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Climate risks and shifting occupier demand seen as top threats to asset values in 2026
Sustainability continues to play a central role in real estate investment strategies despite recent pushback around the use of ESG terminology, according to a new global survey by GRESB and MIPIM.
Conducted in late 2025 among nearly 200 industry professionals, the research found that 66% of respondents still consider sustainability core to their investment or operational strategy. Nearly half said they plan to increase efforts in 2026, while just 4% expect to do less. Investor or lender requirements were cited by 49% of respondents as the main driver of sustainability action, followed by value creation (38%) and regulation (29%).
The survey also highlighted climate risk and occupier demand shifts as the most significant threats to asset values in 2026, each named by around 40% of participants. Physical risks such as flooding, heatwaves and wildfires are increasingly seen as near-term challenges.
However, capital and ROI concerns remain the biggest obstacle to improving climate resilience, with 64% identifying them as a key barrier, far higher than a perceived lack of urgency (30%).
Nicolas Boffi, MIPIM Director, said: “Despite significant structural challenges around viability and a rapidly changing geopolitical climate, our delegates are telling us that sustainability remains as important as ever. Investor and lender requirements are driving ESG strategy, even if they no longer call it that, and access to capital increasingly depends on credible performance. Cost concerns remain a hurdle, which is why MIPIM 2026 will see sustainability play a leading role across our programme.”
Chris Pyke, Chief Innovation Officer at GRESB, added: “The conversation around sustainability may be shifting, but the underlying investment drivers haven’t changed. This survey shows that sustainability remains central for most investors and managers, because it’s tied to risk management, asset value, and access to capital.”
The findings will be explored at MIPIM 2026 in Cannes, including through GRESB’s “Net Zero Reality Check” session and the Road to Zero platform, which focuses on the financial case for decarbonisation and resilience.