On February 23rd we learned about the carbon footprint of the real estate and infrastructure industries, with a focus on operational and embodied carbon. Analytics from the 2021 GRESB Assessment were presented and we discussed where the industry is now and where we have to go. This webinar was hosted in partnership with GRESB Partner Envint, and is supported by Industry Partner APREA, a not-for-profit industry association that is a passport to property investment opportunities in AsiaPac.

2. Program
• Welcome & Introduction | GRESB
• Word from GRESB Participant | Mahindra Lifespace
Developer
• Whole Life cycle carbon | GRESB
• Embodied Carbon in India | Envint
• Keynote Speech on ESG in India | eCube Investment
Advisors
• Q&A

3. Crafting Life
Crafting Life
Crafting
Life
27
+
40
+

4. Crafting Life
Crafting Life
: Sustainability Commitments
Carbon Neutrality
By 2040
100% Green
Portfolio
IGBC / GRIHA
Certified
IGBC Mission
on Nero Zero Net zero by 2030 for all new
developments
Renewable Energy
 Residential
 IC & IC
G
O
V
E
R
N
A
N
C
E
E
N
V
I
R
O
N
M
E
N
T S
O
C
I
A
L
Water
Positive Water secure by 2030
Zero Waste
to Landfill
Achieve Zero Waste to landfill for offices,
homes, & IC & IC business by 2030
Project Hariyali The Green
Army
Creating
“One million caring
citizens”
Science Based
Target (SBT)  Approved SBT targets for Scope
1,2 & 3 emissions
Nanhi
Kali

5. Crafting Life
Crafting Life
GRESB
Assessing and enhancing the sustainability
performance of your real estate portfolio
An Enterprise lens
Dr. Sunita Purushottam

6. Crafting Life
What are ESG factors?
ESG (environmental, social and governance) is a generic term :
Used in capital markets and used by investors to evaluate corporate behavior and to determine the future
financial performance of companies
What has changed?
Once upon a time, ESG factors were a niche interest among asset owners, asset managers, banks, brokers
and investment consultants.
● Now Investors are routinely seeking this information
● Companies that manage these factors benefit from improved economic performance

7. Crafting Life
Enterprise ESG factors
ESG factors, when integrated into organisational strategy may offer potential long-term performance advantages
Environmental
● Increase diversity and
accountability of the Board
● Protect shareholders their
rights
● Report and disclose
information
● Manage risks
● Manage resources and
prevent pollution
● Reduce emissions and
climate impact
● Execute environmental
reporting/disclosure
● Promote health and safety
● Encourage labour-
management relations
● Protect human rights
● Focus on product integrity
Governance
Social

8. Crafting Life
How investors use ESG information is changing
 ESG-related information has moved from a ‘peripheral’ to a ‘core’ part of investment analysis, across all
asset classes
 Investors are increasingly using sustainability as a lens to guide their investment strategies
 Enterprises that routinely publish high quality report on long term implication of ESG factors on business –
are likely to attract and retain long term investors
 Typical risk types could be Political, Environmental, Human Rights, Economic
 In context of Climate change - they have been classified as Transition and Physical risks (TCFD)
 What needs to change is the ESG incorporation in the real estate sector and degree of influence.
Yet despite property investors showing “a sophisticated use of ESG indicators in their investment strategies,” the
proportion that systematically factor ESG issues throughout their investment processes remains relatively low.
“To date, responsible property investment has mainly been the remit of advanced institutional investors and large
funds, leaving behind a large group of other investors with less advanced ESG practices,” says the report.

