The most common sustainability certifications for properties
The definition of clear, comprehensible standards should contribute to a high level of objectivity and transparency.
On the one hand, independent certification can strengthen the awareness of sustainability issues, and on the other hand it makes it easier for building users (tenants, for example) and investors to identify sustainable properties.
The most commonly found certifications are those issued by the providers LEED, BREEAM, and DGNB/ÖGNI, while the klimaaktiv certification is frequently used within Austria. The large providers certify both new buildings and existing structures (according to different criteria), and distinctions are also made between different utilisation profiles.
The following certifications are found most commonly on the European real estate markets. It should also be noted that each certification has different focal points or different emphasis in various areas (such as environmental, social, and economic aspects).
The klimaaktiv certification is an initiative of the Ministry of Climate Action, Environment, Energy, Mobility, Innovation, and Technology, and is part of the Austrian climate strategy. This programme promotes sustainable construction and renovation, the use of renewable energy, energy conservation, and mobility. The klimaaktiv building standard offers various levels of certification (Bronze, Silver, Gold) for buildings, concentrating on infrastructure quality, high energy efficiency, the use of renewable energy, the utilisation of environmentally-friendly materials, and thermal comfort.
bauXund schadstoffgeprüft is another Austrian certification system that focuses on building materials. This certification is awarded to buildings whose chemical and product management aspects are assessed in an in-depth review and which are erected in accordance with environmentally-sound construction requirements. The results are also checked by way of interior air sampling.
In addition to ecological and social aspects, the certification system of the German Sustainable Building Council (DGNB, Deutsche Gesellschaft für Nachhaltiges Bauen) also takes into account economic factors, assessing, among other things, energy and resource efficiency, ecological and technical quality, and user-friendliness. It offers several certification levels (Bronze, Silver, Gold, Platinum), as well as special certifications such as DGNB Diamond (for outstanding design quality) or ÖGNI Crystal (for outstanding social sustainability). It is also possible to obtain certifications for entire neighbourhoods that are planned and implemented with sustainability in mind.
In Austria, buildings are certified by the Austrian Sustainable Building Council (ÖGNI).
The LEED-certification system (Leadership in Energy and Environmental Design) was developed by the U.S. Green Building Council (USGBC). It establishes standards for energy-efficient, environmentally-sound, sustainable buildings. Here again, there are several certification levels (Certified, Silver, Gold, Platinum) and various criteria are assessed, such as environmental performance, water efficiency, energy efficiency, materials and use of resources, interior quality, and innovation. As it often references US standards, it is mainly found in the USA, or used when US tenants lease larger areas.
The BREEAM-programme (Building Research Establishment Environmental Assessment Method) was developed in the United Kingdom and assesses buildings in terms of their ecological, social, and economic sustainability on the basis of criteria such as energy, water, materials, health, and well-being. The certification levels range from acceptable, satisfactory, good, and very good to excellent. In the German-speaking area, the certifications are issued by the organisation TÜV Süd.
HQE (Haute Qualité Environnementale) is a French sustainability certification, which is also fundamentally applicable at the international level as well. It is used for buildings under construction or in use, as well as sustainable neighbourhoods and infrastructure. The main focal points are environment, quality of life, economic viability, and responsible management. The certification levels are Good, Very Good, Excellent, and Outstanding.
WELL is a building certification that concentrates on the human health and well-being of building occupants. This system focuses strongly on the interior spaces of a property, which are assessed in terms of the following ten categories: air quality, water quality, nourishment, visual comfort, movement, thermal comfort, interior and building acoustics, low-emissions and resource-efficient construction materials, satisfaction, community, and innovation. Again, the certification levels range from Bronze, Silver, and Gold to Platinum.
One common feature of all of thebuilding certifications is thatthe sustainability aspects of a property are analysed by independent third parties and documented in accordance with a standardised assessment system, generally featuring several different quality levels (such as Bronze, Silver, Gold, etc.). Some of the certifications (such as WELL and bauXund) consciously focus on individual subcomponent aspects, while others take a broad, holistic approach to the topic of sustainability and also consider economic criteria (such as DGNB for example).
Since the EU Taxonomy Regulation entered into force, some of the providers listed above also perform reviews of real estate for conformity with the Taxonomy. The EU Taxonomy is a classification system for economic activities which make significant contributions to the achievement of defined environmental objectives. One can expect that this topic will receive greater attention in the future in relation to property certifications and that, over the medium term, these two kinds of assessments will overlap or even merge together.
Mag. Christoph Drdla, MBA, MIM
Transaction Manager, Raiffeisen Immobilien KAG