In a recent discussion with Emma Harrison, a prominent sustainability consultant with over a decade of experience in the commercial real estate (CRE) sector, critical insights into the evolving landscape of green building certifications were unveiled. Her professional journey and observations highlight a pivotal shift within the industry: the emphasis has moved from merely accruing certifications to achieving demonstrable, measurable benefits through sustainable practices.
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Emma began by reflecting on her early industry days, dominated by a “badge collection” mentality. “It was all about how many certifications a building could accumulate,” she reminisced. “LEED, BREEAM, Green Star—you name it. Buildings were flaunting these badges like trophies.” However, this landscape has evolved significantly. “Today, it’s not enough to simply have a wall full of certificates. Investors and tenants are much more discerning. They want to see real, measurable benefits,” she emphasised.
The conversation then pivoted to the current priorities in sustainable building practices. “Sustainability attributes have long proved to be accretive to rents and capital value,” Emma noted. “But the most prized green building features are constantly changing.” In the past, having a green certification could command a premium. Now, the focus has shifted towards the actual performance of the building—its energy efficiency, emissions reduction, and utilisation of clean energy. Emma stressed the necessity for CRE professionals to transcend certifications and concentrate on measures related to energy and emissions performance. “This is where the real value lies,” she asserted.
Corporate occupiers are also playing a significant role in driving this change. “Tenants are increasingly focused on their carbon reduction goals,” Emma explained. “They are looking for buildings that not only have green certifications but also demonstrate actual performance improvements.” Leading tenants are prioritising key elements of low carbon buildings: energy efficiency, electrification, and clean energy procurement. For new builds, there is a strong emphasis on using materials with a lower embodied carbon footprint. “It’s all about making material progress towards sustainability,” she added.
Emma spoke passionately about the new tools and standards shaping the industry. “The EU’s Carbon Risk Real Estate Monitor (CRREM) is setting the global standard for operational decarbonisation. It’s exciting to see its pathways being finalised for North America.” She also highlighted the upcoming Buildings Science-Based Target-Setting Guidance and Tool by Science Based Targets (SBT). “This tool is integrating CRREM into its operational emissions pathways, providing a clear roadmap for buildings’ embodied carbon emissions.” The National Australian Built Environment Rating System (NABERS) also featured prominently in our discussion. “NABERS is now in several countries, including New Zealand, India, and the UK. It’s unique because it involves annual assessments to measure ongoing performance rather than just the initial design.”
Emma highlighted how major certification frameworks are evolving to remain pertinent. “The US Green Building Council (USGBC) and the UK’s Building Research Establishment (BRE) are enhancing their offerings to more accurately represent emissions performance.” The USGBC, for instance, introduced a draft version of its LEEDv5 for Operations and Maintenance, focusing on setting existing buildings on a decarbonisation path. Similarly, BRE is developing its BREEAM V7 certification scheme, which will focus on whole life carbon and net zero alignment. Australia-led NABERS is also ahead of the curve with its operational carbon targeting, developing an Embodied Carbon rating tool to measure and compare the embodied carbon footprint of new buildings and major refurbishments. “This is a significant step forward,” she remarked.
No discussion on sustainable practices would be complete without addressing the financial implications. “Investors are increasingly prioritising energy, emissions, and Net Zero Carbon (NZC) alignment in their decision-making,” Emma observed. This shift is driving the need for certifications that validate actual energy performance. She also mentioned the recent alliance between BRE, USGBC, and the Green Building Council of Australia (GBCA) aimed at promoting sustainable finance mechanisms. “This alliance will demonstrate how certification systems can support ESG reporting and ensure compliance with green taxonomies. It’s about driving the $35 trillion investment needed by 2030 to meet global net zero goals.”
As our conversation drew to a close, Emma succinctly encapsulated the essence of the evolving landscape. “The future of green building certifications lies in their ability to adapt and reflect the actual performance of buildings. It’s no longer just about having a certificate; it’s about proving that your building is genuinely contributing to sustainability goals.” Her insights provided a comprehensive view of the next frontier for green building certifications. The shift from badge collection to performance-based metrics marks a significant step forward for the industry, promising not only higher returns for investors but also a more sustainable future for all.
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