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Non-Residential Building Environmental Rating Tools – A Review of the Australian MarketAnia Hampton and Lauren Clay

EDG 85 AH • March 2016environmentdesignguide.com.au

ISSN 1442-5017

Cover image: Sustainable Buildings Research Centre – University of Wollongong by Cox Richardson. The project was awarded a 6 Star Green Star – Education Design v1 certified rating and is designed to meet the Living Building Challenge. (Photography: John Gollings)

AbstractThere are a number of environmental rating tools for non-residential buildings in the Australian market. Some tools rate a project based on its design features, whereas others focus purely on actual performance. Several tools are mandatory in Australia and others provide international marketing opportunities. Selecting the most suitable tool for any particular project can be a difficult exercise. This paper examines the most prevalent tools in the Australian market, summarising their application, method of rating, approximate costs and timing impacts. The tools are reviewed for their suitability for various project types and guidance is provided on selecting the most appropriate rating scheme.

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IntroductionA host of environmental rating tools are available for the non-residential building sector. Some of these tools measure actual performance (e.g. NABERS, Green Star Performance) while others rate a building on its design features (e.g. Green Star Design and As-Built). Several tools focus on one environmental outcome only (e.g. greenhouse gas emissions or water) while others provide a holistic rating encompassing a range of criteria. Certain schemes are mandatory to comply with legislation or local planning requirements, others are used for accountability and marketing potential and all reward projects where best practice is exceeded.

There are many considerations when selecting a rating tool for a new building or refurbishment. Is international recognition important? Does the owner/developer wish to promote the project’s holistic environmental credentials or prove its operational performance in several key areas? Is the project team seeking to meet the minimum building code requirements, regenerate the environment or simply meet best practice environmental design? What is the project budget and timing? All these factors will determine the most appropriate tool for a given project.

This paper provides a summary of the most commonly used tools in the Australian market and outlines their key points, applications, methodology and program implications such as cost and timing. International and smaller, lesser utilised tools are also presented for comparison alongside the National Construction Code (NCC) Section J which sets the minimum standard for Australian buildings. A comparative discussion provides assistance in selecting the most appropriate tool for a project and case studies are referenced for further reading.

The tools examined in this paper are:

• NABERS

• Green Star

• BREEAM

• LEED

• Living Building Challenge

• One Planet Living

• PassivHaus

• eTool

• WELL

• NCC Section J

A summary of the tools is provided in the Appendix: Summary of rating tools.

Major toolsThe following sections describe each of the most prevalent rating tools: NABERS, Green Star, LEED, BREEAM and Living Building Challenge in further detail. These tools have the highest level of uptake in Australia or around the world and/or are mandatory for certain buildings in Australia (Refer Appendix).

NABERS National Australian Built Environment Rating System (NABERS) measures the environmental performance of existing buildings, tenancies and homes. Ratings are available for energy efficiency, water usage, waste management and the indoor environment quality of a building or tenancy.

Launched in 1998 as the Australian Building Greenhouse Rating (ABGR) scheme, NABERS uses measured and verified performance information, such as utility bills, and converts it into a rating scale from zero to six stars. A 6-star rating demonstrates market-leading performance, while a 1-star rating means the building or tenancy has considerable scope for improvement. The following video ‘What is NABERS Energy?’ summarises the history and motivation of the NABERS rating tool and how it has transformed the Australian commercial building market.

Video 1. What is NABERS Energy? (NABERS, 2013) https://www.youtube.com/watch?v=vHJXUVgzzaw

NABERS is administered by the NSW Office of Environment and Heritage and is an integral part of the Commercial Building Disclosure (CBD) scheme. CBD is a national mandatory scheme, introduced in 2010, requiring disclosure of the NABERS Energy rating and tenancy lighting design for any office building or tenancy over 2,000m² at the time of sale or lease.

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ApplicationNABERS comprises the following tools:

Figure 1. NABERS rating tools (NABERS, 2015a)

NABERS assesses the performance of existing buildings. However, developers of office buildings can enter into a Commitment Agreement outlining their commitment to design, build and commission a new or refurbished building to a 4 to 6 Star standard. This enables a building’s performance to be marketed before the formal rating is achieved.

Rating methodologyNABERS provides a star rating to a building or tenancy that represents its actual operational performance, using 12 months of measured performance information, such as energy or water bills or a waste audit. This information is compared to benchmarks that represent the performance of other similar buildings in the same location.

The rating takes into consideration the following building criteria:

• The climatic conditions in which it operates

• The hours of its use

• The level of services it provides

• The energy sources it uses

• Its size and occupancy.

The adjusted data is then compared to the NABERS benchmark data, and a star rating reflecting the performance relative to other buildings is calculated (figure 2).

Figure 2. How a NABERS Energy rating for offices is calculated (NABERS, 2015b)

While a formal rating is conducted by an accredited assessor following a strict protocol, a self-assessment is available to gauge how well a building or tenancy is performing. Self-assessment results are indicative only and can’t be promoted or published.

NABERS ratings are valid for 12 months. Annual review ensures the rating accurately represents the building or workplace’s current performance.

Timing and costA formal NABERS rating can only be completed once the building has been operational for at least 12 months. Usually, several months are required to fully commission all systems and ensure the building is operating as intended. High vacancy rates can also dramatically reduce the rating so it is best to wait until the building is at least 75% occupied.

A NABERS rating may take up to two or three months to complete. This includes collecting all the relevant bills, conducting a site visit, completing the assessment and the NABERS processing time.

