Environmental systems such as the Green Star rating, commercial EPC scores, GRESB and NABERS have been created to encourage building owners, operators and tenants to improve sustainability and make sure the built environment plays its part in curbing climate change.
With the sector being one of the largest contributors to climate change – producing over 30% of global greenhouse gas emissions, it’s a smart strategy for Government agencies to engage with the industry.
As well as helping building owners learn how to make a commercial building more energy efficient and deliver significant positive impact to our built environment, there are significant financial benefits to achieving strong ratings. Tenants are increasingly only looking to lease space which can prove its green credentials and more sustainable real estate portfolios can often get access to cheaper capital.
Below we answer many of the initial questions that you’re likely to have regarding the Green Star rating system and the benefits. You can skip to a specific question by clicking on it below:
History of Green Star rating system
What are the Green Star Categories?
Purpose and Significance of Green Star
How are projects assessed for certification?
What is the Green Star rating scale?
What are the benefits of Green Star Certification?
What is a step-by-step process for becoming a Green Star certified?
How long does a Green Star rating last?
Are there fees for obtaining a Green Star rating?
What's included in the Certification Fee?
Where is the Green Star rating required?
What is the difference between Green Star and NABERS?
How can building analytics improve your Green Star rating?
Brief History and Development of the Green Star Rating System
The Green Star Rating System was launched in Australia in 2003 by the Green Building Council of Australia (GBCA). It was created in response to a growing need for a unified, national standard that could evaluate the environmental performance of buildings. Drawing inspiration from international rating tools like the UK's BREEAM and the US's LEED systems, Green Star was tailored to address the specific environmental, climatic, and regulatory conditions of Australia.
The development of Green Star involved extensive collaboration with industry experts, government agencies, and academic institutions. This collaborative approach ensured that the rating system was both rigorous and practical, enabling it to gain widespread acceptance within the industry. Over the years, Green Star has undergone several updates to reflect advancements in technology, changes in building practices, and evolving sustainability goals. The system has expanded its scope from commercial office buildings to include retail centers, schools, hospitals, industrial facilities, and residential communities.
Recognizing the success of Green Star in Australia, the New Zealand Green Building Council (NZGBC) adapted the system for use in New Zealand in 2007. The adaptation considered local conditions and requirements, ensuring relevance and effectiveness in promoting sustainable building practices within the New Zealand context.
In 2021, the Green Building Council of Australia (GBCA) launched the Green Star Buildings tool, a next-generation rating system designed to drive the transformation of the built environment towards net-zero carbon emissions. By 2023, this tool has been increasingly adopted for new projects, reflecting a shift towards more ambitious sustainability targets.
Key features:
- Carbon neutrality focus: Emphasizes designs that achieve net-zero carbon emissions in operations.
- Health and wellbeing: Incorporates measures to enhance indoor environmental quality for occupants.
- Resilience and adaptation: Encourages designs that are resilient to climate change impacts.
What is a Green Star rating?
Green Star is a voluntary sustainability rating system designed to encourage the construction and maintenance of green buildings. Its criteria extend beyond simple energy efficiency, encompassing a broad range of sustainability issues that include water efficiency, indoor environmental quality, materials selection, and the building's impact on its surroundings. By evaluating these areas, Green Star provides a holistic view of a building's environmental attributes and performance.
Managed by GBCA, Green Star certification involves a formal process where ratings are assessed by an independent, third-party assessor.
While less intensive than the NABERS process, the Green Star rating is set to add to the ongoing peer pressure within the industry to provide energy efficient (read: carbon emission corralled) buildings. Its government managed system gives a level of kudos that tenants of the future are likely to not only look for – but demand.
What are the Green Star Categories of Assessment?
The Green Star rating system evaluates buildings across several key categories:
- Energy Efficiency: Measures how effectively a building uses energy, encouraging designs that reduce consumption and reliance on non-renewable energy sources.
- Water Conservation: Assesses strategies for reducing water usage and promoting efficient water management systems.
- Indoor Environmental Quality: Examines factors that affect occupant health and comfort, such as air quality, lighting, acoustics, and thermal conditions.
