NABERS takes a look inside
NABERS Indoor Environment (IE) is the world’s first indoor environment performance rating tool. It provides building managers, owners and occupants with an understanding of the indoor environment quality of their office buildings, allowing problems to be addressed and improvements to be made.

Colonial First State Global Asset Management (CFSGAM) played a key role in the development of the NABERS IE tool from a grassroots level. Its involvement with the new NABERS IE tool was a natural fit, as sustainability is already a key component of its asset management strategy. CFSGAM currently uses NABERS Energy and Water tools to monitor operational performance and set targets that ensure CFSGAM’s property portfolio has minimal operational impact on the environment.

“The use of NABERS IE demonstrates that CFSGAM is serious about the indoor environment of its buildings and is committed to improving the workplace experience it provides for occupants.

“NABERS IE is an effective tool to measure indoor environment performance. By getting involved in its development, CFSGAM has ensured that the tool is relevant to our needs,” said Rowan Griffin, CFSGAM Head of Sustainability, Property.

Hitting targets with NABERS IE
To identify indoor environment improvement opportunities, CFSGAM took part in the NABERS IE pilot program and assisted in the development of the tool.

CFSGAM uses the NABERS tools to set performance targets for every building in its portfolio. Each property has its own individual operational performance strategy in place, which incorporates NABERS tools. Monthly snapshots are taken to ensure short, medium and long-term NABERS targets are on track, while a range of controls and technical reviews are used to identify opportunities for improvement.

“The operational performance of our entire portfolio is an ongoing consideration, from both a sustainability and business perspective. To maximise this performance it’s critical to continue to drive improvements.

“Indoor environment performance is an important component of operational performance and, based on our strategic use of the existing NABERS tools, incorporating the NABERS Indoor Environment tool into our day-to-day operations was a logical move,” said Mr Griffin.

Three office buildings across two of CFSGAM’s funds ‑ the listed Commonwealth Property Office Fund (CPA) and the wholesale Direct Property Investment Fund (DPIF) – were part of the NABERS IE pilot program.

The following buildings were the first to be rated with NABERS IE and achieved good ratings:

60 Castlereagh Street (CPA) 4 stars
101 George Street (CPA) 3.5 stars
367 Collins Street (DPIF) 3.5 stars

These three buildings are managed by CFSGAM, with Jones Lang LaSalle performing property and facilities management. The NABERS IE base building rating on each of the properties was conducted by QED Environmental Services, a long-term air quality provider to CFSGAM, who were also involved in the development of the NABERS IE tool prior to its official release.

Obtaining a NABERS IE rating is a simple, cost effective process and unlocks long term savings potential for building owners and managers. An assessor is engaged to take samples, collect the data, calculate the results and submit ratings to the Department of Environment, Climate Change and Water (DECCW) for accreditation.

A list of NABERS-accredited assessors can be found on the NABERS website. All assessors must meet strict selection criteria and have undertaken a training session and assessment to obtain accreditation.

NABERS ie: the foundation for improvement
CFSGAM has embedded NABERS IE into its asset management strategy. It is in the process of benchmarking each of its properties, and the tool is being built into each asset’s Operational Performance Strategy.

The benchmarking process involves a review of fit-out guidelines and green lease models across the entire portfolio. Again, NABERS IE will be embedded into these guidelines as the key measurement tool and benchmark to drive improvements.

Together with QED Environmental Services, CFSGAM uses NABERS IE to monitor and improve existing air quality systems with a view to driving better performance across the portfolio. The group will continue to roll out NABERS IE ratings for its assets, with the aim of achieving ratings for the entire portfolio within the next three years, dependent on market variables and tenant demand.

NABERS IE is also being integrated into CFSGAM’s investment property management schedule. Recognising the importance tenants place on sustainable office accommodation, and that NABERS IE enables tenants to understand the quality of the office indoor environment for the first time, CFSGAM is using NABERS IE when analysing the lease expiry profile for each asset. This will ensure all assets are in optimum condition when available for lease.

CFSGAM is also in the process of engaging a consultant to develop Indoor Environment Improvement Plans based on the data from the NABERS IE rating.

“Obtaining the rating allows CFSGAM to easily identify areas that could be improved, helping to drive long term environmental improvements.

“We recognise that indoor environment quality is an important element in a building’s overall environmental performance and key to the wellbeing of its occupants, but it’s also crucial in terms of an asset’s ability to attract and retain tenants. NABERS IE enables CFSGAM to continue to offer leading sustainable office space to the market.

“A proactive approach is essential. NABERS IE ratings reflect the efforts and measures we’ve taken over a 12-month period. We need to continually monitor systems and procedures and implement identified improvement opportunities to match or improve an existing rating,” said Mr Griffin.

Obtaining and improving NABERS IE ratings can also assist with asset disposal, as having systems in place to reduce operational costs can be reflected in the increased value of the asset.

CFSGAM envisages that NABERS IE could transform the property market to an extent that surpasses even the widespread introduction of NABERS Energy (formerly ABGR).

“By highlighting how a building impacts its tenants, and the way in which tenants impact that building’s operation, NABERS IE can put sustainability and performance improvement on the agenda of a building’s owner, manager, tenant and occupant,” said Mr Griffin.

Key to the development of an effective NABERS IE tool was the close collaboration DECCW undertook with the end users of the tools. Throughout the engagement process suggestions were welcomed and potential problems ironed out to ensure the usefulness of the NABERS IE tool.

Conclusion
A building’s indoor environment performance is an increasingly important consideration for many different reasons, including occupant health and wellbeing, attraction and retention of tenants, lease negotiation, asset value and operational costs.

NABERS IE is an effective tool to measure and benchmark indoor environment factors. From large institutions with expansive portfolios to individual building owners, NABERS IE enables properties to be effectively compared with others in the marketplace, providing the benchmark to drive improvements in environmental performance.

Complementing the Energy and Water tools for office buildings, NABERS IE represents an important expansion in scope of operational measurement tools in the industry’s drive to improve sustainability and unlock financial savings in the process.