World Trade Centers Association(R) (WTCA(R)), an international trade association connecting more than 300 World Trade Center(R) (WTC(R)) locations in nearly 100 countries, cited the adoption of environmental, social, and governance (ESG) standards by Thai property developers as critical to driving the next wave of innovation and growth in a real estate industry that contributes approximately 10 percent to Thailand?s gross domestic product (GDP).
The commercial real estate market in Thailand has been experiencing steady recovery since the pandemic, driven by tenants in the tourism, technology and consumer products sectors. WTCA noted a rising focus on sustainability and responsible investment, and stressed the vital role ESG standards play in building a resilient and future-ready real estate market in Thailand.
"Integrating ESG practices is no longer optional, but essential for companies aiming to lead in the global market. By adopting ESG standards, Thai real estate businesses can strengthen their competitive advantages, attract more investments, and contribute significantly to the nation's economic prosperity,? said Scott Wang, WTCA Vice President, Asia Pacific. He pointed to a growing body of evidence and validation suggesting that ESG-compliant projects are not only more sustainable but also more profitable in the long term.
WTCA therefore encourages more real estate businesses in Thailand to adopt green building practices by implementing sustainable construction methods and technologies to reduce carbon footprints and enhance energy efficiency, which is paramount to fostering growth and innovation in Thailand?s real estate sector over the next five years.
Analysis by Knight Frank showed that older buildings with green certifications in Thailand, such as LEED and WELL, only lost 17,000 square meters of occupied space compared to a significant loss of 373,000 square meters in older buildings without green certification. The results were consistent for buildings completed after 2000, as newer buildings with green certification recorded an increase of 358,000 square meters in occupied space, while newer buildings without green certification gained only 43,000 square meters.
LEED is a widely-used green building rating system that provides a framework for healthy, highly efficient, and cost-saving green buildings, while WELL is a performance-based system for measuring, certifying, and monitoring features of the built environment that impact human health and well-being.
As a leading organization in global trade and investment, WTCA and its network of World Trade Center (WTC) businesses support principles of sustainability and good governance in daily operations, and helps business and industries by facilitating access to global best practices, ESG-focused training programs and events, and international networks for knowledge sharing and collaboration.
Aside from planting trees and conducting other sustainable activities by organizations such as WTC Mumbai during World Environment Day last June, WTC Bengaluru along with WTC Kochi and WTC Chennai participated in the global Earth Hour movement last March by dimming the lights in their facilities and reducing non-essential loads, reaffirming their dedication to environmental sustainability.
Many WTC facilities across the Asia Pacific region have also received LEED and WELL certifications, including a WELL CORE Platinum certification last December for China World Trade Center?s (CWTC) Tower A ? one of the tallest buildings in Beijing. WTC Taipei, the first intelligent device skyscraper in Taiwan, also received dual certifications for LEED and WELL in 2023.
?The implementation of ESG practices can significantly contribute to the Thai real estate sector's adaptability in the face of climate change and evolving regulatory landscapes, and will further solidify its position as a leader in sustainable development and innovation both regionally and globally,? said Mr. Wang.
Mr. Wang shared that the upcoming 2024 WTCA Asia Pacific Regional Meeting (APRM) to be held August 25 to 27, 2024 and hosted by WTC Haikou in Mainland China, will gather WTCA members across the Asia Pacific region to discuss trends such as industrial park development, share best practices in sustainability and other fields, discuss future plans, and network with one another.