The ESG lens on Malaysian commercial real estate.

The primary Malaysian green building rating system, jointly developed by the Malaysian Institute of Architects (PAM) and the Association of Consulting Engineers Malaysia (ACEM). GBI rates buildings across six criteria: Energy Efficiency, Indoor Environment Quality, Sustainable Site Planning and Management, Materials and Resources, Water Efficiency, and Innovation. Ratings run from Certified through Silver, Gold, and Platinum. The scheme covers new construction, existing buildings, townships, and industrial facilities.

A Malaysian green building certification managed by GreenRE Sdn Bhd, with backing from the Real Estate and Housing Developers Association Malaysia (REHDA). GreenRE assesses Energy, Water, Environment, Indoor Environment Quality, Carbon, and Innovation. The scheme is notable for including a carbon accounting component and for its adoption by major local developers. Certification levels are Bronze, Silver, Gold, and Platinum.

Leadership in Energy and Environmental Design, issued by the U.S. Green Building Council (USGBC). LEED is the dominant international green building standard and is widely recognised by multinational occupiers and cross-border investors. LEED rates buildings on Location and Transportation, Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, Indoor Environmental Quality, and Innovation. Certification levels are Certified, Silver, Gold, and Platinum. In Malaysia, LEED is primarily found in Grade A office buildings where multinational tenants specify it.

Building Research Establishment Environmental Assessment Method, issued by BRE Global (Building Research Establishment, UK). BREEAM is the longest-established green building standard globally, predating LEED. It assesses Energy, Health and Wellbeing, Innovation, Land Use, Materials, Management, Pollution, Transport, Waste, and Water. Ratings run from Pass through Good, Very Good, Excellent, and Outstanding. BREEAM certification in Malaysia is primarily sought by European institutional owners and occupiers.

Issued by the Building and Construction Authority (BCA) of Singapore. BCA Green Mark is the dominant green building standard in Singapore and is relevant to the Malaysian market in two ways: many cross-border investors and tenants operating out of Singapore are accustomed to Green Mark as a reference standard, and the Johor-Singapore Corridor increasingly requires alignment with Singapore-side green expectations. Green Mark 2021 focuses on energy and carbon performance, occupant well-being, and whole-life considerations. Ratings are Platinum, Gold Plus, and Gold.

Bursa Malaysia Sustainability Reporting

Bursa Malaysia requires all Main Market and ACE Market listed issuers to publish a Sustainability Statement in their annual report. The framework follows a materiality approach and covers three dimensions: economic, environmental, and social. Since 2022, large-cap Main Market issuers must also publish a Sustainability Report aligned with at least one recognised reporting framework. The Bursa Malaysia Sustainability Reporting Guide provides the taxonomy of indicators used by listed property companies, REITs, and developers to disclose energy consumption, water usage, waste generation, and GHG emissions.

FTSE4Good Bursa Malaysia Index

A co-branded index between FTSE Russell and Bursa Malaysia that measures the ESG performance of Bursa Malaysia-listed companies against internationally recognised standards. Inclusion requires meeting threshold scores across Environment, Social, and Governance pillars assessed by FTSE Russell using publicly available disclosures. For investors screening Malaysian commercial property companies and REITs against ESG criteria, constituent membership in FTSE4Good Bursa Malaysia is a public, verifiable signal of disclosure quality. The constituent list is published and updated semi-annually by FTSE Russell.

GRESB (Global Real Estate Sustainability Benchmark)

GRESB is the dominant global ESG benchmark for real assets, used by institutional real estate investors to assess and compare the sustainability performance of real estate funds, listed companies, and infrastructure assets. Participants submit annual responses covering Management, Performance, and Development components. GRESB produces peer-ranked scores and quintile ratings. For Malaysian REITs and fund managers, GRESB participation signals commitment to institutional-grade ESG reporting, and the benchmark is increasingly referenced by foreign institutional capital allocating to Southeast Asian real estate.