As a luxury retailer, what industry standard for sustainability should I be implementing?

In client project meetings, I’m sometimes asked which of the ‘industry standards’ that recognise and accredit sustainable practices, is best. And as you might imagine, the answer to that isn’t straightforward. I can understand why organisations look for a sustainability ‘badge’ that rubber stamps their efforts. Firstly, accreditations provide a useful framework for sustainability champions to work to. Secondly, an accreditation is a quick way for both customers and peers to recognise the environmental values of an organisation; it’s shorthand for ‘we care and are actively engaging with this topic’.

Sustainability makes commercial sense too

As a luxury brand, embracing sustainable practices isn’t just about ‘doing the right thing’. It makes sound business sense too. New research by BSI indicates that nearly two-thirds of people globally consider a company’s social and environmental purpose when making purchasing decisions and 63% would abandon a product or business acting inconsistently with its purpose. Three-quarters of consumers are more likely to trust a business’s environmental claims if they are verified, certified or backed by credible evidence.

Three of the best known ‘green’ certifications benchmarking an organisations sustainable and wellness-focused initiatives are LEED (Leadership in Energy and Environmental Design), WELL (WELL Building Standard) and BREEAM (Building Research Establishment Environmental Assessment Method). Each certification has their pros and cons but all are well recognised in our industry.

LEED: Driving Energy Efficiency and Sustainable Materials

LEED is one of the most widely recognised green building certifications globally, setting standards for energy efficiency, water conservation, sustainable materials and indoor environmental quality. Luxury retailers are adopting LEED-certified designs to reinforce their commitment to sustainability while maintaining the sophistication expected of high-end brands.

For instance, Gucci’s flagship store in New York earned LEED Gold certification by using LED lighting, FSC-certified wood and energy-efficient HVAC systems. Similarly, Chanel’s boutique in New Bond Street, London integrates sustainable construction materials and innovative water-saving systems to meet LEED standards. By prioritising resource efficiency, these brands are demonstrating that luxury and sustainability can coexist.

However, LEED is not without its critics. LEED certification is often awarded based on predicted performance rather than actual energy efficiency. Some buildings achieve high LEED ratings but fail to deliver the expected sustainability benefits in real-world operations. More unscrupulous developers have been accused of pursuing LEED certification for marketing purposes rather than genuine sustainability efforts, using LEEDS points-based system to focus on easier-to-achieve points (like bike racks or low-VOC paints) while neglecting deeper issues like energy efficiency and embodied carbon. 

LEED tends to prioritise operational energy efficiency over embodied carbon emissions from construction materials and processes, which as we know, can be a significant source of environmental impact. Whilst LEED is a global standard, it does not always account for regional climate differences. Energy-saving strategies that work in one region may be less effective or even counterproductive in other climates or building types. I think one of the major flaws is that LEED certification is typically awarded before a building is fully operational, and there are few requirements for long-term performance tracking or recertification unless the owner voluntarily pursues it.

WELL: Enhancing Customer and Employee Well-Being

Whilst LEED focuses on environmental impact, the WELL Building Standard emphasises human well-being by improving air quality, lighting, acoustics and overall health in retail spaces. Luxury brands are leveraging WELL principles to create immersive and wellness-driven shopping environments that prioritise both customers and employees.

For example, Louis Vuitton Moët Hennessy has incorporated WELL-certified features into select flagship stores, ensuring optimal air filtration, biophilic elements and ergonomic layouts. You can read my take on biophilic design in retail here. [LINK] This approach not only enhances the luxury shopping experience but also supports employee wellness by fostering a healthier workplace. WELL compliance aligns with the growing consumer demand for mindful and sustainable shopping experiences.

Although the WELL Building Standard has gained popularity for promoting human health and wellness in built environments, unlike LEED or BREEAM, it prioritises human health and wellness over environmental performance. Critics argue that it does not sufficiently address broader sustainability issues like carbon footprint, embodied energy or ecological impact, which are critical if an organisation is serious about addressing sustainable practice. And as we know, human and planetary health are inseparably intertwined.

