Sustainable

Property

and

Finance: The evolution of Green Star

as a tool for assuring

sustainable outcomes

Nick Alsop

Senior Manager Market Engagement

Green Building Council of Australia

CERTIFIED

World Leadership

Who is the

Green

Building

Council of

Australia?

We lead the

sustainable

transformation of the

built environment

We rate

We advocate

We educate

What is Green Star?

Green Star measures how well your

community, building or fitout is

designed, constructed or operated

compared to other Australian

communities, fitouts and buildings.

• All of Mirvac’s Certified and registered projects

• 7 Certified projects, 4 Registered

2500+ certified projects

50% of ASX50 companies use

40%

office

space Green Star certified

42k

people live in Green Star

Apartments

460k

people moving into Green

Star

Communities

1.4M

people visit daily a Green Star

Shopping

Centre

Green Star

Design &

As Built Communities Interiors Performance

ANY KIND OF

FITOUT

EXISTING

BUILDINGS IN

OPERATION

MASTER PLANNED

COMMUNITIES AND

PRECINCTS

NEW BUILDINGS

Innovators Adopters Early majority Late majority Minority

Our role in the built environment

Direct influence Actors are driven to improve the

built environment. Green Star is

seen as a mechanism to

demonstrate this high level

of achievement.

Indirect influence Ratings are sought or

required.

Actors are driven to show

quality due to government or

tenant requirements. Their

decisions are influenced by

the rating system.

Practical influence Ratings are not sought, but

products and practices have

filtered down and improved

the overall quality of the built

environment.

Policy influence Green Star practices help drive

policy changes in the regulatory

environment.

GBCA relies on advocacy and

partnerships, such as working with

ASBEC, to drive policy changes,

and in the national construction

code. Green Star rated buildings

show changes can be achieved.

GREEN STAR CATEGORIES

Green Star How it works

Minimum

Practice

10

1 Star

Average

Practice

20

2 Star

Good

Practice

30

3 Star

Best

Practice

45

4 Star

Australian

Excellence

60

5 Star

World

Leadership

75

6 Star

Performance

Design & As Built

Interiors

Communities

Green Star Design & As Built Relevant, flexible, outcomes-based

As Built rating The As Built assessment certifies completed buildings and

confirms that the finished product delivers sustainable

outcomes

Design Review rating An optional Design Review gives projects the confidence

they are on the right track and provides an early opportunity

to promote a Green Star commitment

Initial Start your journey

Submission Templates*

Operational data

Management practices

& policies

Benchmark your building

Improve Continue your journey

Submission Templates

Energy & water data

Review of practices

Additional practices

Year three

Performance Relevant, flexible, outcomes-based

Audit Review implementation

Submission Templates

Energy and water data

Additional policies and practices

Next two years

PERFORMANCE

To deliver a quality built environment, you need a quality rating system

Our ISO9001 accreditation keep us

sharp and ensures we continuously

improve our certification services.

As the only registered certified trademark for

the built environment by ACCC, we stand

behind what we say.

260,000 cars removed from our

roads each year.*

47,000 average households’

greenhouse gas emissions

annually*

55% fewer

greenhouse

gas emissions than standard new

buildings*

Environmental benefits

The higher the

Green Star

rating (4, 5 or 6

Star) the greater

the emission

reductions*

4 Star 47%

5 Star 55%

6 Star 69%

0%

4 Star 5 Star 6 Star

Savin

gs

* Based on the 681 Green Star Design & As Built projects certified as at October 2018

Every year, Green Star certified buildings annually

reduce emissions equivalent to:

16% 2012

24% 2015

30% 2018

Source: Dodge Data and Analytics, World Green Building Trends 2018

Economic benefits

Percentage of owners expecting

an increase of 10% or more in value

over time.

The World Green Building Trends report

found that building owners expect green

buildings to have an increase in asset value

compared to non-green assets.

In Australia, by 2021, 64% of firms expect

to be doing the majority of their projects

green, driven by client and market demand.

