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Property Management APC > Sustainability > Flashcards

Sustainability Flashcards

1
Q

What is sustainability?

A

Meeting the needs of today without harming the ability of future generations to meet their own needs

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2
Q

What is sustainable development?

A

Development that meets the needs of the present without compromising the ability of future generations to meet thier own needs

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3
Q

What are the triple bottom line principles?

A

Concept that broadens a business’ focus of the financial bottom line to include social, economic and evironmental considerations

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4
Q

What are the triple bottom line principles?

A

Concept that broadens a business’ focus of the financial bottom line to include social, economic and evironmental considerations

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5
Q

What is contamination?

A

Making something impure by contact with something unclean or harmful

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6
Q

In terms of contamination, who pays?

A

Polluter pays principle -> unless you can’t find polluter, then developer can be held liable

Environment Agency v Crest Nicholson 2010

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7
Q

How can you be more sustainable?

A

Consume less (reduce, reuse recylce)
Travel smarter
Eat more vegetables
Limit plastic consumption

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8
Q

Is there any RICS guidance on sustainability?

A

Sustainability and ESG in Commercial Property Valuation and Strategic Advice, 3rd Edition, 2021 (guidance note)

RICS GLobal Professional Guidance Note: SUstainability and Commercial Property Valuation (2017)

RICS Environmental Risks and Global Real Estate, 2018

RICS SUstainability Report 2022

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9
Q

What can sustainability issues relate to?

A

Physical characteristics of buildings
Impact of climate change on location
Legislation, public policy and discal measures
Increasingly sustainability-aware attitudes of both occupiers and investors

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10
Q

What can sustainability issues affect?

A

Market value
Fair value
Market rent
Investment value

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11
Q

Tell me about key sustainability legislation you are aware of

A

Environmental Protection Act 1990
Energy Act 2011
Environment Act 1995
Climate Change Act 2008

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12
Q

What are the building regulations?

A

set of regulations and standards that all new buildings must be built to

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13
Q

What is the Green Deal?

A

Not very successful scheme introduced by the government to increase the energy performance of buildings by covering up front costs for retro-fitting roof insulation

-> Benefit of this will re-pay through lower energy bills

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14
Q

What is the Energy Act?

A

The Energy Efficiency Regulations 2015

-> MEES (EPC)

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15
Q

What is NPPF?

A

National Planning Policy Framework

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16
Q

What does NPPF say about sustainable development?

A

Introduced the presumption in favour of sustainable development

-> Constitutes the government view of what sustainable development in England means in practice for the planning system

Local authorities should positively seek oppertunities to meet development needs of area

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17
Q

Can you tell me about any Climate Change Conventions or protocols you are aware of?

A
  • UK Framework Convention on Climate Change (UNFCCC)
  • Kyoto Protocol
  • Paris Agreement
  • Climate Change Act
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18
Q

What is the Paris Agreement?

A

Presents a balanced outcome with an action plan to limit global warming to a 2 degree celcius rise in the next century

-> Aims to increase ability of countries to deal with impacts of climate change, and at making finance flows consistent with a low GHG emissions and climate resistant pathway

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19
Q

What was the Kyoto Protocol?

A

International agreement linked to United Nations Framework Convention on climate change, which commits its parties to setting internationally binding emission reduction targets

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20
Q

What are the 2020 / 2030 / 2050 EU targets?

A
  • Reduce global emissions by at lease 37% of 1990 levels by 2020
  • Reduce global emissions by at least 57% of 1990 levels by 2030
  • Reduce global emissions by at least 80% of 1990 levels by 2050
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21
Q

What did the UK Climate Change Act 2008 do?

A

Made the UK the first country in the world to have a legally binding long-term frameowrk to cut carbon emissions

-> Government cmittment to reduce UKs carbon emissions to net zero by 2050

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22
Q

What are carbon budgets?

A

5 yearly carbon budgets set by government - restrict amount of greenhouse gas the UK can legally emit in a 5 year period

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23
Q

What is the renewable heat incentive?

A

UK Government scheme to encourage uptake of renewable heat technologies amongst householders, communities and businesses through financial incentives

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24
Q

How do buildings impact on the built environment?

A

Poorly designed buildings use more energy, increasing the demand on energy production and contributing to global warming

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25
Q

Can you ive me an example of a sustainable design feature?

A
  • good, sufficient insulation
  • good, sustainable materials used in construction
  • good use of natural light
  • renewable technologies -> solar panels
  • green roofs
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26
Q

Can you give me an example of an environmental assessment method for buildings?

