An delivering her presentation at the Asia ESG Summit 2025. —AZMAN GHANI/The Star
CITY Developments Limited (CDL) chief sustainability officer Esther An recalled a time when one would roll their eyes at the thought of green buildings, claiming that it was too costly. But backed by her extensive experience, she said green infrastructure can have a positive return on investment.
Speaking at this year’s Asia ESG Summit, she pressed that it is high time that businesses make a shift towards sustainable practices.
In this year’s World Economic Forum Global Risks Report, extreme weather events rank as one of the top threats facing the planet, second only to armed conflict. In the same report, climate-related risks are projected to dominate half of the world’s most critical concerns in the next ten years.
The harsh reality is that, according to the Global Tipping Points report, at the current rate of global warming, Earth is heading towards a critical threshold that can cause irreparable damage.
An noted that the Amazon rainforest, once dubbed a carbon sink, is now releasing more carbon than it absorbs due to deforestation and climate change.
“And that is scary,” she commented.
The price tag on nature conservation
The private sector needs to seriously consider climate mitigation strategies to protect its business interests.
An warned that if the current rise in temperature continues, half of the gross domestic product could be lost by the end of the century.
“This year we started with the LA (Los Angeles) fires, which is quite frightening and I have a friend who actually lost a house there just in front of her own eyes,” she recalled.
An added that the property sector is aware that insured losses for assets are a very serious matter.
On top of that, An said that the property industry is not a sustainable industry, but as a result, it is in the best position to take strides into exploring the best way to reduce its carbon footprint and make a difference in the industry.
The four ‘I’s of ESG implementation
An proposed a framework for implementing sustainability strategies based on CDL’s years of experience. She broke it down into four factors, namely, innovation, integration, investment and impact.
Firstly, investment is key because it acts as the basis for all climate initiatives, An said.
Noting that innovation and technology investments need funding, she said a company without sufficient resources would not be able to implement measures to decarbonise its building, even if it posseses the most advanced and efficient technology.
An has found that investors are keen on financing ESG. She said the expansion of green bonds shows that financiers are growing more appreciative of companies that are committed to environmental efforts. Investors are not shying away from ESG endeavours.
“So, we have hope. We have capital. We have resources,” she said.
The integration of internal and external stakeholders is vital to ensure that the sustainability efforts can make effective and meaningful change.
All members of the company must be on board with the ESG cause. She also highlighted that small and medium enterprises (SME) are an integral component in ensuring that the initiatives implemented can make a difference across the whole value chain.
Nature-based solutions need to be innovative. An noted that stakeholders should explore new avenues of sustainability and not allow themselves to be stuck in the same old solutions.
Lastly, the impact of all the strategies must be reported in terms of financial value, environmental value and the effects on the people in the network, she said.
She shared that CDL published its first sustainability report in 2008, long before there was any external pressure to do so.
“I’m a big fan of sustainability reporting, because it involves an annual medical check of your ESG performance, identifying gaps and also identifying areas that you can improve,” An said.
She added that bankers do appreciate sustainability reports and would take them into account when offering financing.
An drove the point home by illustrating the ways that green financing can create financial gain for businesses.
She said that green strategies have given companies better premiums on insurance, access to sustainability-linked loans and green bonds.
Besides that, green buildings have reported higher rental returns and better occupancy rates.
“We are moving forward, especially among Asian corporations and we put priorities on sustainability because we need to future-proof our business.
“When we pull back, there is a threat to our branding, to the resilience against physical and transition risks,” An said about the necessity of nature-based solutions for businesses.
