The four waves of sustainability in real estate

October 16, 2025

Why sustainability is evolving from lofty goals to intelligent, self-optimising systems, and what it means for the built environment.

tl;dr

Wave 1: Set ambitious goals. Bold sustainability goals set direction, but impact depends on how well they’re linked to execution.
Wave 2: Measure & report progress. Reliable data and verified reporting underpin accountability and trust.
Wave 3: Operationalise sustainability. Operational excellence becomes the engine of sustainability, where people, process and technology work together to improve performance.
Wave 4: Autonomously optimise. Continuous, self-sustaining improvement systems make buildings more efficient, more resilient, and lower risk - creating higher sustainable value.
Key takeaway: Sustainability maturity is not about ambition alone. It’s about integration, readiness and execution.

The evolving maturity curve

In my years working at the intersection of property, technology and sustainability, one truth is clear: ambition alone doesn’t deliver impact. Too often, organisations set bold net zero or decarbonisation targets, but falter when it comes to implementation.

To bridge that gap, it helps to think of sustainability as a maturity journey: from commitment, to transparency, to operationalisation, to automation. These four waves capture how sustainability evolves from a set of goals into a systematic, self-improving capability.

Most property organisations sit somewhere between waves one and three. A few are now beginning to glimpse wave four, a future where buildings optimise themselves and sustainability becomes embedded in every process.

First wave: set ambitious goals

The journey starts with vision and alignment. Governments, funds and real estate organisations set bold targets - net zero by 2030, carbon neutrality by 2040, or climate resilience across portfolios. These commitments matter because they establish a north star for investment, governance and innovation.

According to Deloitte's Transforming Real Estate for a Sustainable Future, nearly every major real estate company now embeds climate or ESG targets within corporate strategy. KPMG reinforces that meaningful impact requires integrating sustainability into the business model, not just corporate messaging.

Ambitious goals are essential for mobilising stakeholders and attracting capital, but they must be grounded in a roadmap for delivery. Without clarity on accountability, metrics and resourcing, commitment risks remaining symbolic rather than strategic.

Second wave: measure & report progress

Once commitments are made, organisations must measure and disclose progress. This phase establishes the foundations for accountability: consistent data collection, performance baselines, third-party assurance and transparent reporting.

McKinsey estimates that building operations account for around 25 percent of global energy-related emissions, and the built environment contributes roughly 40 percent overall. KPMG’s research shows that while many real estate firms have improved their environmental reporting, standardisation and data quality remain critical gaps.

JLL’s Responsible Real Estate report highlights that while sustainability is a stated priority for most companies, only a minority actively monitor real-time performance across portfolios. CBRE’s data adds that certified buildings now make up 26 percent of office stock globally, up from 17 percent in 2019 — a clear sign that verification and transparency are becoming value drivers.

Transparency is about trust. For investors, regulators and tenants, credible data builds confidence that sustainability is more than a headline - it’s operational reality.

Third wave: operationalise sustainability

Wave three marks the transition from insight to action. It’s where sustainability moves from boardroom strategies to on-site operations, connecting data, people and systems to drive measurable performance.

In this stage, sustainability becomes synonymous with building health. Organisations deploy real-time monitoring, AI-powered tools, data-driven maintenance and proactive optimisation tactics to continuously improve energy use, air quality, comfort and asset longevity.

McKinsey’s Building Value by Decarbonising the Built Environment shows that many efficiency measures are already cost-effective, with strong ROI potential across commercial portfolios. JLL’s How ESG Integration is Impacting Real Estate Values shows a tangible link between operational performance and property value, with greener buildings commanding higher rents and sale prices.

At CIM, we see many clients in this phase using our PEAK Platform to operationalise sustainability. PEAK enables automated fault detection and diagnostics, transforming data into consistent actions that enhance efficiency, sustainability, resilience and occupant comfort.

Operationalising sustainability is about shifting from reporting what has happened to actively managing what is happening.

Fourth wave: autonomously optimise

The fourth wave is the north star where AI and automation create self-learning systems that continually optimise building performance.

In this phase, people, process and technology are coordinated under a single governance model to achieve predicted outcomes. Building systems forecast, adapt and correct automatically. HVAC adjusts to occupancy, energy loads respond to grid signals, and maintenance schedules evolve dynamically based on performance data.

McKinsey calls this the “autonomous value creation” phase, where sustainability becomes a driver of efficiency and lower risk, not an overhead. Deloitte describes it as the rise of closed-loop performance, where integrated controls, automation and data governance create continuous improvement.

CBRE and JLL both note that AI and automation are reshaping how real estate assets are managed - making operations more systematic, predictive and efficient.

CIM is at the cutting edge of this evolution, empowering accountable action through intelligence and automation. By combining AI, machine learning with deep domain expertise, PEAK enables real-time autonomous optimisation across building portfolios. It doesn’t just surface issues, it drives responsible decisions, aligns teams, and embeds accountability into every layer of performance management. This approach transforms data into action, ensuring that every improvement contributes directly to sustainability, resilience, and measurable value creation.

Why many organisations stall between waves

Progress through these stages is not linear. Many organisations get stuck between measurement and execution. Common barriers include:

Fragmented systems and poor data integration
Lack of clear ownership and accountanility across sustainability, operations and aseet management
Gaps in digital and analytical capability
Underinvestment in training and change management
Short-term ROI expectations that overlook long-term asset value

In property, these barriers are magnified by long asset lifecycles, complex stakeholder networks and regulatory diversity. But they are also where the greatest opportunities lie, especially for those who can bridge strategy and execution.

The next era of sustainability

Sustainability is not standing still. The first two waves, commitment and transparency. built the foundations. The third and fourth are about performance and autonomy.

The next generation of leaders will make sustainability invisible to the process but visible in the results. In property and infrastructure, success will be defined by how seamlessly organisations can turn data into outcomes and outcomes into value.

At CIM, that is the evolution we are enabling.