A

BREEAM

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27
Q

Can you give me an example of an environmental assessment method for buildings?

A

BREEAM

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28
Q

What is BREEAM?

A

Building Research Establishment Environmental Assessment Method

-> Measure of sustainable credentials of newly constructed buildings, based on energy use, water consumption, transport links, pollution, waste management

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29
Q

Can you explain your understanding of the Minimum Energy Efficient Standards (MEES)?

A

Minimum Energy Efficient Standards
-> Introduced in 2015 by energy efficient regulations 2015
-> Poses threat to meeting carbon reduction targets for 2020 and 2050

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30
Q

How does MEES impact your role?

A

Requirement to understand Landlord responsibilities and ensure minimum energy efficient standards of properties to both let and continue letting

Affects alterations -> reasonable to reject if negatively affecting mees

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31
Q

What are the key dates for MEES?

A
  • 1st April 2018 - Landlord cannoy let or renew lease if EPC below E
  • 1st April 2023 - Landlord cannot continue letting a building/unit with EPC below E
  • 1st April 2027 - Minimum EPC of C
  • 1st April 2030 - Minimum EPC of B
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32
Q

What falls outside of MEES?

A

EPCs required for all buildings over 50 sq mapart from:
- Tenancies under 6 months
- Tenancies over 99 years
- Listed buildings
- Buildings with no heating
- Religious buildings
- Temporary buildings
- Buildings due to be demolished / redeveloped
- Residential units not occupied for more than 4 months a year

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33
Q

When can you apply for MEES exemption?

A
  • High cost - no payback within 7 years
  • All cost effective improvements have been carried out
  • Third party consent is refused
  • Devaluation in property by more than 5%

Examptions last for 5 years and need to be lodged on a centralised register

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34
Q

What are the penalties for non-compliance with MEES?

A

Local Weights and Measures Authorities (LWAMAs) have powers to impost civil penalties using rateable value

  • Incorrect / misleading info -> £5,000
  • Renting a non-compliant property less than 3 months -> 10% of RV (min £5k, max £50k)
  • Renting a non-compliant property more than 3 months -> 20% of RV (min £10k, max, £150k)
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35
Q

What is an EPC?

A

Energy Performance Certificate
-> rating scheme to summarise energy efficiency of buildings in EU
-> A-G

Wha

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36
Q

What buildings require an EPC?

A

A building with a roof, walls, and that uses energy to condition the indoor climate
-> commercial buildings over 50 sq m

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37
Q

When is an EPC required?

A

When a building is let, sold, or newly refurbished
-> over 50 sq m

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38
Q

How long does an EPC last?

A

10 years

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39
Q

What buildings are exempt from having an EPC?

A

EPCs required for all buildings over 50 sq mapart from:
- Tenancies under 6 months
- Tenancies over 99 years
- Listed buildings
- Buildings with no heating
- Religious buildings
- Temporary buildings
- Buildings due to be demolished / redeveloped
- Residential units not occupied for more than 4 months a year

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40
Q

When do you need to display an EPC?

A
  • total floor area above 500m
  • Frequently visited by the public

EPC has already been produced for building sale, rental or construction

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41
Q

What is included in an EPC?

A
  • Address
  • Certificate number
  • Rating
  • Rating table
  • Area
  • Recommendations for improving rating
  • Estimation of energy running costs
42
Q

What are some renewable energy options?

A
  • Rooftop Solar Panels
  • Wind turbines
  • Solar oven
  • Hydro power
  • Solar water heating
  • Solar air conditioning
  • Tesla powerwall
  • Tubular skylights
43
Q

What is a sustainability checklist?

A

measuring stick for staff and council/board to ensure development proceeds in accordance with the community’s sustainability values

44
Q

What is the purpose of a sustainability checklist?

A

To encourage new development and buildings that support and advance community sustainability objectives

45
Q

How would you find an EPC?

A

EPC reigster (online) - GOvernment website

46
Q

What are the penalties for not having an EPC?

A

Dwelling - £200

Non-dwelling - 12% RV (min £500, max, £5,000)

47
Q

Have you had to procure an EPC?

A

Unit FA The Paddocks - rating of F
New EPC + improvements required to meet MEES. Installed energy efficient lighting and ating of D achieved. landlord cost.

I also provide EPCs to letting agents and solicitors for lettings/sales

48
Q

What are the BREEAM rating scales?

A

Unclassified
Pass
Good
Very good
Outstanding

49
Q

When was BREEAM first published and how many buildings have been certified?

