Panel
- Lucie Knorr, PwC, Director - Sustainability Reporting & Assurance
- Elham Monavari, Green Building Council of Australia, Head of Green Star Strategic Delivery
- David Wright, CIM, Co-CEO and Company Director
- Host: Anthony Caruana
Summarised Transcript
About
Our latest expert panel dives into how new climate-related disclosure standards, green bonds, and sustainability-linked loans are converging to put real financial and operational pressure on the property sector. It’s no longer about ESG intentions, it’s about measurable, risk-weighted performance.
The panel explore how these instruments are shifting from being “good citizenship” tools to hard financial levers, with operations now at the core of proving long-term value and resilience.
The ESG Tipping Point
David Wright, CIM:
We’re now at a critical turning point in ESG. For years, focus has been on the “E” reducing emissions and setting climate targets. But leaders are now turning attention to the “G” governance. It’s about ensuring systems are in place so assets are lower risk and deliver higher returns.
I see four waves of sustainability:
- Commitment – setting targets
- Transparency – measuring and reporting
- Action – real-time, proactive interventions
- Autonomous Optimization – AI-enabled systems that sustain value into the future
Sustainability-linked loans (SLLs) are central here. They reward governance with improved loan terms, typically 5–20 basis points in margin adjustments. That translates to millions of dollars in real financial outcomes.
Immediate Challenges with Climate Disclosures
Lucy Kanor, PwC:
The new AASB aligned climate disclosure standards are a game-changer for property owners. The biggest challenges I see are:
- Resourcing – assigning people and budget to manage the shift
- Capability – there aren’t enough sustainability professionals, so companies must build or buy skills
- Data – without reliable data, disclosure is impossible
But these challenges also open opportunities. Good data isn’t just for compliance, it creates insights, reveals risks, and helps owners make better strategic decisions.
The Role of Green Star
Ella Monavari, GBCA:
Green Star provides independent verification that assets meet global sustainability finance frameworks. Our tools are aligned with the EU taxonomy, green bond and loan requirements, and the Australian Sustainable Finance taxonomy.
This means when a building achieves Green Star certification, financiers can be confident it meets credible sustainability thresholds. It’s a win-win: property owners gain finance access, and lenders know their capital is supporting verified outcomes.
From Intentions to Accountable Outcomes
David Wright, CIM:
The best operators treat their buildings like marketplaces of data and transactions, transparent, efficient, and predictable. They break down silos across ESG, finance, and operations.
Where many fall short is maturity of data. There’s plenty of it, but it’s fragmented. DIY data lakes and “digital twin” projects often cost millions with little value. Instead, organizations need governed systems that transform data into decisions.
Investor Drivers and Market Pressure
Lucy Kanor, PwC:
Investors themselves are subject to mandatory disclosure. They need better data to report credibly, manage systemic risk, and avoid greenwashing penalties.
They’re also committing capital to green finance products. Sustainable loans and bonds aren’t niche, they’re becoming the norm.
Tenant Influence
Ella Monavari, GBCA:
Tenant demand is now a major driver. In industrial real estate, almost every new asset is pursuing a Green Star rating. Tenants want resilient, efficient, healthy spaces, and they’re asking for ongoing performance data, not just annual certificates.
David Wright, CIM:
We’re also seeing tenants require Scope 2 and 3 emissions data from landlords. It’s no longer a nice-to-have; it’s a condition of leasing.
Operationalizing Sustainability
Ella Monavari, GBCA:
Start with metering and monitoring. If you don’t know where energy is being consumed, you can’t improve. Combine that with clear transition plans and staged retrofits, lighting upgrades, then deeper electrification projects.
David Wright, CIM:
Technology enables scale. One CIM client now performs 2.5 billion automated checks annually, resolving ~30,000 issues in real time. That’s moving beyond “insight” to actual resolution, reducing risk and cutting cost.
Risks of Non-Compliance
Lucy Kanor, PwC:
The biggest compliance risk is lagging data. If you only measure after the fact, you can’t correct course before reporting. By 2030, companies will need to provide reasonable assurance over disclosures, auditable systems and controls must be in place well before then.
Future of Sustainable Finance
Panelists:
- Taxonomies and labels will become more prescriptive, narrowing the definition of what qualifies as “green.”
- SLLs will continue to grow, rewarding both strong baselines and credible improvement pathways.
- Independent certifications like Green Star will play a bigger role in giving financiers confidence.
Audience Poll Results
When asked where the property sector is most at risk over the next 5 years, respondents said:
- Asset resilience to climate impacts (top risk)
- Technology adoption & data readiness
- Climate disclosure compliance
Final Takeaways
Lucy Kanor, PwC:
Start early, resource realistically, and build auditable controls. Minimum compliance is okay at first, just be transparent.
Ella Monavari, GBCA:
Frameworks like Green Star provide confidence to both owners and financiers. Tenants are demanding it, so it’s becoming essential.
David Wright, CIM:
Sustainability linked finance reinforces honesty: the better you govern, the better your terms. It’s about protecting future asset value.
Closing Remarks
Moderator:
Thank you to David, Lucy, and Ella for their insights, and to our audience for joining. Please complete the post-webinar survey we want your feedback so we can continue improving these sessions.
Note this is AI-assisted, so there may be some minor transcription errors.
