How real estate drives progress towards SDGs
With just five years remaining to achieve the global commitment to eradicate poverty, protect the planet, and foster peace and prosperity by 2030, industries and organisations are under increasing pressure to strengthen their contributions to the Sustainable Development Goals (SDGs). The real estate sector plays a pivotal role in this effort. As it directly influences how we build, live, and work, this industry can significantly accelerate progress towards the SDGs. This article explores how investment in sustainable real estate and responsible development choices can support the global sustainability agenda and drive impactful progress for a better future.
The challenge of the SDGs
The 17 SDGs, established by the UN in 2015, advocate for a balanced approach across social, economic, and environmental sustainability. Yet, as the 2024 SDGs Report shows, progress is slow, with only 17% of the 169 targets likely to be met by 2030. Nearly half of these goals are delayed, particularly in areas affected by climate change, conflict, and inequality. While there have been gains in healthcare, child mortality reduction, and access to energy and digital services, broader progress is obstructed by climate challenges, geopolitical tensions, and the lingering effects of the COVID-19 pandemic.
How the real estate industry contributes to the SDGs
The real estate industry has a critical role in advancing the SDGs, as it directly affects how we build, live, and work. Through sustainable practices and innovation, the real estate sector can play a key role in advancing several SDG targets:
SDG 7: Affordable and clean energy
Real estate can improve energy access by designing buildings that consume less energy, integrating renewable energy sources like solar, and using smart technology for efficient energy management. These strategies make clean energy more accessible and reduce reliance on fossil fuels. Green building certifications further encourage the development of energy-efficient housing, making clean energy accessible to more people.
SDG 9: Industry, innovation, and infrastructure
The real estate sector can drive sustainable infrastructure through innovations, including IoT sensors and AI-based energy management. These technologies make properties more efficient and adaptable to future environmental and economic changes.
SDG 11: Sustainable cities and communities
As urbanisation continues, real estate development can help make cities more inclusive, livable, and resilient. With a growing focus on responsible urban planning, affordable housing, and green spaces, the industry helps improve quality of life. Initiatives like transit-oriented developments and mixed-use communities also tackle congestion while enhancing air quality and accessibility, fostering healthier, more connected cities.
SDG 12: Responsible consumption and production
Real estate can promote responsible consumption through sustainable construction practices. By choosing sustainable materials, reducing waste, and implementing effective waste management systems, the sector can significantly reduce its environmental footprint. More developers are also embracing circular economy principles—reusing and repurposing materials to avoid waste.
SDG 13: Climate action
Given that buildings are a major source of carbon emissions, the sector can reduce its impact by prioritising energy-efficient designs, low-emission materials, and retrofitting existing properties to meet modern standards. Certifications like LEED and BREEAM encourage sustainable practices and help real estate organisations set ambitious climate targets.
A short timeframe
Ten years after the SDGs were introduced, the urgency for action has only grown. The real estate industry, with its substantial impact on energy use, urban development, and resource management, plays a pivotal role in advancing these goals. Buildings and infrastructure not only shape communities but also influence global efforts in climate action, clean energy, and sustainable cities.
SDGs and real estate are deeply interconnected. Real estate professionals and organisations have a unique opportunity to drive meaningful changes that support global sustainability. By prioritising energy efficiency (SDG 7), fostering sustainable communities (SDG 11), embracing responsible consumption (SDG 12), and advancing climate action (SDG 13), the sector can actively shape a sustainable future.
To support these efforts, tools like the Green Buildings Tool provide essential resources for assessing and enhancing building sustainability. With data-driven insights, organisations can optimise energy use, minimise environmental impact, and align more closely with SDG targets. By incorporating tools like this, real estate portfolios can become powerful drivers of sustainability, positioning organisations as leaders in sustainable development.
