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The quick take

A year and a half since our inaugural and with a shifting landscape, our 2025 edition shows that ESG remains central to both investment and operational strategies. Driven by the prospect of enhanced returns, as well as net-zero requirements, ESG due diligence is embedded in investment decisions and informing action

Key Takeaways

63%
state that financial performance remains a core ESG driver
Recognising the role of ESG in creating and preserving value, enhanced returns are cited by 63% of investors as a driver for ESG strategy implementation 鈥� rising to 77% by AUM. Finance will continue to play a role, with 41% recognising the ability to secure funding as a motivation for ESG due diligence and approaches (see page 4 for analysis), which may grow as the sustainable finance sector matures.

76%
focus on retrofit as the dominant ESG property strategy to drive returns
Retrofitting leads as the primary ESG-related investment approach, with 76% of respondents prioritising upgrading existing assets 鈥� rising to 80% among APAC investors. In tandem, 62%, are actively seeking poor-ESG assets to improve. Financial incentives drive much of this, with around two-thirds targeting higher rental values and just over 70% aiming for higher exit values, rising to nearly three-quarters and over 80% respectively for value-add investors (see page 6).

29%
prioritise renewables, but on-site adoption remains low
Despite growing interest, with 29% requiring some on-site provision for acquisition, renewable energy adoption lags, with 59% of investors reporting that less than 10% of assets using renewable power. Among those with provisions, 26% include renewables in rent, and 26% use PPAs. In Europe, new buildings must be solar-ready from 2027, and major refurbishments from 2028, setting a new baseline. Bridging the gap between ambition and action can unlock cost efficiencies, increase resilience, and meet evolving occupier and regulatory demands (see page 11).

69%
driven by net-zero commitments, as stakeholder expectations set the ESG agenda
Internal net-zero commitments continue to drive ESG investment, with 69% of respondents citing them as key motivators. While disclosures play a role in transparency, ESG policies and commitments shape procurement and investor expectations in response to growing demand for sustainable practices, making net- zero policies essential to stay competitive, with real estate playing a role in delivering these, see page 5.

77%
assess capex requirements pre-acquisition as data-driven ESG due diligence grows
More than three-quarters of investors assess minimum capex requirements before acquisition, rising to 89% for institutional funds and 94% for those with mainland European assets. ESG due diligence is increasingly data-driven, with 55% using CRREM to assess 鈥榮tranding dates鈥�, liquidity risks, and 48% requiring whole-building energy data. Understanding asset complexities and planning contingencies is key to avoid underestimating financial impacts and managing risk 鈥� key considerations explored further on page 9.

48%
measure social impact, but frameworks remain inconsistent
While 76% of investors consider social value in decision-making, only 48% have a framework to measure and guide their efforts. Despite growing awareness, just 33% plan to introduce a social impact framework in the next three years, while half remain unsure. As explored on page 12, challenges stem from the lack of standardisation and the difficulty of quantifying social impact financially. Aligning strategies and standardising measurement could help future-proof assets as social value gains traction.