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Building emissions have a major footprint
Buildings contribute a significant share of global emissions, so regulators expect credible action plans.
Sustainability in real estate
Show how buildings serve occupants, investors, and cities.
Sustainability in real estate combines building performance, occupant wellbeing, supply-chain choices, and transparent ESG reporting. Use this primer to align asset, development, and operations teams without reinventing frameworks.
What does sustainability in real estate cover?
It blends energy and water efficiency, low-carbon materials, healthy interiors, equitable communities, and investment-grade reporting across your portfolio.
Assets
Portfolio view
Leased, owned, and managed assets all fall under investor and tenant expectations.
Yearly
Annual retrofit rhythm
Budgets refresh yearly, so retrofit roadmaps and certifications must show steady progress.
Real estate sustainability focus areas
Building performance. Upgrade HVAC, lighting, and controls; design new developments with passive design and low-carbon materials.
Occupant wellbeing. Track indoor air quality, daylight, accessibility, and community amenities so tenants feel the impact.
Development & supplier alignment. Expect contractors, architects, and material suppliers to document their sustainability performance.
Financing & disclosure. Keep lenders, investors, and rating bodies updated via GRESB, CSRD, or local disclosure rules.
WHY IT MATTERS
Why sustainability elevates real estate portfolios
Asset value protection. Efficient, healthy buildings attract tenants and defend valuations during refinancing.
Regulatory confidence. Early compliance with building codes and disclosure rules avoids rush projects and fines.
Tenant retention. Occupants stay longer when the space reflects their sustainability goals.
Brand differentiation. Developers win mandates when they show repeatable ESG practices.
PLANNING
How to build a real estate sustainability plan
- Segment the portfolio. Group assets by age, type, occupancy, and performance to find the biggest opportunities.
- Link work to regulations. Map each region to the codes, certifications, and reporting frameworks you must follow.
- Engage property teams. Give property and facilities managers clear playbooks, budgets, and RunSustainably tasks.
- Digitise evidence. Store sensor data, audits, and approvals centrally so investors see one source of truth.
MEASUREMENT
Tracking real estate sustainability progress
- Monitor intensity metrics. Track energy, water, waste, and carbon intensity per square metre.
- Capture wellbeing signals. Survey tenants, monitor indoor air, and log maintenance response times.
- Report certification progress. Show how each building moves toward LEED, NABERS, BREEAM, or local badges.
- Tie to RunSustainably. Log objectives, approvals, and investor-ready narratives in one workspace.
Actions for real estate teams
Create a retrofit backlog. Rank HVAC, envelope, and lighting upgrades by ROI and complexity.
Pilot healthy-building scorecards. Share plain-language dashboards with tenants and property managers.
Align lenders and partners. Brief financing partners on your sustainability assumptions before the next raise.
GLOSSARY SNAPSHOT
Real estate glossary snapshot
GRESB. A benchmark for real assets that scores ESG performance and disclosure.
Green lease clauses. Lease terms that encourage energy upgrades, data sharing, and sustainability collaboration.
Embodied carbon. Emissions associated with materials and construction before a building opens.
FAQS
Sustainability in real estate FAQs
What is an ESG framework for real estate?
It is a structured approach that links building performance, disclosure requirements, and stakeholder expectations across a portfolio.
How do we choose initiatives?
Rank opportunities by regulatory impact, tenant demand, and ROI; start with pilots before scaling.
Do property managers need new tools?
Centralise tasks, templates, and approvals in RunSustainably so updates stay consistent across assets.
How often should we report progress?
Share quarterly refreshes with leadership and investors, then publish annual ESG or sustainability reports.
Drova RunSustainably unites objectives, approvals, and reporting so industry teams stay aligned.
Ready to keep sustainability work visible?
ESG 101 HUB
Explore related topics
What is ESG
Ground yourself in the core ESG definition and pillars.
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Keep listening loops visible for every industry page.
ESG supply chain sustainability
Connect procurement and logistics to your industry plan.
ESG due diligence
Screen investments or partners supporting industry pivots.
Sustainability in oil & gas
Balance production with transition expectations.
Sustainability in banking
Link capital allocation with climate and social risk.
Sustainability in tech
Keep cloud, AI, and hardware footprints transparent.
Sustainability in energy
Plan grid reliability and clean generation together.
Sustainability in retail
Navigate omnichannel supply chains responsibly.
Sustainability in healthcare
Protect patient care while lowering the footprint.
