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
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
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.
The content of this article is intended to provide a general guide
to the subject matter. Specialist advice should be sought about your
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