Ratings

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NABERS Ratings

NABERS ratings provide an indication of the operational sustainability of a building. The NABERS Energy and Water ratings are the most common in the market place. NABERS Energy base building ratings for offices are mandated for buildings undergoing lease or sale transactions of spaces greater than 2000m².

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NABERS Ratings

What are they? NABERS ratings provide an indication of the operational sustainability of a building. Separate NABERS ratings are available for different building types and environmental issues:

Offices, Base or Whole Building (Owner or owner tenant) NABERS Energy, NABERS Water, NABERS Waste and NABERS Indoor Environment
Offices, Tenancy: NABERS Energy, NABERS Waste and NABERS Indoor Environment
Retail shopping Centres, Base building (Owner): NABERS Energy and Water

The NABERS Energy and Water ratings are the most common in the market place. NABERS Energy base building ratings for offices are mandated for buildings undergoing lease or sale transactions of spaces greater than 2000m². Why are they useful? A NABERS rating characterises the environmental performance on a simple star scale where 1 star is poor, 3 stars is average, 5 stars is leading edge and 6 stars is exceptional. Furthermore, these ratings are based on measurement not theory, so they represent real environmental performance. BY turning a relatively complex technical object into a simple star rating, NABERS makes it easier for non-technical people to discuss and value environmental performance when evaluating a building for sale or lease. Issues to be aware of NABERS ratings are only valid for one year, so a current rating is essential if it is to provide useful information about a building. NABERS ratings must be accredited to have any meaning. An informal, unaccredited NABERS rating should never be relied upon. NABERS ratings do not assess the presence or otherwise of design or technological features. They just assess performance outcomes. As a result it is possible for well designed buildings to be operated badly to achieve a poor rating, and poorly designed buildings to be operated well to achieve a good rating. That said, a poorly operated but well designed building is a great opportunity for improvement. NABERS ratings can be improved through the purchase of Green Power (accredited zero emissions power). However this can be identified on the rating certificate, and the rating without the use of Green Power is also shown on the certificate. As a result it is possible to tell the extent to which the NABERS rating has been achieved through on-site efficiency or by energy supply procurement. Applicable buildings All office buildings other than strata title buildings, and all shopping centres greater than 15,000m² Questions to ask

Does the building have a current NABERS rating, and if so what is it?
Was there any Green Power used in the NABERS rating, and if so what was the building’s rating if this is counted as ordinary grid power?
Have any improvements been undertaken since the last NABERS rating was undertaken?

If so, what did these include? More information NABERS website – www.nabers.gov.au

Green Star Ratings

Green Star if the Green Building Council of Australia’s environmental rating system. It is a design based system that provides accreditation to buildings that have maintained strict environmental standards in the design and through the construction of the building. The assessment covers new buildings, refurbished buildings and fit-outs for a range of building types against set criteria and best practice. The Green Star assessment covers nine categories: management, indoor environment quality, energy, transport, water, materials, waste, land use & ecology and emissions. An overall environmental rating is then provided. Once an assessment is complete, the Green Building Council issues a certificate identifying the awarded Green Star rating. Current Green Star ratings are 4 stars, 5 stars “Australian Best Practice” and 6 stars “World Best Practice”.

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Green Star Ratings

What are they?
Green Star if the Green Building Council of Australia’s environmental rating system. It is a design based system that provides accreditation to buildings that have maintained strict environmental standards in the design and through the construction of the building. The assessment covers new buildings, refurbished buildings and fit-outs for a range of building types against set criteria and best practice. The Green Star assessment covers nine categories: management, indoor environment quality, energy, transport, water, materials, waste, land use & ecology and emissions. An overall environmental rating is then provided. Once an assessment is complete, the Green Building Council issues a certificate identifying the awarded Green Star rating. Current Green Star ratings are 4 stars, 5 stars “Australian Best Practice” and 6 stars “World Best Practice”.

Why are they useful?
A Green Star rating provides evidence of the sustainability profile of a building. This can be useful for marketing purposes and some tenants will have a minimum Green Star requirement for new space. In recent times, 6 stars has become the benchmark for a building to be seen to an environmental leader. This rating is challenging and can be expensive to achieve unless care is taken to integrate environmental performance at every step, rather than bolt it on as an afterthought to an otherwise traditional design.

Issues to be aware of
A high Green Star rating does not necessarily mean a building is operated efficiently; it just means that it has a range of environmental / sustainability features and has the potential to be run efficiently. A Green Star performance rating is in development but is not available at the ime of writing which should provide greater insight into operational factors; NABERS can provide clear insights into the operational efficiency for energy and water for office and shopping centres, and waste and indoor environment for offices.

Applicable building types
A wide range of buildings can be assessed under Green Star, including offices (base building and fit-out, separately), shopping centres, hotels, education and……*****

Questions to ask

Does the building have a Green Star rating and if so, when does it date from?
What steps have been undertaken to continue the intent of the Green Star rating into day-to-day management
Are specific Green Star ratings required by the tenant or the owner with respect to the building or the fit-out?

More information
GBCA – www.gbca.org

CBD Assessments and Building Energy Efficiency Certificates

The Building Energy Efficiency Disclosure Act (2010) lays out requirements that all office buildings offering a sale or leasing transaction of greater than 2000m² must have a Building Energy efficiency Certificate (BEEC). The BEEC consists of a current NABERS Energy Base Building rating (or a whole building rating if this is not possible), a Commercial Building Disclosure Tenancy Lighting Assessment (often referred to as a CBD assessment or a TLA), and a generic statement of energy efficiency advice (which is the same for every building). The Tenancy Lighting Assessment is an assessment of the nominal lighting power density of the tenancy lighting system and the degree of sophistication of the control of the tenancy lights. Nominal Lighting Power density is Rated as Excellent, Good, Median or Poor across the range <7W/m² to >18W/m². Control systems are categorised as Good (predominantly occupancy sensor controlled) through to poor (predominantly manual). As the requirement for a BEEC is determined under the BEED Act, there are fines if buildings are advertised without a BEEC.