Formal NABERS assessments typically cost between $1000-$8000 depending on the complexity of the building and the type of rating required. Indoor Environment ratings require a significant number of measurements and may require a specialist consultant. The NABERS processing fee ranges from $540 for a tenancy less than 1000m² to $1525 for multiple ratings for a single property. A full list of costs can be found under Further reading.

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Green StarGreen Star is a voluntary rating system that rates both the design and operational performance of new and refurbished buildings. The suite of Green Star tools assess the project documentation against a number of credits to determine the final rating. The Performance tool uses actual measurements of the building.

Green Star was developed by the Green Building Council of Australia (GBCA) in 2002. The initial tool, Office Design V1, built on existing overseas tools including the British BREEAM and North American LEED.

The following video summarises the information presented below on the Green Star tools.

The tools can be used to rate offices, retail centres, industrial facilities, apartments, hospitals, schools and universities, assembly buildings, hotels, mixed use buildings, police and fire stations, sporting venues, laboratories and public buildings.

Ratings are available from 1 to 6 Stars (Figure 4).

Rating methodologyGreen Star assesses a project based on a number of credits in various categories (Figure 5 and 6). A rating is awarded based on the percentage of available points that a project gains. For example, in the Indoor Environment Quality category, credits are available for air quality, acoustics, daylight and lighting, indoor pollutants and thermal comfort.

A Green Star Design & As-Built, Interiors or Community rating requires a Green Star Accredited Professional to be appointed to the design team early in the design process. The assessor assists the design team in developing and documenting the sustainable design initiatives to achieve the desired rating and submits the documentation to the GBCA. This submission is assessed, peer reviewed and certified by GBCA assessors.

A Green Star Design and As-Built rating allows a building to be rated during the design stage, before practical completion. However this Design rating will expire 24 months after practical completion. An As-Built rating must be achieved within this period and does not expire.

A Green Star Performance rating has the same categories as a Design & As-Built rating however it uses measured performance (e.g. energy and water consumption, physical measurements of air quality and daylight, volume of waste produced etc.) to determine the rating.

Video 2. Green Star rating tools and the sustainable built environment (GBCA, 2013)https://www.youtube.com/watch?v=s71KD5XCGes

ApplicationGreen Star comprises four tools (Figure 3). These replace the 11 legacy tools which closed as of December 2015.

Figure 3. Green Star rating tools (GBCA, 2016)

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Figure 4. Green Star Rating Scale (GBCA, 2015b)

Figure 5. Green Star Design & As-Built, Performance and Interiors categories (GBCA, 2015c)

Figure 6. Green Star Communities categories (GBCA, 2015d)

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Video 3: What is LEED? (USGBC, 2014) https://www.youtube.com/watch?v=tlVseOWToL4

ApplicationThe LEED system is configurable to allow multiple project/building types to be assessed and rated. The available assessment types include:

• Building Design and Construction

• Interior Design and Construction

• Building Operations and Maintenance

• Neighbourhood Development

• Homes.

Under v4, buildings/projects are typically assessed against 110 available points (grouped under a number of assessment headings), which include standard credit assessment and potential additional credits awarded for specific innovation initiatives. In order to be eligible for assessment, projects must meet criteria relating to minimum size requirements, minimum performance requirements, reasonable project boundaries and the nature of the project site (i.e. must be in a permanent location on existing land).

Timing and costThe Green Star process commences at schematic design or town planning and is completed when the project is certified. Once tender documentation is complete, a Design submission takes 6-12 months to compile, assess and certify. Typically, a Design rating is awarded at practical completion; As Built rating one to two years after.

Historically, consulting costs to prepare the submission are in the order of $100,000, including the ESD consultant and additional work required for the architects and consultants. With the new Design and As-Built tool, submission costs will be lower; however at this stage actual costs are unknown.

Project costs depend on the rating tool: a 4 or 5 Star rating can be achieved with no additional cost provided there is good ESD integration from the start (Davis Langdon, 2010). Additional large pieces of infrastructure, such as photovoltaics, cogeneration, blackwater treatment etc, added to achieve credits can significantly increase project costs and are often required for a 6-Star rating.

Green Star certification fees (payable to the GBCA and discounted for members) depend on the size of the project and range from $12,500 to $40,000 (Design & As-Built) and $6000 to $10,000 for a Performance rating.

LEEDThe Leadership in Energy and Environmental Design (LEED) Green Building Rating System is a consensus-based standard intended for developing high-performance, sustainable buildings. Developed by the US Green Building Council and first launched in 1998, it provides a framework for assessing building performance and meeting sustainability goals, emphasizing strategies for sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality.

In the US, a LEED rating is required for public-owned and public-funded buildings. For other parts of the world, it is still mostly voluntary. The system is considered mature in the market place and is globally recognised. Over 150 countries now use a version of LEED (USGBC 2015a).

The following video provides an overview of some of the benefits of gaining LEED certification and also the rating system.

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Rating methodologyAs part of a LEED assessment, credits are sought across a number of categories, with minimum prerequisites applying for certain categories. The scope of a LEED assessment and certification varies dependant on the project type. In the case of the Building Design and Construction assessment type, available credits can be broadly categorised into the following areas:

• Integrated Process

• Location and Transportation

• Sustainable Sites

• Water Efficiency

• Energy and Atmosphere

• Materials and Resources

• Indoor Environmental Quality

• Innovation

• Regional Priority.

