Knight Frank Malaysia Reports ESG Progress in 2024 Annual Report

• Reports 22% reduction in emissions and 27.3% cut in energy costs
• Firm says ESG initiatives have delivered competitive advantages in client acquisition and retention

Knight Frank Malaysia has released its 2024 ESG Report detailing the property consultancy’s environmental initiatives and their financial outcomes, as Malaysia prepares for new carbon tax regulations in 2026.

The firm reported a 22% reduction in Scope 2 greenhouse gas emissions compared to its 2019 baseline, achieved through relocating its Kuala Lumpur headquarters to a green-certified building and implementing various energy efficiency measures.

“Achieving a 22% reduction in Scope 2 emissions was driven by our Kuala Lumpur HQ office relocation to a green-certified building, the downsizing of our office footprint, the adoption of a hybrid work model, and targeted investments in energy-efficient products,” said Keith Ooi [pic], Group Managing Director of Knight Frank Malaysia.

The company’s approach included investments in star-rated office equipment and appliances such as LED lighting, refrigerators, pantry appliances, as well as energy-efficient printers, copiers, and multifunction devices. To address remaining emissions, the company says it offset its Scope 2 footprint in 2023 through the purchase of Renewable Energy Certificates (RECs).

Energy Costs Decrease Following Efficiency Measures

Knight Frank says its sustainability initiatives resulted in an 11% reduction in Space Energy Intensity (SEI) from the 2019 baseline, improving from 79 kWh/m²/year in 2019 to 70 kWh/m²/year in 2024, leading to a 27.3% reduction in energy costs relative to 2019.

“While we do not have a separate breakdown of the exact costs or ROI attributable solely to the energy-efficiency measures, the transition has clearly generated both environmental and financial benefits,” Ooi clarified, adding that the investment strengthens long-term energy efficiency, operational resilience, and progress towards sustainability commitments.

The company says the business impact extends beyond cost savings. “Importantly, we have observed that ESG leadership contributes to strengthening client relationships. Increasingly, clients are seeking supply chain or service providers who demonstrate a clear sustainability agenda, and our progress in this space has supported both client retention and acquisition,” Ooi said.

Implementation Faced Organisational Challenges

Ooi acknowledged that implementing ESG initiatives presented operational challenges, particularly around organisational change management.

“One key obstacle was resistance to change, as some teams were initially hesitant to adopt new processes, technologies, and sustainable practices. We overcame this through active engagement, internal training programs, and clear communication of the benefits—both environmental and operational—of these initiatives,” he said.

The firm also encountered practical challenges in achieving 100% local procurement, which presented issues around supply chain availability and cost. “We addressed this by engaging early with local suppliers, building long-term partnerships, and implementing phased procurement strategies that balanced cost-efficiency with sustainability goals,” Ooi explained.

Advisory Services Target Regulatory Compliance

With Malaysia’s carbon tax scheduled to take effect in 2026 and evolving Bursa Malaysia ESG disclosure requirements, Knight Frank Malaysia has developed its ESG Advisory Services to assist clients with regulatory preparation.

The services include gap assessments and readiness reviews to align existing practices with upcoming reporting standards, tailored roadmaps that integrate emissions reduction and governance enhancements, and training sessions to increase ESG awareness.

“Our early adoption of ESG practices has also delivered competitive advantages, helping us secure new business and retain clients. Several clients have cited our demonstrable ESG leadership and expertise in sustainable real estate as a decisive factor in choosing to work with Knight Frank,” Ooi said.

The firm is also working with industry associations and government bodies such as the ESG Association of Malaysia and UN Global Compact network to support the development of ESG standards and frameworks for other real estate firms.

Awards and Future Targets

The firm’s ESG performance has received recognition including a Silver Award in The Star ESG Positive Impact Awards and Second Runner-Up for the Outstanding ESG Award at the BMCC Business Excellence Awards.

Looking ahead, Knight Frank Malaysia says it has set ambitious targets including achieving net-zero emissions for Scopes 1, 2, and 3 by 2040, securing green building certification for corporate offices, and screening active suppliers against ESG readiness criteria by 2025.