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Navigating the Future: ESG in Commercial Property in Australia


In recent years, Environmental, Social, and Governance (ESG) considerations have become integral in shaping business practices across industries. As the global community focuses on sustainable development, the commercial property sector in Australia is no exception. In this blog, we’ll explore the growing importance of ESG in the Australian commercial property market and how it is influencing investment decisions, development strategies, and overall industry trends.

Understanding ESG:

ESG represents a set of criteria used to evaluate a company’s or, in this case, a commercial property’s environmental, social, and governance performance. Investors, tenants, and stakeholders are increasingly recognising the impact that these factors can have on long-term sustainability and profitability. In Australia, where the effects of climate change are becoming more apparent, ESG considerations are gaining prominence in the commercial property sector.

Environmental Considerations:

Australia, known for its diverse ecosystems and natural beauty, is also grappling with environmental challenges such as climate change, rising sea levels, and extreme weather events. Investors in commercial properties are increasingly demanding sustainable practices to mitigate these risks. Green building certifications, energy-efficient designs, and renewable energy installations are becoming key factors in the evaluation and value of commercial properties.

Moreover, government regulations and initiatives, such as the National Australian Built Environment Rating System (NABERS) and Green Star, are encouraging property developers and owners to adopt eco-friendly practices. These initiatives not only contribute to environmental conservation but also position commercial properties as more attractive and resilient investments.

Social Implications:

The social dimension of ESG encompasses a wide range of considerations, including community engagement, workplace conditions, and the impact on local residents. In the Australian commercial property sector, developers are placing increased emphasis on creating spaces that foster community well-being and inclusivity.

Mixed-use developments that combine commercial spaces with residential and recreational areas are gaining popularity. These developments not only contribute to urban revitalisation but also address social concerns, such as housing shortages and the need for accessible public spaces.

Governance Best Practices:

Effective governance is crucial for ensuring transparency, accountability, and ethical behaviour within the commercial property sector. Investors are placing a premium on companies that prioritise governance best practices, such as diverse and independent boards, ethical decision-making processes, and adherence to regulatory standards.

Australia’s legal framework and regulatory environment play a significant role in shaping governance practices within the commercial property industry. Investors and stakeholders are increasingly scrutinising how property companies manage risks, engage with stakeholders, and ensure compliance with both local and international standards.


We’ve recently seen banks asking for managers pathway to bet zero carbon emissions, and more importantly, government departments are now starting to restrict leasing on buildings that can’t show a pathway to net zero for the building. Solar, water re-use, wind generators are all starting to play a role in the day to day operations of commercial property. European institutions as foreign buyers will only participate when there is an ESG policy and clearly outlined benefits and measures in place to limit emissions and support sustainable development.


As ESG considerations continue to gain prominence globally, the Australian commercial property sector is experiencing a paradigm shift. Investors, developers, and stakeholders are recognising the importance of aligning business practices with sustainable and socially responsible principles. By incorporating ESG criteria into decision-making processes, the commercial property industry in Australia is not only contributing to a more sustainable future but is also enhancing its resilience and attractiveness in the eyes of a socially conscious global market.


Feel free to reach out to PURE to discuss your future commercial property management requirements. With over 1200 commercial managements and specialist teams down the east coast of Australia. We currently have offices in Maroochydore, Brisbane, Gold Coast, Northern Rivers, Port Stephens, and Newcastle, and provide management services in Darwin, Townsville, Sydney and Melbourne. We offer a full commercial management service. To meet all your needs.

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