Sustainable building certifications are the much-needed green flags in real estate investment – think of them as a stamp of approval for a building’s environmental performance. Investors love them, tenants appreciate them, and governments may even throw in some perks. A win, no matter how you look at it. 

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Today, there are dozens of building certifications that assess the environmental impact of buildings, whether planned or already constructed. Some are regional, while others are recognised globally. 

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These certifications not only indicate eco-friendly practices but also address rising concerns about climate change, resource consumption, and environmental impact. With more stakeholders, including investors and tenants, actively seeking sustainable solutions, green certifications add a competitive edge, signalling a commitment to long-term value and resilience.

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In this post, we’ll cover the key environmental building certifications, both international and regional, and more importantly, why any real estate stakeholder should consider one.

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What is green building certification?

Green building certifications, also known as sustainable building certifications, are rating tools that evaluate and rank buildings based on specific sustainability standards. These certifications may assess various aspects, like materials used, energy consumption, and waste management. Some certifications even cover building plans and renovations. Air quality? That’s often in the mix too.

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These certifications aren’t one-size-fits-all; they vary based on building types, including residential, commercial, schools, hospitals, and more. Major property stakeholders – like investors, developers, or owners – can apply for these certifications, and some even cover entire neighbourhoods or cities. Most rating systems use a points-based scale, with higher scores earning higher certification levels. For instance, a rating system might have a 0–100 points scale, with scores of 90 or above earning top marks.

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While sustainability certifications are generally voluntary, there are some exceptions. In certain cases, governments may require specific ranking levels, particularly for public buildings. 

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Type of green building certifications

Every building certification has its own unique style. Consequently, certifications differ in ratings systems, benchmarks, and recognition. 

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This diversity in certification types reflects the varied sustainability needs of building projects. New constructions might prioritise design efficiency, while older buildings focus on retrofitting for energy savings. Some certifications evaluate specific resources like energy or water, while others consider a comprehensive range of environmental, social, and economic criteria. Understanding the type that best suits each project is crucial for achieving meaningful impact. 

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Here are some common types of sustainability certifications in the building sector:

General green certification for buildings

These sustainability certifications are awarded for the overall environmental performance of the specific type of building (or any building if there’s no set type). Again, all that depends on the specific ranking system set by the organisation behind the certification. 

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Such certification considers various criteria, including – but not limited to – electricity, gas, and water consumption, waste disposal, recycling, cooling/heating, and air quality. 

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Green certifications for development plans or under-construction buildings 

This type of certification provides a framework for material selection and design of the building, optimising it for environmental performance. 

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These certifications or frameworks allow architects, engineers, and developers to use materials with the lowest carbon footprint and embrace systems that make energy consumption more efficient. With these certifications, new building projects can be made more eco-friendly from the get-go. 

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Retrofit or renovation green certifications

These certifications essentially help make existing buildings eco-friendly and are generally for indoor renovations of commercial or public spaces. The guidelines or criteria for these rating systems aim to align renovation efforts with climate change goals. In other words, the renovations or retrofits should help reduce resource consumption. 

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Resource-specific green certifications for buildings

Some certifications, such as Energy Star, are resource-specific, meaning they focus on only one resource used in the building. That resource is typically energy, as most buildings' operational carbon footprint is primarily made up of energy. 

Benefits of building sustainability certifications

Certified green buildings distinguish themselves for multiple reasons. And there’s a reason for that (several, actually). Qualifying and applying for any sustainability certification in the real estate sector takes a lot of effort and money. So, why bother?

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In addition to financial and environmental benefits, certified buildings often enjoy reduced vacancy rates, as tenants increasingly favour sustainable spaces. Furthermore, property owners can experience longer tenant retention as businesses seek eco-conscious environments to align with their own sustainability goals. For both owners and tenants, certifications signify a commitment to social responsibility and environmental stewardship.

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Here’s a deeper look at why green certifications are worth the investment: 

Smaller carbon footprint

The underlying purpose of any green certification is to encourage building owners, managers, and investors to reduce emissions. All green certifications' standards and benchmarks are designed to help buildings adopt efficient energy, water, and waste systems. Buildings that meet those requirements generally have a smaller carbon footprint than those that don’t. For instance, buildings with a LEED certification, which is a green accreditation, had 34% lower CO₂ emissions than other buildings. 

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Green buildings are good for the environment, which is seriously threatened by climate change. Reducing buildings’ carbon footprint results in lower overall emissions for companies that own or manage them, which is also good for their reputation. 

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Lower operational costs

Green buildings use resources efficiently, which helps reduce operational costs. For example, buildings with efficient motion-sensor lighting may reduce electricity bills. The frameworks and guidelines that power most sustainability certifications eliminate old resource-hungry heating/cooling. 

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Many times, the changes made to achieve green certifications aren’t even that big. However, their impact in the long run can have significant savings. On the other hand, in some cases, large investment may be necessary to bring the building up to green standard. Still, the savings in operational costs may cover the costs in the long run. 

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Increased investor attention

Investors increasingly value ESG (environmental, social, and governance) data when making decisions. While some are genuinely concerned about the environmental impact of properties and their use, many also see the financial benefits of pouring money into sustainable real estate. For starters, such buildings have lower running costs (as mentioned already). Also, they’re better positioned against environmental risks. 

