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NEO targets low-carbon office portfolio amid rising ESG demands

GIE L. GARCIA

By Beatriz Marie D. Cruz, Reporter

OFFICE DEVELOPER NEO Office PH is seeking to further reduce indirect emissions and waste in its properties as tenant demand for environmentally friendly workspaces grows.

“For 2026, we’re doubling down on working with our tenants to create a more sustainable community,” NEO Co-Managing Director and Chief Sustainability Officer Gie L. Garcia said in an interview with BusinessWorld last week.

Next year, the company will focus on eliminating its Scope 3 emissions, which are indirect emissions related to operations such as tenant and supply chain activities, delivery trucks, business travel, and employee commuting.

“The focus of the company right now is on how to reduce those emissions,” Ms. Garcia said. “It’s very challenging… but at the end of the day, this is also a component for you to be carbon neutral and carbon free.”

She also cited plans to enhance green lease provisions and recycling facilities.

“We’re planning on diverting our waste to recycling plants and converting it into something different. At the same time, it makes a big difference in cutting down our carbon footprint,” she said.

Ms. Garcia, who has roughly 26 years of experience in construction and property development, has led projects that helped NEO obtain certifications from local and international green building and sustainability assessors.

“I love the idea of using buildings not just as spaces, but as a way to promote sustainability and create a more livable environment for the people,” she said. “It really shows that when your personal values and your professional mission align, you can make meaningful, lasting change.”

NEO’s portfolio includes seven office buildings in Bonifacio Global City (BGC), totaling 289,000 square meters, including One/NEO, Two/NEO, Three/NEO, Four/NEO, Five/NEO, Six/NEO, and Seven/NEO.

All NEO buildings have earned 5-Star Building for Ecologically Responsive Design Excellence (BERDE) and Advancing Net Zero Philippines (ANZ/PH) certifications from the Philippine Green Building Council.

The company was also the first globally to receive the International Finance Corporation’s Excellence in Design for Greater Efficiencies (EDGE) Zero Carbon certification across an entire portfolio. It was likewise the first office developer in Southeast Asia to attain the WELL Health-Safety Rating under the International WELL Building Institute.

However, Ms. Garcia noted that NEO’s sustainability journey did not happen overnight.

“Our first building wasn’t fully green from day one,” she said.

“We believed in continuity and improvement, so instead of demolishing or starting over, we updated existing systems. That approach enabled us to gradually push the portfolio toward green standards and sustainability.”

As the world faces climate challenges, maintaining green office buildings requires adapting to evolving climate policies and sustainability standards, Ms. Garcia said.

To address this, NEO’s sustainability framework is guided by its net-zero commitment, a globally recognized pledge to reduce greenhouse gas emissions from human activities as close to zero as possible.

This aligns with the Philippines’ goal to reduce greenhouse gas emissions by 75% by 2030 under its Nationally Determined Contribution climate action plan. The country is also a signatory to the Paris Agreement, a global treaty aiming to limit global temperature rises to well below 2°C above pre-industrial levels, with an aspirational cap of 1.5°C.

The majority of NEO’s tenants — regional branches of global firms — consider green building features a key factor when selecting office space.

“If you’re green, they also have a tick mark for reporting to their regional offices. In the past, it wasn’t really a norm, but now it’s already part of due diligence,” Ms. Garcia said.

Looking ahead, she expects more property developers in the Philippines to shift toward green offices as businesses commit to reducing their environmental footprint.

“We’re seeing a big shift toward net-zero and carbon-neutral portfolios, driven by government support and private sector ESG (environmental, social, and governance) goals shared among developers,” Ms. Garcia noted.

Office developers are also increasingly prioritizing disaster resilience and community engagement to enhance tenant well-being.

“These engagements ensure that tenant employees stay in our buildings. The more they retain employees, the more likely the tenant renews their space,” she said.

NEO’s community engagement initiatives include programs aimed at improving employees’ physical and mental health and productivity, such as sporting events and talks.

Ms. Garcia also stressed that sustainability need not be costly.

She noted that sustainability is not necessarily expensive unless it is only considered in the later stages of development. For new buildings, developers must incorporate green features into their design. Developers with older buildings should first focus on reducing energy, water, and waste consumption before making larger sustainability investments, she said.

NEO is planning to construct its eighth office building in BGC.

“We will be starting excavation in the first quarter of next year,” Ms. Garcia said.

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