What underpins the demand for green offices in Ha Noi?

The importance of ESG 

According to the United Nations Environment Program, by 2022, nearly 40% of global carbon dioxide emissions come from the real estate sector. Approximately 70% are produced by building operations, while the remaining 30% are attributed to construction. To combat this impact, real estate across the globe is transforming, adjusting and greening construction and management materials, processes, and strategies.

At the 26th United Nations Climate Change Conference (COP26), nations from around the globe committed to net zero emissions by 2050; 14% of Asia-Pacific countries made this commitment, including Viet Nam. 

Viet Nam must balance its strong industrial and manufacturing growth with environmental protection. This is a necessity; according to the World Bank’s Country Climate and Development Report in 2022, the impact of climate change in Viet Nam could cost Viet Nam as much as US$ 523 billion or 14.5% GDP by 2050.

Business ESG compliance 

Businesses are having to work to align with increasing legal, consumer, and recruitment demand for ESG. In Viet Nam, listed companies must now include ESG information in annual reports or submit sustainability reports. According to Circular No. 96/2020/TT-BTC, issued by the Ministry of Finance, ESG reporting for public and listed companies in Viet Nam should include greenhouse gas emissions, resource management, energy, and water consumption, environmental compliance, employee-related policies, local community responsibilities, and green capital market activities. These reporting requirements will also support increased trust among relevant stakeholders such as clients and business partners.

The State Securities Commission of Viet Nam has created a handbook on green, social, and  sustainable bonds and guidelines for greenhouse gas (GHG) reporting in collaboration with the IFC (International Finance Corporation). 

There has been a sharp increase in the expectations of consumers, shareholders, investors, employees, and stakeholders about ESG performance. PwC’s ESG trends report in 2023 highlights that sustainability and ethical criteria influence 60% of purchasing, increasing by 10% compared to the same period in 2022.

Businesses and organisations can use their real estate to reflect their commitments to legal and stakeholder demand for sustainability. This is driving demand for green offices.

Factors driving the demand for green offices in Ha Noi  

Despite rising demand for green offices after the pandemic, supply is still limited. As highlighted in Savills Q3/2023 Quarterly Market Report, Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Ha Noi stated: "More than 85% of Viet Nam's fastest-growing companies have ESG commitments, which is driving a surge in demand for offices that meet green standards. However, Ha Noi currently only has four office projects with green certifications, including Capital Place (LEED Gold), TechnoPark (LEED Platinum), and Taisei Square Hanoi (LEED).” 

The Green Building Council (USGBC), a leader in the green building field, created LEED (Leadership in Energy and Environmental Design) awards in the 90s to implement an open and balanced green rating system. This is one of the most widely used green building rating systems in the world and is a symbol of sustainability achievement and leadership.

Green offices support reduced resource consumption, which can result in reduced operational costs but also improved long-term operational efficiency given the use of energy-efficient systems, sustainable materials, and waste reduction measures. According to the USGBC making buildings greener can cut operational costs by as much as 10% within just one year.  

Green offices also deliver healthier working environments, which speaks to employee demand. Often, green properties like TechnoPark maximise natural light, ensuring light, calm, and vibrant spaces that positively influence mood and productivity. According to The Intergenerational Workplace Report by Savills Workplace Practice Group, approximately 80% of respondents value a company that commits to work-life balance for their employees; therefore, a green office with modern and green facilities and features helps businesses retain employees and appeal to new talents.     

Green office stock in Ha Noi remains limited, and TechnoPark Tower is the first and only office building with a LEED Platinum certification in Ha Noi, the highest ranking of LEED certification. 

Chu Thanh Huong from Vinhomes Office Leasing affirmed, “TechnoPark meets strict LEED criteria from design to operation with its innovative design, sustainable practices, location, transportation systems, water efficiency, energy use, material use and resources, and indoor environmental quality. The property delivers a 17.4% saving in annual energy consumption compared to the standard level.” At TechnoPark Tower, more than 75% of the workspaces are designed to receive natural light and 25% of the building area is dedicated to outdoor gardens, which ensures a fresh atmosphere and a healthy working environment.

Given rising demand, developers are responding. In Ha Noi, upcoming developments are set to deliver an additional 68,499 m2 of green office space by the end of 2025. Increasingly, occupiers cannot ignore the importance of ESG in their business longevity, and using real estate as a tool to achieve green goals delivers long-term benefits to their business performance.

Special Rental Agreement at TechnoPark Tower Q4 2023

Lease incentive programs and attractive amenities

TechnoPark Tower – Leased and Managed by Vinhomes Office Leasing

Contact for enquiries:

- Mobile: 0812.029.891

- Email: v.inquiries.officeleasing@vinhomes.vn

- Website:https://technopark.vinhomes.vn