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04/12/2025
Currently, more than 90% of Grade A office spaces in Singapore are green-certified, giving businesses a wide range of options.
Singaporean businesses often relocate their office spaces as their operational needs change, especially when their workforce expands. Recently, another key driver behind many companies’ decision to move headquarters is the need to meet green building criteria.
Currently, more than 90% of Grade A office space in Singapore is green-certified, providing companies with a wide array of choices.
After four decades based at the Hong Leong Building in Raffles Place, Singapore’s financial district, in 2022 the local branch of auditing firm KPMG decided to relocate its headquarters to Asia Square Tower 2, just a short walk away.
According to Pang Thye, Managing Partner of KPMG Singapore, the company was able to cut its carbon footprint by 50% after moving. This was achieved through measures such as reducing leased floor space, cutting electricity consumption by using motion-sensor lighting, and installing energy-efficient equipment.
Alan Cheong, Head of Research and Consultancy at Savills Singapore, noted that the trend of companies moving into newer buildings with higher Environmental, Social and Governance (ESG) ratings began early in the Covid-19 pandemic in 2020.
So far, not many multinational corporations in Singapore have relocated because most office leases will not expire until 2025 or 2026.
However, an increasing number of companies are prioritizing ESG policies, especially as hybrid work models allow for greater flexibility in workplace strategy, said Jery Teoh, Co-Head of Commercial Leasing Advisory at the Singapore branch of Cushman & Wakefield (USA).
As a result, with the same budget as before, many businesses can now afford to lease smaller spaces in higher-quality new office buildings that comply more effectively with ESG standards.
Lê Linh (According to Business Times)
