Green Star Performance v2 unveiled: a new era in sustainable building

31 Jul 2024

The Green Building Council of Australia has today launched Green Star Performance v2, a comprehensive update to our sustainability rating tool which has been designed to meet the evolving expectations of a rapidly changing world.

The Green Building Council of Australia has today launched Green Star Performance v2, a comprehensive update to our sustainability rating tool which has been designed to meet the evolving expectations of a rapidly changing world.

GBCA’s Senior Manager of Buildings, Fitouts and Market Engagement, Jamie Wallis, said when Green Star Performance first entered the market in 2013, the landscape of ESG and sustainable finance was vastly different.

“Investors are now looking for assets on a clear path to net zero, and the sustainable finance community needs to know whether assets are aligned with global decarbonisation goals,” Mr Wallis said.

“The world has changed enormously since we launched Green Star Performance v1.”

Many of the frameworks that investors now rely on, such as the Paris Agreement, the Task Force on Climate-Related Disclosures (TCFD), and the United Nations Sustainable Development Goals (SDGs), were either non-existent or in their infancy.

Today, these frameworks play a critical role in guiding investment decisions, and the need for robust, reliable sustainability assessments has never been greater.

To meet these evolving expectations, Green Star Performance v2 has been rebuilt to incorporate the latest megatrends and investor demands into a single, user-friendly digital tool.

It aligns with leading frameworks such as the Climate Bonds Initiative (CBI), GRESB, TCFD, and 14 of the 17 UN SDGs. Buildings with NABERS ratings can earn up to 27 points towards a Performance rating.

This updated tool takes a holistic view of sustainability, embedding circular economy principles into operations and addressing key areas such as fit-out waste, embodied carbon, health and wellbeing, social impact, nature, and climate resilience.

It also supports better corporate reporting and disclosure, aiding investors and banks in making informed decisions while providing facilities managers with a clear pathway to improvement.

“We heard from over 200 experts to ensure our benchmarks are aligned with the world’s leading investor and sustainable finance frameworks and with the net zero expectations in the Climate Positive Pathway for Existing Buildings,” Mr Wallis said.

“Green Star Performance v2 is set up to support better corporate reporting and disclosure, helping investors and banks make better decisions.”

The revised benchmarks offer refined definitions, with rating expectations and mandatory credits that guarantee outcomes and give investors and lenders confidence. The benchmarks for world leadership have been strengthened, and the rating tool is now more easily applied to all asset types, including social infrastructure.

“Our focus was on ‘sustainability at scale’,” said Wallis. “Where Version 1 was designed for single buildings and adapted for portfolios, Version 2 makes portfolios the default. We’ve developed a digital platform that harmonises with NABERS and helps sustainability teams manage the deluge of ESG reporting requirements, easing the burden and enabling smarter work.”

Green Star Performance v2 registrations are now open. All new projects must register with  Green Star Performance v2 from 1 January 2025, and all projects must submit under Green Star Performance v2 from 1 January 2026.

Find out more here.