Is trying to fix ESG in commercial real estate just a waste of energy?
Proptech, ESG and UK Commercial Real Estate is it value Creation or value theatre?
Thought Leadership by author Andrew Stanton CEO Proptech-PR
‘There is a growing, uncomfortable question at the heart of UK commercial real estate, is ESG, supercharged by proptech actually delivering meaningful outcomes, or are we optimising for the compliance crowd and it is just greenwashing?
For an industry built on long-duration assets and capital discipline, the scale of the ESG challenge is undeniable. But so too is the growing sense that the current approach risks becoming a high-cost, low-impact exercise in data, dashboards and disclosure.
As the months become years since this goldrush to get to carbon zero, just what tangible progress has been made. We all know that ESG stands for Environmental, Social, and Governance a framework that can be used to evaluate how a property asset performs beyond old school financial metrics. It’s widely used by investors, lenders, and regulators to assess risk, sustainability, and long-term value.
Breaking it down into its core elements, (E) Environmental focuses on how a commercial real estate asset impacts the natural environment. So an iconic example would be London’s Gherkin (30 St Mary Axe). Which ironically was constructed in the early 2000’s before the ESG movement, and so it was ahead of its time in that it incorporated many key environmental features.
It was designed to use 50% less energy than comparable office buildings, it uses natural ventilation instead of full air conditioning, and has a “double-skin façade” that acts like insulation, with spiral light wells pull air through the building (like lungs) maximising natural daylight and reducing artificial lighting demand
With lower carbon emissions, lower operating costs, reduced reliance on mechanical systems which made it at its time one of London’s first “ecological” skyscrapers
Second core element, (S) Social the occupant/tenant well-being and usability. Again the Gherkin has many social and occupier features nurturing the UX of those in the building. It has high levels of natural light deep into floorplates, fresh air circulation improves indoor air quality and open, column-free spaces improve flexibility and collaboration.
The whole design promotes healthier, more productive workplaces, which in today’s commercial marketplace aligns with ‘flight to quality’ offices and wellness-driven leasing decisions.
Third core element (G) Governance which in CRE is a more abstract strand, it is less about the building itself and more about how it is managed, reported and maintained.
For the Gherkin which was built by major institutional players Swiss Re originally, it was designed with long-term performance in mind and continues to undergo upgrades to remain compliant with evolving standards. It has strong asset stewardship, forward looking ongoing compliance with regulations, EPC, energy standards etc. This transparency is expected by institutional investors.
Now the reason I focused on the Gherkin was that it has good ESG credentials hard baked into its DNA, fundamentally due to its design and physics, and not so much a delivery of data. In its early days it achieved lower energy use, better working environments, and here is the rub, without needing dashboards, sensors, or ESG platforms (initially).
Of course it was constructed before net zero targets, so not fully aligned with 2030/2050 pathways and a retrofit will still be required to meet future EPC standards and ‘lacks’ the deep digital monitoring modern proptech enables.
Which in UK commercial real estate, typically includes, Carbon emissions (operational + embodied), Energy efficiency, Climate risk exposure (flooding, overheating) and waste and resource use. Because an office building with poor insulation and high energy consumption scores badly on E and may become non-compliant under MEES regulations.
Andrew Stanton CEO Proptech-PR
CRE the shift in buyer expectations – OpticWise analysis
Week 45: Exit Strategy – Why Buyers Will Start Asking About Your Digital Stack
In this weekly series, we explore how the commercial real estate industry is being transformed by data and digital infrastructure. Guided by the principles in Peak Property Performance (Podcast & Best-Selling Book), we unpack a new idea every week to help owners unlock value, reduce risk, and digitally future-proof their portfolios. Learn more about OpticWise and Bill Douglas, the authors of this series.
When preparing a building for sale, most owners focus on the usual suspects:
- Financial performance
- Lease terms and tenant quality
- Physical condition
- Location and market comps
But there’s a new question starting to emerge in serious buyer conversations:
“What does the digital infrastructure look like?”
The Shift in Buyer Expectations
Institutional buyers and forward-thinking investors are no longer just evaluating square footage and rent rolls. They’re evaluating operational intelligence, risk exposure, and future readiness.
That means understanding:
- Who owns the building’s network
- How systems are integrated (or not)
- Whether data is accessible and usable
- If the asset is positioned for AI, ESG, and digital services
- What hidden CapEx may be required post-acquisition
In short, they’re underwriting the digital stack—even if they don’t always call it that yet.
Andrew Stanton CEO Proptech-PR
Ascendix – Why AI is now a core operating layer
Why customisation matters more than capability
Thought Leadership by Wes Snow CEO & Co-founder of Ascendix Technologies
‘There’s a persistent misconception that success with Artificial Intelligence comes down to selecting the most advanced or sophisticated tool. In reality, that’s not where the value lies. The real differentiator is fit. The most effective AI systems are those tailored to the business itself, trained on proprietary data, integrated seamlessly into existing CRM platforms and workflows, aligned with operational processes, and designed around specific pain points.
As I often tell clients, the starting point shouldn’t be ‘what’s possible,’ but rather ‘what’s painful.’ That’s where AI delivers immediate and measurable return on investment.
The risk of standing still
The reality is that the adoption gap is widening—and quickly. Firms that have embraced AI are already responding to clients faster, underwriting deals with greater speed and precision, and making consistently more data-driven decisions. In contrast, more traditional operators remain tied to manual data entry, inbox-driven workflows, and slower reaction times to market opportunities. This is not a gradual evolution; it’s a compounding advantage. As with most technological shifts, there will be little room for those caught in the middle.
Firms using AI are already: responding to clients instantly, underwriting deals faster and making more data-driven decisions. Meanwhile, traditional firms are still: Manually entering data, Sifting through emails and reacting slower to opportunities. This is not a gradual shift. It’s a compounding advantage.
AI is now a core operating layer
The next phase of AI in real estate goes beyond simple workflow assistance. It’s about orchestration. We are already seeing the emergence of AI agents capable of managing client interactions, handling workflows end-to-end, and continuously optimising business processes in real time. However, it’s important to be clear, AI will not replace brokers. Instead, it will amplify the capabilities of the best ones.
In a landscape where access to data is no longer a differentiator, success will be defined by who can interpret and act on that data with the greatest speed and intelligence. We’re already seeing the rise of AI agents that can handle client interactions, manage workflows end-to-end and continuously optimise processes. (Picture – Wes Snow CEO Ascendix Technologies).
Future proofing businesses
Custom AI in real estate is not fundamentally about technology. It’s about building a business that is smarter, faster, and more responsive. The firms that recognise this and invest with intent will not simply become more efficient. They will redefine what best-in-class looks like in the industry. And of course any business with embedded technology powering it will be of a significantly higher value should the business be sold, and clients like to deal with service providers who can instantly interact and transact, as the ever impatient tech savvy younger citizens resist waiting in line to do property like their parents did.
Andrew Stanton CEO Proptech-PR
