Historic buildings shape our cities, full of character, heritage and architectural beauty. But when it comes to decarbonisation, they’re some of the hardest assets to tackle. Now, ESG (Environmental, Social and Governance) principles are creating both urgency and opportunity, reshaping how these properties are managed, upgraded, and valued in the property sector.
Preservation vs Performance: Can we have both?
One of the biggest challenges in retrofitting heritage buildings is finding the balance between improving energy efficiency and preserving historic integrity.
Traditional insulation, solar panels, or double glazing often clash with conservation rules.
But with ESG becoming central to investment decisions, property owners are under increasing pressure to prove sustainability credentials – even when retrofitting is complex.
The question is clear: how do we green historic buildings without losing what makes them special?
Risk or opportunity? ESG is changing the game
Knight Frank argues that ESG is more than a compliance box to tick – it’s redefining the risk and value in real estate.
The risk? Buildings that fail to improve could become “stranded assets”, struggling to attract tenants, meet regulations, or retain market appeal.
The opportunity? Owners who invest in smart, sensitive retrofits can boost asset resilience, attract eco-conscious tenants, and stay ahead of tightening legislation.
Innovation is key: Making heritage buildings sustainable
New materials and techniques are bridging the gap between conservation and sustainability. Historic buildings can go greener with:
Internal wall insulation – improving efficiency while keeping facades intact
Secondary glazing – upgrading windows without altering their appearance
Heat pumps – a cleaner, more efficient heating alternative
Smart building controls – optimising energy use without invasive changes
ESG isn’t just about carbon – it’s about taking a holistic approach that values:
Responsible heritage conservation
Improved indoor air quality for occupants
Low-carbon energy where possible
Sustainable, Inclusive community spaces
What next for historic buildings?
For property owners, developers, and facilities managers, the message is clear: don’t wait for regulation to catch up – get ahead now.
Commissioning energy assessments for heritage properties
Engage conservation officers early to explore retrofit options
Consider innovative retrofit tech that balances performance & preservation
Enhancing ESG reporting to showcase responsible stewardship
As Knight Frank highlights, the future of ESG in property will depend on collaboration – between heritage experts, retrofit specialists, investors and policymakers.
Historic buildings may be old, but with the right approach, they can still play a vital role in a low-carbon, sustainable future.
Story by Susy House
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