A growing sense for sustainability

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More and more developers embracing environmental concerns 

In recent years, the sustainability drive has gained significant momentum and taken hold across various industries, including real estate. With growing awareness of environmental concerns and the need for responsible development, the real estate sector has embraced sustainable practices and initiatives to minimise its environmental impact and create a more sustainable future.

Developers, architects and industry stakeholders have recognised the importance of integrating sustainability into every aspect of the real estate lifecycle, from planning and design to construction, operation and beyond. This shift towards sustainability is driven by a desire to conserve resources, reduce carbon emissions, enhance energy efficiency and promote eco-friendly living spaces.

Green certifications

One of the key areas where sustainability has made a significant impact is in green building practices. Building certifications such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) have become widely adopted standards for evaluating the sustainability performance of buildings. In Malaysia, there is the Green Building Index (GBI) and GreenRE for more localised property construction.

The Green Building Index (GBI) is Malaysia's industry-recognised green rating tool for buildings to promote sustainability in the built environment and raise awareness among developers, architects, engineers, planners, designers, contractors and the public about environmental issues.

GreenRE, set up by​​​ the Real Estate and Housing Developers' Association (Rehda) in 2013 to drive sustainability in Malaysia's real estate industry, promotes it holistically across the full lifecycle of a residential project with certification standards for developers and best practice guidance for homeowners enabling them to benchmark the performance of their property.

These certifications encourage the use of energy-efficient technologies, renewable energy sources, water conservation measures, and the incorporation of sustainable materials in construction.

Furthermore, sustainable urban planning and development have gained prominence. The concept of creating walkable communities, with mixed-use developments and access to public transportation, reduces reliance on cars and promotes a more sustainable lifestyle. The emphasis is on creating vibrant, livable neighbourhoods that prioritise green spaces, pedestrian-friendly infrastructure, and connectivity.

Real estate developers have also embraced sustainable features and amenities in their projects. These include the use of green roofs, rainwater harvesting systems, solar panels, and energy-efficient appliances. Additionally, there is a growing trend towards incorporating smart technologies that optimise energy consumption, improve waste management, and enhance overall resource efficiency.

“Developers are now more cognisant of the need for sustainable designs and green features in their projects, and the Sustainable Development Awards is held specially to recognise the efforts taken by these developers whom we believe exceeded expectations. The winners set a very high benchmark for the industry, which we hope will be emulated by more developers all over the country,” said Rehda president Datuk NK Tong. 

Sustainability drive

The sustainability drive has not only focused on the environmental aspect but also on social and economic sustainability. Developers are increasingly incorporating social amenities, such as community spaces, parks, and recreational facilities, to foster a sense of well-being and social interaction among residents. Additionally, the promotion of affordable housing and inclusive development ensures that sustainability benefits reach a broader segment of society.

“Developers play a key role in incorporating sustainability enablers into project development. We are working closely with developers to incorporate good passive designs and low carbon materials cost-effectively,” said GreenRE executive director Ashwin Thurairajah.

Government policies and regulations have played a crucial role in promoting sustainability within the real estate sector. Many jurisdictions have introduced green building codes, energy efficiency standards, and incentives to encourage developers and homeowners to adopt sustainable practices. These measures create a favourable environment for sustainable development and support the growth of a sustainable real estate market.

Overall, the sustainability drive has taken hold in the real estate industry, transforming the way buildings are designed, constructed, and operated. As the focus on environmental responsibility and sustainable living continues to grow, we can expect further innovations, advancements, and collaborations aimed at creating a more sustainable built environment for future generations.

The Drive Towards Achieving Net Zero Emissions

In recent years, the global movement to achieve net zero greenhouse gas emissions has gained significant traction, with numerous countries announcing their commitments to this ambitious goal. Malaysia, too, has joined this movement, pledging to become a net zero greenhouse gas emissions nation no later than 2050. To accomplish this, the Malaysian government has set a target to reduce carbon intensity by 45% by 2030, compared to the levels of gross domestic product (GDP) in 2005.

European Union sets new climate law: net-zero emissions are now a target for 2050 - Carbon Neutrality concept against a woodland background

European Union sets new climate law: net-zero emissions are now a target for 2050 - Carbon Neutrality concept against a woodland background

As part of its preparations for the global energy transition, the Malaysian government has proactively introduced forward-thinking policies. One such policy is the National Energy Policy 2022-2040 (DTN 2040), implemented on September 19, 2022. DTN 2040 aims to realise the aspiration of a Low-Carbon Nation by increasing the share of clean and sustainable energy sources in the country's primary energy mix. This presents opportunities for both the public and commercial sectors to explore new avenues of growth through low-carbon pathways.

The policy acknowledges the pivotal role that energy plays in driving socioeconomic development across Malaysia's key industries. The transition towards net zero emissions holds the potential to unlock new economic opportunities, foster job creation, ensure reliable and affordable energy, and maximise the value of the nation's domestic oil and gas resources. The policy also serves as a guiding framework for industry participants and decision-makers, striking a delicate balance between sustainability, affordability, and energy security.

However, experts caution that the current pledges made by governments, even if fully realised, fall short of achieving global net zero energy-related carbon dioxide emissions by 2050. This indicates that the world may struggle to limit the rise in global temperatures to the crucial 1.5°C threshold, which is vital in mitigating the most severe impacts of climate change.

Therefore, governments and stakeholders must expedite their efforts and collaborate in earnest to achieve net zero emissions at the earliest opportunity. The transition to a low-carbon economy is inevitable, and those who are prepared and embrace this challenge will be well-positioned to reap the rewards of a sustainable future.


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