A

1990

550,000 certified and over 2 million registered for certification

50
Q

What sustainability policies does your firm have in place?

A
  • turn off computers at night
  • lights turn off when inactive
  • recycling
  • printing set to black and white and double sided as default
51
Q

There has been press coverage on green and sustainable leases. What are these and what are your thoughts?

A

Agreements in leases as to how the property will be managed and operated in a green way

-> anything that encourages sustainability in the industry is good

52
Q

How is BREEAM assessed?

A
  1. Energy
  2. Land use
  3. Water
  4. Health and Wellbeing
  5. Pollution
  6. Transport
  7. Materials
  8. Waste
  9. Management
53
Q

What are the advantages to BREEAM certification?

A
  • increase asset value
  • Reduce operating costs
  • Planning policy / requirement
  • Client corporate social responsibility
  • PR
54
Q

Do you understand the Carbon Reduction Committment, now called the CRC efficiency scheme

A

A legally binding Carbon Reduction cap scheme
-> Limits the amount of carbon large organisations can use to 6,000 MwH per annum
-> can buy additional credits (£16.40 per tonne)

55
Q

What is ESOS?

A

Energy Savings Oppertunity Scheme
-> Companies employing more than 250 employees or 50m euros turnover must take part in this assessment scheme

-> Companies must have an energy assessment carried out

56
Q

What premium can BREEAM provide?

A

21% premium on transaction prices and 18% premium on rents

57
Q

Is BREEAM recommended?

A

88% think BREEAM is a good thing and would recommend to others
96% would use the scheme again

so yes

58
Q

Is incorporating sustainable measures into developments expensive?

A

No, it has been found that sustainable options often add little or no capital cost to a development project

Where measures are expensive, they can be frequently paid back through lower operational costs, leading to savings over the life of the building

59
Q

What can be done to improve sustainability?

A
  • Waste management
  • Just in time deliveries - minimise waste (food)
  • Waste management plans
60
Q

What is a waste management plan?

A

Outline how materials will be managed efficiently and how waste will be disposed of legally

It should explain how the re-use and recycling of materials will be maximised

61
Q

What is the main legislation relating to sustainability?

A
  • Climate Change Act 2008
  • Energy Protection Act 2005
  • COSHH
  • Building Regs
  • BREEAM
  • Energy Act
62
Q

What is a DEC?

A

Display Energy Certificate - details information about how public buildings use energy

63
Q

When is a DEC required?

A
  • at least partially occupied by a public authority
  • Total floor area over 250 sq m
  • Frequently visited by the public
64
Q

What must accompany a DEC?

A

Advisory Report - to help owners and occupiers improve energy efficiency

65
Q

What are the penalties for not having a DEC?

A
  • £500 for failing to display
  • £1,000 for failing to have possession of DEC or advisory report
66
Q

Explain your your understanding of the RICS guidance note on Sustainability and Commercial property valuation

A

Good practice advice supporting everyday commercial valuation practice and its interface with ESG and sustainability

67
Q

How does EPC impact upon value?

A

Higher EPC usually equals higher rent achievable, especially with BREEAM (increasing value)

Low EPC will mean property requires work and is not energy efficient -> lower rent and value

68
Q

What is corporate social responsibility?

A

Self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public

Encourage a company to operate in ways which enhance society and the environment, instead of contributing negatively

69
Q

What is BREEAM?

A

Building Research Environmental Asessment Method
-> method of assessing, rating and certifying the sustainability of buildings

70
Q

What is RICS SKA?

A

Environmental assessment method, benchmark and standard for non-domestic fit outs against a set of sustainability good practice criteria

71
Q

What is LEED?

A

Leadership in Energy and Environmental Design
-> most widely used green building rating system
-> provides a framework to create healthy, highly efficient and cost saving green buildings

72
Q

What is Passivhaus?

A

Provide high level of occupant comfort while using very little energy for heating and cooling
->driven by air quality and comfort

73
Q

What happened to the code for sustainable homes?

A

Withdrawn
-> consolidated some standards into building regulations
-> created to guide house building industry woard creating more sustainable homes, with lower impact on the environment in both construction and useful life

74
Q

What is the Climate Change Levy? (CCL)

A

Tax charged on the energy that businesses use
-> aims to increase efficiency and reduce carbon emissions

75
Q

What Building Regulation relates to energy efficiency?

A

Part L

  • Solar panels
  • Internal lights
  • Loft insulation
  • Recycling water tanks
  • Radiators
  • Pipe lagging
76
Q

What is the government policy on energy efficiency of non-domestic buildings

A

MEES

Net zero carbon by 2050

77
Q

What is ESOS?

