ESG and Your Office Space: What Businesses Should Know in 2025

Environmental, social and governance (ESG) criteria are no longer a tick-box exercise. It’s a key part of how organisations are assessed by investors, landlords, employees, and customers. And increasingly, it’s influencing decisions around office space.

We’ve seen a clear shift; businesses want to make smarter choices about the spaces they occupy. Not just because it looks good on paper, but because it makes sense for long-term performance, culture and reputation.

So, what does ESG really mean in the context of your office?

When people talk about ESG in real estate, it’s usually environmental factors that dominate. That’s understandable, but it’s only part of the picture.

Environmental: Think energy-efficient buildings, low-carbon fit outs, smart lighting, and materials that aren’t just cost-effective but also sustainable.

Social: Covers everything from how your office supports employee wellbeing to how inclusive and accessible your space is. That includes natural light, space planning, quiet zones, breakout areas and beyond.

Governance: Often overlooked, but crucial. It’s about how responsibly your office decisions are made, from procurement processes to how your lease terms reflect your growth strategy.

Each one plays a real role in how your team performs and how your business is perceived.

Landlords are under increasing pressure to upgrade buildings or risk losing tenants. In London, this has created a divide between spaces that meet modern ESG expectations and those falling behind.

From stricter EPC regulations to a growing demand for BREEAM or WELL-certified buildings, the bar is higher than ever. And that has a direct knock-on effect for occupiers.

A building’s ESG performance can influence the quality of your working environment, how your brand is perceived, and even your ability to attract and retain talent. It also plays into future costs, especially if you’re committing to a long lease in a building that may need upgrades later.

This is where early advice makes a difference. Our tenant rep team helps businesses assess ESG factors at search stage, weighing them up alongside rent, location and lease flexibility.

You don’t need a shiny new building to align with ESG goals. The way your office is designed and delivered plays a huge role, and it’s often a more practical route to change.

For some clients, that means upgrading the efficiency of an older space. For others, it’s about creating a more inclusive and adaptable layout that reflects how their teams actually work.

Our in-house design and build team often works on refurbishments where ESG thinking is baked in from the start. That might include biophilic elements, improved ventilation, sustainable material choices, or simply designing a space that allows people to do their best work.

While larger companies are able to absorb the cost of occupying ESG-accredited buildings, smaller businesses are often more budget-conscious, and rightly so. But that doesn’t mean ESG needs to be left off the table.

Here are some practical, lower-cost ways SMEs can incorporate ESG thinking into their office decisions:

1. Choose better buildings, not necessarily the best-rated

You might not have the budget for a brand new BREEAM Outstanding space but you can prioritise buildings with a decent EPC (C or above) or responsible landlords who are actively investing in upgrades. A trusted broker can help guide those conversations.

2. Reuse, repurpose, rethink

During a fit out or light refurbishment, ask your design team what can be reused or sourced more sustainably. Desks, flooring, partitions — many materials can be repurposed or sourced second-hand without compromising on quality.

3. Design for flexibility

Creating a space that adapts with your business reduces waste long term. Modular furniture, non-permanent partitions and flexible layouts can evolve with your team, and save on future redesign costs.

4. Focus on people-first improvements

You don’t need to overhaul everything. Small tweaks like better lighting, quiet focus areas or improved air quality can make a huge difference to your team’s wellbeing, and reflect ESG values in action.

5. Be transparent with your team

Even if you’re not in a high-spec building, being open about your ESG intentions, and involving your team in decision-making, can build trust and engagement. It also helps embed purpose into the everyday.

Whether you’re renewing a lease, planning a move, or rethinking how much space you really need, ESG should be part of the conversation.

It doesn’t have to be overwhelming or expensive. But it does require knowing what to look for — and having the right people on your side to guide that process.

If you’re thinking about how your office fits into your broader ESG goals, we’re always happy to offer advice.