Green certifications up the ante on long-term building performance

As green building certifications evolve, criteria around managing operational emissions is tightening, longer-term planning is in focus and achieving the top ratings is becoming more stringent.

The latest versions of LEED and BREEAM certifications particularly champion decarbonization through revised requirements, scoring methods, and evaluation criteria on operational as well as embodied carbon. 

Launched earlier this year, LEED v5 now allocates almost half of all certification points to carbon-cutting measures addressing materials, energy use, cooling systems, and transport-related emissions.

“LEED v5 puts greater focus on sustainable building operations. Credits for plans to improve performance, alongside new categories for resilience and human impact, indicate the shift towards longer-term, dynamic sustainability measures,” says Annalise Dum, Senior Vice President, Sustainability at JLL. 

Market emphasis on operational performance is increasingly driven by corporate occupiers who seek spaces that support their net zero commitments.

BREEAM v7, rolling out this year, has a renewed focus on managing and reporting whole-life carbon and net zero targets, aligning with global sustainability benchmarks and EU taxonomy. Certifications from Living Future Institute (formerly the International Living Future Institute), also dial up thresholds on energy efficiency and embodied carbon.

“The intent is to align with net zero, which is indicative of the market direction of travel,” says Matthew Ramsey, Associate, Sustainability Consulting at JLL. “Going beyond emissions monitoring, BREEAM v7 credits emissions reduction, and introduces prerequisites for water efficiency, ecology and health, in step with evolving corporate sustainability strategies.” 

Stronger drivers of real estate value

New requirements for the top ratings such as BREEAM Excellent and Outstanding, and LEED Gold and Platinum can drive market-leading improvements.

For example, McKinsey’s renovated Boston office achieved LEED v4 Platinum after integrating a best-in-class energy efficiency strategy into design specifications, including an air-tight exterior envelope, state-of-the-art HVAC, and architectural features that optimized natural light and increased fresh air circulation by 30-50%.

While this project was certified under LEED v4, the same type of innovative, proactive strategies will be required for v5, says Dum.

Powering buildings and operations on clean energy is another area in focus for top ratings, supporting the transition to 100% renewable energy that one in ten corporates have committed to.

“BREEAM ‘Excellent’ typically reflects the top 10% of certified buildings, and ‘Outstanding’ the top 1%—but in my experience, the proportion of projects targeting these ratings was much higher. These changes help reset the significance of the top ratings,” says Ramsey.

Yet the measures now needed to obtain certification under the newest versions of the ratings systems may increase upfront costs and technical complexity. LEED and BREEAM award points for advanced HVAC systems that adapt to fluctuating energy demands, significantly reducing operational carbon emissions. Both frameworks also recognize and incentivize the use of construction materials with minimal embodied carbon footprints. This can require organisations to rethink procurement strategies to source new equipment and materials. 

However, the pay-off for low-carbon buildings is substantial and must be considered alongside capital expenses at the onset of a project. “Implementing new certification requirements shouldn’t be viewed as a barrier, but instead as a value-add,” says Dum. “Our projects typically lead to increased operational savings due to improved efficiency. Attaining LEED or BREEAM certification can also mean buildings ultimately become more valuable with stronger tenant appeal and higher premiums.”

Across global markets, JLL Research has found evidence of green rental premiums ranging from 7.1% to 11.6%. As green building certifications become increasingly stringent, newer versions are poised to provide a more robust measure of an asset's sustainability performance relative to the broader market, with higher ratings more likely to command increased premiums.

Protecting value longer-term

With 65% of office stock at risk of stranding by 2030, greens certifications can also underpin asset future-proofing.

“These updated frameworks define sustainability beyond building regulations and help mitigate climate risk and the need for future, costlier retrofits,” says Ramsey.

For example, all BREEAM v7 levels include new benchmarks to demonstrate net gain in biodiversity, beyond the UK’s mandatory biodiversity legislation passed in 2024.

Reporting obligations can help shape strategies for which credits to pursue. “Companies need to consider what data is required by the standards they report against, and ensure it aligns with their credit strategies for certification,” says Ramsey.

The building performance data required by BREEAM v7 and LEED v5 also aligns with planning applications that increasingly consider environmental impact, and supports direct reporting to global sustainability standards such as EU Taxonomy, TCFD and GRI. This can provide a useful template for multinationals that face varying regulatory requirements across markets, Ramsey adds.

Best practices for green certified space

Achieving green certifications of any level requires early and frequent engagement between leadership, asset stakeholders, and project teams, including design teams for construction projects and on-site operational teams for existing buildings. 

Business-wide alignment is essential. “While leadership sets organizational sustainability goals, it is crucial they communicate to facilities teams and project managers how these goals should be supported by commercial real estate projects and operations – and ideally provide the financial support to realize them,” says Dum.

Wider collaboration between landlords and tenants on co-funding certification-aligned upgrades can also help both parties progress towards decarbonization goals as well as lower operational costs, Dum adds.

As corporate carbon commitments increase demand for sustainable buildings amid lacking supply, tougher green certification standards can provide a clearer pathway for decarbonization and realizing the benefits of energy efficient, socially inclusive and climate resilient real estate.

“Ultimately, best-in-class certifications such as LEED and BREEAM provide a reliable roadmap for creating high-performing, healthy buildings, and can help organizations to progress on their decarbonization journeys. That’s why green certifications should be considered across all industries and asset types,” says Dum.