What It Is

WELL Building Standard v2 is a performance-based certification framework administered by the International WELL Building Institute (IWBI). It focuses on designing, operating, and verifying buildings to advance human health and well-being through evidence-based strategies. Its approach combines mandatory Preconditions (pass/fail) with optional Optimizations (points-based) across 10 core concepts like Air, Water, and Mind.

Key Components

• **10 conceptsAir, Water, Nourishment, Light, Movement, Thermal Comfort, Sound, Materials, Mind, Community (+ Innovation).
• 24 Preconditions and 102 Optimizations.
• Built on public health research and building science.
• Certification model: Bronze (40 points), Silver (50), Gold (60), Platinum (80), with concept minimums at higher tiers.

Why Organizations Use It

• Enhances occupant health, productivity, and ESG reporting.
• Differentiates assets via verified performance.
• Mitigates risks like poor IEQ; boosts rents and retention.
• Builds stakeholder trust through third-party verification.

Implementation Overview

• Phased: gap analysis, scorecard, documentation, on-site testing, recertification every 3 years.
• Applies to new/existing buildings, various types.
• Requires cross-functional teams, continuous monitoring.

What It Is

Basel III is the global regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-2007-2009 financial crisis. It comprises prudential standards for banks to address capital, leverage, and liquidity weaknesses. Primary purpose: enhance bank resilience through higher-quality capital, leverage constraints, and liquidity buffers. Key approach: multi-metric 'belts and suspenders' combining risk-weighted assets (RWA) with non-risk-based measures.

Key Components

• **Three PillarsPillar 1 (capital ratios: CET1 4.5%, Tier 1 6%, Total 8% + buffers), Pillar 2 (supervisory review/ICAAP), Pillar 3 (disclosures).
• Buffers: 2.5% conservation, countercyclical (up to 2.5%), G-SIB/D-SIB surcharges.
• Leverage ratio ≥3%; LCR ≥100%; NSFR ≥100%.
• Built on revised RWA methods, output floor (72.5%). Compliance via national implementation, no global certification.

Why Organizations Use It

Mandatory for internationally active banks via jurisdictional laws; mitigates systemic risk, improves comparability. Benefits: stronger funding costs, resilience in stress, strategic asset allocation. Builds investor/supervisor trust, reduces model risk.

Implementation Overview

Phased enterprise transformation: diagnostics, data/system upgrades, governance/PMO, parallel testing. Targets large banks globally; involves QIS, training, supervisory engagement. Ongoing via RCAP assessments.