Ten leading property owners, investors and developers have pledged to adopt the Green Star environmental rating system for all new buildings they own and occupy. The rest of the property industry is encouraged to follow, but what do you need to know before going green?
The trend towards green buildings has seen ten of Australia's leading owners, investors and developers being the first to sign the Green Star Business Partnership, an initiative of the Green Building Council of Australia. Colonial First State Global Asset Management, DB RREEF, Investa, ISPT, Lend Lease, Multiplex, Stockland, Sydney Harbour Foreshore Authority and Sydney Olympic Park Authority have all pledged to adopt Green Star for all new buildings they own or occupy
Green Star is the Green Building Council of Australia's flagship environmental rating system. It assesses the environmental impact of a building based on a wide range of sustainability criteria. The commitment shown by the signatories to the Green Star Business Partnership reflects the impressive market take-up achieved by Green Star. In April 2006, around 50 projects were registered for Green Star certification. By July this year, the number had increased to 360.
Tony Arnel, Chair of the Green Building Council of Australia, sees the Green Star Business Partnership as the first step on the journey to transform the industry. He says, 'The challenge has now been set for other industry CEOs to follow this new direction and continue to drive the momentum of the property market, and position Australia as a world leader in sustainable design and construction.'
What do you need to consider in order to make the green commitment?
Prior to joining the green revolution it is important to understand the risks which are specific to green buildings and the Green Star rating system.
Green Star certification involves the compilation of detailed submissions to the Green Building Council of Australia. It is a labour intensive process and one which requires a firm commitment from all stakeholders at a very early stage in a project. In addition, the timing of Green Star certification leads to a range of issues in relation to practical completion and the ongoing operation and management of the building.
Too often, the legal risks associated with green buildings are not considered early enough and as a result, the project documentation ineffectively deals with those risks. Furthermore, the parties may miss out on opportunities to obtain easy Green Star credits through the incorporation of specific contract terms.
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