Welcome to the
NABERS Annual Report 2024/25

This year showed how measurement unlocks momentum.

Electrification and embodied carbon moved from theory to practice, industry leadership lifted expectations, and new levers – from procurement policies to finance taxonomies – helped to move markets. At the heart of these achievements is a standout theme: measurement as the bridge between ambition and action.

Electrification has become a proof point for change. The question is no longer whether it can be done, but how. The Renewable Energy Indicator, now in its second year, highlights reliance on fossil fuels and the shift to renewables. Some buildings face tougher decarbonisation challenges than others, but the direction is consistent: every sector and jurisdiction is making progress. Technical barriers are no longer excuses, but engineering problems to be solved systematically.

Hotels have been this year’s heroes. Government procurement policies, consumer awareness and investor sentiment aligned to drive a surge in NABERS ratings. For the first time, hotels featured in the Sustainable Portfolios Index. Leadership from local and global hotel operators set the pace, with more chains preparing to participate next year. NABERS strengthened the value proposition for hotel operators through partnerships with tourism sustainability certification schemes, while international recognition through Google Travel and Travalyst has taken NABERS ratings to millions of travellers.

Finance is another powerful lever now linked with NABERS. The launch of Australia’s Sustainable Finance Taxonomy embedded NABERS ratings as proxies, creating a common language between building owners and investors. A high NABERS rating is not only evidence of efficiency. It is also a pathway to finance as Australia faces the enormous investment task of upgrading thousands of buildings to meet net zero.

The NABERS Embodied Carbon tool launch was another major milestone. Developed through extensive consultation, it was embedded in government policy even before completion. This level of recognition signals both urgency and confidence: embodied carbon is set to become the largest share of building-related emissions as grids decarbonise, and we now have a consistent benchmark to address it.

Growth also defined the year. NABERS ratings nearly doubled in FY25, supported by whole-of-portfolio commitments from schools in three jurisdictions, and by practical innovations like Co-Assess for Shopping Centres. Every new rating is the start of a cycle where measurement enables management, and management drives improvement. The recent release of the Commercial Building Disclosure (CBD) Expansion Roadmap marks a pivotal moment for NABERS. By expanding the CBD program’s reach and ambition, the Commonwealth has sent a clear signal: transparency and performance are central to Australia’s net zero journey. This is a strong vote of confidence in the NABERS program, and we are ready to work with industry and government to make this transition smooth and impactful.

On behalf of the NABERS team, thank you to the many stakeholders whose commitment and collaboration underpin our success. In an uncertain world, NABERS offers something tangible: better buildings for people, savings for owners and tenants, and confidence that progress towards net zero is real. That is why measurement continues to drive momentum, and why your contributions matter.

2024-25 has seen NABERS strengthen its national and international reputation as a leading benchmark standard for industry, finance and governments.

NABERS rating tools are integral to the Australian Government’s Commercial Buildings Disclosure Program providing transparency of the energy performance of large commercial buildings in Australia. With the release of the CBD Roadmap by the Assistant Minister for Climate Change and Energy, the Hon Josh Wilson MP on 14 October, the Commonwealth has committed to expanding the CBD program. Over the past 12 years, buildings covered by the CBD program have improved their energy intensity by 29%, improvements that are underpinned by robust NABERS technical tools.

NABERS also supports the Australian Government’s Net Zero in Government Operations Strategy and the Environmentally Sustainable Procurement Policy.

The important contribution of NABERS has most recently been recognised in the Australian Government’s Net Zero Plan and Built Environment Sector Plan, with further development and expansion of NABERS tools being underwritten with new investment of around $10 million by the Commonwealth.

Energy and Climate Change Ministers recognised the important role NABERS plays in reducing nationwide emissions and energy demand in the recently updated Trajectory for Low Energy Buildings.

NABERS has long been a trusted brand and benchmark standard used by the commercial sector, and it has been pleasing to see NABERS recognised as a key measure of energy and emissions against the technical screening criteria used to verify the sustainability credentials of buildings in the Australian Sustainable Finance Taxonomy.

2024-25 saw the launch of three new NABERS tools into the market, with ratings tools now available for both retail and school buildings. In November 2024, NABERS also launched its rating system for embodied emissions in new buildings (and partial rebuilds) after close collaboration with industry to develop the tool.

I look forward to continuing to support the work of NABERS with members of the NABERS National Steering Committee and industry colleagues so that NABERS can continue to drive improved energy performance in Australia’s built environment.

As Stakeholder Chair, it has been a privilege to work closely with the NABERS Team on the continued growth of the program and expansion of the rating tools. One of those is the launch of the newly developed NABERS Embodied Carbon tool. This has provided a standardised methodology for measuring upfront embodied carbon – something that is becoming more important as operational carbon continues to reduce. Co-Assess’ inclusion of shopping centres has been another important addition, with its streamlined process for both building owners and tenants encouraging greater take up of the tool. Another exciting areas of growth has been the relaunch of NABER UK and the growth of NABERS NZ. This is both an endorsement of NABERS global standing and a worthwhile use of existing programs and tools.

Continuing to drive operational improvement was a broader focus throughout the year with results demonstrating strong outcomes. There was record growth in certifications supported by an increase in Hotel ratings and Schools ratings. Concurrently, new Assessors have become part of the program and an expansion of the Sustainable Portfolios Index: all of this achieved while delivering 98% of rating certifications within 10 days.

This work is evidence of the responsiveness of NABERS to address the direction of driving net zero within the built environment. At the same time, it demonstrates leadership in policy development and its impact on Australia’s built environment.

The collaborative nature of task groups, that include NABERS teams and members of the National Steering Committee, has allowed broader thinking to drive projects. This broader, more diverse approach ensures that NABERS continues to be at the leading edge of measurements and ratings in Australia’s built environment.

The impact of this program comes at a crucial time, with its impact more evident to building users and operators than ever. NABERS’ impact over the past quarter of a century has been clear, and the strength of connection between industry and government is essential in ensuring that Australia meets its future sustainability targets.

I am proud of what has been achieved throughout the year and look forward to the opportunity to continue contributing and supporting these tools, programs, and initiatives that improve our buildings, standards of living, and environment.