ESG and regulatory reforms reshape UK commercial property sector

Environmental, Social, and Governance (ESG) considerations are increasingly influencing the commercial property sector. ESG has transitioned from a mere compliance requirement to a fundamental element of risk management, investment decision-making, and long-term portfolio strategy.

A key driver of this shift is the UK Government’s reform of the Energy Performance of Buildings (EPB) regime. Following a consultation response in March 2026, new regulations will introduce a new generation of Energy Performance Certificates (EPCs) designed to provide more meaningful data on building performance, supporting the UK’s Net Zero objectives.

Furthermore, climate change due diligence is becoming a business-critical component of property transactions. Industry research suggests that climate risk information is now viewed by professionals as being as vital as traditional due diligence factors when assessing assets and managing portfolio risks.