What Developers Need to Consider in Managing Green Buildings? - Part 2

DEVELOPERS NEED TO UNDERSTAND EACH GREEN CERTIFICATION'S REQUIREMENTS AND EVALUATION CRITERIA TO DEVLOP APPROPRIATE RENOVATION PLANS

The requirements and evaluation criteria for each green certification vary. Therefore, depending on the certification the developer wants, they must develop renovation plans that meet the specific criteria. In Viet Nam, the two most common green certifications are LEED and EDGE:

LEED (Leadership in Energy and Environmental Design)

LEED is a green building certification programme developed by the US Green Building Council (USGBC) to promote sustainable design and construction. Projects that meet certain criteria can achieve LEED certification at different levels: Certified, Silver, Gold, or Platinum. 

To obtain LEED certification, buildings must adhere to standards for energy efficiency and create a green environment, including improving water efficiency, reducing emissions, enhancing indoor environmental quality, increasing building resilience to environmental changes, and optimising the use of renewable energy. 

LEED's evaluation system includes: 

• Energy consumption reduction. 
• Water use efficiency. 
• Location and transportation connectivity. 
• Materials. 
• Indoor environmental quality. 
• Design innovation. 
• Sustainable development environment.

EDGE (Excellence in Design for Greater Efficiencies) 

EDGE is a green building certification system developed by the International Finance Corporation (IFC), a member of the World Bank Group. EDGE promotes sustainable design and construction solutions, requiring buildings to save at least 20% of resources compared to conventional buildings to achieve the certification. EDGE’s evaluation criteria include: 

• Energy consumption reduction. 
• Water savings and treatment. 
• Use of energy-efficient materials.

In addition to LEED and EDGE, other popular green certifications include WELL Building Standard, BREEAM, Green Globes, and Lotus. Developers need a management agent with experience operating green buildings to meet specialist criteria and achieve higher certification levels or other green certifications. This will enhance competitive advantage, attract multinational clients, increase occupancy rates, and ensure better rental prices, shortening the payback period. 

Read more: What are the Types of Green Building Certifications in Viet Nam?

DEVLOPERS MUST STAY UPDATED ON MARKET CHANGES AND EFFECTIVELY GUIDE OPERATING TEAMS IN IMPLEMENTING GREEN INITIATIVES

Currently, Viet Nam does not have a comprehensive legal framework and standard concept for green real estate operations, leading to inconsistencies in understanding and approach among developers. Moreover, developing a specialised operational team is a long-term and costly investment. The government’s incentives and support for green real estate projects are also challenging to access, resulting in limited specialised personnel. Therefore, according to green real estate standards, many developers hire third-party units for operational consultancy and management. These help developers stay updated on market changes and certification criteria, providing practical personnel training to implement green initiatives. 

DEVELOPERS MUST RAISE AWARENESS, HELP THE PROJECT COMMUNITY UNDERSTAND THEIR RESPONSIBILITIES, AND COLLABORATE TO CREATE A SUSTAINABLE ENVIRONMENT

Sustainable development goals require close coordination between stakeholders, particularly tenants, as they are the primary users of building amenities and energy. 

Projects can implement various direct communication methods, such as banners, weekly notice boards, or online through intelligent apps. This helps tenants understand their responsibilities and be willing to collaborate with the building to work towards a sustainable environment. Annually, Savills Property Management team hosts green campaigns for residents and tenants, such as Earth Hour or Plastic Detox. Positive responses from tenants reflect a growing sense of responsibility and commitment within the project community towards building a green living space.

Read more: Savills Plastic Detox 2023 and the Meaningful Journey of Shaping Green Places

With over 29 years of market experience, Savills is a leading Property Consultancy and Management agent in Viet Nam, particularly in sustainable operations following ESG green criteria. Learn more about our Consultancy and Management Services for green building solutions.