The LEED certification process varies slightly depending on the project type. In general there are two stages of submission: design, followed by construction. The project team provides documentation and the Green Business Certification Inc. (GBCI) review and provide feedback at both stages and are ultimately responsible for the certification. The final rating is based on points that are awarded during both the design and construction stage submissions.

Figure 7 highlights the four categories of LEED certification that are available.

The process is heavily aligned with US Codes and Standards, which may not be directly equivalent to Australian Codes and Standards. In recognition of this, the USGBC have a process for use of local standards, provided the project team can demonstrate that a local standard is equivalent to or more onerous than the corresponding US Standard. In practice, projects are typically designed to comply with both sets of standards to simplify both the LEED submission process and local building certification.

Timing and costA design and construct type assessment typically begins at schematic design and is finalised once the building is in the construction phase. Certification for LEED for Existing Buildings and Operations and Maintenance is based on building operation.

Compilation of the submission takes several months and each GBCI review stage typically takes 20-25 business days. Consulting costs associated with the ESD consultant are typically in the order of $100,000, depending on the complexity of the project.

The cost of a LEED assessment is comprised of a registration fee and fees associated with a design stage submission and construction stage submission. At the time of writing, registration fees for a LEED Building Design and Construction Fee type project are approximately A$1250 for members and A$1700 for non-members. The design and construction stage submission fees are dependent on the size of the project and are split into three categories, depending on whether the project is less than approximately 4700 m2 or greater than approximately 47,000 m2. The design stage submission fees range from approximately A$3100 to A$31,300. For the construction stage submission, fees range from approximately A$1050 to A$10,500 (USGBC 2015b).

If projects are certified under LEED Operations and Maintenance, recertification is required within five years of receiving certification.

Figure 7. LEED certification categories (Source: USGBC 2016b)

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Rating methodologyBREEAM ratings are based on a credit system, with credits awarded for performance above local regulation which delivers environmental, comfort or health benefits. These are weighted to determine a star rating of 1 to 5 stars. This process and the available categories are highlighted in Figure 8.

BREEAMFirst launched in the UK in 1990, BREEAM is the British Research Establishment’s (BRE) Environmental Assessment Method. It is the world’s longest established and most widely used environmental assessment method for buildings. At the time of writing, there were 425,000 issued certificates on 24,000 projects and 1.9 million registered projects across 60 plus countries (BREEAM n.d). BREEAM Accredited Professional and Assessor Auditor network consists of over 2000 people globally (BREEAM n.d). The following video provides a summary of BREEAM schemes, available training and where to find further information.

Video 4. Getting started with BREEAM https://vimeo.com/93237679 (BREEAM, 2015)

ApplicationAs part of the BREEAM certification process, projects can be classified under the following schemes within the UK:

• New construction

• In-use

• Refurbishment

• Communities

• Code for Sustainable Homes

• EcoHomes.

For international projects, there are schemes for new construction, refurbishment and fit-out, in-use and communities bespoke. There are also a number of countries that are National Scheme Operators (NSOs), which develop and own country specific local schemes under the BREEAM umbrella. Current NSOs include the Netherlands, Spain, Norway, Germany, Sweden and Austria.

Figure 8. BREEAM scoring (Source: BREEAM, 2014)

Assessments are undertaken by a licensed assessor and are certified by the BRE. They are typically completed during the design and procurement stage but can also carry over to the construction and operation phases depending on the credits being targeted or if the client or project team choose to certify at the final, post construction stage only, instead of at the interim design stage of assessment.

Timing and costThe BREEAM certification process typically begins early in the design phase of the project as it is easier to obtain the desired rating cost effectively. The assessment comprises two stages: design and post construction.

Costs associated with certification vary depending on the scheme and project size. There are costs associated with both registration and certification. Registration costs are in the order of A$1000 to A$2000 and certification costs are around A$10,000 to A$20,000. As with other rating systems, consultant fees typically outweigh the registration and certification costs.

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Living Building ChallengeConsidered to be the built environment’s most rigorous performance standard, the Living Building Challenge (LBC) seeks to create ‘…building projects at all scales that operate as cleanly, beautifully and efficiently as nature’s architecture’ (International Living Future Institute 2015b). It is described as a philosophical advocacy tool that promotes advanced measurements of sustainability in the built environment.

In 2010, the International Living Future Institute (ILFI) certified the first LBC projects. At the time of writing this article, there were 300 registered Living Building projects, mainly in the US but also in the UK, Europe, Australia, New Zealand, China and a number of other countries (ILFI 2015b, ILFI, 2016). The LBC is considered to be more rigorous than other green certification schemes such as LEED and BREEAM.

ApplicationProjects are classified into one of four typologies:

• Renovation e.g. single floor tenant improvements

• Infrastructure and Landscape e.g. amphitheatres, plazas, sport facilities

• Building

• Community e.g. university campuses, business districts, small towns.

There are seven different petals (Figure 9). These petals comprise a total of 20 Imperatives, including net positive water and energy, healthy interior environment, embodied carbon footprint, equitable investment and inspiration and education. The applicable imperatives are based on the project typology.

Figure 9. The seven Living Building Challenge Petals (Source: ILFI, 2015c)

Rating methodologyThe certification process is based on the number of imperatives that are achieved. Three levels of certification exist:

• Living Building Certification: a project achieves all imperatives assigned to its typology

• Petal Certification: the requirements of three or more petals are satisfied; minimum requirements exist

• Net Zero Energy Building Certification: the requirements of the Energy petal are met, along with a minimum number of Place and Beauty imperatives.

