Until recently, building sustainably was largely driven by the need to comply with regulations. Today, the situation is fundamentally different. Sustainability has become central to how we think about long-term asset value, fuelling the drive for sustainable building design.
What has changed isn’t just the regulatory framework, though that’s certainly evolved. What’s changed is the commercial logic. Developers, investors and asset managers now recognise that sustainable buildings are essential to protecting and enhancing the value of their assets. Many developers are actively pushing beyond minimum compliance, not because they have to, but because they understand the direct connection between performance and value.
Most companies have made some form of commitment to net zero and with buildings accounting for around 25% of the UK’s total carbon emissions, according to the UK Green Building Council, reducing the carbon footprint of our buildings is essential. Buildings that don’t address their carbon footprint are becoming harder to let, more expensive to operate, and increasingly vulnerable as regulations tighten. They become liabilities and not assets.
Lower operational energy demand quite simply means better yields and higher asset values. When a building performs efficiently, occupiers benefit from reduced running costs, making it more attractive. That attractiveness flows through to rental income, covenant strength, tenant retention and ultimately capital values. This is completely visible throughout the market now.
There’s been plenty of cynicism around ESG, and for good reason, for too long it felt like a tick-box exercise. But that’s changed. ESG is now a genuine driver for investment decisions. Institutional investors and pension funds aren’t just asking about carbon performance, but actively prioritising assets that demonstrate resilience and long-term viability. Buildings with strong environmental credentials are securing better financing terms, attracting higher-quality tenants and maintaining their value more reliably. The market is pricing in sustainability, and it’s pricing it in positively.
For architects, this shift changes everything about where value is created. The decisions made at early design stages now have far greater commercial weight. Choices around building form, orientation, fabric performance and servicing strategies directly impact an asset’s long-term viability. Sustainable design is now all about embedding performance from the outset, which is exactly where architectural expertise should be focused.
The regulatory environment is also providing the clarity the market needs. Building Regulations and the Minimum Energy Efficiency Standard (MEES) are increasingly aligned with Net Zero objectives, and the trajectory is clear that performance expectations will keep rising. Clear regulation creates stability, and stability enables innovation. It allows architects to work proactively with clients, helping them navigate planning, secure consents and deliver buildings that will remain compliant and valuable.
There’s a growing understanding, too, that sustainability and well-being are the same conversation. Buildings designed with efficiency and occupant wellbeing at their core tend to be better buildings. They create healthier environments, align more thoughtfully to their surroundings and are more likely to hold their values. Rather than endure. This aligns sustainability with architecture’s three fundamental values of longevity, usefulness and resilience.
Ultimately, low-carbon buildings are fast becoming the baseline expectation. Clients want confidence that their investments will perform in 10, 20 and 30 years. They’re looking for leadership and expertise to navigate a landscape that’s more complex in its technical requirements, but also more clearly defined in terms of where regulation is heading and what the market expects.
The drive for sustainable buildings has never been stronger because the business case has never been clearer. Asset value and environmental performance are now entwined, which is reshaping how the industry thinks about risk, return and resilience. All those seizing the opportunity to prioritise sustainable design are reaping the highest commercial rewards.