Real estate growth can boost green building segment: Johnson Controls

Green buildings It can help India get closer to achieving its environmental goals by using less energy, sustainable materials and water-saving systems. The country has made significant progress in developing green buildings, says Arun Awasthy, president and managing director of Johnson Controls India, the Ireland-based diversified technology company has implemented several such projects, but the concept still faces hurdles like low awareness, financial considerations and shortage of skilled professionals, he says during an interaction with ET Online. Edited excerpts:ET: How is the green building sector performing in India?
Arun Awasthi (AA): Collective climate action and India’s commitment to achieving it net zero emissions By 2070, the importance of green buildings will expand. Industry estimates show that India’s green building market generated revenues of $29.2 billion by 2022, reflecting a compound annual growth rate of 7.5% between 2017 and 2022. India’s dedicated focus on green building initiatives is further exemplified by its position as the third-largest country in terms of green building. LEED Certification by the U.S. Green Building Council in 2023. With over 240 projects spanning 7.23 million gross square meters (GSM) certified for LEED, India shows a strong commitment to environmentally responsible building practices. real estate sector The goal is full decarbonisation by 2050. It is projected to reach $5.8 trillion in value by 2047. Green buildings will undoubtedly be a crucial part of this growth, especially considering that 70% of the buildings needed by 2030 have not yet been built. We are excited by this potential and plan to double our business in India within five years. The focus of the real estate sector in India sustainabilityTechnological integration and innovation will not only bring added value to customers, but will also contribute to a greener future.

ET: What obstacles prevent the adoption of green building practices and how can they be overcome?
AA: Considering that the concept of green buildings in India is still relatively new compared to the West, the Indian market faces unique challenges determined by the socio-economic nuances of a developing nation. Limitations in awareness operate at two levels. The first concerns its tangible benefits: increased Energy efficiencyemissions reduction, healthier and optimal indoor air quality, and better waste and water management, to name a few. The second relates to understanding the financial ramifications of green buildings, both in terms of the financing options available to developers and in terms of the long-term returns on investment. While the upfront costs of green buildings may be higher, there are long-term benefits in terms of increased profitability due to improved operations and energy efficiency.

Another challenge in India is the shortage of professionals trained in green building practices, compounded by the lack of sustainability-focused programs or curricula in academic institutions.

Arun Awasthy, President and Managing Director, Johnson Controls India.

ET: Please explain more about Johnson Controls’ sustainable technologies for building energy efficiency.
AA: Sustainability is at the core of our business and all our solutions achieve energy efficiency. Smart technologies now enable buildings to collect real-time data, analyse it and process actions that save energy and improve sustainability, with minimal or no human intervention.

One of our flagship services is a comprehensive platform that leverages data analytics and artificial intelligence to deliver actionable insights to optimize energy and reduce waste. Our heating, ventilation, and air conditioning (HVAC) systems are designed with energy efficiency at their core, offering advanced HVAC solutions that minimize energy consumption and maintain optimal indoor air quality.

Johnson Controls, in collaboration with Mahindra Group, has also recently developed and launched the NetZero Buildings Initiative, a comprehensive effort aimed at transforming building infrastructure across India. We have launched a toolkit that offers practical guidance on sustainable building design, energy conservation measures, and regulatory compliance specific to the Indian context.

ET: Can you provide us with examples of green building technologies from the international market that could be adapted to the Indian context?
AA: Some of the most notable case studies integrating advanced sustainable technologies include Microsoft’s West Campus in Beijing, Taikoo Hui in Guangzhou, and Standard Chartered Bank’s campuses in Asia Pacific. These projects have demonstrated substantial energy savings and improved facilities management through integrated building management systems that improve energy efficiency.

In India, the scale at which this is happening is in stark contrast to our global experiences.

ET: Can you highlight Johnson Controls’ successful green building projects in India, highlighting obstacles and lessons learned?
AA: One example of success is a recent partnership with a major hotel chain to improve the energy efficiency of its cooling systems at its Chennai, Vizag and Bengaluru campuses. This project aimed to achieve tangible results in terms of energy efficiency and carbon emission reduction.

A key hurdle we faced was integrating advanced energy management systems into existing structures that were outdated and consumed a disproportionately high amount of energy. To address this, we conducted individual assessments of each campus. In Vizag, we installed a high-efficiency screw chiller; in Chennai and Bengaluru, we installed chillers with variable primary pumping systems for precise flow regulation based on cooling needs. In addition, we optimized cooling towers, pumps, and control mechanisms and installed performance monitoring systems to accurately validate energy savings. Through our collective efforts, energy consumption was reduced by 40%, resulting in savings of approximately 466,000 kWh per year across all three campuses. The Chennai campus exceeded its target, achieving an average annual specific energy consumption of 0.5000 kW per ton. These energy savings resulted in an annual cost reduction of approximately $56,000. In addition, the project reduced annual greenhouse gas emissions by 396 tonnes of CO2 equivalent, which had a significant environmental impact.

ET: What role do certification schemes like LEED and GRIHA play in driving the adoption of green buildings in India, and how effective are they?
AA: In India, the promotion of green buildings relies on a thorough assessment process that prioritizes environmental awareness and efficient use of resources. This assessment is facilitated through recognized certification systems such as LEED, EDGE, GRIHA, and IGBC ratings. Overseen by independent bodies, these certifications provide a standardized way of assessing and ranking buildings based on factors such as energy efficiency, water conservation, and indoor air quality. They help guide the construction industry toward more sustainable practices.

Certifications such as IGBC and GRIHA, administered by respected organizations such as the Indian Green Building Council and the Energy and Resources Institute (TERI), offer a variety of badges (from certified to platinum) that reflect different levels of environmental performance. Considering that India is a nation with diverse geographic conditions and climatic zones, state governments have come up with their own set of guidelines and incentives. While navigating various codes and regulations can be challenging, especially for small projects with limited resources, the impact of certifications such as LEED and GRIHA in promoting the adoption of green buildings has been significant.