Webinar recap: How green finance and disclosure are redefining property

October 7, 2025

The property industry is entering a new era where sustainability isn’t just a badge of good citizenship; it’s becoming a financial and operational imperative. That was the central theme of CIM’s recent webinar, High-stakes ESG reckoning: How green finance and disclosure are redefining property, featuring experts from PwC, the Green Building Council of Australia (GBCA), and CIM.

Hosted by Anthony Caruana, the discussion unpacked how new climate-related disclosure rules and sustainability-linked finance are reshaping decision-making from the boardroom to the plant room.

From ESG intentions to accountability

Lucie Knorr, Director of Sustainability Reporting & Assurance at PwC, described the new mandatory climate disclosure standards as “a game-changer for transparency”. Under the incoming AASB framework, property owners will need to quantify climate risk and emissions performance with the same rigour as financial reporting.

She noted that while this shift raises immediate challenges, especially around data readiness and systems integration, it also creates a powerful opportunity to drive real accountability. “The organisations that treat disclosure as more than compliance will be the ones that attract capital and maintain trust,” she said.

For CIM’s Co-CEO David Wright, that accountability must be anchored in operations.

“Most ESG commitments ultimately succeed or fail based on what’s happening in the building day to day,” David said. “You can’t disclose what you can’t measure, and you can’t improve what you can’t see.”

The rise of sustainability-linked finance

Both Knorr and GBCA’s Elham Monavari agreed that the financial system is now one of the strongest forces accelerating decarbonisation.

Monavari noted that major property owners are increasingly pursuing sustainability-linked loans, which tie interest rates to verified performance targets. “These mechanisms are changing the conversation. It’s not just about design excellence anymore, it’s about proving you can operate sustainably over time.”

Knorr added that the investor lens has sharpened significantly.

“Investors are embedding climate resilience and operational efficiency into valuations. Buildings that can’t demonstrate these qualities are already being priced at a discount.”

Wright reinforced that the benefits go beyond cost of capital. “We’re seeing data-driven operators gaining resilience, lower exposure to energy volatility, and better asset longevity, outcomes that investors recognise as long-term value.”

Operationalising sustainability at the asset level

The conversation repeatedly returned to the need for credible, verifiable data. Monavari highlighted that rating tools like Green Star are evolving to better align with disclosure requirements, focusing on measurable outcomes rather than policies.

At the building level, Wright said technology is the bridge between commitment and delivery.

“Automated analytics and fault detection are helping owners meet targets without adding headcount. When you can see and act on what’s happening in real time, sustainability becomes operationally achievable.”

Knorr added that property can learn from other industries’ experience with assurance: “Make sure your governance, systems and evidence are audit-ready from day one, that’s what will give your disclosures credibility.”

What’s next for the sector

Looking ahead, the panel agreed that the convergence of disclosure, finance and performance will accelerate. Monavari cautioned that as rating systems tighten, “the sector’s biggest vulnerability lies in operational non-compliance, buildings that perform well on paper but can’t sustain it in operation.”

Knorr predicted that the next wave will be “integration and automation, bringing ESG data into mainstream financial systems and creating continuous, assured reporting.”

Wright closed by emphasising that success depends on operational readiness: “As green finance becomes standard, your ability to prove efficiency and resilience in real time will define your competitiveness.”