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In volatile times, can ESG provide a path to boosted performance and resilience? New research from º£½ÇÊÓƵ gives a clear answer: yes.

º£½ÇÊÓƵ, in partnership with FT Longitude, has undertaken research to understand how built asset leaders can generate value, at a time where economic and political headwinds have created a complex landscape.

The results of this research – ESG as a catalyst for business resilience and growth – explores how ESG, or the effective management of integrated environmental, social and economic considerations, is a strategic lever for wider business performance, resilience and long-term value creation. The ability of businesses to manage interconnected environmental, social, and financial risks isn’t optional – it’s a strategic imperative.

The findings of our research are powerful:

• There is a correlation between ESG maturity and financial performance: 79% of senior executives surveyed say that ESG positively impacts their financial performance
• A high-performing group of leaders in our research are more than three times as likely to report that ESG has a sizeable positive impact on their financial performance.

Whether an organisation chooses to call it ‘ESG’, ‘risk management’ or ‘sustainability’, the opportunity is the same: to boost performance and resilience by addressing the complex challenges and opportunities of our time.

To learn more, hear from Duncan Price, º£½ÇÊÓƵ’s sustainability/climate global lead, and Neal Mehta, director in UK advisory.

Why was this research so necessary? What did º£½ÇÊÓƵ want to investigate?

Duncan Price While there has been much research and debate about the role that ESG can play in driving business performance, we saw a gap in the evidence base about that value that this can bring to the built environment specifically. The built environment is a sector defined by rapid change and disruption – compounded by fragmented ownership and misaligned incentives between investors, landlords and occupiers. Our global survey of 400 senior business leaders was to really understand the link between ESG maturity and financial performance.

And what we found was really powerful: 79% of senior business leaders say that ESG positively impacts their financial performance. We also saw a growing level of maturity in the way that social and environmental considerations have been built into an organisation’s strategy and operational plans.

What does the financial data we have uncovered tell us?

Neal Mehta It tells us that integrating environmental and social risks into business strategy isn’t just the right thing to do – it’s delivering measurable results.

80% of the 400 senior executives we surveyed reported a positive financial impact from doing so. And this isn’t marginal – over 40% of those saw a financial uplift of more than 11%. A further 42% reported a 5–10% increase.

What’s driving that? It’s about smarter, more resilient and desirable assets. For example, buildings that are energy efficient and designed with health and wellbeing in mind are increasingly preferred by tenants. That translates into higher occupancy rates, stronger rents and better resale values.

This approach not only drives performance, but also protects value by reducing exposure to stranded assets and future regulatory or market shocks. We found that organisations with a clear business case, measurable targets and the skills to deliver are significantly more likely to outperform.

What can we (and our clients) do with the insights that this research has uncovered?

DP Our research shows that ESG is maturing in the built environment, and more organisations are increasingly embedding it into their core business strategies. This means the industry is increasingly recognises sustainability not just as a responsibility, but as a driver of resilience and growth.

Armed with that information, we’ve now got some really exciting new evidence to bring to our clients and to the wider built environment about the ‘why’ of why this is important, as well as the ‘how’ of it can be harnessed. Ultimately, this is about helping our clients make evidence-based decisions.

Businesses embracing integrated environmental, social and economic considerations and planning for their built assets with these risks in mind, are creating products and portfolios that are better designed, fit for the future and have higher market value.

Why does this matter so much, right now?

NM It is clear that the sector as a whole is feeling the strain. There is a lot of uncertainty and disruption across the energy and building markets. Any future transition is likely to be disorderly. Geopolitical shocks, rising energy costs and technological disruptions are reshaping the landscape.

However, disorder doesn’t mean paralysis. It means we need to be more deliberate, more collaborative and more courageous in how we navigate through the disruption. That includes: understanding exposure quickly, prioritising high-impact, no-regret actions (e.g. cost-effective energy efficiency, and climate resilience measures) and investing in adaptive capacity – in assets and portfolios, but also in people, teams and organisations that can better respond to change, not just comply with today’s standards.

Disorder doesn’t mean paralysis. It means we need to be more deliberate, more collaborative and more courageous in how we navigate through the disruption.

Neal Mehta, director, UK advisory, º£½ÇÊÓƵ

DP It is definitely a tricky time. We’ve got political and economic headwinds that mean there is a lot of uncertainty in the world. But that is why doing this research feels timely, and it really strengthens building a business case of why clients should embed sustainability into real estate. Having such a solid foundation is great for all sustainability professionals in our client organisations, or up and down the supply chain, because it allows them to remind their investment, asset manager and developer colleagues that they should stick to the course and maintain high levels of ambition.

A key takeaway from our panel discussion at was that the research is evidence of increasing confidence that this is the right thing to do, and it just makes good business sense.

What does this research show about future risks?

NM Our research highlights that climate risk is rapidly becoming one of the most material concerns for the built environment. 68% of senior executives expect the insurability and cost of insurance linked to climate impacts to rise significantly over the next three years.

What was once viewed primarily as a long-term sustainability challenge is now being recognised as a short-term financial exposure. This is already playing out – clients are facing increased disruption from flooding, overheating, and extreme weather events that threaten asset performance and business continuity.

And climate is just one part of a broader risk landscape. Executives also flagged growing pressure to demonstrate social responsibility, navigate complex and evolving regulation, and meet rising and changing investor expectations.

Our research shows that those who are proactively integrating these risks into strategy – rather than reacting to them – are better positioned to protect value, maintain continuity, and lead through uncertainty.