Buildings are assessed on actual performance rather than modelled or anticipated performance.

Timing and costCertification costs depend on the typology, size of the building and the level of certification being sought. At the time of writing, the cost to certify a 10,000 to 50,000 m2 commercial, institutional or multi-residential project would cost approximately A$12,500 to A$35,000. A 1000 to 4999 m2 commercial, institutional or multi-residential project would cost approximately A$5500 to A$19,000 to be certified.

The certification process takes at least 12 months as projects are assessed over a minimum of 12 months of continuous occupancy. A two-part certification process can also be undertaken for projects seeking full certification. Imperatives unrelated to project performance can be audited prior to the 12 month operational phases.

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Other toolsThere are a host of other certification rating systems and tools available. The following summaries provide a brief overview of some of these: One Planet Living, eTool, PassivHaus and WELL. While they don’t form part of mandatory rating schemes in any country, they are schemes and tools that are complimentary to the rating systems discussed. Australia’s mandatory National Construction Code (NCC) Section J is also covered as a comparison.

One Planet Living Founded by Bioregional and its partners, One Planet Living is a growing global network of green neighbourhoods that demonstrate advanced sustainable development. The vision includes ‘…a world in which people enjoy happy, healthy lives within their fair share of the earth’s resources, leaving space for wildlife and wilderness' (Bioregional n.d.). It is based on ten guiding principles, including health and happiness, equity and local economy, culture and community, land use and wildlife, local and sustainable food, sustainable materials, sustainable transport, zero waste, sustainable water and zero carbon.

In order for a neighbourhood or community to become endorsed, there is a ten step plan which requires stakeholder buy-in. The process involves initially assessing the current state, followed by the development and implementation of an action plan and monitoring system. Annual reviews are undertaken and the sustainability action plan is updated accordingly. The process can be managed by qualified external consultants or internally, by people within the community or neighbourhood. Training can be undertaken in Australia for A$500, which enables the individual to conduct formal assessments that can lead to national certification and international endorsement for local government, property developments and businesses against the One Planet Assessment framework.

To-date, only seven communities have met the rigorous standards globally, with an additional eight having incorporated the ten principles to a lesser degree and received an honourable mention (Barth 2014).

PassivHausOriginating in Germany, PassivHaus is an international building standard that is focused on energy efficiency, comfort and affordability. The standard encourages the design of low energy buildings that require little energy for space heating and cooling. (Also refer EDG 79 CP ‘Passivhaus in Australia’, May 2014)

PassivHaus is based on five main basic principles, including thermal insulation, passive house windows (well insulated with low-e coatings), ventilation heat recovery, airtightness and absence of thermal bridges (Figure 10). Certification requirements include limits on space heating/cooling energy demand, primary energy demand, air tightness and thermal comfort.

The PassivHaus process commences at the start of the design phase and finishes once the building is built, with testing and monitoring being undertaken during construction and post-construction once all services are commissioned. Documentation must be prepared by a PassivHaus designer or consultant, who is required to undertake training and successfully complete an examination.

While it is generally more expensive to build to PassivHaus standards (International Passive House Association n.d.), in the long-term, it has been demonstrated that reduced operational costs result in overall savings (International Passive House Association n.d.). The registration cost for certifying a project is significantly less than other schemes, such as LEED or BREEAM.

eTooleTool is a web-based, whole building life cycle assessment (LCA). Figure 11 provides an overview of the aspects considered in a life cycle assessment. The tool is compliant with international standards ISO 14044 and EN 15978 and can be used to quantify and measure all impacts of a project over its entire life span. The tool is applicable to Green Star Life Cycle Impacts credit or the innovation challenge. It is also relevant to:

• BREEAM Innovation, Management, Energy andMaterials credits

• LEED Option 4 Whole-building Life CycleAssessment

• Living Building Challenge Materials Petal

• One Planet Living.

Use of the software is based on a monthly subscription, which varies depending on the type of use. Open use, which includes online training resources only, is free. A subscription for a specialist, which includes specialist training, is A$400 per month.

The tool is typically used throughout the design process, in order to provide advice from early stages through to construction and finalisation of the relevant rating documentation (if applicable).

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Figure 10. PassivHaus Requirements. (Source: Passive House Institute, 2015)

Figure 11. Life Cycle Assessment aspects. (Source: eTool 2015)

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WELL Building StandardWELL is an international performance-based system for measuring and certifying building features that impact human health and wellbeing. It is similar to Green Star Interiors (to a degree) and NABERS IE but differs from the other tools in that it does not consider environmental sustainability as such. The standard has seven factors (see Figure 12) and 100 features, each of which addresses issues that impact the health, comfort or knowledge of occupants.

A project is certified by a WELL Assessor assigned by the Green Building Certification Institute, which administers the scheme. The assessor works with the project team to achieve the required credits. Project initiatives are documented and a series of on-site tests verify that the building is operating as intended and achieves its health and well-being targets.

A WELL rating expires after three years. Registration fees range from US$1,500-10,000, certification fees begin at US$4,000 and range from US$0.08-0.23 per square foot. Performance verification is approximately US$9,000 and ranges from US$0.15-0.35 per square foot.

Figure 12. The Seven Concepts of the WELL Building Standard®, http://www.wellcertified.com/well (Source: International WELL Building Institute, 2015a). Copyright © 2015 by International WELL Building Institute PBC. All rights reserved.

