The future of cities will be shaped not just by how quickly they expand, but by how intelligently they are planned. With climate risks intensifying and urban populations growing, the built environment has emerged as one of the most critical frontiers in the global sustainability transition. According to the UNEP Global Status Report for Buildings and Construction 2025–2026, buildings and construction account for nearly 37 per cent of global carbon dioxide emissions, while almost half of the buildings expected to exist by 2050 are yet to be built or renovated, making today’s development choices pivotal for long term climate resilience.
Against this backdrop, sustainable real estate is evolving beyond regulatory compliance to become a strategic business priority. In this interview with TheCSRUniverse, Mr. Ayashkanta Rout, Head of Sustainability & CSR, Oberoi Realty Ltd., explains how sustainability is redefining luxury real estate through climate conscious design, resource efficiency, and resilient urban planning. He discusses the growing influence of ESG principles across the real estate value chain, the changing expectations of homebuyers and tenants, and Oberoi Realty’s measurable sustainability ambitions. He also shares why developers must move beyond constructing individual buildings to creating resilient urban ecosystems through innovation, collaboration, and long term environmental stewardship.
Scroll down to read the full interview:
Q. How do you see sustainability evolving as a defining factor in luxury real estate and premium urban living in India today?
A. Sustainability is no longer an add-on in luxury real estate; it is increasingly becoming a defining indicator of quality, resilience, and long-term value. A decade ago, luxury was often associated with larger spaces and premium finishes. Today, discerning homebuyers are evaluating developments through a much broader lens that includes energy efficiency, water security, occupant wellbeing, climate resilience, indoor environmental quality, and access to green spaces.
As cities face growing pressures from climate change, resource constraints, and urbanisation, premium developments are expected to offer solutions that enhance quality of life while reducing environmental impact. In many ways, sustainability has become the new benchmark for luxury.
From a developer's perspective, sustainability also helps future-proof assets. Green-certified buildings have proven to demonstrate lower operating costs, improved resource efficiency, and stronger resilience against evolving regulations and climate risks. At Oberoi Realty, this philosophy is reflected in our long-term aspiration to achieve 100% green-certified projects with a minimum ‘Gold’ level rating, water positivity by 2030, net zero waste to landfill by 2030 and Net Zero Scope 1 and 2 emissions by 2040. As of FY 2025-26, 88% of our portfolio is already green certified and the remaining are in process of getting certified, demonstrating that sustainability and premium development successfully go hand in hand.
Q. In your view, how are consumer expectations changing when it comes to environmentally responsible and future-ready residential developments?
A. Homebuyers today are significantly more informed and environmentally conscious than they were even five years ago. Sustainability is increasingly influencing purchase decisions, particularly in the premium and luxury segments.
Consumers are no longer asking whether a project has green features; they want to understand how those features translate into tangible benefits. Questions around energy consumption, water availability, indoor air quality, waste management, electric vehicle readiness, renewable energy integration, and health-focused amenities are becoming far more common.
There is also a growing recognition that climate resilience directly affects asset value. Buyers want homes that are prepared for future challenges such as water scarcity, extreme weather events, rising temperatures, and evolving regulatory requirements.
We believe the next generation of residential developments will be judged not only by their location and design but also by their ability to deliver healthier living environments, lower operational costs, and long-term environmental resilience.
Q. How is ESG-led development influencing the planning, design, and execution of modern urban infrastructure and luxury housing projects?
A. ESG performance considerations are increasingly influencing decisions across the entire real estate lifecycle—from land acquisition and master planning to design, construction, operations, and stakeholder engagement.
At the planning stage, developers are incorporating climate risk assessments, mobility planning, biodiversity considerations, and resource efficiency strategies much earlier in the development process. During design and construction, there is greater emphasis on green building certifications, low-carbon materials, efficient HVAC systems, water recycling infrastructure, renewable energy integration, and construction waste management.
Equally important is the governance aspect. Sustainability led development requires stronger data management, transparent ESG disclosures, responsible supply-chain engagement, and measurable performance targets. It also requires organisations to embed quality, environmental stewardship, and occupational health and safety considerations into regular everyday operations rather than treating them as standalone functions.
At Oberoi Realty, sustainability is overseen through a Board-level Committee and supported by our senior leadership. We have also established an Integrated Management System (IMS) certified to internationally recognised ISO standards, enabling us to strengthen quality management, environmental performance, and occupational health and safety practices across all functions and stages of our operations. Together, these frameworks ensure that ESG considerations are systematically integrated into business decision-making and project execution.
Q. What are some of the key sustainability priorities Oberoi Realty is focusing on to build climate-conscious and resilient urban ecosystems?
A. Our sustainability strategy focuses on creating long-term value through resource efficiency, climate resilience, responsible development, and stakeholder wellbeing.