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Earning a shiny green badge is a surefire way to attract investment for properties being constructed or those already in operation. Whether the goal is to find a buyer or raise funds for further development, a green certification can help earn investors’ interest and trust. 

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Appeal to eco-conscious tenants

Getting a green certificate is financially beneficial for properties that earn money through rent. As consumers become more aware of climate change and greenhouse gas emissions, they are preferring properties with a low carbon footprint. For example, an eco-conscious individual may choose an apartment powered by renewable energy over one that runs on fossil fuel-based sources. 

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Regulatory compliance 

Although environmental certifications for buildings aren’t mandatory, they might still help with regulatory compliance. For example, a holding company with real estate assets under its control may be required to report its emissions or stay under a limit. With a smaller footprint of their buildings in operation, they may stay under their carbon budget. Even if there’s no limit on emissions, a lower footprint reporting will have a positive impact (think good public opinion). 

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That said, governments in many parts of the world are introducing mandatory certifications for new buildings. For instance, Denmark has introduced a CO2 emissions limit for new buildings since 2025. Green certifications may help new (and even existing) buildings stay under their emissions limit. 

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Popular sustainability certifications for buildings

Here are a few widely recognised environmental certifications:

LEED

LEED, short for Leadership in Energy and Environmental Design, is a globally recognised green building certification developed by the U.S. Green Building Council (USGBC). It serves as a benchmark for the design, construction, operation, and maintenance of high-performance, sustainable buildings. 

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LEED certification promotes resource efficiency, reducing environmental impact and enhancing occupant well-being. It follows a points-based system, with assessment criteria like energy usage, water efficiency, waste management, and indoor environmental quality. Based on the points achieved, buildings can earn certification at Certified, Silver, Gold, or Platinum levels, with Platinum being the highest tier.

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Although LEED originated in the US, it has been adopted worldwide. There are LEED certified buildings in over 180 countries making it one of the most widely recognised and applied green building certification systems globally. 

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LEED applies to various building types, including new construction, existing buildings, interior spaces, residential properties, and entire neighbourhoods. There are various LEED rating systems specific to building types or aspects of environmental performance. 

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BREEAM

BREEAM, developed by the Building Research Establishment (BRE) in the United Kingdom, is one of the oldest and most respected green building certification systems globally. Established in 1990, it provides a framework for assessing a building's environmental, social, and economic sustainability across its lifecycle. 

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BREEAM certifications measure sustainability performance through energy, health and well-being, pollution, materials, waste, and ecology. Each criterion is assigned points, and the building is awarded a certification level from Pass to Outstanding based on the total points achieved. This multi-faceted assessment means it takes a comprehensive approach to sustainable development.

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Although developed in the UK, BREEAM has expanded internationally, with certified buildings in over 80 countries. It is present in many countries where local bodies assess and assign certifications. 

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It offers certification options for various building types and project stages, including BREEAM New Construction, BREEAM In-Use, BREEAM Refurbishment, and BREEAM Communities for larger developments. BREEAM’s adaptability to local conditions and emphasis on science-based sustainability make it a strong choice for new and existing buildings worldwide. 

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DGNB

DGNB is another widely recognised green building certification developed by the German Sustainable Building Council, or Deutsche Gesellschaft für Nachhaltiges Bauen, in 2009. DGNB emphasises a holistic approach to sustainability. It covers ecological, economic, sociocultural, technical, and process-oriented factors. Its framework considers a building's entire lifecycle, from construction to demolition, setting it apart as a performance-oriented certification. 

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DGNB certification levels range from Bronze to Platinum, with each level awarded based on a building’s adherence to strict sustainability standards.

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DGNB mostly works in Europe, with certified buildings in over 20 countries. DGNB’s certification system is highly adaptable and has regional adaptations for specific international markets. The certification is often used as a benchmark for sustainable building in Germany. It’s recognised for its thorough and scientifically backed assessment methods.

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NABERS

NABERS, or the National Australian Built Environment Rating System, is a performance-based certification developed in Australia. It focuses on building operational efficiency. Established by the Australian government, NABERS assesses real-world data on a building’s environmental impact, such as energy consumption, water usage, waste management, and indoor air quality, providing a star rating from 1 to 6. 

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NABERS provides accurate and practical information on a building’s environmental footprint, helping building owners and tenants make informed decisions about improving efficiency.

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In recent years, NABERS has expanded internationally, with partnerships and applications in New Zealand and the UK. NABERS certifications can be obtained for various property types, including offices, retail spaces, hotels, and data centres. Its straightforward and performance-based approach has made NABERS particularly popular for existing buildings looking to benchmark and improve their environmental impact through concrete data-driven insights.

