An integrated environmental sustainability model for the real estate industry

Abstract

The real estate sector is a significant contributor to global carbon emissions, waste production, and natural resource consumption. While the industry's environmental performance has been studied in other sectors in Ghana, there remains a gap in understanding the specific roles of key stakeholders—lenders, developers, investors, occupiers, and valuers—in achieving environmental sustainability. This study addresses this gap by developing an integrated environmental sustainability model for the Ghanaian real estate industry. A Sequential Explanatory mixed methods approach was employed, beginning with semi-structured interviews (n=20) to gather contextual insights, followed by a Modified Delphi process with 15 purposively selected experts to refine sustainability constructs. A structured questionnaire survey (n=275; response rate: 91.7%) was then conducted with stakeholders drawn from GREDA, ARC, IET, and GHIE. Survey data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to validate the proposed model. The validated model comprises five key constructs: energy efficiency, water conservation, waste management, green building materials, and air quality and pollution control. Reliability and validity were confirmed through high Composite Reliability scores (CR = 0.88 0.97), Average Variance Extracted (AVE = 0.61–0.82), and discriminant validity via HTMT ratios (<0.85). Model fit was acceptable (SRMR = 0.062), with predictive relevance confirmed (Q² = 0.31; R² = 0.42). Among the constructs, energy efficiency and stakeholder collaboration showed the strongest positive effects on sustainability outcomes, while green building materials had a weaker but still significant impact. No non-significant paths were observed, affirming the robustness of the model. This research expands existing knowledge and offers a validated, context-sensitive framework for promoting environmental sustainability in the real estate industry, particularly in Ghana and other developing economies.