Key priorities include expanding green-certified developments, improving energy performance, enhancing water security, reducing waste generation, strengthening climate resilience, decarbonising our built assets and construction materials, integrating renewable energy solutions, and advancing social impact across our operations.
We have established measurable ESG aspirations, including achieving water positivity by 2030, Net Zero Waste to Landfill by 2030, and Net Zero Scope 1 and 2 emissions by 2040. To support these goals, we are progressively increasing the share of renewable energy across our operations and exploring opportunities to reduce embodied carbon through the adoption of lower-carbon materials and more sustainable construction practices. During FY 2025-26, we achieved a 50% reduction in Scope 1 and 2 emissions intensity, a 40.24% reduction in water intensity, and a 65.38% reduction in waste intensity compared to our baseline. We also maintained our Net Zero Waste to Landfill status across operations.
Beyond operational performance, we have undertaken climate risk assessments across our portfolio and continue to strengthen adaptation measures to improve resilience against long-term climate-related risks. We also conducted a biodiversity assessment across our operations to better understand our impacts and dependencies on nature. The insights from this assessment are helping inform how we can integrate biodiversity considerations into project planning and design, enhance green spaces, and create developments that contribute more positively to the surrounding ecosystem.
Ultimately, our objective is to build developments that are not only environmentally efficient but also resilient, future-ready, and aligned with the evolving needs of cities and communities.
Q. How important are aspects such as energy efficiency, water conservation, green buildings, and resource optimisation in shaping the future of real estate development?
A. These aspects will fundamentally shape the competitiveness, resilience, and long-term value of future real estate assets.
Energy efficiency helps reduce operating costs, improve occupant comfort, and lower carbon emissions. Water conservation is becoming increasingly critical in urban centres where water stress is emerging as a significant challenge. Similarly, resource optimisation and circular economy principles help reduce waste generation and improve material efficiency across the asset lifecycle.
Importantly, these are no longer priorities driven solely by developers or regulators. Across our annuity portfolio, we are seeing growing demand from tenants for spaces that are sustainable, resource-efficient, and capable of delivering measurable environmental performance. Many occupiers today have their own ESG commitments and net-zero ambitions, and they increasingly prefer buildings that can support their sustainability goals through efficient energy systems, responsible water management, waste reduction practices, and green building certifications. Sustainable and operationally efficient assets are therefore becoming a key differentiator in attracting and retaining high-quality tenants.
Green building certifications provide a structured framework for integrating these elements into project design and operations while offering independent validation of performance.
The importance of these measures is also being reinforced by real-world challenges. Several Indian cities, including Bengaluru, Chennai, and parts of the National Capital Region, have experienced periods of significant water stress in recent years, highlighting the need for developments that incorporate water-efficient fixtures, rainwater harvesting, wastewater recycling, and responsible water stewardship. Similarly, energy security has become a global concern, with recent geopolitical events and supply disruptions demonstrating the importance of reducing dependence on conventional energy sources and improving energy efficiency.
The future of real estate will increasingly be measured by performance outcomes rather than individual sustainability features. Buildings that consume less energy, recycle water effectively, minimise waste, and provide healthier environments will be better positioned to attract residents, investors, tenants, and financial capital. In this context, sustainability is not only an environmental imperative but also a business and resilience imperative.
Q. What role do you believe real estate developers must play in helping Indian cities become more sustainable, climate-resilient, and environmentally responsible in the long term?
A. Real estate developers play a critical role because the decisions made today will influence urban environments for decades.
Developers have the opportunity and responsibility to move beyond individual buildings and contribute towards creating integrated, resilient urban ecosystems. This includes adopting climate-responsive design, improving resource efficiency, supporting low-carbon mobility, enhancing biodiversity, reducing construction-related environmental impacts, and creating healthier communities.
Equally important is collaboration. Sustainable urban development requires coordinated efforts between developers, policymakers, investors, infrastructure providers, technology partners, academia, and local communities. Beyond implementing sustainability measures within their own projects, developers can play an important role in advancing industry-wide solutions by participating in working groups, supporting research, and contributing to the development of standards and public policy frameworks that accelerate the transition to a low-carbon built environment.
For example, Oberoi Realty is supporting the DEFINE (Dynamic Emission Factors in Net-Zero Ecosystem) initiative in partnership with the SuperHumanRace Foundation. The project aims to help develop a methodology for establishing dynamic emission factors and strengthen the ecosystem for Environmental Product Declarations (EPDs), with the broader objective of informing industry practices and supporting future policy development in this area.
India's urban population is expected to continue growing rapidly over the coming decades. The choices we make today regarding how we design, build, and operate our developments will determine whether our cities become more resilient and resource-efficient or more vulnerable to future environmental challenges.
For the real estate sector, sustainability is therefore not just an environmental responsibility—it is a business imperative and a key enabler of long-term urban resilience and economic growth.
-900x650-(July-31).png)
x
.png)