- Materials Selection: Evaluates the use of sustainable, recycled, or low-impact materials in construction.
- Land Use and Ecology: Considers the project's impact on local ecosystems and promotes biodiversity.
- Emissions: Addresses the reduction of pollutants and greenhouse gas emissions.
- Innovation: Rewards projects that implement innovative sustainable practices beyond the standard criteria.
Purpose and Significance of the Green Star Rating
The primary purpose of the Green Star Rating System is to drive the transformation of the built environment by promoting practices that reduce the environmental impact of buildings, improve occupant health and wellbeing, and achieve greater economic efficiencies. By providing a clear framework and set of benchmarks, Green Star encourages developers, architects, engineers, and builders to integrate sustainability principles into every stage of a building's lifecycle—from design and construction to operation and maintenance.
In the construction industry, Green Star serves as a powerful tool for innovation. It challenges industry professionals to think creatively about resource efficiency, energy use, water conservation, indoor environmental quality, and material selection. Achieving a Green Star rating often requires collaboration across disciplines, fostering a culture of sustainability that extends beyond individual projects to influence broader industry practices.
For the real estate industry, Green Star-certified buildings offer significant market advantages. They are increasingly sought after by tenants and investors who recognize the benefits of sustainable buildings, such as lower operating costs, enhanced occupant comfort, and reduced environmental footprint. Green Star ratings provide a transparent and credible measure of a building's performance, helping buyers and lessees make informed decisions.
Moreover, Green Star plays a crucial role in meeting global and national sustainability targets. By setting high standards for environmental performance, it contributes to the reduction of greenhouse gas emissions, supports the transition to a low-carbon economy, and promotes sustainable urban development. Governments and local authorities often reference Green Star in policy-making and incentives, further embedding its principles into the fabric of the industry.
In essence, the Green Star Rating System is more than just a certification—it's a catalyst for change. It signifies a commitment to environmental stewardship, social responsibility, and long-term economic viability. As sustainability becomes an increasingly central concern, Green Star provides the tools and inspiration necessary for the construction and real estate industries to build a better, greener future.
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How are projects assessed for certification?
After officially registering your project with Green Star, there is a range of documentation requirements you’ll need to complete and submit to demonstrate that your building, fit out or community meets Green Star's sustainability benchmarks with our submission guidelines.
These submissions are then reviewed by an independent panel of sustainable development experts and an overall score and star rating is assigned.
Operational performance is assessed against nine environmental impact categories. These include management, indoor environment quality, energy, transport, water, materials, land use and ecology, emissions and innovation.
The process typically has two rounds of assessment, taking an estimated 10 weeks to complete.
As with the NABERS program, CIM has the experience and skill to assist and streamline the certification process, with data analytics from our PEAK platform easily providing rich data from your building.
What is the Green Star rating scale?
The Green Star rating scale ranges from 1 Star to 6 Stars, each signifying a different level of achievement in sustainability:
1 Star Green Star – Minimum Practice
Represents minimum standards of sustainability within the industry.
2 Star Green Star – Average Practice
Indicates that the project meets average industry standards for environmental performance.
3 Star Green Star – Good Practice
Reflects good practice, exceeding standard industry benchmarks in sustainability.
4 Star Green Star – Best Practice
Signifies that the project has achieved best practice standards in sustainable design and construction.
5 Star Green Star – Australian Excellence
Denotes Australian excellence, showcasing advanced sustainable practices and innovations.
6 Star Green Star – World Leadership
Represents world leadership in sustainability, setting new benchmarks for the industry globally.
What are the benefits of Green Star certification?
Obtaining a Green Star certification for your commercial property offers numerous benefits, including:
- Enhanced marketability and differentiation in a growing market that increasingly values sustainability
- Increased water and energy efficiency, leading to lower operating costs and potential savings
- Improved indoor environmental quality, promoting the health and well-being of occupants
- Compliance with environmental regulations and reduced environmental impact
- Opportunities for innovation and continuous improvement in sustainable building practices
- Simpler, streamlined environmental reporting, as Green Star has been specifically designed to align with leading frameworks, including the UN Sustainable Development Goals, GRESB, IPCC recommendations and the Task Force for Climate Related Financial Disclosure.
