The rise of ESG in real estate: How digitising buildings can decarbonise the built environment

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 to business practices. 

The real estate industry, in particular, has been trying to incorporate a more holistic approach around environmental, social and governance (ESG). The impacts of climate change have already influenced real estate markets at a global scale, with 65 per cent of investors expressing their motive for considering ESG issues to help manage investment risks, as 35 per cent of real estate investment trusts’ 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 per cent or more.