Asian property companies have taken a strong leadership role in the area of sustainability, with some standing out as sustainability “champions” at an international level, according to an APREA research report authored by Graeme Newell, Professor of Property Investment, University of Western Sydney, Australia.

A recent APREA research report, entitled Sustainability Best Practice – The Challenges for Asian Property Companies, showcases some of the strategies used by property companies in Asia in delivering excellence and international best practice in sustainability, branding some as “champions” on an international scale.

The report also identifies ongoing challenges for a fuller integration of the sustainability agenda into the property industry.

The property industry makes a major impact on the environment, with buildings contributing up to 40% of CO2 emissions, using 40% of the world’s energy requirements, 16% of water usage, 30% of solid landfill waste, 40% of raw materials and 71% of electricity consumption, according to the report.

The report states, “These figures are even more acute in Asia, with the region expecting to account for 50% of additional world-wide energy demands over the next 15 years and 50% of the world’s new buildings. Research shows that the property industry in Asia is highly aware of the issues and is addressing them.”

It continues, “The level of detail and demonstrated commitment to sustainability shows many of the Asian property companies are comparable in stature to sustainability leaders in Europe and Australia, and significantly ahead of most of the US players. The sustainability “champions” were clearly evident in the established markets of Hong Kong, Singapore and Japan, as well as in emerging markets such as the Philippines and Malaysia.”

These Asian companies include Mitsui Fudosan Co. Ltd. (Japan), City Developments Limited (Singapore), Swire Properties (Hong Kong), CapitaLand Limited (Singapore) and Ayala Land, Inc. (Philippines). Sustainability award-winning buildings in Asian emerging markets include Telekom Malaysia Building in Malaysia, Krung Thai Bank in Thailand, Diamond Plaza in Vietnam, Philippine Stock Exchange Plaza in the Philippines, World Financial Centre in Beijing and Technopolis in India.

It adds, however, “Despite this impressive progress, the environmental sustainability debate needs to be further extended to achieve a fuller culture change throughout the property industry in Asia. This includes looking at older properties, in addition to the present focus on new developments. Whilst the current global financial crisis will surely slow the sustainability agenda, I do not believe it will alter the shift to sustainable commercial property, given the strong market forces in place, such as legislation, incentives, proven performance and existing commitment.”

Further initiatives that will advance the sustainability agenda for property in Asia include:

developing consistent sustainability metrics; the MOU between green building rating schemes including LEED, BREEAM and Green Star signed in April 2009 will now see common metrics for sustainability rating tools
valuation approaches reflecting sustainability issues
stronger link between sustainability and performance to further support the business case for sustainability
tax incentives for effective green building practices
proactive leadership by APREA in promoting the sustainability agenda in Asia and internationally.
Peter Mitchell, Chief Executive Officer of APREA, said, “APREA is committed to promoting sustainability best practices amongst real estate companies in the region, and truly believes in its importance to the future of the industry and its standing on the global stage. To that end, one of the major objectives of APREA’s Sustainability Committee is the development of a sustainability handbook for the region.

The University of Western Sydney is a member of the Asian Public Real Estate Association (APREA) which represents and promotes the real estate sector across the whole of Asia Pacific. Professor Newell is a Fellow of both the Royal Institution of Chartered Surveyors and the Australian Property Institute.


Source: APREA

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