Greenwashing or Genuine Change? The Truth Behind LEED and IGBC Certifications in Indian Real Estate

The Indian real estate industry is experiencing an unprecedented shift, with sustainability emerging as a critical factor for developers, investors, and consumers alike. As urbanization accelerates, the demand for eco-friendly buildings has skyrocketed, giving rise to green building certifications such as LEED (Leadership in Energy and Environmental Design) and IGBC (Indian Green Building Council). These certifications promise energy-efficient, sustainable, and environmentally responsible developments, making them highly attractive for developers eager to market their projects as environmentally conscious.

But a critical question remains: Are these certifications driving real environmental change, or is the real estate sector falling victim to greenwashing? Greenwashing is the practice of presenting a project as environmentally friendly when, in fact, it is not, and it is becoming increasingly prevalent in the real estate industry. In this article, we examine whether LEED and IGBC certifications are genuinely fostering sustainable practices or simply serving as marketing tools that mask deeper environmental shortcomings.

The Allure of Green Certifications

LEED and IGBC certifications are widely viewed as the pinnacle of green building standards, each focusing on a range of environmental metrics such as energy efficiency, water conservation, waste reduction, and indoor air quality. Developers often pursue these certifications as they offer clear competitive advantages, including tax incentives, the ability to market projects as sustainable, and access to eco-conscious buyers and tenants. These certifications can indeed boost a project's appeal, especially as the demand for environmentally responsible buildings continues to grow.

However, the allure of these certifications can sometimes overshadow the deeper purpose they are meant to serve—genuine sustainability. For many developers, the certification process has become a checklist to tick off in order to boost a building’s marketability, rather than an indicator of a long-term commitment to eco-friendly practices. As the real estate sector increasingly focuses on meeting green certification standards, there is a risk that the process becomes more about the optics and less about the impact.

Greenwashing: A Growing Concern

While many projects proudly display their LEED and IGBC certifications, the reality behind the scenes often falls short of the true ideals of sustainability. Greenwashing can be defined as the act of conveying a false impression of environmental responsibility, often through superficial measures that do not result in significant long-term benefits. This is where the certification system can falter. Some developers may focus on easily achievable points to gain certification without committing to deeper, more meaningful changes.

For example, a building might be awarded a certification for energy-efficient lighting or the use of low-emission materials. However, if the overall building design lacks proper insulation, is energy-inefficient, or uses unsustainable construction methods, the long-term impact may be minimal. The use of quick fixes or aesthetic changes for certification purposes, like planting trees or installing water-efficient fixtures, may fail to address the broader environmental impact of the building’s operation and lifecycle.

Moreover, once the certification is awarded and the building is sold or rented, the accountability for maintaining these "green" standards often vanishes. Many developers fail to follow up with any post-handover monitoring or audits, meaning that the building’s true environmental performance may be far less impressive than advertised. This lack of post-handover accountability undermines the entire premise of certification and allows developers to continue claiming sustainable practices without being held to any long-term standard.

What Happens After the Certification?

After a building is certified, the real test of its sustainability is its operational performance. While a project may receive high marks on paper, the reality of maintaining an eco-friendly environment often proves challenging. For instance, energy-efficient systems and waste reduction measures might be abandoned after the handover, or improper maintenance could result in a building becoming less efficient over time.

Unfortunately, the certification bodies behind LEED and IGBC offer no regular post-handover audits to verify whether the building continues to meet the standards it was originally awarded for. Developers may be incentivized to meet the minimum requirements to secure certification, but once they have obtained it, there are no formal checks to ensure that these standards are maintained in the long term.

Additionally, there is little consequence for developers if a building no longer meets sustainability standards after certification. Certification revocation is rare, with no prominent cases of LEED or IGBC certifications being recalled or cancelled, even when buildings fail to uphold their "green" promises. This lack of oversight casts doubt on the credibility of these certifications and raises questions about their role in driving genuine environmental change.

Genuine Change or Just a Trend?

Despite the growing concern over greenwashing, it is important to recognize that there are developers who are genuinely integrating sustainable practices into their projects—not as a means to earn a certification, but as a long-term investment in both the environment and the community. These developers focus on creating self-sustaining ecosystems that prioritize renewable energy, water conservation, waste management, and environmentally friendly materials from the outset, rather than relying on certifications as the sole measure of success.

However, for most of the real estate industry, sustainability often comes second to profit margins and marketing strategies. The emphasis on earning certifications can create a false sense of accomplishment, with many developers focused on achieving a green label without committing to meaningful, impactful environmental practices. This is where the real shift is needed—toward a deeper, more genuine integration of sustainability into every aspect of a building’s design, construction, and operation.

The Call for Change

The real estate industry must evolve beyond certifications as a mere marketing tool. While LEED and IGBC certifications have made valuable contributions by raising awareness of green building standards, they must undergo significant reforms to align with long-term sustainability. Here’s what needs to happen:

1. Regulatory Oversight: To ensure that green buildings truly live up to their promises, certification bodies must implement post-handover audits and establish clear guidelines for maintaining sustainability standards throughout the building's lifecycle.
2. Accountability: Developers should be held accountable for the long-term environmental performance of their buildings. This could include penalties for failure to maintain green standards or, in extreme cases, the revocation of certifications if sustainability claims are not met.
3. Beyond Certifications: Developers should take the lead in embedding sustainability into their projects, not just to earn a green certification but to create buildings that will have a genuine positive impact on the environment. This requires investment in renewable technologies, sustainable materials, and efficient construction practices from the start.

Conclusion: Time for True Green Leadership

The Indian real estate market stands at a crossroads. LEED and IGBC certifications can no longer serve as mere marketing gimmicks; they must evolve to ensure that they represent real, lasting environmental responsibility. Developers must focus on sustainability as a core principle, not as a box to check off. True green leadership is about creating buildings that deliver long-term environmental benefits, foster a sustainable future, and lead by example.

Green is not just a label—it is a responsibility. The time has come for the industry to embrace sustainable practices beyond the surface level and make lasting, meaningful contributions to the environment. Only then can we truly say that green is the new gold.