BREEAM: A Holistic Approach to Sustainability

BREEAM, one of the oldest and most comprehensive sustainability assessment methods, evaluates buildings based on energy performance, water efficiency, pollution reduction and sustainable materials. Luxury retailers, especially in Europe, are adopting BREEAM-certified designs to uphold high sustainability standards.

For instance, Burberry’s London headquarters and stores have achieved BREEAM certification by implementing renewable energy solutions, advanced waste management systems and sustainable building materials. BREEAM’s rigorous evaluation process ensures that luxury brands adhere to long-term sustainability commitments while preserving their architectural heritage.

That said, BREEAM primarily assesses design intentions rather than the actual long-term sustainability performance of a building. This means that a project may achieve a high rating but fail to deliver on energy efficiency or environmental goals in real-world usage. As with LEED, critics argue that some projects pursue BREEAM certification as a marketing tool whereby developers implement the easy-to-achieve credits rather than implementing deep, systemic sustainability improvements. While BREEAM evaluates operational energy efficiency, it has been criticised for not giving enough weight to embodied carbon - the total carbon footprint of materials and construction processes, which can be significant in luxury retail and commercial projects. Unlike LEED, BREEAM has different assessment criteria depending on the country, but this too can lead to inconsistencies in sustainability benchmarks across different regions. Some argue this weakens the reliability of the certification as a globally recognised standard. I think one of the more problematic areas is that the rigid credit-based system could discourage innovative and context-specific sustainability solutions that do not fit neatly into predefined categories, limiting much needed creative approaches to sustainable retail design.

Living Building Challenge: The Gold Standard for Sustainable Practices?

Living Building Challenge (LBC) provides a framework for designing, constructing and improving the symbiotic relationships between people and all aspects of the built and natural environments. Whilst the newest member of accrediting bodies, it is one of the most rigorous and advanced green building standards in the world. It goes beyond traditional sustainability certifications like LEED, WELL, and BREEAM by requiring buildings to be self-sufficient, regenerative and beneficial to their environment. The International Living Future Institute (ILFI) developed LBC to really push the boundaries of sustainable design. LBC is based on seven performance categories known as Petals, each addressing a critical aspect of sustainability, including:

Place – Buildings must support ecosystem health and biodiversity, avoid environmentally sensitive areas and promote responsible land use.

Water – A project must be net positive for water, meaning it collects, treats and reuses all its water on-site, eliminating the need for external supply or wastewater discharge.

Energy – Buildings must generate 100% of their energy from renewable sources, such as solar or wind, making them net-zero or net-positive energy.

Health & Happiness – Spaces must promote indoor air quality, natural light, biophilic design and occupant well-being.

Materials – The use of toxic-free, locally sourced, and sustainable materials is required. The Red List prohibits harmful chemicals such as PVC, formaldehyde and flame retardants.

Equity – Ensures accessibility, fair labour practices and a just, inclusive built environment.

Beauty – Encourages aesthetics, cultural integration and inspiration through architectural design.

LBC requires real-world performance over a 12-month period before certification is granted and doesn’t just aim to reduce harm but actively restores ecosystems, water systems and energy usage. The certification takes a much more integrative approach, benchmarking social equity, biophilia and human well-being into sustainability, making it one of the most ethical and rounded green certifications.

Again, there are criticisms of the scheme. Meeting LBC standards requires advanced technologies, design expertise and ongoing monitoring, which arguably make it costly and difficult to achieve. Water and energy self-sufficiency can be challenging in cities with strict infrastructure regulations and since a building must operate successfully for one year before certification, projects require long-term commitment.

All that said, the Living Building Challenge represents the future of sustainable architecture, demanding the highest level of environmental and social responsibility. While it is difficult to achieve, it sets a gold standard for regenerative, self-sufficient, and human centered design.

Certifying bodies need to keep up with the latest technological and policy standards

So, as you can see, choosing the ‘right’ certification is by no means easy. They all require a lot of time investment, and all have their pros and cons. The fact that certification is becoming more and more desired by luxury brands is encouraging as customers are clearly driving the need for a more transparent approach to social and environmental responsibilities. But for certification bodies to carry weight, they must keep up with scientific, technological, social, environmental and cultural changes and close any loopholes that allow less conscious developers to use their marque as green washing.