9. Crafting Life
ESG Aspects of Real Estate Sector
Product
Sustainability
Energy Use and GHG
Emissions
Human Capital
Business Ethics
Community Relations Supply Chain
Product Quality and
Safety
Physical Impact of
Climate Change
Water Use
Bribery and
Corruption
Emissions Effluents and Waste

10. Crafting Life
The Link : Profitability & ESG Performance
Higher
Profitability
Lower
Tail Risk
Lower
Systematic Risk
High ESG-rated companies were more
competitive and generated abnormal
returns, often leading to higher
profitability and dividend payments,
especially when compared to low ESG-
rated companies.
High ESG-rated companies
experienced a lower frequency of
idiosyncratic risk incidents such as
major drawdowns. Conversely,
companies with low ESG ratings were
more likely to experience major
incidents.
High ESG-rated companies have
shown lower systematic risk
exposure, evidenced by less volatile
earnings and less systematic
volatility. Compared to low ESG-rated
companies, they also experienced
lower betas and lower costs of
capital.
For example, a recent BCG study showed that top ESG performers attained 3% to 19% higher valuation
multiples than did median ESG performers.
In addition, a recent Harvard Business School working paper concluded that even public sentiment momentum about
a company's sustainability activities affects the price that investors are willing to pay for sustainability.
Moreover, 68% and 69% of asset owners believe that integrating ESG factors significantly increased returns and
reduced volatility

11. Crafting Life
ESG Information is key
• Market is getting transformed
by Institutional investors.
• Funds are allocated based on
ESG criteria.
• Commitment to transform the
built environment into an
energy-efficient, low-carbon,
and climate-resilient sector.
What information is being
sought?
• ESG Data and Performance.
• Benchmarking and peer
analysis.
Need for comparable insights
Who requires the information
• Investors
• Peers
• Stakeholders

12. Crafting Life
ESG : Enterprise Lens
• The ESG performance of the Real Estate industry is trending
upward
• Emerging markets-based real estate companies tend to
trail global best practices in most facets of ESG
performance
• The influx of global capital across the industry may
incentivize real estate companies in China and other
emerging markets

13. Crafting Life
Global Real Estate Sustainability Benchmarks (GRESB)
● Assesses the sustainability performance of real estate and infrastructure portfolios and
assets worldwide
ESG
Data
Score
card
Benchm
ark
Report
Portfolio
analysis
tools
GRESB provides with Market Coverage
GRESB ESG data and benchmarks cover US $5.7 trillion in real estate
and infrastructure value including more than 117,000 geo-coded
assets. It covers private and public markets and data is reported to
GRESB at both portfolio- and asset-level.

14. Crafting Life
GRESB Model
ESG Breakdown
Trend
GRESB Scoring

15. Crafting Life
What do ESG performance reports say?
● Is it possible to understand the key ESG hotspots? Does the data provide consistency and
comparability of disclosures that could be helpful to readers? Such as internal and external
benchmarking
● Does it link the ESG data to financial implications for the company – ex – can it influence
energy, material sourcing policies?
● Does the disclosure paint a correct picture of the company, acceptable for investors to make an
informed decision?
● Does the information within the disclosure provide evidence about performance?
● Is the disclosure simply providing a longer, “prettier” report?

16. Crafting Life Leveraging disclosures :
Catalysts of self transformation
• Scrutinize this: What do disclosures/sustainability reporting frameworks/assessments ask?
1
Assess the gaps: Where are we?
2
Look at what others are doing: What are our competitors disclosing and what is the world expecting?
3
Garner support internally: Are all stakeholders onboard?
4
Plan for the next year : What are actionable areas of improvement? Secure support and buy in, drive
awareness
5
Leverage IT for disclosure: Have you considered automation of the processes for managing
sustainability disclosures? Centralized repository
6

17. Crafting Life
Enterprise Benefits : Disclosures/Reporting
Internal
• Increased understanding of risks
and opportunities
• Emphasizing the link between
financial and non-financial
performance
• Influencing long term management
strategy and policy, and business
plans
• Streamlining processes, reducing
costs and improving efficiency
External
• Mitigating - or reversing - negative
environmental, social and governance
impacts
• Improving reputation and brand loyalty
• Enabling external stakeholders to
understand company’s true value, and
tangible and intangible assets
• Demonstrating how the organization
influences, and is influenced by,
expectations about sustainable
development

