In a recent interview, I had the pleasure of conversing with Sarah Mitchell, a distinguished sustainability consultant with over ten years of experience in the real estate sector. Our discussion centred on the evolving dynamics of green building certifications, particularly the shift towards more meaningful and performance-based sustainability measures. Sarah’s perspectives shed light on the industry’s current trajectory, underscoring the transition from traditional certification approaches towards a focus on tangible benefits and real-world performance.
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Sarah began by noting how green building certifications have long been associated with increased rental and capital values. However, she emphasised that the attributes defining a truly ‘green’ building are undergoing a significant transformation. “The era of ‘badge collection’—where buildings amass various certifications to flaunt their green credentials—is increasingly seen as outdated,” she remarked. Instead, the industry is shifting towards a deeper understanding and communication of the specific benefits that sustainability measures can deliver.
As corporate occupiers strive to achieve carbon reduction targets, they are prioritising the actual performance of buildings over mere certifications. Sarah highlighted that energy efficiency and emissions are now at the forefront of tenants’ considerations. “Leading tenants are becoming more discerning about emissions,” she stated. “They are prioritising low-carbon elements such as energy efficiency, electrification, and clean energy procurement. For new constructions, reducing the embodied carbon footprint is becoming a critical focus.”
Tools like the EU’s Carbon Risk Real Estate Monitor (CRREM) and the Science Based Targets (SBT) initiative provide clear pathways for decarbonisation, setting benchmarks for both operational and embodied carbon emissions. Additionally, Sarah highlighted NABERS, a system that assesses the ongoing performance of buildings. Originating in Australia, NABERS has expanded to several countries including the UK. Unlike traditional certifications that often emphasise design, NABERS provides annual assessments, ensuring that buildings maintain their green credentials over time. “Annual assessments like those from NABERS are vital,” Sarah noted. “They ensure that buildings continue to perform well in terms of energy and emissions, rather than merely meeting initial design standards.”
The conversation then turned to the evolving regulatory landscape. Sarah pointed out that both the US and UK are developing industry-led standards for zero emissions buildings. These initiatives respond to the growing demand for consistent and measurable frameworks for building performance, poised to become significant benchmarks in the industry. “The increased regulatory focus on building performance standards is a game-changer,” she emphasised. “As local governments adopt these metrics, perceptions and measurements of sustainability value in buildings must adapt accordingly.”
Investors are already adjusting their priorities in response to these developments. Recent surveys indicate a shift away from traditional certifications towards considerations such as energy efficiency, emissions reduction, and Net Zero Carbon (NZC) alignment. This trend reflects a growing recognition of the financial benefits associated with buildings that deliver substantial emissions reductions. “Forward-thinking investors are not waiting for the perfect certification,” Sarah commented. “They are anticipating market trends and investing in sustainable attributes that promise higher returns.”
Existing certifications are not static either. Major frameworks like LEED and BREEAM are updating their standards to place a greater emphasis on emissions and whole-life carbon. For instance, the USGBC is introducing LEEDv5, which sets existing buildings on a decarbonisation path, while BRE is working on BREEAM V7, which will address new constructions, in-use buildings, and refurbishments. “These updates are crucial,” Sarah asserted. “They ensure that certifications remain relevant and continue to push the industry towards real, measurable sustainability.”
One particularly promising development is the collaboration between JLL and the International Living Future Institute (ILFI) to develop a new certification program aimed at decarbonising existing buildings without major capital projects. This initiative builds on ILFI’s Zero Carbon Certification and extends it to existing assets, accelerating credible decarbonisation efforts in the sector. “Decarbonising existing buildings is a massive challenge,” Sarah acknowledged, “but it also represents a significant opportunity. This new certification will help us make meaningful progress without the need for extensive and costly overhauls.”
As our conversation drew to a close, Sarah stressed that while certifications will always hold value, their role is evolving. In markets with less transparency, third-party certifiers remain crucial for evaluating green practices. Moreover, as ESG considerations become more comprehensive, encompassing areas from social issues to physical risk, certifications can offer a holistic assessment of a building’s sustainability profile. “In a world that requires radical transformation, certification frameworks must evolve,” Sarah concluded. “They need to be agile and proactive, ensuring they not only contribute to the solution but also unlock the full potential of sustainable real estate.”
Engaging with Sarah Mitchell provided an illuminating glimpse into the future of green building certifications. The industry’s shift from accumulating badges to focusing on meaningful performance metrics marks a significant evolution. As we navigate this new frontier, it is evident that the most valuable sustainable attributes are those that offer tangible, measurable benefits, paving the way for a more sustainable and profitable real estate landscape.
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