Sometimes, insights are too valuable to keep tucked away in a newsletter. That’s why we’re sharing a shortened version of our latest ESG Alpha newsletter here on the blog—so even more of our friends can stay informed on what’s shaping sustainability and compliance in 2025.
To get a clearer picture of where the market is heading, especially when it comes to sustainability and ESG strategy, we launched our first Commercial Real Estate Market Survey at the end of 2024. We asked clients, colleagues, and partners to weigh in on what worked, what didn’t, and where their focus lies heading into the new year.
Here are five top insights from the responses—each one pointing to where ESG is headed next.
1. ESG Strategies Are Driving Real Business Value
If we’ve learned anything from the shifting market, it’s this: ESG isn’t going anywhere. 78% of survey respondents said they met or exceeded their ESG business goals in 2024. Even more telling: 89% plan to maintain or accelerate their momentum.
Firms are still seeing tangible returns from ESG initiatives, whether through improved asset performance, reduced risk, or enhanced investor confidence.
2. ENERGY STAR and GRESB Remain Core Tools
ENERGY STAR and GRESB continue to anchor sustainability efforts across the real estate sector. Respondents cited both as essential for benchmarking, reporting, and disclosure, especially as stakeholder expectations and policy requirements rise.
Whether for investor communications, internal KPIs, or regulatory filings, these tools are proving durable and scalable.
3. Risk Management = Climate + Compliance
Risk discussions in boardrooms and investment committees are increasingly dominated by two things:
- Climate risk (learn how to handle this in our climate risk puzzle series)
- Compliance with Building Performance Standards (BPS)
Insurance costs, flood risk, extreme weather, and state-by-state emissions mandates were frequently mentioned. CRE leaders are looking for clarity and cost-effective ways to meet the moment.
4. Execution Challenges Are Reshaping Priorities
One of the clearest takeaways? ESG teams want focus, scale, and execution. Many respondents expressed frustration with the “mile-wide, inch-deep” approach that can sometimes characterize sustainability initiatives.
Expect to see a shift toward practical, portfolio-wide strategies that balance ambition with feasibility in the coming years.
5. Data and Engagement = Untapped Potential
Finally, the two most-cited ESG opportunities for 2025 were:
- Better data management – Real estate pros still struggle with fragmented, unreliable utility and building performance data.
- Tenant and resident engagement – Everyone wants to do more here, but time and resources are limited.
We’re seeing more clients explore smart metering, centralized utility data systems, and automated reporting—all of which support better decision-making and tenant experience.
Want to Dive Deeper?
We’re grateful to everyone who participated and look forward to making this an annual pulse check on the CRE market. If you’d like to discuss the results or benchmark your portfolio, we’d love to talk.
About ESG Alpha
ESG Alpha is a monthly update from the ESG consulting team at Conservice, highlighting how energy, sustainability, and ESG are transforming real estate investment.
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