Asia Pacific Chief Sustainability Officers Focused on Aligning Sustainability and Business Goals: CBRE Survey

CBRE’s latest survey found that the role of Chief Sustainability Officer (CSO) in real estate is maturing across Asia Pacific. Amid complex policies and economic uncertainty, real estate companies are looking to their CSOs to deliver value by driving efficiencies, future-proofing assets, and mitigating risks, while implementing high-impact initiatives to achieve sustainability goals.   

In collaboration with the U.S. Green Building Council (USGBC) North Asia Office, CBRE conducted a survey among real estate companies and investment funds in Asia Pacific to understand recent progress and major obstacles to achieving net zero, shifting sustainability priorities, and current strategies on climate risk and biodiversity.

The survey found that the CSO position in Asia Pacific is well-established, with nearly 90 percent of surveyed landlords and investors reporting that they have a dedicated sustainability function, signaling integration of sustainability into core business operations.

As activities driving financial return are given the highest priority for sustainability investment, CSOs are expected to show how they are creating value for the business. Some CSOs indicated the need to demonstrate Return On Investment (ROI) to get project approval, highlighting the growing demand for alignment between financial targets and sustainability requirements.

Over 60 percent of CSOs from surveyed asset owners reported feeling increasing pressure from tenants to meet higher sustainability standards for their day-to-day operations. Accelerating their decarbonization efforts and enhancing the sustainability performance of their real estate portfolios has become imperative to remaining competitive and maintaining high occupancy.            

“Our findings reveal an Asia Pacific real estate sector determined to achieve its net zero targets even as market uncertainty persists,” said Ada Choi, Head of Research, Asia Pacific, for CBRE. “CSOs are increasingly tasked with delivering both environmental and economic value, balancing increasing risk and tenant demands with financial realities. The focus on energy efficiency and the growing integration of renewable energy sources, supported by innovative green finance, are critical steps.”

While climate risk is moving up the sustainability agenda, the survey results show that most asset owners remain in the early stages of climate risk assessment, as only a few of them have translated these insights into actionable strategies within their asset management or investment decision-making frameworks.

“The path to net zero is complex, requiring both ambition and pragmatism,” stated Jing Wang, Vice President of USGBC North Asia. “Amid a rapidly evolving global sustainability landscape, it is crucial for asset owners to navigate diverse policies and regulations, collaborate with tenants on data transparency, and harness technology to drive progress. Frameworks like LEED provide a common language and trusted roadmap to help stakeholders align efforts and accelerate their net zero journey.”

Other key findings include:

• Green Building Certification – from Premium to Standard: While only 44 percent of asset owners currently have at least 80 percent of their real estate portfolios green certified, this is projected to rise significantly, with over two-thirds (68 percent) expecting to reach this level by 2028. As green building certification becomes the market norm, tenants’ willingness to pay a premium diminishes, for example, mature markets like Australia and Singapore, with an abundance of green-certified properties; report a minimal green rental premium. Asset owners’ primary motivation for adopting green building practices is shifting from the pursuit of higher rents to maintaining asset relevance and securing superior occupancy rates with quality tenants.

• More Conservative Resources Planning: Over 60 percent of respondents have no plans to expand their sustainability teams, and one-third anticipates maintaining current sustainability budgets. Economic volatility is likely to further constrain resources, prompting continued caution.

• Energy Efficiency & Renewables Prioritized: Improving energy efficiency remains the primary strategy for achieving net zero among asset owners, driven by its dual benefits of emissions reduction and cost savings. Notably, grid connection to renewable energy has surged into the top three strategies this year. 

• Green Finance as an Enabler: Asset owners often obtain green finance by leveraging sustainability-linked loans (77 percent) and green loans (67 percent), using the funding for energy efficiency projects, capital-heavy construction, acquisition of green-certified buildings, and scale up of renewable energy projects.