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Monday, July 22, 2024

JLL Thailand’s 2024 ESG Vision Unveiled!

JLL Thailand, a leader in real estate services, has outlined the evolving landscape of Environmental, Social, and Governance (ESG) trends for 2024 within the property market, both locally and globally. Committed to ESG principles, JLL Thailand highlights the tangible benefits for property owners and investors from incorporating these practices and shares success stories of properties that have embraced ESG principles.

JLL projects ESG trends in 2024 that underscore the escalating desire for sustainable office buildings and the crucial role of building performance data in attaining Corporate Net Zero goals. The surge in demand for sustainable offices is fueled by corporations striving for Net Zero carbon targets, triggering a competitive race for low-carbon buildings and operations. According to JLL’s data, 96% of occupiers surveyed across Thailand are targeting 100% green-certified portfolios by 2030, up from 17% currently. With green building certifications becoming standard requisites, the focus is also shifting towards building performance data to ensure true energy efficiency and carbon reduction. Additionally, the real estate sector is witnessing a growing acknowledgment of the need for enhanced and documented sustainability efforts among tenants.

“In Thailand, we lead by example, educating ourselves, teams, and clients for a more sustainable future. With a strong passion for sustainability, we aim to drive positive change, especially in real estate where 40% of global carbon emissions originate. While accreditations are crucial, true impact requires continuous learning, challenging norms, and engaging in sustainability projects within JLL and our community. Together, we strive to leave a positive legacy for future generations,” said Michael Glancy, Country Head of Jones Lang LaSalle (Thailand) Limited.

JLL has pledged to reduce its absolute scope 1, 2, and 3 emissions by 95% by 2040, aligning with the SBTi Net-Zero Standard. By fostering inclusive communities, taking decisive climate action, and promoting healthy spaces, JLL is not just advancing its global sustainability objectives but also tailoring its efforts to support the unique needs of the Thai market. Initiatives include the relocation to Thailand’s first certified WELL standard office building, The PARQ, and the implementation of various sustainability projects aimed at reducing waste, encouraging sustainable transportation, and enhancing energy efficiency.  The latter is particularly important given that 37% of occupiers surveyed in Thailand said that on-site renewable energy provision will become indispensable due to decarbonisation goals by 2030. Additionally, 80% expect their energy needs to be met by renewables, compared to 23% today.

JLL Thailand is making strides in sustainability by providing reusable lunch boxes and coffee cups to staff, launching a carpooling system and reducing corporate cars by 40%. JLL also leads in social sustainability with a community committee organizing events on diversity, inclusion, and corporate social responsibility (CSR). In 2023, JLL successfully hosted over 40 events, and it plans to continue this trajectory in 2024. Building on previous achievements, JLL Thailand has set forth new sustainability initiatives for the upcoming year. These initiatives include the introduction of hybrid cars to reduce fuel emissions by approximately 20%, the launch of a “Zero Waste to Landfill” project, and the implementation of a barista service that will help reduce the amount of single use plastic used by JLL staff and clients daily.

“The transition to renewable energy is a critical step for the real estate industry to redefine and transform buildings from passive energy consumers to active contributors through onsite renewable energy generation,” said Mr. Anawin Chiamprasert, Head of Research & Consulting at Jones Lang LaSalle (Thailand) Limited.

JLL underscored the significant advantages of integrating ESG principles into property management and investment strategies. These include attracting and retaining occupiers with ESG goals, green premium on the achievable rental and asset value, risk mitigation and future proofing the asset for long-term sustainable growth. For Asia, the imperative of ESG compliance is clear, with a significant portion of lease renewals being influenced by environmental sustainability commitments. Furthermore, the demand for low carbon spaces is expected to influence 70% of lease renewals by 2028, highlighting the growing importance of ESG in real estate decisions.  And while developers typically focus on the embodied carbon footprint of building construction, the impact of fit-outs is often overlooked. Currently, 70% of occupiers surveyed in Thailand have cited investments required for office fit-out as one of their greatest sustainability challenges.

“Incorporating ESG into property management and investment is not just about doing good; it’s about doing well. The financial benefits are clear, with potential cost savings of up to 6% of annual revenue through energy efficiency and waste reduction. Moreover, as we look towards 2028, the influence of a company’s carbon commitment on lease renewals is undeniable. This is a call to action for property owners and investors to prioritize sustainability, not just for the planet, but for their bottom line,” said Mr. Nattapoom Vittavatchutikul, Sustainability Lead at Jones Lang LaSalle (Thailand) Limited.

JLL also manages several client properties that have successfully implemented ESG practices, including JLL’s own office which is designed and managed to LEED and WELL standards. Other case studies from JLL Thailand clients that exemplify successful ESG practices, include One Bangkok, Park Silom, Park Ventures, and Sathorn Square. These properties stand as examples of sustainability, with certifications like LEED and WELL showcasing their commitment to environmental responsibility, energy efficiency, and sustainable design. These case studies demonstrate the positive impact of ESG on operational efficiency, tenant satisfaction, and environmental sustainability.

As the competition for sustainable buildings is intensifying, JLL remains fully committed to ESG, and proud to lead by example in the industry. But this journey is not only for JLL to undertake alone; it’s a collaborative effort with the clients, partners, and communities to transform real estate portfolios and shape the future of real estate for a better world.

As JLL Thailand continues to lead by example in ESG, its ongoing initiatives and future plans signal a strong commitment to sustainability, highlighting the role of real estate in achieving a greener, more sustainable world.

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