# Sustainable Design in Planning

Version: 1, last updated: 26 Jun 2025

# Sustainable Design for new developments requiring a planning permit

CASBE member councils are committed to creating an environmentally sustainable and liveable city. We can assist you to incorporate environmentally sustainable design into your development during the planning process.

# Why is sustainable design so important?

The protection of our environment is an important global and local responsibility. Taking a sustainable approach to how we design and construct our buildings and urban form can help transform the way we live and use our resources in the future.

Today, buildings produce 20% of Australia’s greenhouse gas emissions through the use of energy during operation . In addition, the construction of buildings, including demolition waste, contributes 49% of all the materials sent to landfill . During operation, buildings use large amounts of potable water for non–drinking purposes.

Given that we are spending an increasing amount of time indoors, buildings are also a significant determinant in health and wellbeing.

As our climate changes and we experience an increasing number of severe weather events, we will rely more and more on buildings to provide protection from climate related hazards such as urban heat and bushfire.

For environmental, economic and social reasons, sustainable building design will support a more sustainable lifestyle. This is why sustainability is considered during the planning process.

# Incorporating sustainable design into new developments

Incorporating environmentally sustainable design into new developments is a requirement under many councils Planning Schemes. The objective is that development should achieve best practice in environmentally sustainable development from the design stage through to construction and operation.

A number of Victorian councils have a local Environmentally Sustainable Development (ESD) policy which contains objectives and application requirements for residential, mixed-use, and non-residential development. It recognises the importance of considering environmentally sustainable design at the time of planning approval for new developments.

If you are applying for a planning permit to construct a new building, you will need to provide information with your planning permit application across the following sustainability areas:

Operational Energy
Embodied carbon
Transport
Integrated Water Management
Urban Ecology
Indoor Environment Quality
Waste and Resource Recovery

# Application Requirements

The information that needs to be submitted with a planning application is proportionate to the scale and complexity of the proposed development.

A Sustainable Design Assessment is required for medium scale developments. A Sustainability Management Plan is required for all larger developments.

Please refer to the ESD policies of individual councils which outline at what scale this information is required. You can find a summary of the triggers in the ESD policies of CASBE member councils here (opens new window)

# Sustainable Design Assessment

A Sustainable Design Assessment (SDA) is a report that sets out the sustainable design features of a proposed development.

The Built Environment Sustainability Scorecard (BESS) can be used to undertake a Sustainable Design Assessment. Submit the BESS report with your planning application to satisfy the requirements for an SDA.

It is important that all relevant initiatives are clearly annotated on architectural drawings.

# Sustainability Management Plan

A Sustainability Management Plan (SMP) is more detailed than an SDA. It sets out the sustainable design features of large developments as defined in the application requirements above and provides more information about how the performance outcomes will be achieved (including implementation schedules).

A BESS report alone will not satisfy the requirements for an SMP under the local policies.

Large developments provide the opportunity for major resource savings and other environmental benefits, so greater rigour in investigation is required. It is important that all relevant initiatives are clearly annotated on architectural drawings. Preparation of an SMP will usually require the engagement of a sustainability consultant.

# Built Environment Sustainability Scorecard (BESS)

BESS is the primary tool purpose-built to assess ESD at the planning application stage in Victoria. It can assess all type and size of development and produces a scorecard report.

BESS is owned and maintained by Victorian local governments via the Council Alliance for a Sustainable Built Environment (CASBE). CASBE is auspiced by the Municipal Association of Victoria.

You may need to use other tools in conjunction with BESS. These include NatHERS assessment tools (thermal performance and energy use), Melbourne Water’s STORM tool (stormwater modelling), daylight modelling tools, and tools used to model energy use for non-residential developments.

Access BESS at bess.net.au (opens new window)

# Other ESD Tools

ESD tools are an effective way of measuring a proposed building design or actual performance. Benchmarks allow proposed designs and/or actual buildings to compare their performance with buildings of the same type. In most cases they provide instant and reliable feedback on various measurements including energy use, greenhouse gas emissions, potable water saving, treatment of stormwater, embodied energy emissions, daylight and ventilation. As ESD considerations are implemented at the design stage, the most common tools that are recommended to demonstrate ‘best practice’ are design rating tools, including:

# Voluntary or Mandatory?

In most cases ESD tools are not mandated, however there are exceptions to this:

The NatHERS tools are most commonly used to demonstrate compliance with energy standards the National Construction Code (NCC) for single residential houses and multi-residential housing.
The NABERS tool is enacted through Commercial Building Mandatory Disclosure Scheme, which requires any commercial office space of 1000m² or more offered for sale or lease provide information in regard to its operational energy performance.