Figure 13. WELL Certification levels, http://www.wellcertified.com/certification (Source: International WELL Building Institute, 2015b). Copyright © 2015 by International WELL Building Institute PBC. All rights reserved.

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NCC section JIn Australia, the National Construction Code’s (NCC) Building Code of Australia (BCA) is the basis for minimum building requirements. Volume 1 covers non-residential building classes 3 to 9, as well as class 2 multi-residential dwellings. Section J covers minimum requirements relating to energy efficiency, including building fabric, glazing, building sealing, air-conditioning and ventilation systems and lighting. The overall objective of Section J is to reduce greenhouse gas emissions.

The code is based on a pass or fail system. Compliance can be demonstrated in the following ways:

• Comparison to deemed-to-satisfy provisions

• Verification methods

• Expert judgements

• Documentary evidence.

Most of the Section J deemed-to-satisfy requirements are typically met on projects via the comparative method. When these can’t be met, a JV3 assessment is usually undertaken. This falls under verification methods and is a comparative energy modelling process, whereby the proposed building is compared to a reference building, as specified in Section J. This is especially common for meeting glazing requirements, but building fabric and air-conditioning and ventilation systems can also be incorporated into the assessment if they can’t be met via the deemed-to-satisfy method.

Compliance with Section J is usually discussed relatively early in projects, with various checks and revisions being undertaken throughout the design phase. Demonstration of compliance, in the form of reports and documentation, is submitted to the building surveyor at the time of seeking building permit approval. There are no costs associated with demonstration of compliance with Section J, other than consultant and architect fees. Responsibility for complying with the various sub-sections of Section J and providing the documentation is usually split between the architect, ESD and building services consultants.

DiscussionMost of the rating schemes and tools discussed have common aims and elements. However they differ quite significantly in terms of aspiration, rating methodology, application, cost, project timelines and history, which can influence their selection for projects.

BREEAM was the first scheme to be introduced, followed (in order) by PassivHaus, LEED, Green Star and NABERS. More recent tools include Living Building Challenge and One Planet Living. Most of these schemes have a sliding scale of ratings, including BREEAM, LEED, Green Star, NABERS and Living Building Challenge. PassivHaus, on the other hand, is a pass or fail system, similar to NCC Section J.

All of the schemes have been revised since being first introduced, with multiple versions being released over the years. This has mainly involved introducing additional project types for the major schemes (NABERS, Green Star, LEED and BREEAM), an increase in the number of available points and revising the credit weighting systems as best practice has shifted.

Credit allocations vary between the systems. BREEAM and Green Star have quite similar distributions of credits between energy, water and other credits. For LEED, energy and water credits have a slightly higher credit weighting than BREEAM and Green Star. In contrast, NABERS deals with energy, water, waste and IEQ separately.

LEED, BREEAM and Green Star administration fees are more significant than the other schemes. BREEAM fees are determined irrespective of the project size, whereas LEED, NABERS and Green Star fees increase with project size. Green Star and LEED also encourage membership. Consultant fees usually outweigh the administration fees for each of these tools.

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With the exception of NCC Section J, all schemes have international application. Certified BREEAM projects are generally located in the UK and Europe. Green Star projects are distributed throughout Australia (originating country), New Zealand and South Africa. NABERS is only used in Australia and New Zealand however several countries are using it as the basis for similar tools. In contrast, LEED has a much broader distribution of certified projects beyond the USA, including Canada, Mexico, Brazil, UK, Europe, Africa, Australia, UAE and Asia. Certified LBC projects are predominantly located in the US, but are also distributed throughout the UK, Europe, Australia, New Zealand, China and a number of other countries. LEED is commonly used in Australia by building owners and project teams seeking international recognition or to fit in with a world-wide portfolio.

Subtle differences exist in the project timing application of the various schemes. BREEAM, Green Star and LEED can span the design, construction and operation phases of a project, depending on the project type and credits being sought. NABERS, on the other hand is purely based on the operation phase. PassivHaus, LBC and One Planet Living also all span design, construction/implementation and operation phases, with post-construction/implementation reviews and monitoring forming mandatory components of the ratings.

Factors that may influence the selection of a rating system for a project include:

• Legislative requirements – in Australia theNCC Section J and NABERS(under CBD scheme) are mandatorywhile all other ratings are voluntary.Note that some local councils use Green Starin their planning requirements forlarger projects.

• Investor, tenant or owner requirements –government tenants require a certainNABERS and/or Green Star performancebased on the building size and location, whilea PCA “Premium” grade building requiresboth a 5 Star NABERS and 5 Star GreenStar rating.

• Building economics – the additional costsassociated with a Green Star rating areeasily justifiable in a “Premium” or “A-Grade”building in major capital cities where high-

end tenants are prepared to pay premium rents, but can be less feasible in suburban buildings due to lack of tenant demand, split incentives between tenant and the building owner, difficulties in achieving some credits such as transport and lack of awareness and understanding of the opportunities (GBCA 2015e, EY 2015).

• Market dynamics – proven, certifiedsustainability performance is expected at thehigh end of the commercial office marketwhereas best practice design, withoutcertification will often suffice in other areas.

• Incentives – the incentive of governmenttenants: minimum environmentalperformance (e.g. a NABERS rating) ismandatory for government tenancies over2,000m² (Dept. of Environment and WaterResources, 2007).