Economic benefits (Global)

New green building

7% Owners anticipate new

green buildings will deliver

a 7% increase in asset

value

Green retrofits

Owners anticipate green

retrofits will deliver a 5%

increase in asset value

$

The industry anticipates

new green buildings will

decrease 12 month

operating costs by 8% and

5 year operating costs by

14%

The industry anticipates

green retrofits will

decrease 12 month

operating costs by 9% and

5 year operating costs by

13%

Payback time for new

green investments

(6 years for retrofits)

7 years

Source: Dodge Data and Analytics, World Green Building Trends 2018

Economic benefits

*Source: MSCI/PCA Green Property Index 2018

Figures shoe Green Star (CBD) vs all office (CBD)

**Source: Stok – The Financial Case for High Performance Buildings 2018

Green Star rated buildings

deliver a 5.6% premium in

value and a 13.4% premium

in net income*

Increased tenant demand is

reflected in lower vacancy rates

for Green Star rated buildings,

with an 26.4% increase in

Weighted Average Lease Expiry*

Research out of the US in 2018

found that by designing for the

occupant, owner-occupants and

tenants can gain $3,395 per

employee in annual profit**

Cost of Green Star

+0.9% To achieve a

4 star Green Star rated building

Per square metre

Based on a sample of 71 projects, as at December 2018

Delivering Green Star rated buildings makes

economic sense.

+2.6% To achieve a

5 star Green Star rated building

Per square metre

+2.9% To achieve a

6 star Green Star rated building

Per square metre

Social benefits

Tenants in green

buildings reported

4 fewer sick

days1.

An office enriched with plants makes

staff happier and boosts performance

by more than 10%2

3

Classroom design can

affect a child’s academic

progress over a year by

as much as 25%4.

5

6

Beyond their environmental

benefits, green buildings

improve our lives.

Source: World Economic Forum Global Risks Perception Survey 2017–2018

Green Finance

0

0.5

1

1.5

2

2.5

3

3.5

2014 2015 2016 2017 2018

Renewable energy low carbon buildings low carbon transport water waste

Aud B

illio

ns

Introducing:

Global Net Zero Carbon

Buildings Commitment Challenging leaders to decarbonise

their portfolios by 2030.

Launches September 2018.

““This new Commitment is a huge step

forward on the path towards net zero. The

Commitment will help to create

unprecedented demand, stimulating the

market to deliver net zero carbon

buildings at scale.”

Terri Wills

Chief Executive Officer

WorldGBC

19 Organisations

22 Cities

6 States & Regions

Organisations

AMP Capital Wholesale Office Portfolio

Berkeley Group

Bruntwood

Cbus Property

Cundall

Dexus

Frasers Property Australia

GPT Wholesale Office Fund

Integral Group

Kilroy Realty Corporation

LG Super

Majid Al Futtaim

Natural Resources Defense Council

Nightingale Apartments

Shaw Contract

Signify

Salesforce

Stockland - Retirement Living & Logistics

Sydney Opera House

Cities

Cape Town

Copenhagen

eThekwini

Johannesburg

London

Los Angeles

Medellin

Montreal

New York City

Newburyport

Paris

Portland

San Francisco

San Jose

Santa Monica

Stockholm

Sydney

Tokyo

Toronto

Tshwane

Vancouver

Washington DC

States

Baden-Württemberg, Germany

Catalonia, Spain

California, USA

Navarra, Spain

Scotland, UK

Yucatan, Mexico

Driving the carbon conversation

Since 2015, we have been active in

delivering thought leadership,

advocacy, and standards to

decarbonise the built environment.

“This Carbon Positive Roadmap is a

natural next step, providing clear

pathways to carbon neutrality and

creating new value for building

owners, occupants and the broader

community,”

Davina Rooney

General Manager of Sustainability

Stockland

Carbon Positive Roadmap

Commit Decarbonise Reduce Transform Support

Report yearly

emissions and

electricity

consumption

Use 100% renewable

electricity, either

generated on-site or

procured from off-site

Install and use

measures that

support grid

decarbonisation

be 40-50% more

efficient than today’s

building code.

Reduce and offset

all embodied

carbon, refrigerants,

and other emissions

Green Star

aligns with green bonds

Outcomes

that matter

Leading indexes and financial

instruments recognise Green Star

as a measurement of quality and

leadership