18. Whole Life cycle carbon
GRESB

19. Program
• Whole life cycle emissions – Embodied carbon and
operational carbon
• Operational carbon in today’s GRESB Assessments
• Embodied carbon in today’s GRESB Assessments
• 5- year roadmap

20. Whole life carbon emissions
Embodied Carbon vs. Operational Carbon
Source: The Building System Carbon Framework -
Embodied Carbon  “Carbon emissions associated with materials and construction
processes throughout the whole lifecycle of a building or infrastructure.” (WorldGBC)
Operational Carbon  “The emissions associated with energy use (B6) to operate the
building or in the operation of infrastructure.” (WorldGBC)

21. Source: Architecture 2030
Source:
Real Estate
Whole life carbon emissions
Embodied Carbon and Operational Carbon
Buildings generate 39% of annual global GHG emissions, split by 28% of all emissions
coming from buildings operation and 11% coming from building materials & construction.

22. Source: Infrastructure Carbon Review
Infrastructure
Whole life carbon emissions
“The relative significance of capital
carbon will increase as the grid is
decarbonized and operational emissions
reduce. At the same time, the substantial
planned increase in infrastructure
investment will tend to increase capital
carbon emissions in spite of future
construction efficiencies, therefore even
greater action is required by the sector to
drive down capital carbon.” (Infrastructure
Carbon Review)
Embodied Carbon and Operational Carbon

23. Operational carbon
2021 GRESB Real Estate Assessment analytics
Real Estate
Asset count India:
1-100
Asset count
Global:
100-10,000
99
70
88
47
95
88
50
89
66
70
0 20 40 60 80 100 120
Hotel
Industrial
Office
Residential
Retail
Data Coverage (%)
Property
Sector
GHG emissions Data Coverage per Sector
Global India

24. Operational carbon
2021 GRESB Real Estate Assessment analytics
Real Estate
Asset count India:
1-100
Asset count
Global:
100-10,000
-8.23%
Globally
-14.13%
India
50
61
61
4
50
55
23
49
28
57
0 10 20 30 40 50 60 70
Hotel
Industrial
Office
Residential
Retail
GHG Intensity (kgCO2e/sqm)
Property
Sector
GHG emissions Intensities per Sector
Global India

25. Operational carbon
2021 GRESB Infrastructure Assessments analytics
Infrastructure
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Data Infrastructure
Diversified
Energy and Water Resources
Environmental Services
Network Utilities
Other
Power Generation x-Renewables
Renewable Power
Social Infrastructure
Transport
% of total number of Assets per Sector
Infrastructure
Sector
Assets with GHG emissions Data Coverage per Sector
Asset count
Global:
1-100

26. Operational carbon
2021 GRESB Infrastructure Assessments analytics
Infrastructure

27. Operational carbon
2021 GRESB Infrastructure Assessments analytics
Infrastructure

28. Embodied Carbon
2021 GRESB Real Estate Assessment analytics
DMA1 – Materials selection
requirements
• 5 2 % o f p a r t i c i p a n t s o f t h e D e v e l o p m e n t C o m p o n e n t h a v e a p o l i c y r e q u i r i n g l o w e m b o d i e d
c a r b o n m a t e r i a l s .
• 3 6 % o f p a r t i c i p a n t s o f t h e D e v e l o p m e n t C o m p o n e n t a s s e s s e s t h e l i f e c y c l e e m i s s i o n s o f i t s
d e v e l o p m e n t p r o j e c t s .
o 3 5 % o f t h o s e u s e t h e s t a n d a r d E N 1 5 9 7 8 .
o 2 9 % o f t h o s e f o l l o w t h e p r i n c i p l e s o f t h e s t a n d a r d I S O 1 4 0 4 0 / 4 4 .
DMA2.1 – Life cycle Assessment
.
DMA2.2 – Embodied Carbon
• 1 7 % o f p a r t i c i p a n t s o f t h e D e v e l o p m e n t C o m p o n e n t h a v e d i s c l o s e d t h e e m b o d i e d c a r b o n
e m i s s i o n s o f i t s d e v e l o p m e n t p r o j e c t s c o m p l e t e d w i t h i n t h e l a s t t h r e e y e a r s .
o 4 5 % o f t h o s e h a v e p u b l i c l y d i s c l o s e d t h e s e e m i s s i o n s .
o 8 2 . 5 % m e n t i o n e m b o d i e d c a r b o n i n t h e i r d i s c l o s u r e .
o 4 8 . 7 % h a v e a n y e m b o d i e d c a r b o n t a r g e t .
o 1 7 . 5 % h a v e a W h o l e L i f e C a r b o n r o a d m a p t o n e t z e r o .
Real Estate

