Rating System Updates

The U.S. Green Building Council (USGBC) has unveiled 'LEED v5,' a major update to its globally recognized green building certification system. The new version emphasizes decarbonization, resilience, and human health more than any previous iteration. Notably, 50% of all LEED v5 points now directly support climate mitigation, requiring projects to cut emissions from operations, construction materials, and infrastructure. It also introduces new credits for climate adaptation, energy performance, and indoor environmental quality.

LEED v5 was developed with feedback from thousands of sustainability professionals and is designed to align with investor ESG frameworks and stricter environmental regulations. With data showing that LEED buildings outperform market peers in both sales and rental value, the new standard reinforces the economic benefits of sustainable design while raising the bar for what qualifies as a green building.

LEED v5 will drive demand for low-carbon materials, clean energy systems, and ESG-aligned construction. Developers and property owners embracing the new criteria may gain a market edge, while those lagging risk falling behind on regulatory and investor expectations.