2026-08-25-莱坊-From_ESG_Ambition_to_Action_A_3-Stage_Framework_for_China_Occupiers_17页_2mb

ESG Ambition to Action: A 3-Stage Framework for China Occupiers

Core Content Summary

This report outlines a three-stage Sustainability-Linked Occupancy (SLO) Framework designed to help China's corporate real estate (CRE) occupiers translate their ESG ambitions into actionable strategies. The framework is based on findings from Knight Frank's inaugural China Occupier ESG Survey, which gathered insights from 153 office occupiers across 9 industries in Tier-1 cities like Beijing, Shanghai, Guangzhou, and Shenzhen.

Main Viewpoints

• ESG is becoming a strategic factor in leasing decisions: Over 75% of surveyed occupiers consider ESG when selecting office space, with a growing emphasis on environmental and social aspects.
• There is a structural disconnect between ESG ambition and execution: Only 19% of occupiers have established ESG-related requirements for their leasing teams, and 52% lack a dedicated ESG department or representative.
• Green leasing is on the rise but still in early stages: About 19% of occupiers are currently signing or discussing green leases, indicating a growing recognition of sustainability as a long-term partnership.
• Sustainable operations are crucial for achieving ESG outcomes: Fit-out and ongoing building management play a significant role in influencing workplace culture, environmental performance, and employee wellbeing.

Key Information

1. ESG Ambition Outpaces Implementation

• ESG is increasingly integrated into corporate vision and tendering criteria.
• However, many occupiers lack the frameworks and incentives to translate ESG ambitions into building selection and operational practices.
• The survey highlights that while ESG is prioritized, its execution in real estate decisions is still limited.

2. Green Leasing Gains Momentum

• Green leases and sustainability pledges are emerging as tools to align landlord and occupier goals.
• These agreements focus on shared responsibility, data sharing, and performance tracking.
• The most common drivers for green leasing include enhanced employee wellbeing, improved corporate reputation, and cost efficiencies.

3. Sustainable Building Screening

• This stage involves assessing and selecting buildings that align with ESG objectives and operational needs.
• Key sustainability features prioritized by occupiers include:
  • Good indoor environmental quality (e.g., ventilation, air quality, thermal comfort)
  • Lifestyle and wellness provisions (e.g., fitness facilities, collaborative spaces)
  • Access to clean energy sources
  • Sustainable building certifications (e.g., LEED, WELL, China Green Building Label)
  • EV charging facilities
  • Water and waste management practices
  • Adaptation to physical climate risks

4. Regional Grid Emission Factors

• The carbon intensity of electricity varies by region:
  • North China Grid (Beijing): 0.56 kg CO₂e/kWh, 30% non-fossil energy
  • East China Grid (Shanghai): 0.57 kg CO₂e/kWh, 17% non-fossil energy
  • China Southern Power Grid (Guangzhou, Shenzhen): 0.44 kg CO₂e/kWh, 55% non-fossil energy
• Occupiers should consider these factors when selecting office locations to manage their operational carbon footprint.

5. Green Lease Provisions

• Knight Frank has identified key clauses commonly included in green leases, such as:
  • Sustainable building certifications
  • Carbon reduction and net-zero targets
  • Energy performance commitments
  • Data sharing and metering
  • Water and waste management
  • Electric mobility support
  • Climate risk resilience
  • Indoor environmental quality
  • Governance and collaboration
  • Occupier alterations and fit-out

6. Sustainable Operations

• Fit-out decisions and ongoing operations are central to achieving ESG outcomes.
• Green fit-out measures include:
  • Energy-efficient systems (e.g., photovoltaic, energy storage, and flexible load systems)
  • Enhanced ventilation and air quality
  • Water-efficient fixtures
  • Waste segregation and recycling
  • Climate risk adaptation measures (e.g., flood gates, drainage systems, backup power)

7. Challenges and Opportunities

• Barriers to green lease adoption:
  • Lack of tangible benefits (46%)
  • Insufficient landlord engagement (31%)
  • No green lease framework (28%)
• The report emphasizes the need for structured collaboration, clear governance, and practical tools to support ESG integration.

Conclusion

The SLO Framework provides a structured approach for occupiers to align ESG goals with real estate decisions. It highlights the importance of early ESG integration, collaboration with landlords, and practical implementation in building operations. As ESG reporting requirements and climate-related regulations intensify, occupiers must move from ambition to action to ensure their CRE portfolios meet evolving sustainability standards.