Sustainability Flashcards
What guidance has RICS issued sustainability?
-RICS Guidance note on Sustainability and commercial property valuation 2015.
- RICS information paper on Sustainability and Residentially property valuation
How does the RICS help implement sustainability
The RICS helps in several ways:
1. Evidence based research- e.g. sustainability rises up in the agenda in UK Facilities Management sector 2021.
2. Best practice requirements e.g.
- Rules of conduct 2021
- Red Book Global-VPGA 8
-Guidance Note “Sustainability and ESG Guidance in Commercial Property Valuation and Strategic Advice (3rd Edition), 2021
-Guidance Note “ Environmental risks and global estate “ 2018
What are the minimum energy efficiency standards (2015)?
-Introduced in April 2018
-the energy efficiency regulations 2015 require a minimum EPC rating of level E before sold or let a building from 1st April 2018.
-legislation applies to both domestic and commercial
-failure to comply subject to up to £5000 fine for domestic and £150,000 for non domestic
Implementation in stages
-new leases from 1st April 2018
-all existing leases from 1st April 2023 for commercial properties
Can you name me some Minimum Energy Efficiency Standard exemptions?
Exemptions for MEES regulation compliance include:
-if building doesn’t need an ENERGY PERFORMANCE CERTIFICATE RATING e.g. a lace of worship.
-industrial units with no heating or cooling needed.
- where the tenancy is less than 6 months with no security of tenure.
-where tenancy for more than 99 year
What are the key principles of the energy at 2011?
-Tackling barriers to investment in energy efficiency-Enhancing energy security
-enhancing energy security
-enabling investment in low carbon energy supplies
What is an EPC Ratng
-EPC measures energy efficiency for a property with. Scale from A-G.
-the minimum threshold will rise from E to C by 2027 and to B by 2030.
-An EPC must be registered on a new online database by April 2025.
What is the importance of an EPC Rating?
-They who how energy efficient a property is
-Can be a deal breaker as if property has low rating then prospective buyer will know energy bills will be high
How can sustainability impact value?
-can lead to a higher demand/ shorter voids.
-lower operational costs
-higher capital costs initially
-occupiers willing to pay higher rents
Can you tell me what wiredscore is?
-a certification that rates the connectivity of new buildings.
-rates a company on a basis of gold, silver, bronze
What is the real estate role in achieving a more sustainable environment?
-important to track the environmental performance of the places in which we work and live.
-sector consumes 40% of global energy annually.
-buildings have a significant and growing impact on environmental aspects
When is an EPC required?
For. Commercial building over 50sqm
When newly built sold or let for a term of more than 6 months and less than 99 years
How long is an EPC valid for
10 years (unless refurbished)
What is included in an EPC Rating?
Address
Dwelling type
Reference number
Total floor area
Date
Estimated energy costs
Energy efficiency rating
What is BREAAM?
THE Building Research Establishment Environmental Assessment Method
-voluntary environmental assessment tool to ate new and refurbished commercial and residential buildings
What are the ratings of BREAAM?
Pass
Good
Very Good
Outstanding
Excellent
What does the climate change act 2008 aim to achieve?
-Initially, 80% reduction in 1990 carbon dioxide emissions by 2050.
-Amended in 2019 to be carbon net zero by 2050
What is a green lease clause?
Typically seek to ensure landlords and tenants share information abut use of utilities.
What is the SKA Rating?
-RICS environmental assessment method for non domestic fit outs
How can developers achieve more efficient construction?
-use of renewable materials such as solar, wind, biomass and heat pumps
-the building aspect, using natural daylight to take Advantage of solar gain
-effective energy management and monitoring systems
What have a number of UK Leading REITS done to commit to achieving net zero carbon by 2050?
-formed BBP (Better buildings partnership)
-published various toolkits providing guidance to owners on how to improve energy efficiency.
What is sustainability ?
Meeting the needs of the present without compromising the ability of future generations to meet their needs.
If properties have an EPC registered below C what happens?
They have to improve and be EPC registered by April 2027
What should properties do ahead of 2018 with regards to EPC?
-Below C must be compliant EPC registered by April 2027 with improved rating.
-by April 2028 another EPC must be registered.
- properties with a registered EPC below a B have to be improved an compliant EPC registered by April 2030.
-payback calculator be a viable to determine MEES
When you develop a building what BREEAM rating do you aim for?
Typically we aim for very good unless the fund who is buying it requires Excellent.
Can you name me any energy regulations other than EPC?
- Energy Savings opportunity scheme- this is mandatory for large firms in the UK (MORE THN 250 EMPLOYEES AND ORE THAN £50 Turnover)
-they must measure total energy consumption across buildings
-conduct energy audits
2.Climate Change Levy (CCL)
- A TAX on energy delivered to non-domestic users in UK. Was introduced as an incentive to increase energy efficiency and reduce carbon emissions.
-consumers charged by their energy providers who forward the c. £1.9 billion p.a. T the UK treasury.
