32838_WRI_cov.indd

The report identifies energy insecurity, water scarcity, and climate change as significant financial risks for commercial buildings in South and Southeast Asia. It details how these trends increase utility costs, accelerate building depreciation, and cause construction delays. To mitigate these risks, the report proposes a risk assessment framework based on building location (exposure) and design (vulnerability). It further argues that green building investments can reduce these risks and provide net positive financial returns, often within three to five years, particularly in the Indian market.

• Energy insecurity, water scarcity, and climate change create interrelated financial risks for commercial real estate in South and Southeast Asia, affecting both project-level returns and the valuation of real estate companies.
• Utility operating costs are highly sensitive to resource scarcity; for a typical 300,000 square foot commercial building in Mumbai, a 1 percent increase in electricity costs is estimated to increase annual operating costs by approximately Rs. 2.8 million (US$60,000).
• Climate change increases nonutility operating costs through accelerated building depreciation and higher insurance premiums. In Jakarta, building insurance premiums increased by 25 percent in 2008 following the 2007 floods.
• Environmental trends increase construction costs via project and permitting delays and higher material prices. In Bangalore, government limits on riverbed sand extraction to prevent groundwater depletion led to a rapid price increase for sand in 2008.
• The report establishes a risk assessment framework where financial risk is determined by a building's location (exposure to local weather, power/water disruptions) and its design (vulnerability based on materials and systems).
• Green building investments can mitigate operational risks and achieve net positive financial returns, with payback periods in India typically ranging from three to five years for recent projects.
• The Indian green building market is the largest in the region, growing from 20,000 square feet in 2003 to 30 million square feet by 2007, driven largely by corporate branding and demand from multinational companies.
• Green buildings reduce the financial impact of energy price volatility; for a typical Indian commercial building, a 10 percent increase in power costs increases total operating costs by 1 percent in a normal building, but only 0.50 to 0.85 percent in a green building.

APA

World Resources Institute (2010). 32838_WRI_cov.indd. https://files.wri.org/d8/s3fs-public/pdf/surveying_risk_building_opportunity_asia.pdf

Chicago

World Resources Institute. 32838_WRI_cov.indd. 2010. https://files.wri.org/d8/s3fs-public/pdf/surveying_risk_building_opportunity_asia.pdf.

Wikipedia

{{cite report |author=World Resources Institute |title=32838_WRI_cov.indd |date=2010 |url=https://files.wri.org/d8/s3fs-public/pdf/surveying_risk_building_opportunity_asia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute201032838wricovindd, author = {{World Resources Institute}}, title = {{32838\_WRI\_cov.indd}}, institution = {World Resources Institute}, year = {2010}, url = {https://files.wri.org/d8/s3fs-public/pdf/surveying_risk_building_opportunity_asia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }