Savills launches Energy & Sustainability Management department to meet growing demand for green properties

Savills Singapore has announced the launch of the Energy & Sustainability Management (ESM) department to meet the increasing demand for green properties. The department is led by Samuel Han and will provide bespoke energy and sustainability-related solutions to building owners, occupiers, and real estate investors who are looking to reduce operational costs and embodied carbon footprint while maintaining asset relevancy.

The establishment of the ESM department comes in response to the rising public awareness of sustainability, as well as the implementation of Singapore’s Green Plan 2030 to achieve net-zero carbon emissions.

According to Savills Q4 2022 Office Leasing Report, the new mandate for multinational tenants to comply with the ESG standards of their respective country of origin has resulted in increased demand for green-rated Grade A offices. Savills foresees a 2% year-on-year (YoY) increase in overall gross rent for its basket of CBD Grade A offices in 2023 due to the following three factors: continued trend of shareholders and clients placing greater emphasis on sustainability, the continued growth of family offices setting up in Singapore and inflation working its way through the service charge component.

Samuel Han, Energy and Sustainability Lead of Energy & Sustainability Management, Savills says, “Whilst many asset owners, occupiers and real estate investors feel the urgency and demand for green properties, they may not understand how to get there. Our goal is to be their choice consultant to take them step-by-step to green their properties and achieve their sustainability targets. We drive progress through sustainable solutions and securing our tomorrow.”

"Since many companies operate in vertical silos or separate entities, embedding sustainable practices horizontally across regions and silos can be challenging. Often this starts with education, but leadership and a diplomatic approach are essential to ensure compliance while securing ‘buy in’ from different business units," comments Sam Crispin, Regional Head of Sustainability and ESG at Savills Hong Kong.

“Landlords should consider introducing green leases, which can promote mutually beneficial energy saving and waste reduction in collaboration with tenants. In much of Asia, the reality is that green leases may not be included in the legal documentation at all but be part of a voluntary arrangement between landlord and tenant. A more collaborative approach to landlord/tenant relations is important for both in meeting ESG goals," Crispin adds.

Marcus Loo, CEO of Savills Singapore said: "With ESM onboard, Savills is empowered with more capabilities to provide a full suite of services to our clients both local and overseas. ESM will be complementary to our other business lines as asset owners across multiple asset classes continue to grapple with challenges to reduce their carbon footprint and enhance value of their asset in today’s world. This fits into Savills’ broader strategy to expand service offerings to meet the increasingly complex and varied demands of our clients.”

Samuel Han, Energy and Sustainability Lead of Energy & Sustainability Management, Savills has close to 10 years of direct hands-on experience in the sustainability management industry. Samuel is a certified Leadership in Energy and Environmental Design (LEED) Green Associate, Green Mark Accredited Professional (GMAP), and Singapore Certified Energy Manager (SCEM). His experiences include advising and assisting clients in end-to-end retrofitting services, Green Mark consultancy, design and deployment of energy monitoring systems, detailed gap analysis for efficiency opportunities, and energy audits.

Savills' commitment to ESG and sustainability is evident in its mission to connect more people with green properties. By providing energy and sustainability management solutions, Savills is helping its clients to achieve their sustainability goals and contribute to a more sustainable future, in line with the implementation of Singapore’s Green Plan 2030 to achieve net-zero carbon emissions.