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CBRE's latest survey, conducted in collaboration with the USGBC North Asia Office, highlights the evolving role of Chief Sustainability Officers (CSOs) in Asia Pacific's real estate sector. Nearly 90% of landlords and investors now maintain dedicated sustainability functions. CSOs are being tasked with delivering measurable returns while aligning green initiatives with financial goals. Over 60% face increased tenant demands for sustainability, and decarbonisation has become vital to retain occupancy. Despite this, most asset owners are in the early stages of climate risk assessment, and resource expansion remains conservative amidst economic uncertainty.
The position of Chief Sustainability Officer (CSO) is witnessing a phase of maturity within Asia Pacific's real estate sector, as reported in a new survey by CBRE, conducted in collaboration with the U.S. Green Building Council (USGBC) North Asia Office. Despite ongoing market volatility and regulatory complexity, real estate firms are increasingly relying on their CSOs to drive value through operational efficiencies, future-proofing assets, and managing risk, while deploying targeted strategies to meet environmental commitments. Advertisement
The survey, which focused on real estate companies and investment funds, found that sustainability has become a formalised function, with approximately 90% of respondents confirming the existence of dedicated teams. This underscores a growing trend where sustainability is no longer peripheral but embedded into core business decision-making.
There is a noticeable emphasis on financial return as a priority for sustainability spending. Several CSOs noted the necessity of proving clear Return on Investment (ROI) to secure project approval. This reflects a broader shift where sustainability efforts are increasingly expected to align with revenue goals, not just regulatory compliance or brand positioning.
Over 60% of CSOs representing asset owners revealed they are under growing pressure from tenants to enhance sustainability standards in regular operations. The drive to decarbonise portfolios and improve environmental performance has become central to maintaining competitiveness and achieving high occupancy rates in premium properties.
CBRE's Head of Research for Asia Pacific, Ada Choi, observed that the sector remains determined to meet net zero targets despite ongoing economic uncertainty. She explained that CSOs are now required to strike a balance between delivering environmental impact and ensuring business value, with initiatives such as improved energy efficiency and renewable energy integration gaining traction. Green financing mechanisms are supporting these efforts.
However, while climate risk is being acknowledged, the majority of asset owners are still early in the process of developing actionable climate strategies. Few have embedded climate-related insights into their asset management or investment frameworks.
Jing Wang, Vice President of the USGBC North Asia Office, remarked that navigating towards net zero demands both boldness and realism. She stressed the importance of aligning stakeholder efforts through standardised frameworks like LEED, enhancing data transparency with tenants, and integrating technology to overcome fragmentation and regulatory variation across markets.
A key insight from the report highlights a growing acceptance of green building certification as the norm rather than a premium offering. Only 44% of respondents currently have 80% or more of their portfolios green certified, but 68% anticipate reaching that level by 2028. In advanced markets like Singapore and Australia, the abundance of certified buildings has minimised green rental premiums, indicating that asset owners are now driven more by maintaining relevance and attracting stable tenants than by rent escalation.
Meanwhile, over 60% of companies surveyed reported no plans to expand their sustainability teams, and around one-third intend to hold sustainability budgets steady. This cautious stance is shaped by macroeconomic pressures, reinforcing a more conservative approach to resource deployment.
To fund these transformations, most asset owners have been leveraging green financial instruments such as sustainability-linked loans (77%) and green loans (67%). These have primarily been deployed for energy efficiency upgrades, construction projects, acquisition of certified green buildings, and scaling renewable energy deployment.
As tenant expectations rise and green certification becomes standard, CSOs are no longer operating on the margins of strategy but at its very core. With financial justification becoming a prerequisite for sustainability investments, and resource planning remaining restrained, the real test lies in balancing ambition with execution. The path ahead calls for smarter integration of climate frameworks, collaborative innovation, and continued financial ingenuity to reshape portfolios in line with both business and planetary priorities.
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