Real estate’s ESG push needs resilience as a fourth pillar

THE last two-and-a-half years have been a stark reminder that stability is not to be taken for granted. The world has grappled with a global pandemic, waves of political tension with international consequences, and extreme weather conditions – including the second-hottest and coldest temperatures on record in Singapore alone. As a result, how we live, work and connect with one another and how we interact with the places and spaces around us have shifted, perhaps irrevocably.

As a protagonist in these unfolding crises, the commercial real estate industry has its own role to play. The industry is one of the largest contributors to global carbon emissions. While this is the reality, it’s not all bad news. Yes, it is a challenge to limit this contribution to carbon emissions – but looking at it positively, there is a real opportunity here for the industry to rally together to ensure that emissions are reduced to achieve national and global targets, as well as create spaces that are resilient for the future.

To help limit this increase, owners and operators are using ESG (environmental, social, and governance) as a framework to prioritise initiatives and measure progress. Recently, however, it has become apparent that ESG alone is not sufficient if we are to prepare our sector for potential future shocks and therefore the flexibility that these may demand of us. Enter resilience.