The pursuit of sustainability in real estate investments is intricately linked with the imperative of delivering competitive returns for investors. Traditionally, there has been a perception that sustainability initiatives come at the expense of financial performance. This dichotomy, however, is increasingly being challenged as investors recognise that sustainable practices enhance asset resilience, attract premium buyers and tenants, and mitigate operational risks over an asset’s lifecycle. Investors are increasingly leveraging comprehensive ESG frameworks to assess and optimise the sustainability credentials of their portfolios. Achieving this balance requires strategic alignment across all stages of real estate investment — from initial due diligence to ongoing property management.
Regulatory frameworks such as the Sustainable Finance Disclosure Regulation (SFDR) in the European Union, and the incoming Sustainability Disclosure Requirements (SDR) in the United Kingdom,