Summary of Verco’s webinar with Environmental Finance: how asset managers and investors leverage ESG
In January 2026, Verco partnered with Environmental Finance on a webinar exploring how real estate can use ESG investment to stand out, attract capital, and deliver lasting value.
Two of the Verco team joined a panel of experts from Politecnico di Milano, PGGM and Environmental Finance. This article summarises their discussion, outlines the key takeaways and recommends services that might help your business.
The panel
Andries van der Walt, Director, Global Real Estate, Verco
Ben Ross, Head of Sector, Construction & Real Estate, Verco
Leonardo Boni, Assistant Professor, Department of Management, Economics and Industrial Engineering, TIRESIA Research Centre, Politecnico di Milano
Stan Bertram, Associate Director, ESG, Private Real Estate, PGGM
Genevieve Redgrave, Senior Reporter, Environmental Finance (Moderator)
The discussion
Sustainability in real estate is becoming a core strategic variable for asset managers, owners and investors
Sustainability in real estate is no longer a compliance exercise or a marginal or reputational topic. It’s seen as a driver of long-term transformation and value.
We’re seeing emerging evidence that when sustainability is integrated in a future-focused and strategic way, it can support:
transition to market;
occupancy rates;
tenant retention;
access to capital; and
the cost of financing.
Therefore, real estate organisations are seeking to play a part in active citizenship and the future of sustainable development. Markets are learning how to price these dynamics. Discussion around green premiums and brown discounts is increasing, as are the transition risks and regulatory risks associated with delayed action.
The challenge for asset managers is to remain competitive by building a credible business case for sustainability and decarbonisation and then deliver against this. They need to understand the investment, translate it to long-term preservation, and create equilibrium across return, risk, and impact.
Investors are driving the sustainability agenda
It's clear that sustainability pays off. It can have a considerable impact on vacancy rates, rental income, geography, and more. That’s why it’s common practice for investors to look at project performance in terms of sustainability. They are keen to make sure that projects they invest in don’t just set climate targets but deliver on them too.
Not every investor has the same view on sustainability, but many see it as an important factor in their investment decisions. The Net Zero Investment Framework is being used quite regularly in the market, allowing investors to assess various asset classes.
Companies are sticking to their long-term climate goals despite geopolitical change
Verco has run an annual Climate Action in Real Estate survey for the last few years. The most recent survey found that, despite all the geopolitical change in 2025, the majority of respondents (drawn from across the UK and Europe) did not change their position in terms of their long-term net zero carbon goals. In fact, many increased the detail and complexity of their targets.
Find out more in the Climate Action in Real Estate Report
Budget constraints and data quality are big challenges for real estate professionals
In the survey, budget constraints were seen as a big challenge. This is pushing businesses towards optimisation, to take advantage of the low- and no-cost implementation opportunities.
Data quality was seen as another key challenge. There’s no shortage of data available, so this is more about data confidence. Real estate professionals are looking for reliable, accurate data that will help them make decisions and share their progress with stakeholders.
Real estate is prioritising tenant engagement and embodied carbon this year
To get a real understanding of an asset’s operational performance, mitigate risk, and learn which improvements have the most potential to pay back investments, you need to have accurate data from occupiers. More thought is going into data sharing clauses and the legal structures surrounding them, and companies are working out how to move past any reluctance shown by occupiers by being more transparent with their sustainability initiatives.
Embodied carbon has also risen to the top of the agenda for the year ahead. In order to reduce an asset’s overall energy and carbon emissions, asset owners/managers must understand what the embodied carbon is from developments and refurbishments. They must also set specific targets around embodied carbon, so that they can track their progress. There are a number of frameworks coming forward around this. For example, Science-Based Targets have embodied carbon targets within their new building standards, and the Net Zero Carbon Building Standard (NZCBS) for the UK also has embodied carbon targets.
It’s the era of implementation and delivery
Right now, many real estate professionals are focusing on implementation and delivery for both new developments and existing portfolios. They’re starting to weave in climate resilience and adaptation, especially in terms of capital planning. ESG data assurance is also in high demand, as questions about data quality increase.
As disclosure expectations rise, and demands from occupiers increase, busy real estate professionals will benefit from support at all stages of their carbon reduction journey. Verco's Net Zero Transformation Partner service ensures they have a clear understanding of their risks and opportunities, then equips them with expert advice on how best to manage them.
Find out more about the Net Zero Transformation Partner service
Key frameworks like the SFDR, SBTI BREEAM, NABERS, UKGBC, and the UK NZCBS are being widely used. However, one of the challenges of the landscape right now is the plethora of different tools and frameworks.
That’s why Verco's proprietary modelling tool, MyVerco, brings all decarbonisation data together and helps clients understand, at a fund or asset level, decarbonisation potential, optimisation opportunities, and the interventions required to reach targets. This is critical for asset managers when they need to deliver decarbonisation at scale.
Further thoughts from Verco on the topic
ESG is the new normal. It is now considered part of good governance. Despite the geopolitical turbulence of 2025, the vast majority of asset managers have retained, or increased, their long-term ambition.
Differentiating real estate through ESG is not just about operational performance, but about interpreting the purpose of the asset – how does it meet society's needs?
Real estate investors are taking an increasingly sophisticated approach to balancing risk, return and ESG, with focus shifting towards specific ESG outcomes instead of blanket ESG labels.
Within a busy and increasingly sophisticated landscape of tools, technologies and accreditations, there's a much-needed move towards collaboration and harmonisation.
Asset managers rely on actionable advice to build long-term asset management plans that meet a broader set of requirements, protect value, and unlock the Green Alpha.