It isn’t just the environment that benefits from green star rated buildings – it can also add to the bottom line of companies that invest in the structures in the long run.

Although green buildings can cost more in the short term, they retain their value, several speakers at the NZ Green Building Council's Summit last week said.

Australian company Drapac invests only in sustainable buildings, and its funds manager Adam Murchie said that 70% of people reported in a recent UK study that fund managers did not take enough appropriate action on sustainability.

“Eighty percent of people believe sustainability is important but only 10% believe they fully understand what it means,” Mr Murchie said.

People also often believe that sustainable buildings cost more but this is not always correct, Mr Murchie said.

A lot of companies are concerned that building or signing a lease for a green star rated building is expensive and doesn’t take into account other benefits.

While traditionally constructed buildings with less emphasis on the sustainability of materials may be cheaper, the eventual negative cost on the environment and to staff productivity has not been priced in.

“Companies have a fear of short term underperformance, and how they will tell their investors in three, six or twelve months that they haven’t met the targets for those periods. But what about in three, six or 12 years – then how would they tell investors they lost larger amounts of money because of not making long term sustainable decisions?” Mr Murchie asked.

Green star ratings were for commercial buildings the way air conditioning was in the 1970s – they either had it or they didn’t and it had a huge impact on value, Mr Murchie said.

AMP Capital Australia research analyst Nick Edgerton agreed the general perception was that being green costs more but that wasn't necessarily correct and many investors considered the green star ratings a futureproofing of assets.

While in the current market there wasn’t much a of a difference in the prices that Green Star rated buildings are bought and sold for, this will change in the years to come, Mr Murchie said.