Sustainability

Question 1

Net zero carbon

Answer 1

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

Question 2

Obsolescence

Answer 2

Decline of an asset over time - becoming outdated / no longer useable

Question 3

Social value

Answer 3

Social benefits financial and non financial including wellbeing and community cohesion that flow to asset users and non asset users

Question 4

Sustainability

Answer 4

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

Question 5

Transition risks

Answer 5

Business related risks that follow societal and economic shifts towards a low carbon and more climate friendly future

Question 6

ESG

Answer 6

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

Question 7

How much does property contribute to climate change?

Answer 7

Roughly 40% of total global greenhouse gas emissions in any given year come from the construction, operation and decommissioning of buildings

Question 8

RICS is committed to supporting the UN Sustainable Development Goals can you name some

Answer 8

No poverty
Gender Equality
Affordable and clean energy
Reduced inequalities
Responsible consumption and production
Sustainable cities and communities
Climate action

Question 9

What are the benefits of adopting sustainable practices

Answer 9

Increase brand value and reputation
Enable cost savings and operational resource efficiency
Maximise human capital through improved living/working conditions and increased wellbeing

Question 10

What action is RICS taking on climate change?

Answer 10

Issuing professional guidance
Commissioning research
Developing training
Building tools e.g. SKA, international cost management standard
Strategic partnership e.g. UN, Environment Agency

Question 11

What are the national net zero targets?

Answer 11

To achieve net zero carbon by 2050 with an interim target of 78% reduction in emissions by 2030

Question 12

Green Building Council actions towards net zero

Answer 12

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

Question 13

What are the requirements regarding EPC?

Answer 13

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

Question 14

What are the penalties for not complying with the Energy Performance of Buildings Regulations and who policies?

Answer 14

Residential - £200 for not displaying on marketing materials
Commercial - 12.5% of RV up to £5k
Policed by local authority Trading Standards team

Question 15

What are the requirements of MEES?

Answer 15

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

Question 16

What is the Future Homes Standard

Answer 16

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%

Question 17

What targets does your firm have?

Answer 17

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

Question 18

What are the different scopes of emissions?

Answer 18

1 - direct GHG emissions
2 - indirect emissions
3 - all emissions associated not just with the company itself

Question 19

What does BREEAM stand for and what does it consider in evaluating buildings?

Answer 19

Building Research Establishment Environmental Assessment Method
Energy consumption, water use, transport links, waste management and health & wellbeing
Ratings pass to outstanding

Question 20

What factors promote health and wellbeing in a workplace?

Answer 20

Fresh air/ventilation
Natural light
Good acoustics
Temperature monitoring
Transport and amenity encouraging environmentally friendly options

Question 21

What are the main points covered in RICS guidance note Sustainability and ESG in commercial property valuation and strategic advice 2021

Answer 21

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

Question 22

What was COP26?

Answer 22

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

Question 23

Who policies MEES and what are the penalties?

Answer 23

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

Question 24

MEES exemptions

Answer 24

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)