Why ESG is Now a Critical Consideration for Corporate Occupiers
In the past, environmental, social and governance (ESG) factors were often considered the remit of listed entities or institutional investors. Today, ESG has become a front-line issue for corporate occupiers, particularly those seeking to attract talent, manage risk, and deliver long-term business value.
Talent Attraction and Retention. Modern workforces particularly Millennials and Gen Z expect more from their employers than just a salary. They want to work for organisations that walk the talk on sustainability, inclusivity and social responsibility.
The workplace is a physical reflection of company values.Companies that fail to integrate ESG into their real estate decisions may find themselves falling behind in the war for talent.
Risk Management and Regulatory Pressure. ESG is rapidly becoming a compliance issue. Governments and industry bodies are tightening regulations on energy use, carbon emissions, accessibility, and modern slavery reporting. For corporate occupiers, this means evaluating lease commitments through an ESG lens. Questions to ask include is your landlord disclosing NABERS or Green Star ratings, are emissions targets aligned with your own and what is the reputational risk of occupying a building that’s behind the sustainability curve? Occupiers that get ahead of these issues are better placed to manage long-term risk and demonstrate compliance to stakeholders and investors.
Investor and Board Expectations. Board members and investors are increasingly asking. Is our property footprint aligned with net zero goals? Are we creating inclusive and healthy workplaces? What is our exposure to ESG risk through long-term leases? These questions need to be factored into the site selection, workplace design, and lease negotiation stages. This makes ESG not just a compliance issue, but a governance one.
Cost Efficiency and Value Creation. Sustainability isn’t just about saving the planet it’s also about saving money. High-performing buildings typically offer: lower energy bills; reduced maintenance costs; longer asset lifecycles; and greater resilience to market shocks. On the social side, investing in healthier, more accessible, and more engaging workplaces is proven to boost productivity, reduce absenteeism, and enhance employee satisfaction. The ROI is tangible.
Procurement and Supply Chain Pressure. More companies are now assessing their suppliers and partners on ESG performance. For corporate occupiers, this flows down to their property decisions, landlords, and consultants. Increasingly, global and national procurement frameworks require office space to meet minimum ESG benchmarks. Occupiers that ignore this risk exclusion from major contracts and tender opportunities.
ESG is no longer the domain of marketing and sustainability teams it’s now core business strategy. For corporate occupiers, real estate is one of the most visible, measurable, and impactful levers in the ESG journey. Whether you're relocating, renewing, or rethinking your workplace, now is the time to ensure ESG is embedded in your office accommodation strategies.