Mainstreaming Sustainability in Building

The report first looks at the current market context for sustainability and barriers to uptake. Key findings include the need for a well integrated suite of sustainability rating systems, the significance of performance issues in existing residential housing stock, and the importance of initial design in commercial buildings.

The most important two markets are the “Existing Homes - Owner Occupied” and "Existing Homes - Rented”. They are the two largest and lowest performing and are not well structured to facilitate market driven uptake of sustainability. Efficient Space Heating systems and Efficient Hot Water Systems are well established in the residential market but there are gaps around rainwater and grey water systems,
retrofit insulation and retrofit double glazing and Building Performance Auditing. The commercial market is well positioned for development along sustainable lines however this does require the development of the Green Star rating to include retrofit and other commercial building types.

The report then proposes a residential market framework consisting of ten business models supported by four key regulatory changes to deliver enhanced sustainability. For the commercial market the report proposes a broadening of the Green Star rating to include mixed use, retail and schools and associated increase in rated products and systems. The report also recommends establishment of an industry body to support these business models.

The report then evaluates the recommended business  models from a financial perspective. The Mandatory House Rating, Sustainable Renovator and Retrofit Double Glazing initiatives are identified as key to achieving significant  change in the residential housing stock. Shifting from the current voluntary HERS rating to a compulsory rating at point of sale would have a substantial impact on the performance of existing housing stock.