How ESG principles are redefining real estate and saving biodiversity

When developers break ground for a new housing estate in Lagos or Abuja, the focus is often on location, cost, and return on investment. But beneath the concrete, a quiet battle is unfolding, one between short-term profit and long-term planetary survival.

The Nigerian real estate industry, once driven solely by profit margins, is now standing at the threshold of a major transformation. Environmental, Social, and Governance (ESG) principles are reshaping the rules of development, and biodiversity is finally finding its voice in the boardroom.

“We can’t afford to ignore the environment any longer,” says Hakeem Oguniran, a CEO, Eximia Realty Limited and respected figure in Nigeria’s real estate sector

Oguniran, who spoke at a recent forum on sustainability at the African ESG Conference & Exhibition in Lagos, noted that capital is no longer flowing based on risk and return.

Today, investors are scrutinizing ESG scores, demanding sustainable building practices, and rewarding projects that protect ecosystems, conserve energy, and reduce waste.

The hidden cost of development

For decades, urban expansion in Nigeria came at a heavy cost: wetlands drained, forests flattened, and species displaced. Projects moved fast, regulations lagged behind, and the environment paid the price. Biodiversity, though rarely accounted for in development costs, suffered quietly.

But the tide is turning.

Sunny Chukwu, a climate and infrastructure specialist, argued that real estate must now account for biodiversity loss at every stage. “It’s not enough to file an Environmental Impact Assessment,” he said. “We need to actively reduce harm, reuse materials, manage construction waste, protect surrounding ecosystems, and offset emissions through credible carbon schemes.”

According to Chukwu, ESG compliance isn’t just about meeting regulations, it’s about long-term impact. That includes preserving habitats, planting native trees, and ensuring that development coexists with nature, not eradicate it.

Green buildings, greener ecosystems

Nigeria is slowly embracing a new model: green buildings designed to be energy-efficient, low-waste, and biodiversity-friendly. The government’s push for a functional carbon framework is part of this shift. With the Climate Change Act 2021 and the National Climate Policy (2021–2030) in place, efforts are underway to activate a national carbon market and promote sustainable construction.

But challenges remain. As Oguniran pointed out, renewable energy adoption is still low, and waste management systems are fragmented.

Meanwhile, Timothy Nubi, a Professor at Faculty of Environmental Sciences, University of Lagos, lamented the lack of deconstruction policies, which leads to unnecessary demolition and waste.

“In Abuja, 22 houses were demolished recently. Reusable materials, tiles, bricks, and timber were simply discarded,” Nubi said. “We must design for minimal waste and partner with recyclers to reduce environmental degradation,” he advised.

This mindset shift from demolish-and-dump to recover-and-reuse can significantly reduce the carbon footprint of construction while also protecting soil health, water bodies, and green spaces vital to biodiversity.

Nature in the balance: The case for responsible development

Barrister Adebayo adds another layer to the argument: ESG isn’t just ethical, it’s economical. Projects built with local materials not only cut costs, but also reduce transport emissions and environmental disruption. “Real estate is a powerful platform for innovation in the circular economy,” he said, wondering, “how are we replacing oil-based inputs with sustainable alternatives?”

Incentives are part of the equation too. In other countries, developers who meet green criteria enjoy tax breaks or fast-track permits. Nigeria must adopt similar strategies to reward responsible building and create a culture where biodiversity is not an afterthought, but a priority.

Build, but build better

The challenge ahead is not whether Nigeria should develop it but how it can do so without destroying the ecological balance. ESG is not a checklist; it’s a mindset. And as developers compete for increasingly ESG-conscious capital, biodiversity must move from the margins to the center of real estate strategy.