Article

What are Green Building Ratings?

Navigating Sustainable Building Certifications in New Zealand

December 2, 2024 5 Minute Read

By Bianca Cornforth

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As New Zealand embraces hybrid work, the demand for sustainable and environmentally rated office spaces is on the rise. Understanding the various green building rating systems can help landlords and occupiers make informed decisions that benefit both the environment and their bottom line.

New Zealand landlords and occupiers are working hard to encourage people to return to the office in the current, evolving hybrid working environment. Amid this shift, sustainable features and environmentally rated buildings are increasingly being sought out by workers and provided by landlords.

We know that there are many rating tools and systems in use in New Zealand - acronyms aplenty: LEED, BEAM, NABERS, WELL, Living Building, to name just a few.

We are therefore keen to help you to understand what the different ratings cover and how they might impact your occupancy. This is particularly relevant as our latest occupier survey shows that:

  • 77% of office occupiers have policies around the sustainability of their buildings – recognising the importance of energy and water use, electric vehicles, and recycling
  • 38% of Auckland’s CBD office stock is 5* Green Star-rated. This number is rising as building owners improve their buildings over time to meet demand
  • 51% have an interest in improving their organisation’s sustainability if the investment provides a return
  • More than 1 in 4 respondents now require formal certification.

The most widely adopted and externally certified sustainability certification systems for commercial and industrial buildings in New Zealand are those overseen by the NZ Green Building Council (NZGBC), which develops, manages, and oversees the application of Green Star and NABERSNZ.

What is the difference between Green Star and NABERS?
Infographic comparing Green Star and NABERSNZ building certifications. Includes rating scales, eligibility, processes, and benefits of each certification for sustainable building practices in New Zealand.
For more information:
The New Zealand Green Building Council
Introduction to Green Star - NZGBC
Ratings snapshot: Built environment sustainability frameworks commonly used in NZ
NABERS

Ratings have evolved

Bianca Cornforth, Senior Research Analyst, Auckland, New Zealand, says that over time the standard of a 4* Green Star rating has evolved. “Today the criteria to achieve the rating are higher than they were ten years ago; it is not a static thing.”

Cornforth adds that CBRE research also shows a considerable grey area around how the market interprets expired certifications. “Our data also shows us that people want to do well for the planet – and be prudent in reducing cost. However, the data also shows that we still have a way to go. As an example, in Auckland CBRE monitors 1.42 million sqm of office space in the CBD. Of this, 63% (or 895,000 sqm) does not fit into CBRE’s criteria to be classified as a sustainable building space.  

“However, when CBD owners and developers aim for sustainability, they tend to aim high. Most of the remaining 37% falls into the High Environmental Performance (HEP) category of 5 to 6 star Green Star and/or NABERS rated space.   

“Our view is: if you can’t measure performance, it is hard to know how you’re doing.”

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