By DEB NOLLER | The Edge Singapore | July 22, 2022

Sustainability has been a focal point of businesses for more than a decade, but often companies consider it as a nice-to-have measure and for years it did not foster any major change in business practices.

The real estate industry in particular has been trying to incorporate a more holistic approach to environmental, social and governance (ESG). The impacts of climate change have already influenced real estate markets on a global scale, with 65% of investors expressing their motive for considering ESG issues to help manage investment risks, as 35% of Real Estate Investment Trusts’ (REITs) properties are exposed to climate hazards.

In fact, the World Green Building Trends report has shown that about two-thirds of owners and developers believe that green building will increase a new building’s asset value by 6% or more.

Across the board, for developers and investors, this trend creates a clear business case, there is heightened financial opportunity from the asset value of sustainable buildings. Committing to action on sustainability across all built assets makes financial sense.

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