• Risk management – “Green Leases” whichspecify minimum environmental performance(e.g. a NABERS rating) are becoming morecommonplace for commercial office buildingsand developers will need to ensure theirbuilding design meets these requirements toavoid penalties.

These factors can sometimes conflict, for example, in considering the different requirements of tenants and building owners. It is important to have a thorough understanding of the relevant stakeholder requirements and evaluate the impact that these may have; i.e. a developer focused on minimising construction and rating costs may not fully appreciate the long term savings in operational costs.

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ConclusionThe environmental rating tools available in the Australian non-residential building section are varied, each with their own unique place. The minimum standard is set by Section J and builds to the highest standard of the Living Building Challenge. There is a certification tool to suit every project, budget, time frame and marketing niche. Project teams need to consider the project’s environmental aspirations (best practice or world-leading), marketing requirements (local or global), tenant needs and expectations and any legislative requirements when selecting the most appropriate tool.

For Australian projects, NABERS provides a quantified, reputable rating based on the performance of the building, regardless of design features. The NABERS tools are highly regarded around the world. Green Star enables project teams to showcase designs features and innovations and provides a globally recognised and marketable rating. LEED suits projects and design teams seeking international recognition beyond the US while Living Building Certification identifies a project as achieving the highest levels of environmental performance possible.

Further readinghttp://etoolglobal.com/

http://living-future.org/lbc

http://passiv.de/en/

http://www.bioregional.com/oneplanetliving/

www.breeam.org

www.gbca.org.au

www.nabers.gov.au:

For a full list of costs, visit http://www.nabers.gov.au/pricing

http://www.usgbc.org/leed

www.wellcertified.com

Case StudiesLinks are provided below to case studies for some of the rating schemes, which demonstrate the variety of projects that can become certified under the different schemes.

Green Star: http://www.gbca.org.au/green-star/green-star-projects/green-building-case-studies/

LEED: http://www.usgbc.org/projects

Living Future: https://living-future.org/lbc/case-studies/

NABERS: http://www.nabers.gov.au/public/WebPages/ContentStandard.aspx?module=50&template=3&include=CaseStudy.htm&side=factsheets.htm

WELL: http://www.wellcertified.com/projects

Glossary Commercial Building Disclosure: Federal legislation requiring sellers or lessors of commercial office buildings or tenancies over 2,000m² being sold or leased to disclose their respective building/space energy performance.

Green Lease: a lease which specifies minimum environmental requirements such as a NABERS Base Building energy rating etc. Penalties can apply to the building owner if these requirements are not achieved.

IEQ: Indoor Environmental Quality, including fresh, clean air, thermal comfort, daylight and access to views.

Life cycle assessment (LCA): an assessment of the environmental aspects and possible impacts of a product, process or service considered over its lifetime from cradle to grave.

NCC: National Construction Code, mandatory requirements for building works in Australia. Section J addresses energy efficiency including building fabric and services.

PCA Grades: the Property Council of Australia (PCA) grades the quality of buildings on the Australian market from “Premium” to “C Class” depending on their size, location and level of service offered.

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Appendix: Summary of rating toolsBuildings Rated Ratings

availableMandatory for Used for Assesses Categories assessed Assessment completed

byMarket prevalence (Australia)

NABERS Energy

Office/tenancy, Retail Centre, Hotels (not motels or resorts), Data Centres

0-6 Stars

Commercial Building Disclosure (CBD) scheme, minimum energy targets for government buildings

Some council planning schemes, Property Council of Australia (PCA) building grading scheme (offices), Marketing, corporate responsibility Actual performance

of existing buildings; (commitment agreement can be entered into to market future performance)

Energy (greenhouse gas emissions)

NABERS Accredited Assessor

Ratings completed to June 2015 Office: 2594 (79% market penetration) Retail: 173 Hotel: 72 Data centre: 5

NABERS Water

Office/tenancy, Retail Centre, Hotels

Government buildings minimum energy targets (NSW, QLD, SA in development)

Marketing, corporate responsibility

Water Ratings completed to June 2015 Office: 1030 (51% market penetration) Retail: 157 Hotel: 66

NABERS Waste

Office/tenancy

Marketing, corporate responsibility

Waste generated and recycled

Ratings completed to June 2015:75

NABERS IE (Indoor Environment)

Marketing, corporate responsibility

Air quality, daylight, thermal comfort, acoustics, office layout

Ratings completed to June 2015:79

Green Star – Design and As-Built

Office, Interiors, Education, Healthcare, Industrial, Retail Centre, Public Building, Communities

4-6 Stars Some Council planning requirements (e.g. City of Melbourne Docklands)

Marketing, corporate responsibility

Design features of buildings

Management, IEQ, Energy, Transport, Water, Materials, Emissions, Ecology, Innovation

Green Star Accredited Professional completes submission

Ratings certified to November 2015Office: 487 Interiors: 158 Education: 108 Healthcare: 7 Industrial: 27 Public building: 14 Shopping Centre: 33

Green Star – Performance

All 1-6 Stars Marketing, corporate responsibility

Actual performance of existing buildings

Ratings certified to November 2015: 105

BREEAM All Acceptable – Outstanding (6 possible ratings)

BREAAM is not in use with Australia due to contracting agreement with GBCA (however some Australian buildings have been assessed under the BREEAM “Bespoke International” system)

Several schemes including design ratings for new construction, refurbishment and in-use (actual performance)

Same as Green Star although grouped differently

BREEAM Assessor or In-Use Auditor

No certified projects in Australia, over 425,000 worldwide

LEED New construction, core and shell, schools, retail, healthcare, data centres, hospitality, warehouse and distribution centres

Certified (lowest)

Silver

Gold

Platinum (highest)

US publicly owned and funded buildings

Marketing, particularly international firms looking to certify their worldwide portfolio with one tool

Building Design and Construction Interior Design and Construction Building Operations and Development

Location and Transportation, Materials and Resources, Water Efficiency, Energy and Atmosphere, Sustainable Sites, IEQ, Innovation. Also considers specific regional issues/requirements

LEED Accredited Professional

36 in Australia 85,364 worldwide as at 27/01/2016

Living Building Challenge

All NetZero Energy (lowest)

Petal Living (highest)

Voluntary Marketing to certify that a project delivers the lowest environmental impact of any building, anywhere.