29. Assessment Roadmap
Creating a Shared Vision

30. A Shared Vision
Phase I:
Defining our joint vision
Phase II:
Creating a strategy to
guide our work toward
our vision
Phase III:
Defining technical
requirements and
execution for the five-
year roadmap
September –
December 2021
January –
April 2022
July 2022 –
January 2023
Creating a Roadmap for the GRESB Assessments

31. A Shared Vision
Principles that supports the GRESB Standards
Phase I:
Defining our joint
vision
Focus on the Most
Material Issues
Consider Sector
and Regional
Differences
Align with Industry
Frameworks and
Standards
Focus on both
Efforts and
Outcomes
Assess ESG
through the Whole
Life Cycle
Evaluate and
Benchmark at
Organizational,
Portfolio, and Asset
Level
Access for All
Review Regularly

32. A Shared Vision
Phase I:
Defining our joint
vision
ESG issues prioritization
• Progress against net
zero targets
• R e s i l i e n c e t o p h y s i c a l c l i m a t e
r i s k
• Embodied Carbon
• D i v e r s i t y , E q u i t y & I n c l u s i o n
• H e a l t h & w e l l - b e i n g
• H u m a n R i g h t s ( i n c l u d i n g M o d e r n
S l a v e r y )
• B i o d i v e r s i t y
• C y b e r s e c u r i t y
ESG issues
32

33. A Shared Vision
Phase I:
Defining our joint
vision
ESG issues prioritization
• Progress against net
zero targets
• R e s i l i e n c e t o p h y s i c a l c l i m a t e
r i s k
• Embodied Carbon
• D i v e r s i t y , E q u i t y & I n c l u s i o n
• H e a l t h & w e l l - b e i n g
• H u m a n R i g h t s ( i n c l u d i n g M o d e r n
S l a v e r y )
• B i o d i v e r s i t y
• C y b e r s e c u r i t y
ESG issues
Thank you

34. © Envint Services LLP, 2020 34
Potential of buildings and infra ‘yet to be built’
• Buildings contribute to 39% of GHG emissions worldwide;
India currently lower than global average
• Contribution from the buildings & infra expected to
increase significantly in next 20 – 30 years
a) Government policy and spending – NIP, PMAY
AMRUT, Smart Cities, Bharatmala, ILR...
b) Urbanization to continue rising beyond population
peak in the 2040s
• Market-led developments in pooling of assets – REITs,
InvITs
Sector to play a dominant role in
India’s Net Zero ambitions

35. © Envint Services LLP, 2020 35
Comprehensive accounting for better outcomes…
• Majority of CDP / sustainability reports of Indian companies
do not disclose on embodied carbon
• Carbon neutrality / Net-Zero goals would need to account
for embodied carbon stock
• Comprehensive accounting can lead to:
a) Improved engagement with steel & cement cos –
some of which have Net-Zero goals
b) Innovations in material substitution, renovation,
retrofits & refurbishment
c) An integrated approach towards Net-Zero!
Improved
Accounting
Identification of
opportunities
Integrated
Approach