Author: Kadie Julian
Topic: LEED Sustainability Certification
In today’s world, every business has to make a decision on their commitment to sustainability. These commitments often require significant financial investment through various programs, many of which allow businesses to earn a sustainability certification. The most widely used system of certifying buildings with green ratings is LEED, or Leadership in Energy and Environmental Design.
LEED follows a four level rating system based on points earned. Its goals include enhancing human health, minimizing contributions to climate change, and enhancing community quality of life. Many businesses value these goals. The real question is how many are willing to change their processes and make significant financial investments towards sustainability.
LEED’s first edition, known as 1.0, was created in 1998. In September 2023, LEED released the fifth iteration of its rating system. With new editions, businesses that have already been LEED certified must reassess and possibly adhere to new requirements. According to a study by Nish Armanath, the fifth edition highlights buildings working towards ultra-low carbon and zero-emission plans. LEED provides step-by-step plans to help businesses obtain exceptionally low greenhouse gas emissions.
In order to gain LEED points, businesses must follow different protocols. The amount of points a company has determines their LEED certification. For example, the fifth edition offers four points to any building with EV charging equipment in at least twenty percent of its total parking spaces. With 40 to 49 points, a building can be certified. As buildings gain more and more points, they can work up to silver, gold, and platinum certification.
Sustainability is often not the most profitable business practice. Every business must find a balance between sustainability and affordability. A study by Derrick Teal investigates this balance. The two primary incentives for companies to implement sustainable policies are to satisfy customers and lower overall production costs. In today’s world, many consumers search for sustainable businesses and products. According to Teal’s study, “Gen Z is willing to pay 50% more for an item that is sustainable and Millennials up to 33% more.”
Many businesses do not seek LEED certification because implementing sustainable practices can be costly and complex. For example, if a business wanted to utilize green shipping practices, the limited supply and accessibility of electric trucks would pose a significant challenge. This results in high costs that are unrealistic for many businesses. This is where LEED comes in, helping companies start their sustainability journey and continue forward into the future. In his article, Derrick Teal argues that investing in sustainability offers a great return on investment. His study suggests that the costs of certification are insignificant when compared to the total ROI potential of a certified facility.
This higher return is driven by two key factors: increased customer loyalty, particularly from younger generations who are willing to spend more on sustainable brands, and long-term operational savings from implementing energy efficient systems. Many LEED strategies cut down on water and energy usage, which ends up reducing monthly utility costs. Making these sustainable investments allows businesses to offset their upfront costs over time while simultaneously strengthening their brand image.
Overall, LEED provides helpful resources and instructions for businesses to grow their sustainability efforts. The formality of a LEED certification helps businesses show their employees and customers proof of their efforts. In the end, every business wants proud employees and proud customers.