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Regional green certifications for buildings

Most sustainability certifications in real estate are specific to a country or region. Here’s a look at some regional certifications:

• Assessment Standard for Green Building of China
• BEAM Plus (Hong Kong)
• BERDE (Brazil)
• Casa (Columbia)
• CASBEE (Japan)
• GBC (Italy)
• Greenship (Indonesia)
• Green Star (Australia, South Africa, Kenya)
• KGBC (South Korea)
• LOTUS (Vietnam)
• Miljöbyggnad (Sweden)
• Nordic Swan Ecolabel (Nordic Countries)
• PEARL (Abu Dhabi)
• SGBC (Singapore)
• VERDE (Spain)

Sustainability certifications vs. standards/benchmarks

There’s a difference between building environmental certification and standards/benchmarks. Some organisations simply set sustainability benchmarks or standards for the real estate sector to follow. They don’t award a certification for achieving those benchmarks in environmental performance. 

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The most commonly used sustainability benchmark in real estate is GRESB (Global Real Estate Sustainability Benchmark). It measures and publishes sustainability data for buildings worldwide that investors, developers, and other stakeholders in the building sector can use to make their properties more sustainable. The GRESB foundation uses its own framework to assess and measure a building's performance, which, in turn, is based on some international frameworks. 

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CRREM (Carbon Risk Real Estate Monitor) is another framework and tool that helps achieve the same goal as eco-friendly building certification but doesn’t award an actual certificate. Its main goal is to bring existing structures up to speed with retrofits that help reduce carbon emissions and make them more sustainable. 

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GRESB and CRREM can help get green certifications. While these frameworks don’t directly result in a rating or ranking, once buildings have followed them, owners can be ready to apply for actual ratings like LEED or BREEAM. 

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How do you get a sustainability building certification?

Various organisations award building environment certification for sustainability. Each has its own method and criteria that the applying party and the property in question must meet. 

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The certification process can vary depending on factors like the project stage, building type, and certifying body requirements. Some certifications, like LEED, are internationally recognised, while others focus on regional conditions and standards. By following a structured approach, applicants can meet the criteria effectively and position their property as a leader in sustainability.

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However, the general process of getting a sustainability certification typically involves the following steps:

• Choose a certification program: The first step is deciding which certification to apply for. You may determine this based on your building’s location, type, and lifecycle stage. International certifications can be applied for in most regions. However, regional bodies may only have assessors available within the region
• Register your project: Once you have chosen a certification program, you must register your project with the certifying organisation. This usually involves providing information about the project, such as its location, size, and type. Most of this is done online by creating an account, filling out forms, answering questions, and/or uploading documents
• Document your project: If the building is new, you will need to document its sustainability features throughout the design and construction process. This may include collecting energy use, water consumption, and material selection data.  
• Submit your application: Once your project is complete, you can apply to the certifying organisation. This application will include all of the documentation that you have collected  
• Pay the fee: Green building assessment requires a fee, which varies by organisation. You’ll need to pay the exact cost for that building type. (You may also need to pay the fee again to renew the certification if granted)
• Undergo a review: The certifying organisation will review your application and may conduct a site visit to verify the information that you have provided. Some organisations have accredited assessors in the country that do this 
• Receive your certification: If your project meets the certification requirements, you will receive a sustainability certification. The level of certification (e.g., Certified, Silver, Gold, Platinum) will depend on the number of points your project has earned

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Making the building sector greener

Buildings were responsible for nearly 34% of emissions in 2022. Their energy consumption, water usage, and waste disposal make up a significant chunk of the urban carbon footprint.

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Addressing this issue requires a global commitment to green building practices, especially in urban areas where rapid population growth intensifies environmental impact. By setting ambitious targets and adopting green certification standards, the real estate sector can align with national and international climate goals, driving sustainable urban development for future generations.

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Green certificates essentially prove that a building is, in fact, sustainable. That’s good on paper, as it helps save costs and comply with regulations. But it’s also good for the environment, of course. It's a win-win situation for all stakeholders involved. 

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If you’re in the real estate sector with properties in your portfolio or under management, applying for building certifications is a fantastic idea. Of course, you have to meet the criteria, too, which may require some work and investment. But, at comundo, we can confidently say those investments will be worth it!

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FAQs

What is a building certification?

A building certification is a formal process of evaluating a building's performance against specific standards and criteria. These standards can relate to energy efficiency, environmental impact, health and safety, accessibility, or other factors. Certifications are usually voluntary but may be required by local regulations or building codes.

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How much does it cost to get a sustainable building certification?

Most sustainability certifications for buildings have an assessment fee. This fee covers the cost of evaluating the building’s performance against the standard of the certification framework. This cost varies significantly from one organisation to another. Also, the fee may be updated each year. Check the official website of the certifying body for the latest fee in your building’s category/type. 

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Which green certification is best?

Each green building certification has its own approach, criteria, and rating system. That’s why it’s difficult to compare them. However, some are more comprehensive and stringent than others. As a result, they’re well-respected globally. BREEAM is one such green certification in real estate. 

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Which green building certifications are recognised in the EU? 

Here are some of the most recognised green building certifications in the EU:

• BREEAM: A leading European certification scheme
• LEED: A globally recognised certification that is widely used in Europe  
• DGNB: A German certification focusing on sustainability 
• HQE: A French certification emphasising human well-being 
• Minergie: A Swiss certification for energy-efficient buildings 

Passivhaus: A certification for buildings with extremely low energy consumption