How Green Mark 2021 Certification Can Help Manage Your Commercial Property’s Energy Costs

With rising utility costs and increasing environmental regulations, property owners and asset managers are under growing pressure to enhance energy efficiency across their commercial portfolios. BCA’s Green Mark 2021 certification offers a robust framework to guide sustainable building improvements—delivering both environmental and financial value.

Why Consider Green Mark 2021? 

Green Mark 2021 is Singapore’s updated green building rating system that promotes holistic sustainability outcomes. The certification places a strong emphasis on performance-based results across five key areas:

• Energy Efficiency: Implementing high-performance HVAC systems, smart lighting, and advanced controls can help buildings achieve an estimated 40%-60% improvement in energy performance, using Green Mark Platinum as a proxy. 

• Water Efficiency: Integrating low-flow fixtures and higher tick-rated fittings as defined under the Water Efficiency Labelling Scheme (WELS) can generate water savings between 11% and 60%, depending on the application .

• Sustainable Materials: Reducing the use of virgin materials and optimising construction waste management practices contribute to circularity in the built environment.

• Indoor Environmental Quality: Enhancements in air filtration, natural ventilation, and lighting quality support healthier indoor spaces—boosting occupant productivity by up to 11% . 

• Renewable Energy: Solar installations and on-site energy generation further improve building resilience and reduce carbon intensity over time

Quantifying the Benefits: A Case for Investment

Energy Savings:

For a typical 30,000 sqm office building currently in the bottom quartile of energy performance:

• Average EUI: 200 kWh/m²/year

• Annual Energy Bill: Estimated SG$1.79 million (based on March 2024 tariff rates: S$0.2989/kWh)

• Potential Savings: Up to 25% with moderate retrofits, translating to over SG$448,000 annually

Healthier Workplaces:

Beyond operational savings, improved sustainability performance enhances tenant appeal and asset value – especially in markets where ESG considerations are increasingly influencing investment decisions.

Government Incentives to Support the Transition:

The Green Mark Incentive Scheme for Existing Buildings (GMIS-EB 2.0) provides substantial funding support. The scheme specifically offers grants that cover up to 50% of qualifying retrofit costs, subject to specific caps based on the Green Mark certification level achieved.

1. Green Mark Platinum:

• Funding Factor: SG$25 per ton of carbon dioxide equivalent (tCO2e)

• Cap: SG$600,000 or up to 50% of the qualifying cost, whichever is lower

2. Green Mark Super Low Energy (SLE):

• Funding Factor: SG$35 per tCO2e

• Cap: SG$900,000 or up to 50% of the qualifying cost, whichever is lower

3. Green Mark Zero Energy:

• Funding Factor: SGD 45 per tCO2e

• Cap: SGD 1.2 million or up to 50% of the qualifying cost, whichever is lower

These co-funding grants help defray the upfront costs of retrofitting, significantly improving the payback period and overall return on investment for property owners. Beyond financial incentives, the scheme is designed to elevate the energy performance of existing buildings – advancing Singapore’s national target to green 80% of its building stock by 2030. In turn, higher-performing assets are better positioned to attract sustainability-focused tenants and investors, while enhancing long-term asset value.

Moving Forward with Sustainability

Adopting Green Mark 2021 standards is not only a strategic way to reduce operational energy costs, but also a meaningful contribution to Singapore’s broader sustainability goals. Beyond compliance, these upgrades can enhance your organisation’s ESG profile – appealing to tenants, clients, and investors who prioritise environmentally responsible practices.

By creating healthier, more efficient spaces, building owners can improve tenant satisfaction, support employee well-being, and elevate long-term asset value.

Achieving Green Mark certification requires a detailed understanding of building systems, performance metrics, and compliance criteria. Savills’ Energy and Sustainability Management (ESM) team offers end-to-end support – from conducting building audits and coordinating retrofits to documentation and submission. Contact us today to explore how Savills can help future-proof your property portfolio while enhancing performance and profitability.

This blog article is written by Savills’ Energy and Sustainability Management (ESM) team, with contributions from Zhang MeiJia, Nanyang Technological University.

[1] https://resourcehub.bakermckenzie.com/en/resources/global-sustainable-buildings/asia-pacific/singapore/topics/energy-performance-certificates-and-minimum-energy-standards

[2] https://www.pub.gov.sg/-/media/Images/Feature/Content-Pages/Public/Singapore-Water-Loop/Water-Conversation/WELS/Potential_Water_Savings.pdf

[3]https://www.workdesign.com/2020/01/higher-productivity-out-of-thin-air/