At IMN’s ESG & Decarbonizing Real Estate Forum, the conversations felt distinctively action-oriented. Speakers and panelists across the industry made it clear that sustainability is no longer a conceptual discussion; it’s an operational reality shaped by asset-level cost pressures, regulatory demands, and performance expectations. Today, sustainability must be embedded directly into a company’s growth strategy and managed with the same rigor as any other core business function.
Across several different sessions, and in conversations I had with my fellow attendees, a few clear patterns emerged, pointing to where sustainability in real estate is headed next.
1. Decarbonization is becoming a risk and value management tool
A strong signal from the conference was how directly decarbonization is now tied to financial risk and asset value. Speakers consistently framed sustainability around:
- Mitigating rising operating costs (insurance, utilities, compliance)
- Protecting net operating income (NOI)
- Future-proofing assets against both physical climate risk and regulatory change
Electrification, efficiency upgrades, and on-site renewables are no longer seen in a silo as “ESG projects”, but rather, they’re asset risk mitigation strategies with direct financial implications.
Similarly, in several conversations, solar was framed less as an ESG initiative and more as an energy affordability strategy in a volatile, high-cost environment. With federal tax credits set to expire for projects starting after July 2026, many owners are accelerating timelines for solar projects now.
2. Data acts as the alignment between sustainability, finance, and operations
Unsurprisingly, data came up in nearly every session. We know how important data is to sustainability teams, we all know that you can’t manage what you don’t measure. However, the emphasis was on using data to align cross-functional teams and actually drive decisions.
Several speakers noted that sustainability efforts stall when data lives in silos:
- Sustainability teams track emissions
- Asset managers focus on NOI
- Property managers deal with day-to-day operations
When those teams don’t connect, sustainability becomes a side project rather than a business driver. The firms making progress are using data (i.e., utility expenses, EUI, water use intensity, tenant consumption) to create a shared language across those groups. Data then unlocks metrics and KPIs that translate sustainability into financial and operational terms.
Importantly, multiple panelists stressed that software alone isn’t enough; data needs to be paired with on-site engagement and internal review processes to ensure it’s accurate and actionable.
This is especially important in tenant-controlled spaces, where tools like shadow metering and submetering are being used to surface cost and efficiency opportunities that were previously invisible.
3. Regulation is both a constraint and a catalyst for action
It was clear in conversations and panels that the regulatory environment is actively shaping all investment and operational decisions.
On the constraint side, I heard:
- Firms are spending significant time and resources preparing for compliance
- There is growing concern around liability and public disclosures that aren’t backed by execution
On the catalyst side, I heard:
- BPS policies are forcing real decarbonization, not just benchmarking
- Incentives like the 179D tax deduction are helping fund efficiency projects
- Local laws (e.g., LL97) are accelerating solar and electrification in specific markets
- IFRS S1 and S2 standards are forcing firms to publicly disclose climate risk, and once that risk is disclosed, it requires an operating plan
4. “One size fits all” sustainability strategies are losing credibility
Another consistent message was the need for asset-specific decision-making. Portfolio-level analysis is useful for prioritization, but it breaks down quickly in execution. Solar, retro-commissioning, or electrification may be high-value in some markets and ineffective in others. Speakers emphasized the importance of combining trusted data with local context rather than applying uniform solutions across property types.
Climate risk assessments and property-level energy audits can help surface specific, actionable risks. One speaker shared that this type of analysis unexpectedly revealed flood exposure across several of their Arizona properties, a finding that challenged prior assumptions and prompted adjustments to capex planning.
The takeaway here: sustainability strategies are becoming more nuanced, more localized, and more integrated into a company’s overall asset risk mitigation and management.
5. Progress can stall without internal buy-in
A recurring frustration expressed by sustainability leaders was that even well-designed programs can stall without internal buy-in.
Successful organizations are:
- Embedding sustainability into capex planning and due diligence
- Involving engineering and asset management early
- Treating sustainability teams as internal consultants rather than separate functions
Several speakers noted that sustainability professionals need to meet stakeholders where they are. When someone cares primarily about ROI, emissions alone won’t resonate. Framing projects around NOI protection, cost avoidance, or asset resilience is often more effective.
6. The skill set for sustainability is converging with asset management
When discussing careers in sustainability, panelists were aligned on what matters most:
- Financial literacy (P&Ls, 10-Ks, investment structures)
- Change management and communication
- Decision quality and documentation
- Facilities and operational knowledge
The role seems to be evolving away from pure technical expertise toward a hybrid of sustainability, finance, and operations. This mirrors what we’re seeing across the industry: sustainability outcomes depend on the same skills that drive effective asset management.
The through-line at IMN was clear: sustainability in real estate has crossed the threshold from aspiration to obligation.
With public disclosures under IFRS S1/S2, evolving BPS, and rising operating costs, firms can no longer treat climate risk as theoretical. If a risk is disclosed, it must be managed. If capital is deployed, it must protect NOI. If data is collected, it must inform action.
Decarbonization is increasingly the mechanism that connects all three.
The next phase of real estate sustainability will not be defined by pledges or certifications, but by execution. The keys to success will be integrating data into asset management, aligning teams around financial impact, and using climate strategy as a tool for long-term value creation. The firms that treat sustainability as an operating strategy, not a siloed reporting function, will be the ones positioned to outperform.