For more information on environmental reporting frameworks, check out our blog: “Navigating ESG reporting frameworks: TCFD, SASB and CDP explained”
What is a step-by-step process for becoming Green Star certified?
The Green Star certification process involves a comprehensive approach to evaluating the sustainability aspects of building projects, encompassing design, construction, and operational phases. Here's a step-by-step guide based on insights from the Green Building Council of Australia (GBCA) and the provided knowledge sources:
Step 1: Register the Project
- Initiate the Certification Process: Start by registering your project with the Green Building Council of Australia (GBCA). Provide preliminary project details to establish the scope of the certification.
Step 2: Documentation Preparation
- Gather Documentation: Collect all necessary documentation that demonstrates compliance with the Green Star rating system's criteria. This includes detailed designs, specifications, and strategies for sustainable construction and operation.
Step 3: Submission for Assessment
- Submit for Design Review (If Applicable): For projects seeking Design & As Built certification, submit design documents for review during the design phase. This step is crucial for identifying any gaps or areas for improvement early on.
- Final Submission: Once the project is nearing completion or operational, compile and submit the final documentation evidencing compliance with all relevant Green Star credits.
Step 4: Assessment and Clarification
- Assessment by GBCA: A GBCA-appointed assessor will review the submitted documentation to evaluate the project’s adherence to Green Star criteria.
- Clarifications and Additional Information: The assessor may request further information or clarifications. Be prepared to provide additional documentation or evidence as needed.
Step 5: Certification
- Receive Rating: Upon successful assessment, the project is awarded a Green Star rating, ranging from Certified to 6 Star Green Star, based on the number of points achieved across various sustainability categories.
- Certification and Plaque: The GBCA issues a formal certification document and a plaque that can be displayed on the premises to publicly acknowledge the achievement.
Step 6: Public Announcement
- Promote Your Achievement: Utilize the Green Star certification in marketing and communications to highlight the project’s commitment to sustainability. This can enhance the building's marketability and appeal to tenants and investors who prioritize environmental responsibility.
Continuous Improvement
- Operational Certification (If Applicable): For ongoing operations, consider pursuing the Green Star – Performance rating to maintain and improve the building’s environmental performance over time.
Additional Steps for Specific Projects
- Custom Solutions for Unique Projects: For projects with unique characteristics or innovative features, the GBCA may offer tailored advice or pilot credits to ensure the Green Star rating system appropriately evaluates the sustainability initiatives in place.
How long does a Green Star rating last?
A Green Star rating lasts three years and 90 days after the date of the Performance Rating certificate. Yearly reviews are required in order to maintain a Green Star – Performance rating. Before the certified rating expires, the applicant can re-register and certify the project, to obtain an updated certified rating on the project.
Are there fees for obtaining a Green Star rating?
Yes, a certification fee applies to projects pursuing a Green Star certified rating and covers the standard Green Star certification process. The fees vary for each applicant, and are based on the rating tool as well as the GBCA membership status of the applicant. For a full list of fees based on membership status, visit the GBCA website.
What’s included in your Certification Fee?
The following items are included:
- The standard certification services from GBCA
- Access to a technical coordinator for your project
- The certification certificate
- Licence to use the certification trademark once certified, to promote your project
- A decal recognising the Green Star certification for use in your building, precinct or fit-out for ratings 4 star and over.
Where is the Green Star rating required?
Australia
1. Australian Capital Territory (ACT)
- Government Buildings: The ACT Government mandates that all new government office buildings achieve a minimum of 5 Star Green Star – Design & As Built rating.
- Public Facilities: New public schools, hospitals, and major refurbishments may also be required to meet specific Green Star ratings as part of government policy.
2. New South Wales (NSW)
City of Sydney:
- Commercial Developments: Developments over 5,000 square meters are required to achieve a minimum 5 Star Green Star rating under the city's planning controls.
- Residential Developments: Large residential projects may need to align with Green Star criteria as part of development approvals.
