Sundaram Alternates has published its ESG and Impact Report 2024–25 during Day 2 of the IVCA GreenReturns Summit in New Delhi, offering a detailed assessment of how its private credit strategy is influencing India’s transition to sustainable, resilient and well-governed real estate development. The report showcases the firm’s growing emphasis on climate-aligned lending, responsible investment practices and the broader contribution of private capital to India’s evolving sustainability agenda at a time of rising climate risks and rapid urban expansion. Karthik Athreya, Managing Director at Sundaram Alternates, underscored the strategic importance of the report’s findings, noting that private credit is increasingly positioned as a lever for positive environmental and social outcomes. He added that disciplined lending, when paired with robust ESG frameworks, can advance India’s shift toward a more inclusive, environmentally secure and climate-adaptive economy.

How Private Credit is Shaping the Built Environment?

A major focus of the report is the environmental footprint of Sundaram Alternates’ real estate private credit portfolio. The firm highlights that its financing has supported close to twenty million square feet of green-built spaces, contributing to measurable reductions in embodied and operational carbon. According to the findings, the projects financed by the firm account for approximately eight hundred and thirty seven thousand tonnes of embodied carbon savings and about two hundred and sixty eight thousand tonnes of operational carbon reductions over their lifetime. These developments have been designed with climate resilience in mind, integrating features such as heat-resistant materials, water-efficient systems and waste recovery processes. Lifetime energy savings across the portfolio are estimated at nearly five hundred and seventy nine thousand megawatt hours, alongside close to twenty nine million cubic metres of water savings. The report notes that a significant share of homes financed are aligned with global green building standards, reinforcing the trend toward environmentally conscious residential development in India’s major cities.

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Social Outcomes and Community-Level Benefits

The report places equal weight on the social impact of the firm’s investments. Sundaram Alternates states that its portfolio has enabled the creation of more than fifty thousand direct and indirect jobs, while positively affecting about 1.32 million individuals. This includes over one thousand women whose livelihoods or welfare have been supported through various project pathways. More than half of all residential units financed include universal accessibility features, reflecting the firm’s focus on inclusive design. The report highlights continued attention to worker well-being, covering fair wages, site safety, training and skill development. Sundaram Alternates emphasises that these outcomes stem from a deliberate approach that views social commitments as essential components of long-term project viability.

Governance Frameworks That Anchor Sustainable Lending

A major section of the report details the governance structures underpinning the firm’s ESG integration. All projects undergo rigorous ESG due diligence, supported by ongoing monitoring throughout construction and operation. The firm reports that roughly twenty five thousand site workers have received training in safety and environmental management, contributing to stronger compliance across the portfolio. Oversight is managed through a multi-layer governance structure that includes an ESG Steering Committee, external specialists, fund managers and the board. The report reiterates a strict zero tolerance policy toward labour rights violations and emphasises the importance of transparent project-level reporting to maintain accountability and build investor confidence.

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A Growing Role for Private Credit in India’s Sustainability Transition

The report positions private credit as an increasingly important force in reshaping India’s climate responsive real estate sector. With the built environment accounting for a substantial share of global emissions and natural resource consumption, the firm argues that capital providers must play a proactive role in accelerating low carbon construction. Sundaram Alternates notes that its sustainability-led lending approach has supported stronger tenant and homebuyer demand, improved operating efficiencies for developers and reduced exposure to regulatory and climate risks. It adds that these benefits extend beyond project sites, strengthening supply chains, supporting local employment and increasing the flow of capital to markets that have traditionally been underserved.

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