The future is green — a sustainability mindset

Growing concern about environmental issues and climate change is shifting the mindset throughout the real estate industry. Demand for real estate and construction companies that practice sustainability is rapidly increasing and is expected to become even more of a priority for real estate companies in New Zealand.

With the Government’s green initiatives, in tandem with buyer preference for carbon-conscious companies, many real estate and construction businesses are implementing sustainability-centric initiatives.

Why a shift to sustainability?

The influence of green building standards in New Zealand has been driven by consumer demand more than regulation, unlike some countries in Europe and the UK. However, in 2020, the Government announced plans to transform and reduce pollution — catalysing sustainability further, which led to the introduction of the Building for Climate Change programme.

According to the New Zealand Green Building Council (NZGBC), buildings and their construction account for as much as 20% of New Zealand’s emissions. For our country to reach its climate change goals, including net zero carbon by 2050, changes must be made within the building and construction sector. Energy efficiency and carbon emissions are crucial considerations when building sustainably, and buildings are now designed and constructed to use minimal energy and water, which will reduce greenhouse gas emissions.

Following the Building for Climate Change programme, the NZGBC implemented its own zero carbon roadmap for the country’s buildings. In July 2021, they stated that following the introduction of the Building for Climate Change Programme and the NZGBC’s own zero carbon roadmap, 20 buildings achieved Green Star certification, over 1,100 new homes were awarded Homestar certification, and nearly 20,000 homes utilised the free HomeFit check.

Green Star certification — the new tick of approval

Originally created by Green Building Council Australia and then adapted for New Zealand, Green Star is a holistic sustainability rating system for buildings, fitouts, and communities. The rating is available for all commercial building types, including schools, office buildings, and shopping centres.

When a building is Green Star certified, it means it has met best practice sustainable design and build indicators — differentiating companies who meet Green Star requirements from companies who convey a false impression about their sustainable methods.

Lloyd Budd, Director of Bayleys Commercial and Industrial in Auckland, says a five Green Star rating is now the norm for many large, new office buildings and other warehouse and commercial buildings.

Partnered with NZGBC, Bayleys is committed to rating its commercial and industrial premises with a NABERS rating (a system for rating energy efficiency of buildings) — and they are encouraging their customers to do the same.

“As a New Zealand-owned, family company, the idea of sustainability fits the values of our owners,” says Budd.

Sustainability key for New Zealand construction companies

It’s in the name — Green Homes New Zealand has embraced green initiatives. The international residential building company takes sustainability and its carbon footprint seriously by incorporating practices and systems that minimise impact on the environment, reduce running costs, and make homes healthy, accessible and comfortable.

Mandy Stephens, Sales Manager at Green Homes New Zealand, says she has noticed an increase in buyer interest for sustainable properties in recent years. “Many people have adopted a passion for the environment after raised awareness of climate change. Not only this, but buyers have the desire to reduce ongoing heat and cooling costs,” says Stephens.

Signature Homes has also recently announced its initiative to mitigate its construction CO2 emissions by planting around 45 native trees for each new build in partnership with Trees That Count. Their CO2 reduction plan began with a gift of 6,615 trees to Trees That Count to cover sales in November and December 2021.

Paul Bull, Chief Executive at Signature Homes, expects they will plant around 45,000 trees annually, which will absorb around 19,000 tonnes of CO2-equivalent emissions over 50 years as those trees continue to grow. “We currently sell approximately 1,000 homes a year and realised that results in a significant carbon footprint.

“We were determined to make our contribution to New Zealand’s goal of being carbon-neutral by 2050 and build a better future for kiwis,” Bull says.

With companies like Signature Homes and Green Homes New Zealand leading the pack, many remain hopeful that other companies in the industry will jump on the green bandwagon.

“We are working with our long-standing suppliers to identify more environmentally friendly building products, with a goal of using these as standard in everyday construction — but also offering our clients additional product options that allow them to make more sustainable choices,” concludes Bull.

We still have a way to go

Reducing emissions and creating new ways to be sustainable will require commitment and innovation within the real estate sector. There are many complexities and questions to solve at a sector and individual property level — including whether there is a sustainable way to modify older, highenergy consuming properties, and limit the carbon emitted to create processes for better energy efficiency.

Short-term policies contributing to New Zealand’s goal of net zero emissions by 2050 will be unable to keep up — so it is vital all companies in the sector do their bit and commit to a sustainable and green future. A ‘Clean and Green New Zealand’ has never been more relevant.

WE WERE DETERMINED TO MAKE OUR CONTRIBUTION TO NEW ZEALAND’S GOAL OF BEING CARBON-NEUTRAL BY 2050 AND BUILD A BETTER FUTURE FOR KIWIS.