Future-proof or fall behind: ESG executive briefing

Executive briefing鉅€|鉅€7 minute read鉅€|鉅€July 2025

Future-proof or fall behind:
the new imperative for built asset leaders

In an era defined by climate volatility, regulatory changes and evolving investor expectations, effectively managing interconnected environmental, social, and financial risks isn鈥檛 optional – it鈥檚 a strategic imperative. For leaders responsible for built assets, this is not about ideology or optics. It鈥檚 about protecting value, unlocking opportunity and staying ahead of disruption.

海角视频’s latest global research reveals that organisations with a mature, integrated approach to environmental and social risk management are already seeing measurable financial benefits. Nearly 80% of senior executives surveyed report a positive impact on financial performance, some exceeding 20%. The message is clear: those who act decisively are already ahead.

Strategic risk, strategic opportunity

The built environment is undergoing rapid disruption. From climate-related hazards to shifting tenant expectations and tightening regulations, the risks are real – and rising. But so are the opportunities.

Leaders who embed resilience into their asset strategies -through proactive planning, adaptive design, and operational efficiency – are not only mitigating risk but also enhancing asset value, investor confidence and long-term competitiveness.

Climate risk, once considered a long-term sustainability issue, is now a pressing financial concern. Flooding, overheating, and extreme weather events are already impacting asset performance, insurance premiums and business continuity. In parallel, social risks – such as health, wellbeing and equity – are influencing tenant demand, workforce expectations and reputational standing.

In this context, resilience – the ability to absorb disruption and adapt to change – is becoming a defining trait of successful organisations.

Our research shows that those who treat built assets as strategic levers, rather than fixed liabilities, are better positioned to lead through uncertainty.

Key insights from our research

海角视频 surveyed over 400 senior executives across investment, real estate and corporate portfolios. The findings are compelling.

79% of senior executives say that ESG positively impacts their financial performance.

Of these senior executives, over 鈥�40% reported an increase of over 11% and a further 42% reported a 5鈥�10% increase

The leader group are >3x as likely to report that ESG has a sizeable positive impact on their financial performance.

Leaders are 5x as likely than the overall group to say ESG has boosted their financial performance by over 20% in the past 18 months.

The leaders are reaping the rewards

Our research found a distinct results gap between those we鈥檝e identified as the 鈥渓eaders鈥�, vs other respondents. We can confidently interpret that these leaders understand, measure and manage their material risks and the long-term value this strategic approach brings to their businesses and view it as essential to enduring success.

For many, the growing risk of stranded assets in the built environment makes staying the course on interconnected environmental and social commitments mission critical.

These leaders are also already reaping the benefits. When it comes to their bottom line, they are more than three times as likely to report that ESG has a sizeable positive impact on their financial performance (47% versus 14% other respondents). They are also far more likely to say they鈥檝e already seen an impact from their ESG approach in all areas measured, particularly around data and decision-making, business and financial performance, environmental goals and talent.

For these businesses, this is not about compliance. It鈥檚 about competitiveness.

“We know that business leaders today are faced with a sea of uncertainty and complex challenges, but our research indicates that the companies that prioritise resilience, embrace change and align their strategies with evolving risks and opportunities, will be the ones who reap the greater financial rewards.”

鈥� Graham Kean, chief development officer, 海角视频

Whether an organisation chooses to now refer to such strategies as 鈥楨SG鈥� or instead 鈥榬isk management鈥�, or 鈥榮ustainability鈥�, our research indicates a renewed opportunity for business leaders to unlock: to boost performance and resilience by harnessing interconnected environmental, social and economic challenges and opportunities.

Built assets: a strategic lever

For many organisations, built assets represent the second-largest cost after staffing. Yet they remain underleveraged in strategic planning.

Too often, asset decisions are reactive-focused on short-term cost control rather than long-term value creation.

Our research shows that reframing built asset management as a platform for innovation and resilience can unlock significant value.

This can include:

Reducing operational costs through energy efficiency, smart systems, and adaptive reuse
Enhancing asset value by aligning with investor and tenant expectations
Improving business continuity by mitigating exposure to climate and social risks
Strengthening brand and reputation through visible leadership on issues that matter to stakeholders.

Reframing risk as a strategic advantage

These aren鈥檛 abstract benefits. They are clearly defined investment opportunities.

As Duncan Price, 海角视频’s sustainability/climate global lead explains, 鈥淲hat we find while working with many of our leading clients is that the businesses who are planning for their built assets and wider strategies with these risks in mind 鈥� while embracing the opportunities that come with change 鈥� are ultimately the ones creating portfolios that are better designed, fit for the future, and have higher market value.鈥�

“We are already seeing today that buildings with strong sustainability credentials are more energy efficient, and buildings with good health and wellbeing credentials are preferred by tenants, resulting in higher occupancy rates, rents and resale prices.”

– Dr. Raphael Mertens, chief sustainability officer, PIMCO Prime Real Estate

Proactivity, not reactivity, is the only way to get ahead

Our research underscores the strong business case for integrating material environmental, social and economic risks into core business strategy. These issues are not peripheral – they are central to long-term value creation.

Yet many organisations still face barriers: skills gaps, limited data, siloed operations and lack of leadership buy-in. However, these are solvable challenges when prioritised.

“By proactively factoring in material environmental, social and economic risks, businesses can unlock significant operational and financial value. At a time when environmental and social risks are rapidly translating into short-term financial exposures, organisations that prioritise resilience, embrace change and align their strategies with evolving risks and opportunities will be the ones shaping our skyline.”

– Oliver Plunkett, CEO, 海角视频

Why wait

As our research shows, the financial upside of proactive risk management and prioritising asset and business resilience is significant and growing鈥� and the cost of delay is rising.

海角视频 works with asset owners, managers and investors, developers, and corporates to design and implement integrated strategies that manage risk, enhance performance, and unlock long-term value. We invite you to explore with us how this approach can be tailored to your portfolio and wider business.

What I find most exciting about the research is the size of the prize – the tangible value that can be unlocked through practical, real-world interventions.

Graham Kean, Partner, 海角视频

Our research highlights the importance of getting ahead if business leaders want to minimise disruption and generate value. Those who are proactively integrating environmental and social risks into strategy – rather than reacting to them – are better positioned to protect value, maintain continuity and lead through uncertainty.

Neal Mehta, Director, 海角视频听

As a business dedicated to creating spaces and signing leases, we鈥檙e largely driven by market demands. But increasingly, our investors want assurance that our buildings are designed to withstand future challenges鈥� Success now means embedding forward-thinking requirements into our projects.

Mark DiNapoli, managing director of design and construction at US-based Longfellow Real Estate Partners

[Embedding ESG] has really accelerated our performance because it forces us to assess every business decision through the lens of its impact on our Science-Based Targets.

Alexia Laird, Sustainability Director, Landsec

ACCESS the research

ESG as a catalyst for business
growth in the built environment