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CBD Assessments and Building Energy Efficiency Certificates

What are they?
The Building Energy Efficiency Disclosure Act (2010) lays out requirements that all office buildings offering a sale or leasing transaction of greater than 2000m² must have a Building Energy efficiency Certificate (BEEC). The BEEC consists of a current NABERS Energy Base Building rating (or a whole building rating if this is not possible), a Commercial Building Disclosure Tenancy Lighting Assessment (often referred to as a CBD assessment or a TLA), and a generic statement of energy efficiency advice (which is the same for every building). The Tenancy Lighting Assessment is an assessment of the nominal lighting power density of the tenancy lighting system and the degree of sophistication of the control of the tenancy lights. Nominal Lighting Power density is Rated as Excellent, Good, Median or Poor across the range <7W/m² to >18W/m². Control systems are categorised as Good (predominantly occupancy sensor controlled) through to poor (predominantly manual). As the requirement for a BEEC is determined under the BEED Act, there are fines if buildings are advertised without a BEEC.

Why are they useful?
The BEEC generally provides a capture for the middle tier of the property market that had largely failed to adopt NABERS. As a result, for significant transactions in these middle tier buildings, the BEEC provides a clear signal to owners and tenants as to the efficiency of the asset. The TLA component of the BEEC addresses the efficiency of the space that a tenant might be considering moving in to. By providing this information, the BEEC enables tenants to understand whether they are moving into a tenancy with good lighting efficiency potential or poor lighting energy efficiency potential. It also provides a benchmark against which owners can measure their properties and strategically target upgrades.

Issues to be aware of
BEECs are not universally available:

BEECS are only required for buildings with transactions greater than 2000m², so small buildings are not covered. Furthermore:
BEECS are currently not required for buildings with less than 75% office space
New buildings are exempt from the BEEC requirement until they have the operating data to undertake a NABERS rating
Police and government security operations are exempt from the requirement to undertake a TLA. Essentially all other spaces are required to undertake an TLA unless they are technically unassessable for some reason.

Applicable buildings
Only office buildings undertaking transactions or advertising spaces over 2000m² are required to have a BEEC.

Questions to ask

Does the building have a current BEEC and if so what were the results of the NABERS rating and the TLA?
If the building does not have a current BEEC, what was the reason?

More information
CBD program: www.cbd.gov.au

Environmental Management Systems

An Environmental Management System (EMS) formally defines the procedures and processes for an organisation to follow when setting, managing and implementing environmental objectives. The EMS is developed by the organisation to ensure that their environmental policy is implemented across all areas of the organisation. The EMS sets out the procedures to be followed in order to meet the organisation’s environmental objectives and can be used as a tool to improve environmental performance. For example, the EMS for a portfolio owner will include separate environmental procedures for acquiring, refurbishing and leasing buildings. These procedures are likely to set specific targets relating to energy, water, waste, NABERS, Green Star, etc. The EMS will also set out how the environmental objectives and / or targets should be monitored, reviewed and continuously improved. ISO 14001 is a voluntary international standard for organisations operating an Environmental Management System (EMS). A certificate is issued when the EMS formally meets the standards of ISO 14001 and thereafter the organisation is continually audited every six months to ensure it is fully compliant with the procedures set out in the EMS.

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Environmental Management Systems

What are they?
An Environmental Management System (EMS) formally defines the procedures and processes for an organisation to follow when setting, managing and implementing environmental objectives. The EMS is developed by the organisation to ensure that their environmental policy is implemented across all areas of the organisation. The EMS sets out the procedures to be followed in order to meet the organisation’s environmental objectives and can be used as a tool to improve environmental performance. For example, the EMS for a portfolio owner will include separate environmental procedures for acquiring, refurbishing and leasing buildings. These procedures are likely to set specific targets relating to energy, water, waste, NABERS, Green Star, etc. The EMS will also set out how the environmental objectives and / or targets should be monitored, reviewed and continuously improved. ISO 14001 is a voluntary international standard for organisations operating an Environmental Management System (EMS). A certificate is issued when the EMS formally meets the standards of ISO 14001 and thereafter the organisation is continually audited every six months to ensure it is fully compliant with the procedures set out in the EMS.

Why are they useful?
An owner or tenant who operates an EMS and / or ISO 14001 certification is likely to have specific environmental targets or corporate obligations that need to be achieved as well as being a good indicator of their commitment to environmental / sustainability related matters. For an owner, these may include, for example, operating Green Leases, Maintaining a NABERS rating or setting Building Rules with environmental requirements for fit-outs and tenant modifications. A tenant with an EMS/ISO 14001 accreditation is likely to demand space in a building with high environmental credentials. This could include a NABERS and/or a Green Star rating. The tenant may also be more willing to share data and work with an owner to ensure the building performs well.

Issues to be aware of
None.

Applicable buildings
All building types.

Questions to ask

Does the owner or tenant have an EMS accreditation?
Are there any specific environmental objectives or targets which will affect a potential tenant or owner?

More information
ISO 14001 Environmental Management System Guide

Transactional Agents Toolkit

Parties Involved

NABERS Ratings

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NABERS Ratings

Green Star Ratings

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Green Star Ratings

CBD Assessments and Building Energy Efficiency Certificates

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CBD Assessments and Building Energy Efficiency Certificates

Environmental Management Systems

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Environmental Management Systems

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