Although it used to be handled as a “grudge purchase” by some developers and commercial real estate (CRE) investors – particularly in the days pre-dating our current understanding of the climate crisis – environmental, social and governance (ESG) is of increasing importance as a business consideration. For ESG advocates (and future generations), the shift in thinking couldn’t come soon enough. The Aeon report further cites research that finds “global real estate investors found that 93% of investors now include ESG criteria in investment decisions, while 83% have seen an increase in investor demand for sustainability disclosure. The change is happening on both sides of supply and demand, the report says. “ESG-compliant real estate assets,” the report authors explain, “attract lucrative, discerning tenants who are increasingly seeking efficient, healthy, and green-certified buildings”. Even factoring in higher development and operating costs, the report includes case studies showing how developments implementing sustainable technologies attract higher rental income and result in net higher cash flows for distribution. Of course, ESG is also a key matter for CRE environmental risk management. Property owners and investors must be forward-thinking in terms of the climate-change risks a certain site, city, or development will face.Amid all the bad news of 2022, at least we can chalk this one up for the positive column: Not only is implementing solid ESG principles now considered a business imperative, it can also be an opportunity and value-add for CRE around the world.