Sustainability Flashcards
Net zero carbon
Refers to achieving a balance between the amount of greenhouses gas emissions produced and the amount removed from the atmosphere
Combination of reducing embodied and operational carbon and then offsetting as a last resort
Obsolescence
Decline of an asset over time - becoming outdated / no longer useable
Social value
Social benefits financial and non financial including wellbeing and community cohesion that flow to asset users and non asset users
Sustainability
Balancing the economic, social and environmental effects of projects. Broadly a desire to carry out activities today without depleting resources or having harmful effects in the future
Transition risks
Business related risks that follow societal and economic shifts towards a low carbon and more climate friendly future
ESG
Environmental, social and governance. A framework for assessing the practices of organisations from the perspective of effectiveness and positive benefit on society and the world as a whole
How much does property contribute to climate change?
Roughly 40% of total global greenhouse gas emissions in any given year come from the construction, operation and decommissioning of buildings
RICS is committed to supporting the UN Sustainable Development Goals can you name some
No poverty
Gender Equality
Affordable and clean energy
Reduced inequalities
Responsible consumption and production
Sustainable cities and communities
Climate action
What are the benefits of adopting sustainable practices
Increase brand value and reputation
Enable cost savings and operational resource efficiency
Maximise human capital through improved living/working conditions and increased wellbeing
What action is RICS taking on climate change?
Issuing professional guidance
Commissioning research
Developing training
Building tools e.g. SKA, international cost management standard
Strategic partnership e.g. UN, Environment Agency
What are the national net zero targets?
To achieve net zero carbon by 2050 with an interim target of 78% reduction in emissions by 2030
Green Building Council actions towards net zero
Consider whole lifecycle all the way to demolition
Reduce construction impacts - materials, systems, design
Reduce operational energy use
Increase renewable energy supply
Offset any remaining carbon
What are the requirements regarding EPC?
Require for residential and commercial properties when constructed (including refurbishment), sale or letting
Valid for 10 years
Must be commissioned within 7 days of commencement of marketing with a 28 day limit as long as all reasonable efforts are made to procure
All online marketing material must link to EPC
Exemptions - listed buildings where compliance would alter character, buildings with no heating, religious buildings
What are the penalties for not complying with the Energy Performance of Buildings Regulations and who policies?
Residential - £200 for not displaying on marketing materials
Commercial - 12.5% of RV up to £5k
Policed by local authority Trading Standards team
What are the requirements of MEES?
Currently minimum EPC E for new lettings including renewals
Extending to all existing leases 1 April 2023
Predicted to increase to C by 2027 and B by 2030
Listed buildings will also require an EPC
What is the Future Homes Standard
From 2025 will require CO2 emissions produced by new homes to be 75%-80% lower than those built to current standards
Requires homes to be zero carbon ready considering expected shift to heat pumps,
Interim requirement then introduced June this year for new homes to deliver 31% CO2 savings and new non domestic buildings 27%
What targets does your firm have?
Three areas of focus - climate action, healthy spaces, inclusive places
Remove single use plastics from JLL offices by 2023
Achieve net zero carbon across all JLL occupied buildings by end 2030 and entirely net zero by 2040
What are the different scopes of emissions?
1 - direct GHG emissions
2 - indirect emissions
3 - all emissions associated not just with the company itself
What does BREEAM stand for and what does it consider in evaluating buildings?
Building Research Establishment Environmental Assessment Method
Energy consumption, water use, transport links, waste management and health & wellbeing
Ratings pass to outstanding
What factors promote health and wellbeing in a workplace?
Fresh air/ventilation
Natural light
Good acoustics
Temperature monitoring
Transport and amenity encouraging environmentally friendly options
What are the main points covered in RICS guidance note Sustainability and ESG in commercial property valuation and strategic advice 2021
Not leading the market and getting specialist advice where necessary
Investment worth may be more appropriate where offering strategic advice
Diversity of markets and market participants mean valuers need in depth knowledge of the market to determine how ESG matters are impacting the behaviour of market participants
Details key considerations and risks:
Physical risks
Transition risks
Certification and date of it
Accessibility by transport
Social and wellbeing - recruitment/retention of staff
Governance - corporate and regulatory requirements
What was COP26?
Most recent UN Climate change conference held in Glasgow last November
Ended with a pact to focus on reducing emissions, helping those affected by climate change, finance to enable countries to meet goals
Who policies MEES and what are the penalties?
Policed by local authority
Commercial between £5,000 and £150,000 / 10% or 20% of RV depending on the length of the breach
Residential - £2,000 - £4,000 depending on the length of the breach
MEES exemptions
If the building does not need an EPC
Industrial units with low energy demand
Tenancy less than 6 months with no security of tenure
Tenancy more than 99 years
All possible improvements have been made with a payback period of 7 or less years
Would devalue the property more than 5%
(Exemptions last 5 years and must be registered)
