Green Star Communities v2: What does it mean for your development?

What makes up Green Star Communities v2?

Green Star Communities v2 is built around eight holistic categories; each linked to a defined outcome. To achieve a rating, organisations must meet a series of minimum requirements and earn credits. Each credit contributes to an overall score, with up to 47 credits and 100 points available. The more points a project achieves, the higher its Green Star rating, which is measured on a six-star scale. This framework recognises projects that go beyond compliance, rewarding those that demonstrate leadership in creating sustainable, resilient and liveable communities.

Rating levels:

• 4 Star – Best Practice 
  Meets all 22 minimum requirements and achieves at least 10 points. 

• 5 Star – Australian Excellence 
  Meets all 22 minimum requirements and achieves at least 35 points. 

• 6 Star – World Leadership 
  Meets all 22 minimum requirements and achieves at least 70 points. 

What has changed from version 1.1 to v2?

Green Star Communities v2 marks a significant evolution from the previous version, particularly its strengthened minimum requirements.

Under Version 1.1, the eligibility threshold for a rating was relatively low. A development simply needed to demonstrate that the site had been subject to an EPBC approval — a formal request to the Federal Environment Minister to determine whether the proposal required assessment under the Environment Protection and Biodiversity Conservation Act 1999.

In contrast, v2 introduces a more rigorous framework. To be eligible for a rating, developments must now meet 22 minimum requirement credits across eight outcome-based categories. Each category includes specific mandatory credits. For example, the ‘Health’ category contains three required elements, including the ‘Outdoor Comfort’ credit, which involves conducting an outdoor comfort assessment and implementing measures for improvement.

Two new key components of the updated framework are the ‘climate positive pathway’ and the ‘nature positive pathway’. These fall under the ‘Positive’ category and set out requirements for renewable energy, energy efficiency, upfront carbon reductions and positive building outcomes. Meeting these pathways is a minimum requirement and makes up the 22 credits.

This version of the tool requires developers to set clear sustainability objectives early in the planning process. Unlike the previous version, where a rating could be pursued after submitting a planning application, v2 calls for early integration of sustainability goals and a structured plan to meet them throughout the project lifecycle.

What is the value of achieving a Green Star Communities v2 rating?

The updated version of Green Star Communities brings a higher standard and greater rigour. Naturally, many of our clients are asking: ‘what value does achieving a Green Star Communities v2 rating bring to my development?’ Below, we’ve outlined some of the key benefits.

Support for ESG reporting: From January 2025, the Australian Government has mandated climate-related disclosures for large and medium-sized companies. This includes reporting on climate risks and opportunities, and greenhouse gas emissions across the entire value chain. Companies will be required to explain how different climate scenarios could affect their business, submitting this information alongside their financial reporting. Undertaking a Green Star Communities v2 rating supports organisations in meeting these requirements, helping ensure developments are both transparent and accountable from the outset.

Financial value: Green Star Communities certified developments tend to command a market premium, reflecting increased value and appeal. They typically use less energy and water, resulting in lower operating costs. Certification can also enhance a project’s reputation with investors and stakeholders who prioritise sustainability.

Tenant satisfaction: Green Star certified communities offer a higher quality of life with access to green spaces, better urban design, and improved health and well-being. This can lead to stronger tenant satisfaction and retention. Certification also helps meet the environmental and social expectations of communities and tenants.

Setting your development up for success

Our team has deep experience applying the Green Star Communities rating tool to a wide range of developments, successfully guiding clients to achieve certification. These include the Cutaway at Sydney’s Barangaroo, emerging precincts in Western Sydney, major rail infrastructure projects and various school campuses. We’ve also worked with the updated Green Star Buildings tool, equipping us to support clients in meeting the new minimum requirements. From this experience, we’ve identified three essential steps for success.

1. Set clear goals early in the planning process

Establishing your Green Star Communities ambitions early is crucial. Doing so allows you to put effective strategies in place to meet the relevant credit requirements. We’ve seen the greatest success when we’re engaged before a planning permit is lodged. Early involvement enables us to work with you to define your goals, map out what should be included in your planning submission and identify the actions needed to achieve your desired rating.

2. Know where you stand

You may already be meeting or nearly meeting some of the Green Star Communities v2 requirements within your organisation. We can help you identify which credits you are commonly achieving across most developments or where you have small gaps to fulfil these credits. On the other hand, we can also help you understand which credits will be difficult for your organisation to achieve and may require additional planning or preparation.

3. Understand the cost implications

With increased minimum requirements in the latest version, achieving a rating may involve higher costs than before. You may need new services that were not previously required. Delayed decision making is one of the most common drivers of unnecessary cost. We offer an upfront assessment to help estimate the cost of meeting your sustainability goals and we can continue supporting you throughout the project to track progress. Starting late can lead to rework, timeline delays and unexpected expenses.

4. Mapping credits to services

Following the initial assessment and cost estimate, we work closely with your organisation to align services with the credit requirements across multiple categories. Our aim is to ensure that all work undertaken directly supports the achievement of the relevant credits. For instance, within the ‘Resilience’ category, our resilience specialists can deliver the full suite of required assessments, including the resilience assessment and the climate risk and adaptation assessment. Similarly, for the ‘Positive’ pathway, our climate services team can provide all necessary analysis, including a climate positive pathway, and the development of a net zero strategy and action plan. By matching our expertise to each credit, we help streamline your path to a successful rating.

Getting started

We’ve only just scratched the surface of what’s possible with a Green Star Communities v2 rating and how we can help you achieve it. To explore the new requirements in more detail and discuss how we can support your development, get in touch with our team for an initial conversation.