Other ESD tools are generally not mandated within Australia and used voluntarily. The Green Building Council Australia released their first Green Star rating tool in 2003 and have successfully transformed the top end of the commercial building sector through their rating scheme. There has been a healthy level of competition from various business owners to design and build their offices with the highest Green Star ratings.

# Which tool for ESD policies?

The most used ESD tool at the planning stage in Victoria is the Built Environment Sustainability Scorecard (BESS). BESS differs from other tools as it is free for applicants to use and is focused on improving designs and buildings to a level in line with the ESD policies. BESS provides flexibility for the applicant to decide which solutions are appropriate for their budget and their desired level of performance.

# BESS - Built Environment Sustainability Scorecard

bess.net.au (opens new window)

Administrator: Council Alliance for a Sustainable Built Environment (CASBE)

Applicability: Residential, non-residential and mixed use developments

Free and simple online assessment rating tool for most types of development

# Measure of performance

Demonstrates 'best practice' across the following categories:

• Management • Integrated Water Management • Operational Energy • Indoor Environment Quality • Transport • Waste and Resource Recovery • Urban Ecology

# STORM (Stormwater Treatment Objective - Relative Measure)

storm.melbournewater.com.au (opens new window)

Administrator: Melbourne Water

Applicability: Stormwater impact of all development types up to ~1 hectare

# Measure of performance

The elements of a development that affect or treat stormwater are assessed and given a score from 0% to 100%+. 100% STORM rating = 45% reduction in the typical annual load of total nitrogen and achievement of best practice water quality objectives.

# MUSIC (Model For Urban Stormwater Improvement Conceptualisation)

toolkit.ewater.com.au/tools/MUSIC (opens new window)

Administrator: eWater

Applicability: MUSIC models stormwater treatment elements and provides the litres of stormwater treated or stored for reuse and pollution reduction.

# Green Star

gbca.org.au (opens new window)

Administrator: Green Building Council of Australia

Applicability: Reviews environmental sustainability in the following categories:

Responsible
Healthy
Resilient
Positive
Places
People
Nature
Leadership

# Measure of performance:

Certification is required to claim a Green Star star rating. Star ratings are:

4 Star Green Star: 'Best Practice'
5 Star Green Star: 'Australian Excellence'
6 Star Green Star: 'World Leadership'

# NatHERS (Nationwide House Energy Rating Scheme)

nathers.gov.au (opens new window)

Administrator: Australian Government on behalf of the states and territories

Applicability: Residential - Building Class 1-2

The Nationwide House Energy Rating Scheme (NatHERS) provides energy ratings for new dwellings and renovations. NatHERS provides and administers a software protocol for the rating of dwellings in Australia in different climate zones. Software tools can apply for
accreditation under the NatHERS protocol - these are then known as NatHERS accredited software (opens new window) tools. NatHERs also includes accreditation for assessors using NatHERS tools.

NatHERS is used for regulatory purposes, to demonstrate compliance with the National Construction Code (NCC) energy efficiency requirements. Historically NatHERS tools have been used to assess thermal performance of the building envelope. They now offer 'whole of home' ratings that also consider the energy requirements of dwellings, including:

hot water, heating and cooling systems
pool and spa equipment
lighting and plug in appliances
solar energy generated onsite and battery storage

NatHERS assessments now provide a thermal star rating out of 10 alongside a whole of home performance rating out of 100.

The following are NatHERS accredited tools:

DISCLAIMER: This Fact Sheet has been created for general information purposes only. While the Fact Sheet has been created with all due care, no warranty is given as to its suitability for any particular purpose and users should obtain their own advice relevant to their situation and specific needs. MAV or any party authorised by MAV to reproduce the Fact Sheet is not responsible for the accuracy, currency or reliability of the Fact Sheet and accepts no liability for any damage, losses whether direct or indirect, claims or expenses howsoever arising from any party who may rely on its contents.

The Council Alliance of a Sustainable Built Environment (CASBE) maintains these Sustainable Design fact sheets on behalf of our member councils. (opens new window)

CASBE is supported by the Municipal Association of Victoria (MAV).

We acknowledge – the Cities of Yarra, Port Phillip, Melbourne, Stonnington and Maribyrnong – for their leadership in producing the original suite of Sustainable Design fact sheets

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