Introduction: Cities as ESG Frontlines

By 2025, more than half of humanity lives in cities. Urban centers are under pressure to deliver climate resilience, inclusivity, and sustainable growth. ESG integration is no longer a corporate checkbox, it is the operating system of smart cities. From Malaysia’s green building push to Romania’s inclusive real estate, the urban ESG story this year is about designing cities that work for both people and planet.

ESG in Smart City Planning and Real Estate

Malaysia’s Housing and Local Government Ministry announced in September 2025 that it will intensify efforts to promote green buildings, smart cities, and ESG adoption across property and facility management. This includes policies to strengthen regulatory frameworks and embed ESG into urban development.

Globally, smart cities are evolving beyond “tech-first” models. UN-Habitat’s draft guidelines on people-centered smart cities (March 2025) emphasize that technology must empower lives, protect the planet, and advance prosperity. Meanwhile, European cities are piloting ethical AI in urban governance, ensuring that smart systems respect privacy and equity.

Universal Design and Accessibility as ESG Imperatives

Accessibility is now recognized as a core ESG pillar. Sustainable universal design ensures equitable access to public spaces, regardless of physical or psychological challenges.

Singapore’s 2025 Code on Accessibility in the Built Environment introduced enhanced provisions for persons with disabilities, the elderly, and nursing mothers. This sixth revision balances stricter accessibility standards with design flexibility, proving that green buildings must also be humancentered buildings.

Case studies from Atlanta and Tokyo show how equitable design intersects with climate resilience from shaded walkways that reduce heat stress to transport hubs designed for all ages.

 Case Study: Romania’s Inclusive Real Estate Model

In October 2025, Romania’s real estate leaders convened at the Innovating Real Estate & Construction: Trends and Inclusiveness 2025 conference.  

The outcome was groundbreaking: inclusiveness, sustainability, and ESG integration are now core business imperatives.

Highlights included:

• Near-zero-energy buildings with universal design principles
• PropTech 2.0 for digitized, decarbonized construction
• Social-impact financing to support affordable housing
• 15-minute city planning to reduce emissions and improve quality of life

This model demonstrates how inclusive real estate can drive both profitability and societal value, offering a blueprint for ASEAN developers.

ESG-Linked Financing for Infrastructure Upgrades

Financing is the engine behind ESG transformation. In September 2025, CIMB Group committed to accelerating infrastructure and ESG-linked financing across ASEAN Plus Three, partnering with China Development Bank and regional institutions.

Malaysia also launched Sustainability-Linked Islamic Financing (SLF) in October 2025, embedding ESG KPIs into loans and offering SMEs access to lower-cost capital. These mechanisms ensure that urban ESG projects from smart grids to inclusive housing are financially viable and scalable.

Globally, green bonds for smart infrastructure hit US$1.2 trillion in issuance by Q3 2025, reflecting investor appetite for projects that combine climate resilience with social equity.

Conclusion: The Urban ESG Imperative

Smart cities, inclusive design, and ESG-linked financing are no longer separate conversations, they are interdependent pillars of urban resilience. Malaysia’s smart city policies, Singapore’s accessibility codes, Romania’s inclusive real estate, and ASEAN’s financing innovations all point to one truth: the cities of 2025 are being built not just for efficiency, but for equity and sustainability.

The takeaway is clear: urban ESG is the frontier where policy, design, and finance meet. The challenge now is to ensure that every project whether a skyscraper in Kuala Lumpur or a housing development in Bucharest—delivers measurable impact for people and planet.