Expanding Sustainability Mindsets

Here’s what you need to know

Sustainability in strata is increasingly understood as more than an environmental objective. While emissions reduction and climate targets remain important, sustainability in a strata context now encompasses ecological, social and economic performance. It is about creating buildings and communities that are liveable, resilient and financially viable over the long term, while ensuring that strata insurance remains accessible and affordable.

In practical terms, sustainability in strata includes initiatives that reduce energy and water consumption, minimise waste, improve building performance, and foster stronger community engagement. These outcomes are closely linked. A building that is well maintained, efficiently managed and supported by engaged owners is more likely to withstand environmental stresses, reduce avoidable losses and deliver better long-term value for residents.

Regulating responsibility

In New South Wales, recent amendments to strata legislation have lowered the voting threshold – from 75% to 50% – for approving sustainability upgrades from a special resolution to an ordinary resolution. This shift removes a long-standing barrier for owners corporations. It makes it significantly easier to progress upgrades such as solar installations, energy-efficient lighting, water-saving systems and electric vehicle charging infrastructure.

Sustainability is also now a mandatory consideration at each Annual General Meeting, with owners corporations required to review environmental sustainability, including common property water and energy consumption.

At the same time, bylaws can no longer prohibit sustainability infrastructure solely because it alters the appearance of common property, except in limited heritage circumstances. Owners corporations are also expected to consider sustainability infrastructure when preparing Capital Works Fund estimates, ensuring that long-term planning reflects the actual lifecycle costs of buildings rather than focusing solely on short-term expenditure.

Changing strata mindsets

These legislative changes reflect a broader shift in how risk and resilience are viewed across the strata sector. Resilience is increasingly recognised as a critical enabler of sustainability. A more resilient building is better able to withstand adverse events, such as severe weather and infrastructure failures, and is less likely to experience frequent or severe claims. In turn, this supports greater insurance accessibility and premium stability, creating a mutually beneficial feedback loop.

Resilience in this context is not limited to major capital upgrades. It includes proactive maintenance, informed decision-making and early identification of defects or vulnerabilities. Advances in building inspection technology are playing an important role here. The use of tools such as drone imaging and lidar scanning enables detailed, inspection-grade assessments of buildings without many of the safety, access, and environmental challenges associated with traditional inspection methods.

Better access, better decisions

When owners and committees can clearly see the condition of their building, they are better placed to prioritise maintenance, plan upgrades and allocate resources efficiently. This can reduce unnecessary reactive repairs, lower long-term maintenance costs and support more sustainable use of materials and energy. It also enables sustainability considerations to be embedded into routine planning, rather than treated as an optional add-on.

Economic sustainability is a key driver of this change. Sustainable buildings are often cheaper to operate, with lower energy and water bills and reduced maintenance over time. They may also be eligible for government rebates or incentives, further improving the financial case for investment. Importantly, buildings with strong sustainability and resilience credentials are increasingly attractive to buyers and tenants.

Green Grants giving back

CHU’s involvement in this space reflects these broader industry trends. Its focus on resilience-based risk management and initiatives, such as the Green Grant Program, is designed to help remove barriers to sustainability upgrades, particularly for buildings that may otherwise struggle to fund improvements. By supporting both environmental and social initiatives, these programs aim to ensure that the transition to more sustainable strata living is inclusive and achievable across diverse communities.

Under the Green Grant Program, eligible CHU Residential Strata Insurance policyholders can apply for grants of up to $10,000 to fund initiatives that improve their building or strengthen their strata community.

Entries for the 2026 CHU Green Grant Program will open later in the year.

For more information on the CHU Green Grant Program, please visit chu.com.au/chu-green-grant-program.

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