A guide for Malaysian SMEs on green building certifications for long-term sustainability
The Tun Razak Exchange (TRX) is the first to achieve township level GBI Platinum Certification in Malaysia by the Malaysia Green Building Index Accreditation Panel and achieving LEED Gold certification for “Neighbourhood Development Plan”.
IN a business landscape where competitiveness is key, investing in green building certification is a smart decision that helps small and medium enterprises (SMEs) improve resource efficiency and maximise long-term profitability - all while contributing to a healthier and more sustainable environment.
Back to basics
Green building certification enables companies to design and operate their buildings in an eco-friendly manner.
The certification provides guidance and procedures for building owners and operators to focus on saving energy, using water efficiently, reducing waste, and ensuring good air quality.
The aim is to make the building better for the environment and its occupants by making sure it uses fewer resources and has a smaller environmental impact.
For businesses, getting a green building certification could lead to long-term savings and added value as certified buildings generally have lower energy bills, thanks to features like energy-
efficient lighting and better insulation.
Employees working within green buildings also may experience a better working environment, with natural lighting, clean air and smoke-free spaces, which contribute to healthier and more productive workers.
They also tend to command a price premium over non-certified spaces, which is beneficial if the company plans to sell or rent out the property in future.
Also, businesses operating in green-certified buildings are
currently viewed as more environmentally responsible, helping attract customers and investors who prioritise sustainability.
In Malaysia, certifications like the Green Building Index (GBI), GreenRE, and international standards such as Leadership in Energy and Environmental Design (LEED) indicate a business’s commitment to sustainability, which has become an increasingly important factor for customers, investors, and partners.
The green certification buffet
GreenRE and GBI are Malaysia’s primary green building certification systems, while LEED holds a significant weight on the international stage. Additionally, the ISO 14001 standard supports organisations in establishing energy-efficient building operations.
1. Green Building Index (GBI)
> Malaysia’s first and widely recognised green building certification system
> Applicable for: Commercial and residential buildings
> Assessment Criteria: Construction to operations
> Re-certification: Every three years
> Performance Indicators:
Energy, water efficiency, indoor air quality, environmental impact.
2. GreenRE
> Developed by the Real Estate and Housing Developers’ Association (Rehda)
> Applicable for:
Real estate sector (developer-focus)
> Assessment criteria:
Sustainable property development and construction
> Re-certification:
Every three years
> Performance indicators:
Energy and water conservation, indoor environmental quality, use of sustainable materials.
3. Leadership in Energy and Environmental Design (LEED)
> Global certification from United States, applicable in Malaysia
> Applicable for:
Commercial and residentials, neighbourhoods, international and premium developments, Renovations of existing space or buildings
> Assessment criteria: Building design to construction to operations
>Re-certification:
Every three years
> Performance indicators:
Environmental benefits, healthier environments for occupants.
4. ISO 14001
> International standard for environmental management systems (not a building certification)
> Applicable for:
Organisations of all sizes
> Assessment criteria:
Commitment to improving operational framework
> Re-certification:
Every three years
> Performance indicators:
Energy and water use reduction, waste management improvement, compliance with environmental regulations.
Green goals backed by green funds
As investors and financial institutions increasingly prioritise sustainability, businesses adopting green buildings may find it easier to secure green funding or grants for their initiatives.
For example, Permodalan Nasional Bhd (PNB) secured a RM1.26bil (£210.0mil) Islamic sustainable financing facility from OCBC Bank (Malaysia) Bhd to refurbish the One Exchange Square office tower in London to the highest green certification standard.
Thus, a practical starting point for SMEs in their green-certification journey is OCBC Bank’s SME Energy Assessment (SMEEA) tool. This complimentary tool helps businesses identify energy inefficiencies, reduce carbon emissions, and improve operational performance, all while aligning with environmental regulations.
SMEEA also introduces SMEs to key sustainability concepts such as Scope 1, 2 and 3 emissions, offering tailored recommendations that can lead to cost savings and greater competitiveness. Results can be shared with stakeholders to foster transparency and collaboration.
OCBC Bank further supports the tool with follow-up guidance, resources, and access to green financing, empowering SMEs to make meaningful strides towards sustainability and long-term growth.
The bank’s broader commitment to responsible business is highlighted by its role as the main sponsor of the Star Media Group ESG Positive Impact Awards for three consecutive years.
A catalyst for green
Green buildings are more than just a trend. They can serve as a powerful visual representation of our commitment to a sustainable future
1. Long-term benefits:
> Lower utility bills through energy-efficient features like LED lighting, smart HVAC systems, and improved insulation
> Reduced maintenance costs due to durable, eco-friendly materials and smarter design
> Enhanced property value and stronger appeal to ESG-conscious investors and customers.
2. Buildings account for roughly 28% of global carbon emissions, mainly from operational sources such as heating and cooling systems.
3. The MyHIJAU Directory offers a comprehensive list of certified green products, services and government incentives to help businesses kick-start or scale their sustainable building journey.