State Government Projects:
- The NSW Government's Sustainable Design Guidelines often require new government buildings and significant refurbishments to achieve at least a 4 or 5 Star Green Star rating.
3. Victoria
City of Melbourne:
- Planning Scheme Amendment C376: Certain precincts and large developments are required to meet sustainability outcomes equivalent to a minimum 5 Star Green Star rating.
Victorian Government Projects:
- New government buildings are generally required to achieve a minimum of 5 Star Green Star rating as per the Government's Sustainable Building Guidelines.
4. Queensland
Brisbane City Council:
- Sustainable Development Policy: Large developments may be required to meet sustainability criteria aligning with Green Star ratings as part of the development approval process.
State Government Buildings:
- The Queensland Government often requires new public buildings to achieve a minimum of 4 or 5 Star Green Star ratings.
5. South Australia
Government Projects:
- The South Australian Government mandates that new government-owned commercial buildings attain at least a 5 Star Green Star rating.
6. Western Australia
Government Buildings:
- The Western Australian Government may require Green Star certification for new public buildings and major refurbishments, typically aiming for a minimum of 4 or 5 Stars.
New Zealand
1. Auckland Council
Sustainable Building Requirements:
- While not explicitly mandating Green Star certification, Auckland Council requires large developments to meet sustainability standards closely aligned with Green Star criteria.
- Developers may need to demonstrate consideration of Green Star certification in their resource consent applications.
What is the difference between Green Star and NABERS?
The key difference between the two programs is that Green Star rates the design of the building (both at the conceptual and at the 'as built' stages) while NABERS rates the effectiveness of the operation of the building (after it is built and is operational).
Regardless of which system you choose to pursue – or both, the ultimate prize comes from ensuring you have a resource-efficient and environmentally responsible building. CIM can power this with data-driven insights to maximise operational efficiency and rapidly reduce energy consumption across building portfolios.
Peak performing buildings with smaller carbon footprints achieve better sustainability ratings, meet their environmental, social and governance goals, and deliver long-term value to shareholders and tenants.
Assisting you secure a value adding internationally recognised environmental rating aside, CIM empowers owners and operators to maximise the efficiency and effectiveness of their portfolio to improve asset value, tenant comfort and sustainability.
Note that the Green Star – Performance and NABERS are both aimed at assessing the operational sustainability of buildings, yet they still have distinctive focuses and methodologies that cater to various aspects of building performance and sustainability goals within the Australian context.
For more information on NABERS vs Green Star, check out our blog: “How NABERS, GRESB and Green Star work together”
Where does building analytics come in?
The use of building analytics software, such as CIM’s innovative PEAK Platform, can support building owners in obtaining a higher Green Star rating by providing valuable insights, data analysis, and proactive management of building performance. Here are some ways in which building analytics software can contribute to achieving a higher Green Star rating:
- Real-time monitoring: PEAK continuously monitors and analyses energy consumption, water usage, indoor environment conditions, and other key performance indicators in real-time. This instant visibility into building performance allows owners to promptly identify inefficiencies or building faults and optimise overall performance.
- Fault detection and diagnostics: PEAK automatically detects deviations from optimal performance and identifies equipment or system faults. By pinpointing issues such as malfunctioning equipment, inefficient operations, or excessive energy use, building owners can take immediate action to rectify them. This proactive approach improves energy efficiency and performance, positively impacting the Green Star rating.
- Predictive maintenance: Leveraging advanced machine learning algorithms, PEAK can predict equipment failures or performance degradation. Early detection of potential issues enables proactive maintenance, which minimises downtime, reduces energy waste and contributes to a higher Green Star rating.
- Energy optimisation: By providing detailed insights into energy consumption patterns and resource usage, PEAK identifies areas of high consumption, peak demand periods and opportunities for optimisation. With this information, building owners can implement energy saving measures, such as load management strategies or equipment upgrades, to improve their Green Star rating
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CIM's PEAK Platform is a best-in-class building analytics and property operations software, improving efficiency, sustainability, and tenant comfort across property portfolios.
Discover more by watching a demo.
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