Sustainability gap: 80% of asset managers failing to deliver on green strategies

A new worldwide survey has revealed that while 97% of asset managers feel able to keep pace with environmental regulations and reporting requirements. Image: Mace

The survey, conducted by Censuswide on behalf of Mace for its latest report State of Sustainable Assets, spoke to over 4,000 building portfolio and asset managers across the UK, US, UAE and Hong Kong, working across 14 sectors, including architecture and engineering, residential real estate, retail and leisure and infrastructure.

The report details the broad value creation when it comes to sustainable assets: strengthened resilience, competitive advantage, reduced operational costs, increased asset value and improved risk management.

Over half of respondents recognise that more sustainable assets are also crucial to unlocking financing for their business and are becoming a standard mandate from outside investors.

When asked ‘what, if anything, is your key motivator for creating more sustainable assets’, aside from it being the right thing to do, the report details the main reason being finance (54%), followed by investor mandates (19%), regulatory compliance (15%) and occupant expectation (10%).

“It is imperative businesses have sustainable assets and with many making net zero carbon commitments for 2030 and 2050, asset managers have a crucial role to play in shaping the future of our growing urban environments,” said James Low, global head of responsible business, Mace Group.

“This study has found that sustainable solutions can combine environmental and financial advantages, however, most asset managers have only just started their journey when it comes to implementing their strategies.”

With legislation clearly not doing enough to prompt consolidated action, the report references that in future organisations are likely to witness the adoption of global frameworks to rationalise reporting across geographies and encourage greater action.

To deliver measurable outcomes, the report highlights that asset managers should consider prioritising sustainable skills to tap into a digitally enabled approach, linking strategic thinking with technology to unlock the most far-reaching outcomes for greener portfolios.

Access the full report here.