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RICS APC > Sustainability > Flashcards

Sustainability Flashcards

1
Q

Please can you outline examples of where RICS has included Sustainability in practice?

A

Rules of Conduct

Red Book Global (VPGA8)

RICS Guidance Note - Sustainability and ESG Guidance in Commercial Property Valuations and Strategic Advice

Environmental risks and global real estate 2018

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2
Q

Please can you give some examples of best practice training?

A

Environmental Clauses in Commercial Leases

Valuation of Renewable Energy Installations

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3
Q

What is the RICS ‘SKA’?

A

A rating system for the fit out of commercial premises

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4
Q

What is net zero carbon?

A

Any carbon emissions are balanced by removal out of the atmosphere

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5
Q

How will net zero affect real estate?

A
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6
Q

What is a surveyors role regarding sustainability?

A

Energy use in clients buildings and associate regulation

Understanding energy performance certification and minimum performance standards

Articulate how net zero carbon objectives will affect real estate

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7
Q

What is the UK’s sustainability target?

A

Under The Climate Change Act 2008 which was amended in 2019 to require the UK to achieve net zero carbon by 2050

Interim target of 78% by 2030

This will require significant effort from the Property Industry

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8
Q

What did the Government introduce in November 2020?

A

Green Industrial Revolution

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9
Q

What is the Green Industrial Revolution?

A

Introduced by the government it is a ten point plan to mobile £12 billion of government investment and support 250,000 green jobs

Principle targets:
The power generation sector
Transport infrastructure
Building energy efficiency
Enhancing the natural environment
Encouraging green investment via the finance sector - energy efficiency loans

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10
Q

What is BBP?

A

Better Buildings Partnership

A number of UK property funds and REITS have publicly committed to achieving net zero carbon by 2050

The BBP has published various toolkits to provide guidance to owners and occupiers on how to achieve reductions in their energy, water and waste in buildings

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11
Q

What is the framework for The UK Green Building Council?

A
  1. Establish Net Zero Carbon Scope - across how life of buildings eg. construction / use / refurb
  2. Reduce Construction Impacts - developers will need to focus on changing material they use as well as building designs
  3. Reduce Operational Energy Use - LL need to consider how best to retrofit efficiency measures into their buildings and how to work with occupiers to make these work
  4. Increase Renewable Energy Supply - on site and off site. LL & Developers need to work out how to integrate into designs and retrofit
  5. Offset Any Remaining Carbon - last resort but planting trees
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12
Q

How can the built environment achieve energy efficiency and carbon reduction?

A

Improvements through design, construction, use and refurbishment of different types of buildings

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13
Q

What is the ‘Carbon Budget’?

A

Under the Climate Change Act every five years a carbon budget is set which has challenging targets and will increasingly mean stronger regulations

To help meet the targets the UK Governments update the energy performance regulations contained in the Building Regulations and Codes

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14
Q

5 Key Provisions of the Carbon Budget?

A
  1. Higher standards of energy conservation for new and refurbished buildings
  2. Establishing a calculation methodology for the energy performance of all buildings
  3. Minimum requirements for the energy performance of all buildings
  4. Energy certification for all buildings when leased or sold
  5. Mandatory inspection of boilers and air conditioning systems in buildings
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15
Q

Requirements for EPC?

A

All commercial buildings over 50 sq m

When it is newly built, sold or let for a term of more than 6 months (&less than 88 years)

When it is newly refurbished and heating, air conditioning or ventilation services are altered an the building is subject to Building Regulations for construction

Sale / lease of resi buildings and refurb schemes

Subletting or assignment

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16
Q

What are the exemptions for EPC?

A

Listed buildings

Buildings with no heating

Religious buildings

Temporary buildings

Buildings due to be demolished or redeveloped

Resi units not occupied for more than 4 months a year

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17
Q

EPC when marketing a property?

A

Must have the EPC within 7 days of commencement of marketing - either obtaining existing EPC or commissioning a new one

It is the agents responsibility

Only energy rating is required to be displayed on the property and advertisement - if space allows the graph should be shown

Online marketing must have a link to the EPC to show the front page of the EPC

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18
Q

What must an EPC certificate include?

A

Address of the Property and the floor area

EPC Certificate reference number

Technical info on the property energy provision

Estimation of energy running costs

An energy performance rating from A+ - G

Benchmarking info

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19
Q

When would an EPC need replacing?

A

After ten years unless the building is altered

20
Q

When do you find EPCs?

A

EPC Online Register

21
Q

Who enforces EPCs regulations?

A

Local authorities Trading Standards teams

22
Q

What are the penalties under EPCs?

A

Residential - £200 civil fixed penalty for non-display of EPC information on marketing material

Commercial - Max penalty equal to 12.5% of the RV of the building (a minimum of £500 and max £5,000)

23
Q

Is it the Landlords or Tenants responsibility to get the EPC?

A

Landlord

24
Q

What are the MEES Regulations?

A

Minimum Energy Efficiency Standards, 2015 (MEES)

25
Q

What are the two planned implementations of MEES?

A
  1. New leases from 1 April 2018 (commercial & resi) - including lease renewals / extensions
  2. All existing leases from 1 April 2023 for commercial properties (2020 for resi)
26
Q

MEES Exemptions?