Actual performance after 12 months of operation

Place, Water, Energy, Health & Happiness, Materials, Equity and Beauty

Project team submits documentation, Auditor checks and awards rating

21 certified worldwide as at 20/01/2016

ToolCriteria

Environment Design Guide • March 2016

17

Appendix: Summary of rating toolsBuildings Rated Ratings

availableMandatory for Used for Assesses Categories assessed Assessment completed

byMarket prevalence (Australia)

NABERS Energy

Office/tenancy, Retail Centre, Hotels (not motels or resorts), Data Centres

0-6 Stars

Commercial Building Disclosure (CBD) scheme, minimum energy targets for government buildings

Some council planning schemes, Property Council of Australia (PCA) building grading scheme (offices), Marketing, corporate responsibility

Actual performance of existing buildings; (commitment agreement can be entered into to market future performance)

Energy (greenhouse gas emissions)

NABERS Accredited Assessor

Ratings completed to June 2015 Office: 2594 (79% market penetration) Retail: 173 Hotel: 72 Data centre: 5

NABERS Water

Office/tenancy, Retail Centre, Hotels

Government buildings minimum energy targets (NSW, QLD, SA in development)

Marketing, corporate responsibility

Water Ratings completed to June 2015 Office: 1030 (51% market penetration) Retail: 157 Hotel: 66

NABERS Waste

Office/tenancy

Marketing, corporate responsibility

Waste generated and recycled

Ratings completed to June 2015:75

NABERS IE (Indoor Environment)

Marketing, corporate responsibility

Air quality, daylight, thermal comfort, acoustics, office layout

Ratings completed to June 2015:79

Green Star – Design and As-Built

Office, Interiors, Education, Healthcare, Industrial, Retail Centre, Public Building, Communities

4-6 Stars Some Council planning requirements (e.g. City of Melbourne Docklands)

Marketing, corporate responsibility

Design features of buildings

Management, IEQ, Energy, Transport, Water, Materials, Emissions, Ecology, Innovation

Green Star Accredited Professional completes submission

Ratings certified to November 2015 Office: 487 Interiors: 158 Education: 108 Healthcare: 7 Industrial: 27 Public building: 14 Shopping Centre: 33

Green Star – Performance

All 1-6 Stars Marketing, corporate responsibility

Actual performance of existing buildings

Ratings certified to November 2015: 105

BREEAM All Acceptable – Outstanding (6 possible ratings)

BREAAM is not in use with Australia due to contracting agreement with GBCA (however some Australian buildings have been assessed under the BREEAM “Bespoke International” system)

Several schemes including design ratings for new construction, refurbishment and in-use (actual performance)

Same as Green Star although grouped differently

BREEAM Assessor or In-Use Auditor

No certified projects in Australia, over 425,000 worldwide

LEED New construction, core and shell, schools, retail, healthcare, data centres, hospitality, warehouse and distribution centres

Certified (lowest)

Silver

Gold

Platinum (highest)

US publicly owned and funded buildings

Marketing, particularly international firms looking to certify their worldwide portfolio with one tool

Building Design and Construction Interior Design and Construction Building Operations and Development

Location and Transportation, Materials and Resources, Water Efficiency, Energy and Atmosphere, Sustainable Sites, IEQ, Innovation. Also considers specific regional issues/requirements

LEED Accredited Professional

36 in Australia 85,364 worldwide as at 27/01/2016

Living Building Challenge

All NetZero Energy (lowest)

Petal Living (highest)

Voluntary Marketing to certify that a project delivers the lowest environmental impact of any building, anywhere.

Actual performance after 12 months of operation

Place, Water, Energy, Health & Happiness, Materials, Equity and Beauty

Project team submits documentation, Auditor checks and awards rating

21 certified worldwide as at 20/01/2016

March 2016 •Environment Design Guide

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Buildings Rated Ratings available

Mandatory for: Used for: Assesses: Categories assessed: Assessment completed by:

Market prevalence (Australia)

One Planet Living

Communities, companies, neighbourhoods, regions

Endorsed Voluntary Marketing, corporate responsibility

Endorsement of action plan and annual reviews

Health & happiness, equity & local economy, culture & community, land use & wildlife, local & sustainable food, sustainable materials, sustainable transport, zero waste, sustainable water & zero carbon

Project team submits documentation, One Planet Living Steering group reviews

7 communities globally (2014)

PassivHaus Residential, retrofit projects, non-residential

Certified Voluntary Marketing, ensuring high thermal comfort and low energy consumption

