Introduction

India’s building stock is rapidly expanding to meet the housing and infrastructure needs of its growing population. However, this growth also contributes significantly to energy consumption and greenhouse gas emissions. To address the environmental impact of the building sector, the Government of India has implemented various policies, schemes, and programs aimed at promoting energy efficiency and sustainability.

One of the key initiatives is the Energy Conservation Sustainable Building Code (ECSBC), introduced by the Ministry of Power (MoP) and developed by the Bureau of Energy Efficiency (BEE). The ECSBC sets minimum energy efficiency standards for new commercial and residential buildings and is evolved from ECBC. It also covers the norms/standards for energy conservation, use of renewable energy and other green building requirements for a building. In addition to ECSBC, voluntary green building rating systems supported by several private and non-governmental organizations such as the Confederation of Indian Industry (CII-IGBC), The Energy and Resources Institute (TERI-GRIHA), Associated Chambers of Commerce and Industry of India (ASSOCHAM-GEM), and US Green Building Council (USGBC-LEED India) are also widely implemented.

These green building rating systems assess and certify projects based on a range of sustainability parameters including energy and water efficiency, use of sustainable building materials, waste management, and indoor environmental quality. While they cater to both residential and commercial buildings, their adoption, particularly in the residential sector, is still limited. Despite policy support not only at the central level but also by city governments, only about 5% of India’s total building stock is certified green¹. One of the major barriers for low penetration of green buildings is limited awareness and understanding of the benefits offered by such buildings over their lifetime. Among key stakeholders, we believe that consumers or property buyers play a crucial role; greater awareness of the benefits of green buildings can drive demand, which in turn can significantly influence and shape the supply. Our article “Is Realty Green?”² presented findings from a real estate expo in Pune, where only 10% of the showcased residential projects were certified green buildings. Furthermore, it was observed that promotional materials for these projects highlighted only the green rating (often pre-certification) without providing any additional information on the specific green features included or benefits that will be obtained from them for the consumer. Such a lack of detailed information limits a consumers’ ability to make informed decisions.

Suggested Intervention 

We believe that uptake of green buildings can increase significantly if correct and relevant information, that enhances the benefits of green certifications are readily provided to consumers. To address this gap, we propose creation of a standardized sustainability disclosure format that developers can use while marketing their projects. This format would serve as a clear, credible, and comparable way of communicating a building’s environmental performance and sustainability features to potential buyers. By making key information such as energy efficiency, water use, materials used, and certifications easily accessible and understandable, the disclosure format would enhance transparency in the real estate market.

More importantly, it would empower consumers to make informed choices and increase their awareness of the benefits of green buildings. As consumer awareness grows, the demand for environmentally responsible construction may also increase, thereby nudging the broader market toward sustainable practices. In the context of India’s rapidly urbanizing future with over 50% of the population expected to live in urban areas by 2047³, this approach could play a vital role in mainstreaming green building practices and accelerating the transition to a resource-efficient, low-carbon urban-built environment.

Green Building Rating Systems in India 

Over the past two decades, ecosystem of green building certification in India has been well established. The Indian Green Building Council (IGBC), launched by CII, was the first and remains the most widely used system. Other prominent rating systems include GRIHA by TERI, LEED by USGBC, and GEM by ASSOCHAM. These rating systems offer guidelines for various building typologies ranging from individual buildings to campuses, neighborhoods, and even city-level developments. 

Projects are awarded certification based on the sustainability score achieved, and the rating typically remains valid for 3 to 5 years, depending on the rating system. After the validity period is over, projects are expected to undergo recertification process, which is tailored for existing buildings. The rating may change at the time of recertification based on post-occupancy audits as the sustainability performance of a project can vary over time.

All rating systems set some mandatory and optional criteria across key sustainability areas such as energy efficiency, water efficiency, building materials & resources, waste management etc. Some of these rating systems also recommend the use of ECBC to achieve compliance of some criteria (Refer annexure 1 which details how green building rating systems have incorporated ECBC). It is also important to note that the weightages and scoring approaches for similar sustainability measures differ across rating systems (Refer annexure 2 which shows distribution of weightages across rating systems). Therefore, a green rating for a building can indicate that it is better than a conventional building, however does not adequately convey its superiority in terms of green features proposed to achieve the green certification. This lack of adequate information makes it difficult for the consumer to objectively evaluate the building and take informed purchase decision.