A

If a building does not need an EPC

Industrial units or workshops with a low energy demand - no heating or cooling

Tenancy less than 6 months and no security of tenure

Tenancy 99 years +

Not feasible to improve the EPC rating even when all possible improvements with a payback of 7 years or sooner have been made. 3 quotes must be made from energy assessors

When the property would be devalued by more than 5%

When third party consent from a tenant, landlord or planning authority for improvements is refused conditionally and cannot be met by the LL

27
Q

What does payback mean?

A

Means energy savings covering the cost of the improvement works within 7 years

28
Q

What exemptions apply to certain residential leases?

A

Only for 5 years and cannot be transferred on sale

Company lets

Second homes

Very high/low rents

Landlord- public sector and social landlords

29
Q

Where must exemptions be registered?

A

Pre-registered on the Local Authority Private Rented Sector Exemptions Register and renewed five yearly

30
Q

Who policies the MEES Regulations?

A

Local Authority

31
Q

What are the penalties for failure to comply with MEES for commercial properties?

A

Breach for less than 3 months - up to £5k or (if greater) 10% of the RV with a max penalty of £50k

Breach for over 3 months - up to £10k or (if greater) 20% of the RV with a max penalty of £150k

32
Q

What are the penalties for failure to comply with MEES for residential properties?

A

Less than 3 months - £2,000

More than 3 months - £4,000

If a property is let on an AST on or after 1 April 2019 and has a F or G rating the Landlord is required to spend £3,500 on improving the rating - unless exempt

33
Q

Potential changes to non-domestic MEES regime?

A
  1. UK Goverment has undertaken consultation and indicated that the MEES threshold will rise from an E rating to a C by 2027 and a B by 2030
  2. All let properties will fall within the scope of MEES and listed buildings will require an EPC
  3. A simple payback calculator will be available to determine MEES applicability
  4. Letting agents will only be able to advertise and let MEES compliant properties
  5. EPCs must be registered on a new online database by April 2025 - those with an EPC below a C have to be improved with a compliant EPC registered by April8i 2027
34
Q

Energy Savings Opportunity Scheme (ESOS)

A

An energy assessment scheme which is mandatory for large organisations in the UK (more than 250 employees, turnover more than 50 million euros and an annual balance sheet total of 43 million)

They are required to:
Measure total energy consumption across buildings, transport and industrial activities

Conduct energy audits to identify cost-effective energy efficiency recommendations

Report compliance to the Environment Agency

35
Q

Heat Networks (Billing and Metering) Regulations 2014 - as amended 2015 & 2020

A

Relate to the provisions of communal heating systems in multi-occupied commercial and residential schemes and to district heating systems

Final consumers must be provided with accurate meter readings/bill information and competitively priced individual meters

36
Q

CRC Energy Efficiency Scheme

A

Formerly - Carbon Reduction Commitment Scheme which was scraped following the Governments Business Energy Taxation Review (2015)

Replaced by the Climate Change Levy (2019)

37
Q

Climate Change Levy (CCL)

A

A tax on energy delivered to non-domestic users in the United Kingdom

Introduced as an incentive to increase energy efficiency within businesses and so to reduce carbon emissions

Consumers are charged by their energy providers who forward the c. £1.9 billion pa to the UK treasury

Energy generated from renewable sources are exempt

38
Q

Display Energy Certificates

A

DEC required on public buildings over 250 sq m

They display actual energy used and carbon dioxide emissions - operational energy

UK Government has announced a consultation about mandating operational energy certification to commercial buildings

BBP is leading an industry initiative to promote voluntary certification and disclosure of buildings operational energy rating - NABERSUK

39
Q

What does BREEAM stand for?

A

The Building Research Establishment Environmental Assessment Method

40
Q

Outline BREEAM?

A

A voluntary environmental assessment tool to rate new and refurbished buildings

A buildings impact is rated by BREEAM assessors by reference to nine environmental weightings

41
Q

What are some BREEAM weightings?

A

Energy consumption

Water use

Transport links

Waste management

Healt & Wellbeing

42
Q

What are the BREEAM weightings?

A

Pass

Good

Very Good

Excellent

Outstanding

43
Q

Other international energy rating systems?

A

LEED (Leadership in Energy and Design) - USA

DGNB - Germany

HQE - France

44
Q

What is the WELL Building Standard?

A

Used by some developers and is a standard for buildings to be rated in respect of spaces that can optimise the health and mental wellbeing of occupiers

45
Q

Green Lease Clauses

A

Seek to ensure that landlords and tenants share information about the use of energy, water and waste arising in a building.

BBP has a Green Lease Toolkit with best practice recommendations and model forms of clauses

46
Q

What is the RICS SKA Rating scheme?

A

Aims to be the standard measure of a buildings fit out sustainability

Bronze, silver and gold rating awarded

47
Q

Efficient construction solutions used by developers?

A

Use of renewable materials and technologies such as solar, wind, biomass and heat pumps to achieve a low carbon emission solution achieving a reasonable payback period

The building aspect and use of natural daylight to take advantage of solar gain

Effective energy management and monitoring systems and increased awareness of other areas of sustainable management relating to waste, water and procurement of goods and services.

RICS APC (25 decks)

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