Design construction and post-construction review

Heating and cooling loads, primary energy demand and air tightness

PassivHaus Institute Approx. 30,000 buildings globally (2014)

eTool All N/A Voluntary; applicable to Green Star, BREEAM, CEEQUAL, LEED, Living Building Challenge, One Planet Living, UDIA, German Sustainable Building Council

Quantifying and measuring all aspects of the environmental impacts of a project, which may form part of credit requirements for various rating systems

Design features of buildings ‘cradle to grave’

Materials, transport, assembly, use, maintenance, end of life

Project team N/A

WELL Commercial buildings and tenancies, hospitality, sports facilities, restaurants and residential buildings

Silver, Gold or Platinum

Voluntary in Australia Promoting buildings with a human centred approach, improving occupant health, wellbeing and productivity

Measuring health and wellness impacts of buildings on occupants

Air, water, nourishment, light, fitness, comfort, mind

WELL assessor (appointed by WELL)

3 projects in Australia, 100 worldwide

NCC Section J All projects requiring a building permit

Pass/fail Building permit certification

Building permit certification

Compliance with minimum building code requirements

Insulation, Glazing, Sealing, Lighting, Mechanical Services, Access for Maintenance (TBC)

Registered Building Practitioner or state equivalent, suitably qualified professional (e.g. ESD consultant)

All projects requiring a building permit

Table 1. Summary of rating tools (GBCA, 2015a, USGBC, 2016a, International Living Future Institute 2015a, Barth, 2014, Building Logic, 2014)

ToolCriteria

Environment Design Guide • March 2016

19

Buildings Rated Ratings available

Mandatory for: Used for: Assesses: Categories assessed: Assessment completed by:

Market prevalence (Australia)

One Planet Living

Communities, companies, neighbourhoods, regions

Endorsed Voluntary Marketing, corporate responsibility

Endorsement of action plan and annual reviews

Health & happiness, equity & local economy, culture & community, land use & wildlife, local & sustainable food, sustainable materials, sustainable transport, zero waste, sustainable water & zero carbon

Project team submits documentation, One Planet Living Steering group reviews

7 communities globally (2014)

PassivHaus Residential, retrofit projects, non-residential

Certified Voluntary Marketing, ensuring high thermal comfort and low energy consumption

Design construction and post-construction review

Heating and cooling loads, primary energy demand and air tightness

PassivHaus Institute Approx. 30,000 buildings globally (2014)

eTool All N/A Voluntary; applicable to Green Star, BREEAM, CEEQUAL, LEED, Living Building Challenge, One Planet Living, UDIA, German Sustainable Building Council

Quantifying and measuring all aspects of the environmental impacts of a project, which may form part of credit requirements for various rating systems

Design features of buildings ‘cradle to grave’

Materials, transport, assembly, use, maintenance, end of life

Project team N/A

WELL Commercial buildings and tenancies, hospitality, sports facilities, restaurants and residential buildings

Silver, Gold or Platinum

Voluntary in Australia Promoting buildings with a human centred approach, improving occupant health, wellbeing and productivity

Measuring health and wellness impacts of buildings on occupants

Air, water, nourishment, light, fitness, comfort, mind

WELL assessor (appointed by WELL)

3 projects in Australia, 100 worldwide

NCC Section J All projects requiring a building permit

Pass/fail Building permit certification

Building permit certification

Compliance with minimum building code requirements

Insulation, Glazing, Sealing, Lighting, Mechanical Services, Access for Maintenance (TBC)

Registered Building Practitioner or state equivalent, suitably qualified professional (e.g. ESD consultant)

All projects requiring a building permit

March 2016 •Environment Design Guide

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References A Comparison of Building Rating Systems: Leed, Green Star, Breeam. A Proposal to Integrate Biomimicry Into Green Star Rating, StudyMode.com, 05 2013. Web. 05 2013. http://www.studymode.com/essays/a-Comparison-Of-Building-Rating-Systems-1731453.html

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Barth, B 2014, One Planet Communities: The Earth’s Greenest Neighbourhoods, accessed 20 September 2015, http://inhabitat.com/one-planet-communities-the-earths-greenest-neighborhoods/

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DISCLAIMERThe views expressed in this paper are the views of the author(s) only and not necessarily those of the Australian Institute of Architects (the Institute) or any other person or entity.

This paper is published by the Institute and provides information regarding the subject matter covered only, without the assumption of a duty of care by the Institute or any other person or entity.

This paper is not intended to be, nor should be, relied upon as a substitute for specific professional advice.

Copyright in this paper is owned by the Australian Institute of Architects.

About the authorsAnia HamptonAnia Hampton B.E.(Hons), M.AIRAH, is an ESD consultant and founded Edefice in 2009 with the aim of designing practical, cost-effective sustainable buildings. She is an accredited NABERS, Commercial Building Disclosure and Thermal Performance Assessor, Green Star Accredited Professional and a director of the Australian Institute of Refrigeration, Heating and Air-Conditioning.

Ania regularly writes papers for various industry publications, is a sought-after peer reviewer for ESD papers and speaks at industry conferences, seminars and community workshops.

ania@edefice.com.au

Lauren ClayLauren Clay BAeroEng(Hons)/BA, is a Building Physics Engineer at Arup. She is passionate about holistic, sustainable building design and creating comfortable environments. As part of her involvement in a broad range of projects, Lauren provides design advice relating to the building envelope, daylight amenity, external microclimates, indoor environments, human comfort and building energy. She is an accredited Thermal Performance Assessor and undertakes LEED, NABERS and Green Star energy modelling.

lauren.clay@arup.com