According to CBRE's latest 'Asia Pacific Sustainable City Ranking' report, cities in Japan and Australia are the most resilient to environmental risks and Ho Chi Minh City is the most resilient emerging Asian market. Meanwhile, Jakarta, Hanoi and mainland China cities such as Beijing and Shanghai are rapidly improving their environmental resilience.
As the region continues along a path of rapid urbanisation and economic growth, the variability of environmental performance across Asia Pacific markets requires commercial real estate occupiers and investors to tailor their Environmental, Social, and Governance (ESG) strategies to local market factors rather than adopt a one-size-fits-all approach, according to CBRE.
"Investors should differentiate their ESG strategies --for mature markets like Australia, Japan and Singapore, it's a must to invest in green buildings and green financing capital should be prioritized to fund sustainability projects. Other markets in Asia Pacific are catching up quickly and investors should emphasize green due diligence when making new acquisitions or upgrading older property stock, especially with most new completions being green certified assets," said Dr. Henry Chin, Global Head of Investor Thought Leadership, Asia Pacific for CBRE.
"The current tenant-favourable environment provides occupiers with a compelling opportunity to tradeup to higher quality green buildings--especially with more green buildings being launched in the coming two years," said Ada Choi, Head of Occupier Research, Asia Pacific for CBRE. "Occupiers will need experienced, well-informed advice to navigate the ESG landscape in each market."
CBRE benchmarked Asia Pacific cities on the environmental risks impacting commercial real estate, including greenhouse gas emission, climate risk, air pollution, renewable energy use, and green office building adoption. The analysis is based on current performance, as well as the historical pace of improvement and forecasts of future gains, with markets divided into four groups -- 'City Leaders', 'Solid Performers', 'Improvers', and 'Potential Performers'.