A

Energy Saving Oppertunities Scheme
-> mandatory energy assessment scheme for organisations that meet qualification criteria
-> Carried out every 4 years and are audits of the energy used by their buildings, industrial processes, and transport to identify energy saving measures

78
Q

What was the CRC and when was it abolished?

A

Carbon Reduction Comittment
mandatory emissions trading scheme
Abolished in 2019

79
Q

What replaced CRC?

A

Streamlined Energy and Carbon Reporting (SECR) Framework

80
Q

What is the CCL?

A

Climate Change Levy

UK wide environmental tax charged on the electricity and gas consumption of businesses and the public sector

81
Q

How did CCL rates change?

A

Electricity tax reduced in 2021 and reained unchanged to 2024 (electricity is seen as a ‘greener’ source)

Gas increasing each year to 2024

82
Q

What is the SECR regime?

A

Streamlined Energy and Carbon Reporting

Requires obligated companies to report on their energy consumption and associated greenhouse gas emissions within their year-end reporting for Companies House

83
Q

When was SECR introduced?

A

2019 -> replacing CRC

84
Q

Who qualifies for SECR?

A
  • companies who’s shares are listed on stock exchange
  • companies with over 250 employees
  • companies with turnover more than £36m or balance sheet over £18m
85
Q

Who is exempt from SECR?

A
  • Public sector organisations
  • Charities
  • companies that don’t require filing on Companies House
  • Companies that use less than 40,000 KwH of energy in a reporting year
86
Q

What is the difference between ESOS and SECR?

A

SEC focuses on a companys emissions whereas ESOS examines the energy use

87
Q

What are the requirements of SECR?

A

Required to report on energy use emissions (indirect and direct) and an intensity metric in their year-end reports

88
Q

What are the penalties for non-compliance with SECR?

A

Civil penalties such as fines (late filing £150 - £7,500)

Otherwise, no set penalties

89
Q

What is an evironmental management system?

A

Framework that helps and organisation achieve its goals hrough consistent review, evaluation and improvement of its environmental perforamce

90
Q

Why are environmental management systems beneficial to performance?

A
  • helps achieve environmental goals
  • Assists with improvement
  • enhances compliance
  • enhances public image
  • enhanced performance
91
Q

Give an example of a evironmental management system

A

ISO 14001 is an internationall agreed standard that sets out the requirements for an environmental management system

92
Q

What is a memorandum of understanding?

A

Agreement between two or more parties indicating they have reached an understanding and can move forward
-> non-binding
-> states each parties intention

93
Q

What is a green lease?

A

standard lease with additional clause included which provide for the management and improvement of the Environmental Performance of a building by both owner and occupier

94
Q

Explain your understanding of the Heat Network (Billing and Metering) Regulations 2014

A

Relate to the provision of commercial heating and cooling systems in multi-occupied commercial and residential schemes and to district heating systems

FInal customers must be provided with accurate meter reads / bill information and competitively priced individual meters

95
Q

Explain your understanding of the Heat Network (Billing and Metering) Regulations 2014

A

Relate to the provision of commercial heating and cooling systems in multi-occupied commercial and residential schemes and to district heating systems

FInal customers must be provided with accurate meter reads / bill information and competitively priced individual meters

96
Q

What is a green lease?

A

standard lease with additional clause included which provide for the management and improvement of the Environmental Performance of a building by both owner and occupier

97
Q

What is the difference between ESOS and SECR?

A

SEC focuses on a companys emissions whereas ESOS examines the energy use

98
Q

Who is exempt from SECR?

A
  • Public sector organisations
  • Charities
  • companies that don’t require filing on Companies House
  • Companies that use less than 40,000 KwH of energy in a reporting year
99
Q

Can you explain your understanding of the Minimum Energy Efficient Standards (MEES)?

A

Minimum Energy Efficient Standards
-> Introduced in 2015 by energy efficient regulations 2015
-> Poses threat to meeting carbon reduction targets for 2020 and 2050

100
Q

Can you ive me an example of a sustainable design feature?

A
  • good, sufficient insulation
  • good, sustainable materials used in construction
  • good use of natural light
  • renewable technologies -> solar panels
  • green roofs
101
Q

What are the 2020 / 2030 / 2050 EU targets?

A
  • Reduce global emissions by at lease 37% of 1990 levels by 2020
  • Reduce global emissions by at least 57% of 1990 levels by 2030
  • Reduce global emissions by at least 80% of 1990 levels by 2050

Property Management APC (14 decks)

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