Sustainability Flashcards
How would you define sustainability?
- UN definition: “ the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs”
- environmental, economic, social
What are regulations around sustainability?
NEED TO INCLUDE DATE OF REGS AND EFFECTIVE DATES
- EPCs:
Energy Performance of Buildings Regulations 2012 - MEES:
Energy Efficiency Regs 2015 - Building Regs Part L: Conservation of Fuel and Power
What are sustainability targets?
- 17 UN sustainable development goals (2015)
- Paris Agreement (2015):
aim to keep temperature rise this century well below 2 degrees C above pre-industrial levels - UK Climate Change Act (2018)
in 2019, gov amended to set legally binding target to achieve net zero greenhouse emissions by 2050
What plans around sustainability are there?
MAY NEED UPDATING
UK:
- Industrial Strategy (2017)
- Clean Growth Strategy (2017)
- 25 Year Environmental Plan (2018)
- NPPF (presumption in favour of of sustainable development)
GM:
- Local Industrial Strategy (2019)
- 5 Year Environment Plan (2019)
SCC:
- Climate change strategy
- Carbon management plan
- Local planning policies
e.g. SPD sustainable design and construction
What are industry standards on sustainability?
BREEAM / LEED (US)
- environmental performance of buildings through design, construction and operation
WELL
- performance of buildings related to health and wellness
SKA
- RICS standard for non-domestic fit-outs
Passivhaus
- primarily new-build: high level of air quality and comfort using very little energy for heating or cooling
What are RICS initiatives around sustainability?
MAY NEED UPDATING
RICS Building Carbon Database
- captures embodied carbon data for whole buildings,
provides free resource to benchmark designs
WBEF
- brings together pros to innovate to create sustainable places for all to live, work and play
- 4 megatrends: urbanisation, natural environment, digital transformation, markets and geopolitics
Futures Report
- how industry responding to change strategically, commercially and sustainably
- focus: talent and skills, data and technology, sustainability
When is an EPC required?
- required when built/sold/rented
- if building has roof and walls and uses fixed services to condition an indoor climate
- each unit of a building requires an EPC with a floor area greater than 50sqm
- gov guidance (2017):
not required for lease renewals; MAY NEED UPDATING
assignments = sales;
not-for-value transactions may not need
When is a DEC required?
- public buildings with a floor area greater than 250sqm visited by the public frequently
- last 12 months for TUFA over 1,000sqm
- last 10 years for TUFA between 250 and 1,000sqm
- need EPC if sell/let building/part and rating must be displayed on DEC
What are MEES?
- aim to improve energy efficiency of UK’s older building stock to meet carbon reduction targets
- from April 2018, new tenancies can’t be granted if a building rates less than E
- from April 2023, LLs will not be allowed to continue to let any building with a rating less than E
- doesn’t apply below 6 months or over 99 years
- enforced by LWMAs (SCC)
- gov guidance 2017:
may be some transactions don’t qualify as sale/letting e.g. agreement for lease;
once an EPC expires, further EPC only required next time a trigger point is reached i.e. when next sold/let/modified
What are exceptions to MEES?
- standalone buildings with TUFA less than 50sqm
- properties to be demolished
- temporary buildings with planned use time 2 years or less
- listed buildings where compliance would unacceptably alter character or appearance
What are exemptions to MEES?
- last 5 years, cannot be passed to new owner on sale
- must register, self-certified
- 7 year payback test (need 3 quotes)
- where building surveyor advises wall insulation not appropriate due to negative impact on fabric/structure
- unable to obtain 3rd party consent
- registered valuer advises reduces value of property by 5%
What are some considerations a valuer needs to make in relation to sustainability?
NEED TO INCLUDE DATE AND EFFECTIVE DATE OF GN
“Sustainability and Commercial Property Valuation” Guidance Note 2013:
- physical, social, environmental and economic factors
- pace at which may feed into value depends on type and market
- valuers should reflect markets, not lead them
- should be aware of sustainability features and implications may have on property value in short, medium, long-term
- collect sustainability data as and when available for future comparability even if doesn’t currently impact value
- only where market evidence supports, build into calculation of value
- sustainability checklist (appendix)
What is RICS guidance on MEES?
“MEES: Impact on UK Property Management and Valuation Insight Paper 2018”
- strategy to ensure portfolio compliant
- under Red Book, valuers should account for risks including posed by MEES (even if no clear evidence of market value change)
- risks include loss of income as can’t let/vacant building costs/where can’t increase rent
- work with building surveyors to assess works likely
- gov likely to raise minimum standard to D (B/C by 2030?)