_Knight Frank is leading a real estate revolution
Jackie Cheung, director for ESG at Knight Frank APAC, is at the forefront of redefining real estate’s role in building sustainable cities. From his roots in Hong Kong to his current work in Singapore, Cheung’s journey in sustainability is fueled by a deep commitment to exploring new ideas and challenging traditional paths.
“I love working in sustainability because as an open-minded individual, I prefer exploring new ideas rather than following traditional career trajectories,” he says. For him, sustainability goes beyond meeting environmental standards — it’s about making a meaningful impact on communities and driving lasting change.
“Real estate plays a pivotal role in shaping the cities of the future, acting as the foundation upon which smart and sustainable urban environments are built,” Cheung explains, asserting that real estate can be a powerful tool that shapes cities and the lives of those who inhabit them.
His vision of future cities blends technological advancements with sustainable practices: AI-driven resource management, eco-friendly materials, and vibrant, mixed-use spaces that foster community engagement.
But, Cheung insists, it’s not just about the “E” in ESG. “Sustainability in real estate is far beyond going green. The social and governance pillars are equally important,” he notes, highlighting how thoughtful design and community-centric spaces can improve lives, equity, and well-being.
The future of urban development
Knight Frank’s sustainability approach resonates strongly with Cheung’s vision, emphasising the real estate sector’s critical role in tackling global carbon emissions, which account for around 40 per cent of the total. This stark reality highlights an urgent need to adopt greener practices. Their research shows that green-rated buildings actively contribute to environmental goals while also meeting the growing demand for sustainable spaces.
This shift reflects a broader understanding: sustainability in real estate is about creating spaces that are kinder to the planet and more responsive to community needs, proving that the future of urban development is one where ethical choices and impactful design go hand in hand.
Yet, this broad view of sustainability often clashes with public perception. “The most unexpected challenge at the intersection of real estate and ESG has been the evolution of people’s perception and understanding of sustainability’s importance,” he reflects. He recounts how initial efforts to promote sustainable practices often felt abstract and disconnected from everyday life. “This disconnect often resulted in a lack of motivation to take action.”
But Cheung remains optimistic, believing that framing sustainability regarding physical risks — like extreme weather events and rising temperatures — helps bridge the gap between global challenges and personal responsibility.
“People need to take action because sustainability is no longer just a trend — it’s a necessity,” he states, pointing to the urgency of addressing climate change before it’s too late.
Real estate as a driver for social change
Knight Frank’s focus on social value adds another dimension to their ESG strategy. The company emphasises measuring the positive and negative impacts of real estate projects on communities, aiming to embed genuine social value in every aspect of their operations. Their approach includes evaluating factors like community well-being, economic benefits, and environmental sustainability, aligning with Cheung’s emphasis on the need for real estate to support broader societal goals.
The integration of social value into real estate investments is another evolving aspect that Cheung finds promising. Investors are cognisant that real estate should also focus on creating spaces that enhance community well-being beyond profit margins.
“It’s an evolving trend to integrate social value into investment decisions. Investors and occupiers are increasingly recognising that buildings and infrastructure can support both economic and social well-being,” he says.
Cheung points to the UK as a prime example of how integrating social initiatives and amenities into developments boosts both market value and community impact. “If a development integrates social amenities and initiatives, it enhances its attractiveness to investors, delivering both financial and socio-technical gains,” he explains, showing how real estate can drive broader social change.
Still, Cheung emphasises that effective leadership and governance are essential to making such sustainability aspirations a reality. He believes that every stakeholder in the real estate lifecycle — investment planning, design, occupiers, property management, and valuation — must align with sustainability goals.
“For instance, asset owners should understand the importance of ESG in avoiding the risk of stranded assets and securing a premium on their properties in the long term.”
The complexity of implementing ESG also extends to regulatory and jurisdictional challenges. Cheung highlights how ESG standards, such as the Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), and International Sustainability Standards Board (ISSB), have evolved significantly.
“The EU has a strong mandate, with countries working together to establish robust regulations, such as the EU taxonomy for classifying green assets,” he notes, emphasising the reliance of European investors on these standards.
In contrast, Asia-Pacific is more dynamic but still grappling with varying levels of regulatory strength. Cheung points out that while the region is evolving, there remains a critical need to address these differences to ensure better decision-making and mitigate long-term ESG risks.
A transformative potential
Despite the complexities, Cheung’s vision remains hopeful and forward-looking. Advances in AI are making sustainability reporting more accessible, and renewable energy technologies are increasingly integrated into everyday operations. Governments across the Asia-Pacific region are also stepping up with action plans, reinforcing that sustainability is a mainstream imperative.
As he pushes for change, Cheung’s message is clear: real estate holds the potential to transform the world, and the moment to harness that power is now. For Cheung, every building, investment, and policy decision is an opportunity to reshape our cities and reimagine urban spaces as essential elements in crafting a more equitable and sustainable future.
This mitigates, in no small way, the impacts of climate change, which include more frequent and severe weather events, rising sea levels, and other environmental challenges that directly affect human lives and livelihoods.
He is heartened as well that sustainability is no longer just the domain of environmental professionals. “Sustainability experts are now essential within companies to drive internal ESG agendas and bridge the management gap. This broadening support network means I no longer feel alone in this mission.”
This article first appeared in The Peak Magazine, October 2024 issue
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