Whether it's technology innovation or business model innovation, the ultimate goal is to disrupt old ways of doing business in order to improve industry "pain points" and social issues. Most people are concerned about how innovation can be used to improve efficiency, reduce carbon emissions, and address strategic issues such as fair trade. With ESG becoming a growing concern, many companies are investing resources in ESG to meet the qualifying standards.
The real estate and construction industry is the largest industry chain in the world, also accounting for 60% of the world's carbon emissions, with Asia Pacific regions such as Tokyo, Seoul and Melbourne accounting for the highest percentage. Therefore, if regions wish to develop sustainable and net-zero carbon emissions goals, they should start by focusing on the real estate and construction-related industries. PropTech is starting to offer a variety of innovative products and services aligning with sustainability and carbon reduction concept, and ConTech is a perfect fit for the ESG goals.
Carbon reduction should be start from the root, starting from the construction project, focusing on energy saving and sustainability, and then using PropTech solutions for property management after the completion of the property to achieve energy reduction, so that the buildings in the city become sustainable and carbon reduction can be achieved more comprehensively and effectively. In addition, building automation, data tracking and analysis, human resources and building process management, and the manufacture adoption of environmentally friendly construction materials and methods will enable the construction industry to effectively reduce carbon emissions and improve efficiency.
The rapid urbanization in Southeast Asia has led to the creation of many PropTech and ConTech startups. For example, Indonesia's construction industry accounts for the majority of GDP, but less than 1% of building materials suppliers uses technology to conduct commercial transactions, making the industry's operations highly inefficient. However, ConTech startup Juragan Material has captured this pain point, and digitalized supply chain operation, hence increased the transparency and efficiency of stock inventory, logistic tracking, construction material quality and price, and transaction process.
This has resulted in a significant reduction in expenses and waste, thus enhancing the competitiveness of the company and the industry and increased the sustainability of the construction industry. The company's recent success in raising $4 million from Go-Ventures shows that the concept is well supported by investors.
At a time when sustainability is a global priority and demand for ConTech is increasing, this innovative industry deserves the attention and boldness of more investors and real estate and construction companies.