The Green Star rating system explained

January 20, 2024

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:

What is the Green Star rating system?

What is a Green Star rating?

What are the Green Star Categories?

What is the main objective of the Green Star rating?

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?

Is Green Star a voluntary program?

What is the difference between Green Star and NABERS?

How can building analytics improve your Green Star rating?

The Green Star rating system explained

Founded by Green Building Council of Australia in 2003, Green Star is an internationally recognised rating system charged with setting the standard for healthy, resilient, positive buildings and places.

A voluntary sustainability rating system for buildings in Australia, ratings can be achieved at the design, construction or fit out phase of buildings, or during the ongoing operational phase.

Specifically developed with the Australian environment in mind, a Green Star rating provides independent verification that a building or community project is sustainable, with thousands of sustainable fit-outs, buildings, homes and communities certified across the country to date.

While you can achieve a maximum six stars, the ratings do vary dependent upon the categories.

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:

  1. Management: Focuses on the processes that enhance the project's sustainability from planning through to operation.
  2. Indoor Environment Quality (IEQ): Assesses aspects that affect the health and well-being of occupants, such as air quality, lighting, and acoustic comfort.
  3. Energy: Looks at energy consumption efficiency and the incorporation of renewable energy sources to minimize environmental impact.
  4. Water: Evaluates water conservation measures and the efficient use of water resources.
  5. Materials: Considers the selection of sustainable materials and the reduction of waste.
  6. Land Use & Ecology: Reviews the project's impact on its site's ecology and biodiversity.
  7. Emissions: Assesses the reduction of pollutants and greenhouse gas emissions.
  8. Innovation: Awards points for innovative practices that go beyond the existing criteria and contribute to the project's sustainability.

What is the main objective of the Green Star rating?

Much like NABERS, the core goal of the Green Star rating system is to encourage – if not actively provoke – the industry to take action and step up to meeting the net zero targets demanded on a global scale. This program provides independent verification that a building or community project is sustainable.

Green Star seeks to assist building owners in reducing the impact of climate change and contributing to market transformation and a sustainable economy amongst other goals.

The program’s focus on rating buildings in the early stages -encompassing projects in the planning, design, construction or fit out phases highlights the opportunity for new builds to get in on the ground floor with building data analytics. Free from the constraints (or headaches) of legacy systems which fail to communicate effectively, taking advantage of a platform such as PEAK from day one of practical completion will not only assist with optimising your Green Star Rating, but ensure your building operates at peak efficiency from the very start.

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 system awards projects a rating from one to six stars, with six stars representing "World Leadership" in sustainable building practices. This scale allows for a clear benchmarking of a building's environmental performance and sustainability outcomes.

  • One Star: Represents minimum practice.
  • Two Stars: Indicates average practice.
  • Three Stars: Denotes good practice.
  • Four Stars: Signals best practice.
  • Five Stars: Reflects Australian excellence.
  • Six Stars: Signifies world leadership in sustainability.

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

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.

Is Green Star a voluntary program?

Green Star is still a voluntary process, however, we firmly believe it won’t be long until holding premiere rating results for a building’s environmental performance will be considered mandatory by tenants.

And as consumers become increasingly aware and research savvy, it is also fair to conclude businesses will seek an address with certification from programs such as Green Star and NABERS to prove their environmental chops to customers and clients.

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.

Antonious Mickaeal
January 20, 2024
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