The focus on sustainability, including environmental, social and governance (ESG) aspects, is gaining importance in the construction industry and real estate sector in Latin America. Although the ESG concept was practically unknown in the region in 2018, today it is beginning to be part of conferences, news and business priorities. When we began in 2017 to build the technological real estate ecosystem from our PropTech Latam platform, these issues were not on the priority of companies, but this has changed over time.

As for sustainability, it has had some relevance for a few years now, and its implementation is being deepened both in the construction and management of buildings and within companies. Several concrete actions are being carried out in the region:

1. Increased awareness and regulations: We are working to generate greater awareness about the environmental impact of the industry through education and information. However, the biggest challenge lies in the need for stricter regulations by governments, especially in terms of energy efficiency, waste management and the use of sustainable materials.

2. Certifications and standards: Sustainable building certification, such as LEED and EDGE, is gaining popularity in the region. Construction companies and real estate developers seek these certifications to demonstrate their commitment to sustainability. Furthermore, institutions such as the local Green Building Council promote these practices very efficiently.

3. Innovation in design and construction: New sustainable construction technologies and practices are being developed, such as the use of green materials and renewable energy systems. International companies such as Daikin, Honeywell, Siemens, Schneider, and many startups are offering solutions in this regard.

4. Sustainable investment and financing: Although incipient, there is growing interest from investors and lenders in projects that incorporate ESG criteria. This drives the development of financial instruments and sustainable investment products in the region, such as initiatives from the IDB and CAF, and some green mortgages from Santander Bank and HSBC, although it is still far from the level of investment and commitment seen in Europe or the US.

In summary, although challenges such as lack of awareness and additional costs associated with sustainable construction persist, the construction and real estate industry in Latin America is moving towards greater sustainability and resilience, which represents opportunities for growth and innovation in the sector.