Asia’s green building movement is no longer just a sustainability story; it has become a business imperative.

A recent World Green Building Council ( WorldGBC ) report, A Changing Business Case, confirms what many forward-looking investors have long suspected: certified green buildings across the Asia-Pacific region are now consistently outperforming their conventional peers.

According to the report, green-certified buildings in the region command rental premiums of up to 11%, report energy savings between 20% and 60%, and show greater resilience to climate risks.

Combined with a surge in green finance, over US$670 billion in green bonds were issued in 2024 alone, the message is that smart, sustainable real estate assets are fast becoming the gold standard not only for resilience but also for returns.

Financial institutions are responding in kind. Singaporean lenders, including DBS, OCBC, and UOB, are incentivizing commercial real estate decarbonization through sustainability-linked loans ( SLLs ).

These green financing instruments reward borrowers with interest rate reductions when buildings meet emissions reduction or energy efficiency targets. DBS, for instance, has structured loans tied to BCA Green Mark Platinum certifications, while UOB links loan margins to reductions in electricity use per square metre.

Increasingly, these loans are being applied not only to new developments but also to retrofitting older assets, supporting national goals such as Singapore’s own push to green 80% of its building stock by 2030.

Digital twin technology

What’s making these financing tools more robust, and more bankable, is the rapid advance of technologies that quantify carbon performance at the asset level. Smart meters, sensor-enabled heating, ventilation, and air conditioning ( HVAC ) systems, and AI-driven building management platforms now provide real-time data on energy use, air quality, and emissions.

Emerging digital twin technology ( the creation of virtual replicas of physical objects or processes ) now allows developers and operators to simulate decarbonization strategies virtually, identifying energy-saving measures before implementation. Meanwhile, satellite and remote sensing tools are enhancing emissions verification, allowing investors to measure, and price, the sustainability performance of their portfolios with increasing accuracy.

One of the firms advancing this technology is Hong Kong proptech firm Vision Zero Connect ( VZC ), which focuses on commercial real estate performance.

The company has recently appointed Piers Brunner, former CEO of global real estate consultancy Knight Frank Greater China, as a non-executive director for Hong Kong as it accelerates regional expansion.

At the centre of its offering is Portfolio One, a digital platform that helps building owners and operators automate energy tracking, receive real-time fault alerts, and benchmark performance against global standards such as BREEAM ( a leading sustainability rating system ) and CIBSE ( a building services engineering authority ).

Demonstrable financial upside

Crucially, the platform integrates with existing infrastructure, helping asset managers boost operational efficiency without the cost and disruption of full retrofits. One client reportedly cut annual energy bills by over US$16,000 by improving visibility into building performance. Another saw a 13% drop in energy waste using the platform’s seasonal adjustment tools. At a third client site, downtime fell by 32% after deploying automated alerts through Portfolio One’s integration with the building management system.

“I’ve seen firsthand how real estate players across Asia are under pressure to deliver ESG results, not just talk about them,” says Brunner. “Our digital offering delivers measurable, cost-effective impact. This is where the industry is heading.”

Clearly, the convergence of regulation, investment, and digital infrastructure is rapidly reshaping the commercial real estate sector. The WorldGBC report notes that green buildings now deliver not only environmental sustainability but also financial outperformance. And with rising investor scrutiny and more rigorous disclosure frameworks, owners of underperforming assets face a growing risk of value erosion and regulatory exposure.

The challenge, often, is perception. Many asset owners still associate sustainability with large upfront capital costs. But that view is shifting.

“We’re not telling clients to rip out systems and start from scratch,” explains Peter Dampier, managing director for Asia at VZC. “We’re giving them the tools to optimize what they already have, across energy, emissions, comfort, and compliance. That’s the future.”

With data-led solutions now offering demonstrable financial upside, firms like VZC are finding opportunities in the space between regulation and innovation. And as performance targets tighten and expectations from tenants and capital markets rise, green building is proving to be more than a sustainability option. It’s a smarter choice – strategically, operationally, and financially.