Guest Post by Christopher Teng, PhD, AICP

The increasing complexity of sustainability in corporate real estate has revealed the need for a dedicated leadership role focused on embedding Environmental, Social, and Governance (ESG) principles into real estate portfolios.

Introducing a Chief Real Estate Sustainability Officer (CRESO) position, which to my knowledge does not currently exist in any organization, could become the standard for driving efforts such as decarbonizing buildings, reducing energy consumption, and enhancing overall ESG performance. Given that buildings contribute to 39% of global greenhouse gas emissions¹, the CRESO would be vital for making considerable progress on sustainability.

Unlike a Chief Sustainability Officer (CSO), whose mandate spans broader, company-wide sustainability efforts including supply chain, product development, and corporate ESG strategy, a CRESO specializes in strategic, sustainable real estate-specific initiatives. Both roles should collaborate with the Vice President (VP) of Real Estate and Facilities, who oversees facilities operations and transactions, to ensure sustainability is integrated into the daily management of real estate assets.

A CRESO would not only oversee environmental goals of a company but also integrating Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives into real estate management and workplace culture, taking a comprehensive approach that prioritizes both sustainability and social equity.² In contrast, the Chief Diversity Officer (CDO) focuses exclusively on promoting DEIB across the company, ensuring compliance with anti-discrimination laws, workplace equity, and affirmative action policies. Together, these roles collaborate to align sustainability with social equity within the company’s operations.

 As corporate sustainability standards evolve, companies increasingly face regulatory pressures to meet LEED and ISO certifications, comply with frameworks like the Corporate Sustainability Reporting Directive (CSRD), and ensure transparency in ESG reporting. A CRESO would be instrumental in navigating these complexities with the CSO while ensuring that buildings contribute positively to the workforce and community.

Moreover, the CRESO would lead the charge in adopting innovative technologies, such as AI-enhanced building systems and smart data analytics, to optimize energy efficiency, reduce operational costs, and minimize environmental impact. By overseeing the implementation of green building standards and healthy building certifications (e.g., LEED, BREEAM, WELL, Living Building Challenge, and UL Verified Healthy Building Program), the CRESO ensures that the company’s real estate assets comply with climate disclosure regulations and drive sustainability leadership.

While the CRESO focuses on real estate-specific sustainability initiatives, the CSO manages broader corporate ESG strategies, and the ESG Controller is responsible for tracking and reporting ESG metrics while ensuring compliance with both financial and regulatory standards, promoting transparency and accountability in the company's sustainability initiatives.³ All three roles (i.e., CSO, CRESO, ESG Controller), in collaboration with the VP of Real Estate and Facilities, and consultation with the Chief Legal Counsel, would be essential for a company to achieve its carbon reduction goals.

This CRESO would also help position companies as leaders in corporate social responsibility (CSR), ensuring that their real estate strategies contribute to employee well-being and environmental sustainability. By creating dedicated leadership for real estate sustainability, businesses can stay ahead of regulatory demands, foster innovation, and meet the expectations of investors and stakeholders who increasingly prioritize ESG and DEIB standards. The establishment of a CRESO would be a pivotal step in advancing corporate real estate toward a more sustainable and equitable future​.

The evolving landscape of corporate real estate and sustainability demands specialized leadership that can address both the environmental and social dimensions of ESG. A CRESO would not only streamline ESG efforts but also ensure companies are prepared to navigate a rapidly evolving regulatory landscape. By focusing on long-term value creation for stakeholders, employees, and the triple bottom line—people, planet, and profit—a CRESO can drive sustainable business practices that align with both financial and environmental goals. This role is critical for balancing compliance with innovative solutions, fostering resilience in corporate real estate, and enhancing overall ESG performance.

Christopher Teng, PhD, AICP, brings over 20 years of experience in urban planning, corporate real estate, and sustainability, leading transformative DEIB and ESG strategies across healthcare, life sciences, technology, and academia to deliver impactful, resilient solutions to reduce carbon emissions while creating dynamic, collaborative work environments where people thrive and are excited to contribute.

1. Victor Fonseca, What is embodied carbon in the real estate sector and why does it matter?, March 1, 2023, https://www.gresb.com/nl-en/what-is-embodied-carbon-in-the-real-estate-sector-and-why-does-it-matter/#_.
2. Suzanne Locke,  DEI – part of the ‘S’ and the ‘G’ in ESG, July 4, 2023, https://aurora50.com/dei-part-of-the-s-and-the-g-in-esg/.
3. Wes Bricker, ESG Controller: The Position You Didn't Know You Needed, April 12, 2022, https://www.financialexecutives.org/FEI-Daily/April-2022/ESG-Controller-The-Position-You-Didn-t-Know-You-N.aspx).