Commercial real estate services and investment firm CBRE bolsters its sustainability efforts through the acquisition of Paia Consulting, a Singapore-based sustainable design and consulting company.
CBRE, a global real estate services and investment firm, has announced the acquisition of Singapore-based sustainability consulting firm, Paia Consulting. The move is aimed at bolstering CBRE's sustainability consulting capabilities in Asia, positioning the company at the forefront of Environmental, Social, and Governance (ESG) advisory in Singapore and across the Asia Pacific region.
The integration of Paia Consulting's expertise is expected to make CBRE one of the larger business lines in the company, following the acquisition. However, the specific reporting lines under this new arrangement remain unclear.
Growing Demand for Sustainability Consulting
Sustainability consulting is one of the fastest expanding and most demanding requirement areas that CBRE's clients are seeking, according to CBRE's advisory division president, Anshuman Magazine. The market for sustainability consulting is estimated to be worth US$14 billion, and over the last two years, the 17 largest players in the market have made at least 76 acquisitions, including the big four accounting firms Deloitte, Ernst & Young, KPMG, and PwC.
Evolving ESG Disclosure Rules in Asia
The demand for sustainability consulting services is particularly high in Asia, where ESG disclosure rules are rapidly evolving. In Japan, as of 2025, Prime Market-listed companies with significant market capitalization will be required to disclose sustainability information based on the Sustainability Standards Board of Japan (SSBJ) Standards. These standards align with the IFRS Sustainability Disclosure Standards set by the International Sustainability Standards Board (ISSB) and cover governance, strategies, risk management, and metrics and targets.
In Taiwan, all listed companies, regardless of capital size, must publish annual sustainability reports by August 31, which include industry-specific ESG disclosures, effective from 2025. These mandatory disclosures indicate a broad obligation across sectors, including real estate.
While other regions like Europe and the US are evolving their ESG disclosure frameworks, these are outside Asia and thus less directly relevant.
CBRE's Expansion in Europe and Beyond
The integration of French ESG advisory firm Green Soluce SAC, which CBRE acquired in June 2022, will likely position CBRE to expand its sustainability consulting practice in Europe. The European Union is adopting the Corporate Sustainability Reporting Directive, a legislation mandating disclosures for non-EU firms operating in the region.
The acquisition of Paia Consulting is another strategic move by CBRE to expand its sustainability consulting capabilities in Asia. The consultancy's employees will be subsumed under CBRE's existing regional ESG consulting and sustainability services team.
Carrie Johnson, founder of Paia Consulting, will stay on as CBRE's lead consultant, and Carrado Forcellati, managing director of Paia Consulting, has been appointed director of CBRE's client sustainability strategy and solutions.
Magazine emphasised that the increasing regulations on sustainability will provide an impetus for businesses. He stated, "The growing importance of ESG is undeniable, and we are committed to helping our clients navigate this complex landscape."
[1] SSBJ Standards Alignment with ISSB [2] Japan's ESG Disclosure Rules [3] Taiwan's ESG Disclosure Rules [4] Europe's ESG Disclosure Framework [5] US's ESG Disclosure Framework
- Sustainability consulting, spurred by the growing importance of ESG, is a rapidly expanding and highly demanded area for CBRE's clients, particularly in Asia, as the market is estimated to be worth US$14 billion.
- In response to evolving ESG disclosure rules across Asia, Prime Market-listed companies in Japan will be required to disclose sustainability information according to SSBJ Standards, which align with the ISSB Sustainability Disclosure Standards, by 2025.
- In Taiwan, starting from 2025, all listed companies must publish annual sustainability reports including industry-specific ESG disclosures, strengthening the obligation across sectors, including real estate.
- To expand its sustainability consulting capabilities beyond Asia, CBRE has acquired French ESG advisory firm Green Soluce SAC, positioning itself to leverage the European Union's Corporate Sustainability Reporting Directive that mandates disclosures for non-EU firms operating in the region.
