167
Good Practice
Development
Global Compact International Yearbook 2013
priate and attainable housing with the
best quality-to-cost ratio. The standard
provides consumers with a high level
of transparency, which allows them
to make an informed decision. Besides
empowering the low-income families,
the certification positively influences
their living conditions, as safety, sus-
tainability, and accessibility to utilities
are part of the eligibility criteria. For
developers, the rating system serves
as a guideline to help create homes
that fit the needs of the target group.
Furthermore, the certification require-
ments lead to optimized processes and
reduced transaction costs.
To create appropriate quality housing,
the rating focuses on four areas: finance,
construction, energy and environment,
and community. The aim is to facilitate
the access to financing options; to ensure
safe, qualitative, and legal construction;
to consider resource-efficiency and the
carbon footprint of the new develop-
ment; and to meet the customers’ needs.
From different angles this view provides
a holistic evaluation of the lifecycle of a
building as well as the demands of its
occupants. A set of criteria for each of
the focus fields is formulated with the
help of subject experts. TÜV Rheinland
is relying on its 140 years of experience
in developing and conducting certifica-
tions, to establish, for example, the pillar
concerning energy and environment.
As project manager, TÜV Rheinland co-
ordinates the realization of the rating
process, trains certifiers, and is in charge
of awarding certifications to exemplary
residential buildings. The result of these
concerted efforts is a rating system that
covers the length of the housing devel-
opment project – from the first plan-
ning ideas to the time when the house
becomes a home.
The cooperation between TÜV Rheinland
and Ashoka is scheduled for a four-year
period, after which a profitable, afford-
able housing market will have been
created. According to market studies,
the affordable housing market is worth
$500 billion, as India faces a shortage of
an estimated 25 million homes. Besides
setting up a lucrative market for develop-
ers, interaction between developers and
the urban poor has been fostered and
has resulted in added value for all par-
ticipants. For low-income families, the
project will lead to increased dignity and
quality of life as well as to an improved
economic status.
In addition, the environment profits
from installed energy-efficient tech-
nology and resource-saving measures
considered in the realization of the pro-
ject. Ameliorating the lives of excluded
members of society as well as applying
innovative environmental solutions go
hand in hand with the UN Global Com-
pact Principles. By ensuring the initiative
is profitable, the sustainability of the
project can be guaranteed over many
years. Furthermore, the developed cer-
tification is easily transferable to other
cities within India as well as worldwide,
for example to Colombia, Brazil, and
Egypt, where comparable projects are
being implemented.