As ESG adoption in real assets accelerates, identifying the right technology remains a complex challenge. There is no one-size-fits-all approach—ESG tools must align with a firm’s portfolio, investment strategy and data maturity. At the APREA Singapore Conference, industry experts emphasized the need for flexible, value-driven solutions.
For firms like SC Capital Partners, a private equity real estate firm managing over 60 assets across diverse classes in Asia-Pacific, agility and pragmatism in ESG strategy are essential. Unlike traditional developers with long-term investment horizons, SC Capital Partner follows an opportunistic investment strategy, where holding periods vary and assets may be divested ahead of schedule in response to market dynamics. This variability renders costly, rigid digital tools impractical, says Miak Ou, Director and Head of Sustainability at SC Capital Partners.
“Technology must align with a firm’s ESG maturity, portfolio strategy and data readiness,” says Ou. “What works for a long-term core asset might not necessarily work for an opportunistic investment with a short and unpredictable holding period.”
Firms should prioritize value-driven adoption over trends. SC Capital Partners, for instance, currently uses a structured Excel-based system – developed with consultants – as it is flexible, cost-effective, and well-integrated with current workflows. Rather than invest in proprietary tools, the firm integrates with operators’ existing digital platforms to reduce implementation risk and accelerate adoption.
The edge lies not in the tool itself, but in the ability to measure, analyse, and apply data to make better investment decisions. While digital tools enhance tenant and guest experiences, Ou notes that smart building technologies are especially impactful in sectors like co-living, student accommodation, and self-storage, where they drive operational efficiency. In hospitality, innovations like mobile check-ins and smart room controls prioritize personalization over full automation.
Among the panelists, Esther An, Chief Sustainability Officer at City Developments Limited (CDL) highlighted the importance of the built environment in contributing to a net zero carbon future. She shared how CDL has leveraged green building and energy-efficient technologies and practices to reduce operation costs without compromising on users’ productivity and comfort founded on its ethos of ‘Conserving as We Construct’ established in 1995. She pointed to rising carbon taxes and grid prices that will require businesses for deeper and greater sustainability integration and innovation. Digital tools are key to improving ESG data collation, analysis and reporting to meet the rising expectation of regulators, investors and financiers, she said.
“Applying AI to improve business operations is definitely a no-brainer,” An, said. “ The key is on how do you deploy it efficiently to achieve the desired impact? Over the past 10 years, we have been saving an average of $3 to $4 million a year thanks to the effective application of energy-efficient technologies and practices.” AI-powered facility management platforms have helped us to optimize resource use through reducing lighting, air conditioning, and manpower deployment in underutilized spaces. This approach extends to car parks and large-scale infrastructure, reducing costs and improving operational efficiency, she noted. Temperature and grid prices will continue to rise, AI and technologies application to improve performance will be critical to future-proof businesses.
The Social Pillar: A Growing Focus in ESG
While governance and environmental concerns often dominate ESG discussions, the social pillar—spanning diversity, well-being and community engagement—receives less attention. However, demand for human-centric real estate is growing, particularly in student housing and senior living. Investors and tenants increasingly prioritize inclusivity, mental well-being and social impact.
Real estate leaders must integrate social impact in ESG strategies to enhance community well-being, said Tan Szue Hann, Head of Sustainability (Real Estate), and Director of ESG Strategy (Fund Management) at Keppel Ltd. Keppel Bay Tower, Singapore’s first net-zero office building, exemplifies this with efficient air handling, smart lighting, improved air quality, and tenant engagement, boosting sustainability and long-term occupancy.
“Keppel will not just take on a new tool or a new piece of technology because it’s required, there has to be a certain efficiency in it, and there has to be a certain value that’s created as well,” Tan said.
Sustainability in Building Design and Retrofitting
Environmental responsibility is key to ESG, but real impact requires going beyond compliance. Firms must balance regulations with proactive measures like green certifications, carbon reduction and energy-efficient retrofits.
Research and development in carbon capture and nature-based solutions underscore the need for tech-driven approaches, An highlights. Singapore, in particular, faces unique sustainability challenges due to heat, land scarcity and limited renewable energy options. Rising temperatures and cooling demands require energy-efficient solutions such as adding fans to improve ventilation alongside air conditioning and adoption of paint with cooling and purifying effect.
She advocated that Nature-based solutions will be the way forward as climate crisis cannot be resolved without tackling nature crisis.
Tan cites Seoul’s INNO88 tower as a model for sustainability-driven retrofitting. New urban regulations required removing three floors, but a conscious decision was made to retain the majority of the building’s structure, leading to a retrofit that preserved 30,000 tons of embodied carbon, while cutting operational energy use by 30%, saving SGD 1 million annually. The upgrade also boosted the building’s valuation, attracting investors.
SC Capital Partners applies Building Information Modelling (BIM) across all data centre developments under its SC Zeus platform, Ou notes. BIM is critical for optimising energy use and reducing waste—both key in energy-intensive assets like data centres. While adoption in Asia remains uneven, including in Japan and South Korea, the firm has made BIM a baseline requirement to support stronger ESG and operational outcomes from day one.Tan cites Seoul’s INO88 tower as a model for sustainability-driven retrofitting. Heritage regulations required removing three floors, leading to a retrofit that preserved 40,000 tons of embodied carbon and cut energy use by 30%, saving SGD 1 million annually. The upgrade also boosted the building’s valuation, attracting investors.
The future of ESG in real estate hinges on balancing governance, social impact and sustainability. Technology drives efficiency and compliance, but the real value comes from turning data into action. As the industry evolves, ESG must stay at the forefront—ensuring profitability, resilience, and a healthier planet for future generations.
