Sinar Mas Land is working on green housing

Environmentally friendly products have a big impact on producers and consumers. Consumers are increasingly looking for products from companies that apply environmental, social and good governance principles.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

KOMPAS/TOTOK WIJAYANTO (TOK)

Keeper is training owls at the Aviary Park. Aviary Park is part of the Bintaro Creative District with the concept of education and entertainment in Sector 3A Bintaro Jaya, Pondok Aren, South Tangerang, Thursday (22/6/2023). The Aviary Park on an area of ​​6 hectares will present animals such as birds, butterflies and anthropods.

JAKARTA, KOMPAS — property consumers increasingly want products that are environmentally friendly. Developers are required to apply the concept of sustainable development in the form of environmentally friendly housing and buildings, including through the selection of green materials and energy savings.

The implementation of orderly environmental, social, and governance (ESG) principles has become a global commitment in supporting sustainable development and minimizing the impact of climate change. International consulting firm PwC's release of the "Global Consumer Insights Pulse Survey" for the periods of June 2022, February 2023, and June 2023 shows that ESG principles have influenced consumer behavior.

The global survey conducted among 9,000 respondents from 25 countries indicates that consumers are willing to pay 5-10 percent more for environmentally friendly and sustainable products or services. 50 percent of respondents place their trust in companies that uphold ESG principles, while 40-50 percent of respondents choose products made from environmentally friendly and sustainable materials.

Also Read: Green Buildings Must Be Supported by Green Behavior

Sinar Mas Land's Chief Risk & Sustainability Officer M Reza Abdulmajid stated, the trend of green living has become part of the urban lifestyle. Office space clients, for example, are increasingly asking for buildings that implement energy efficiency. Developers are required to be ready if they do not want to lose the market.

KOMPAS/TOTOK WIJAYANTO

The development of Aviary Park to complement the Bintaro Creative District with an educational and entertainment concept in Sector 3A Bintaro Jaya, Pondok Aren, South Tangerang, took place on Thursday (22/6/2023). Aviary Park, located on 6 hectares of land, will feature various types of birds, butterflies, and arthropods.

"The implementation of sustainable development concepts encourages consumers to consider environmentally friendly homes and buildings for their investment and ownership," he said during the Media Talkshow entitled "The Implementation of ESG and its Impact on the Property Sector," on Wednesday (2/8/2023)."

Reza added that the efforts of Sinar Mas Land property developers to implement sustainable and environmentally friendly ecosystems in their property products have had a positive impact on reducing operational costs, saving electricity, as well as improving the health and productivity of residents. As an example, by 2022, the use of solar panels on Sinar Mas Land commercial buildings is capable of reducing carbon emissions by 13 percent.

The eco-friendly residential product initiative has also begun to be implemented this year for projects in Jabodetabek, namely using 20 percent of environmentally friendly building materials. For example, paint. Suppliers are also required to have a green label certificate with certification by a competent institution. From the cost aspect, it is hoped that there will be no additional production costs so that suppliers must be more efficient.

"We will give priority to suppliers using environmentally friendly materials and having green label certificates. This mechanism will continue in the future. However, even if there are other suppliers who do not yet have green-labeled products, we cannot force them," Reza continued.

KOMPAS/PRIYOMBODO

Heavy equipment at a property project in Karet Tengsin, Tanah Abang, Central Jakarta, stopped due to the Eid al-Fitr holiday, on Monday (24/4/2023). Several property and infrastructure projects in Jakarta and surrounding areas are still not operational as workers have left for their hometowns.

Another initiative is the implementation of new renewable energy (EBT) through the application of solar panels on commercial buildings, street lighting facilities, and the utilization of Renewable Energy Certificate (REC) services from PT Perusahaan Listrik Negara (Persero). Sustainable development for property products aims to reduce carbon emissions by up to 34 percent from electricity usage by 2034.

Also Read: Energy Crisis Can Be Reduced by Green Buildings

Director of PT Bumi Serpong Damai Tbk, Hermawan Wijaya, stated that the implementation of ESG principles has become a demand for the business world. Moreover, consumers, who are currently dominated by millennials, are very concerned about the environment. Companies need to pay attention to ESG to increase profitability even though the impact will only be felt in the medium and long term.

“Indeed, it cannot be felt directly or in the short term. However, in the medium long term (medium and long term) it will be felt," he said.

Partner of ESG Risk Assurance PwC Indonesia, Meita Laimanto, stated that the journey of an organization's ESG not only affects individuals, but also the company or organization. It is important for companies to transparently, accurately, and appropriately present their ESG journey and initiatives.

"As individuals, we aim to achieve sustainability due to our concern for the social and environmental welfare of our community. Companies or organizations need to ensure sustainable business practices," he stated.