pdf