Green Building Footprint

The latest green building footprint information is published by green building rating systems on their portals, and estimation of the building stock numbers is also conducted by industry experts⁴ . Based on this data the share of IGBC certified buildings is approximately 5%, GRIHA certified is 0.4% and LEED certified is 0.04% of entire building stock in the country. This indicates that despite having effective compliance mechanisms in place, the uptake of green buildings in India is still significantly low. We believe, one of the contributing factors for the low uptake of green buildings could be lack of awareness on long term and operational benefits associated with green rated buildings amongst consumers/homebuyers. 

Need for Standardized Sustainability Disclosures

The estimated share of green buildings as discussed above and results from a short survey of the property expo we conducted in Pune indicates that information related to green or sustainable features in buildings are not adequately highlighted in relevant promotional materials. One of the ways to improve communication and increase awareness on green features could be through introduction of a standardized format for reporting building performance. Such a format will allow consumers to easily compare the operational costs of living in a green rated vs. non rated building.

We believe that green building councils can collaborate to develop a common format for disclosing a building’s green or sustainability features. If such a format is created and adopted across all rating systems for information disclosure, it could serve two important purposes:

1. Improve consumer understanding of the specific sustainability features incorporated in a building.
2. Support informed decision-making by translating technical ratings into clear, accessible information for buyers and users.

Currently, different green building certification systems such as IGBC, GRIHA, LEED, and GEM use varying weightages and methodologies to assess sustainability performance. For instance, the emphasis on parameters like energy efficiency, water conservation, or material reuse can differ significantly across systems (Refer annexure 2 which shows distribution of weightages for different parameters across rating systems). Moreover, the methods used to estimate efficiency gains or financial benefits vary depending on factors such as the project stage (design vs. post-occupancy), assumptions used for baseline comparisons, and the types of technologies or practices implemented.

This variability in both metrics and communication formats makes it difficult for consumers to fully understand the certifications awarded to projects. Without a consistent scale or reference point, comparing green features across projects becomes confusing and often leads to misinterpretation and decision paralysis. Therefore, developing a standardized disclosure format that can help in harmonizing terminology, metrics, and benchmarks can help simplify information, improve comparability, and enhance consumer confidence in green building claims.  

Sustainability Parameters  

A suggestive list of parameters shortlisted based on our analysis of the sustainability criteria defined by the green rating systems is discussed below. These parameters are intended to enable consumers to make informed and environmentally responsible choices. Table 1 presented below highlights parameters that can form the standardized reporting format. (Refer annexure 3 which provides additional information along with relevant examples and sources for each of these parameters).

Table 1. Parameters focused on sustainability and energy efficiency which can form the Standardized reporting Format

Source: Prayas (Energy Group) 

We observe that, some green building consultants and developers already share information on a project’s sustainability features through their own customized formats, particularly during marketing or certification stages. These disclosures often include details on energy and water efficiency, use of sustainable materials, indoor air quality, and expected operational savings. While these efforts reflect a growing commitment to transparency, the lack of uniformity across formats poses a challenge for consumers attempting to compare and evaluate the benefits across projects.

Way Forward

We believe, sharing information about green and sustainable building features through a standardized disclosure format can significantly increase awareness and hence accelerate the adoption of certified green buildings. Such a format would empower consumers with credible, comparable, and easy-to-understand information on the advantages of sustainable buildings over conventional ones. Such formats can be included into all marketing, sales, and promotional materials for real estate projects. 

To formulate and implement the sustainability disclosure formats, we propose the creation of an Inter-Council Committee on Sustainability Disclosure Standards, supported by the National Building Council of India. This committee should include representatives from Central Government, Major green building councils and Real estate stakeholders such as BEE, IGBC, GRIHA, LEED, GEM, CREDAI, and State RERA authorities. 

The proposed committee may be entrusted with the following key policy functions, aimed at supporting the effective implementation of standardized sustainability disclosures:

• Develop and notify a uniform disclosure format by aligning core sustainability parameters across different green building rating systems.
• Facilitate harmonization and interoperability of disclosure practices across all recognized frameworks, ensuring consistency and comparability.
• Establish implementation guidelines and compliance protocols, including integration with existing platforms such as state-level RERAs (e.g., MahaRERA), to ensure ease of adoption.
• Design a monitoring and grievance redressal mechanism to verify sustainability claims and address any consumer concerns related to misrepresentation.
• Organize regular stakeholder consultations to review the effectiveness of the disclosure format and update it in line with evolving sustainability standards, regulatory developments, and consumer expectations.

By fostering coordination among key stakeholders, the committee can bridge the current information gap between developers and consumers. A standardized disclosure system, backed by robust oversight, will not only enhance consumer trust but also incentivize developers to adopt genuine green building practices. As India urbanizes rapidly, such an effort can help in strengthening transparency, enhancing consumer trust, and supporting the transition towards a more sustainable built environment.