Sustainability Flashcards
What is the RICS doing to improve sustainability? and Why? what is the built enviromental impact on CO2?
With the built environment estimated to be responsible for around 40% of global carbon emissions, RICS is taking a proctive apprach to incorporate sustainability into practices. Some of the initiatives include:
- Updated the Red Book’s VPS2 & 3 and VPGA 2 & 8 section for enabling valuers to give increase consideration to sustainability aspects when valuing property
- Conducting research on climate change issues (The 2022 RICS sustainability report, Cities Climate Action report)
- RICS is committed to supporting global sustainability goals, including the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement on climate change.
- Introduced courses and guidance such as RICS Certificate in Energy Management and Inclusive Environments Guide
- introduced initiatives and guidance to support sustainability in property management, such as RICS Responsible Business Guidance for Commercial Property, Sustainability and ESG in commercial property valuation (2021), 3rd Edition
Give an example of RICS guidance on sustainability?
Guide Note: Sustainability and ESG within Commercial Property Valuation (2021)
What is ESG?
ESG stands for - Environmental - Social - Governance, and it’s a framework to evaluate the sustainability and ethical impact of companies, investments and other organisations.
ESG measures issues such as:
- CO2 emissions
- waste management
- Diverity in workplace
- business ethics
- excutive compensation
Why ESG is a Hot Topic?
It is becoming increasingly important in the business world as companies are expected to take responsibility for their impact on the environment, society, and their own governance.
The ESG framework can also help companies identify and manage risks and opportunities, and improve their financial performance over the long term.
What is the 2022 RICS sustainability report about?
The report collected the sentiment of 4,000 professionals over 30 countries and highlighted the increasing need for sustainable strategies across the built environment to meet net zero commitments.
The report focused on the built environment’s role in addressing climate change and sustainability issues. It highlighted the need for the property sector to take a leadership role in achieving net-zero carbon emissions by 2050, and outlined RICS’s efforts to promote sustainability through research, education, and professional standards.
What are LSH sustainability objectives?
LSH have recently joined Planet Mark’s program which aims to achieve Net Zero by 2030.
What are UK objectives on climate change?
The UK gov has pledge to achive Net Zero by 2050
What does Carbon Zero means?
Net Zero means achieving a balance between the amount of CO2 emission produced and the amount removed from the atmosphere.
To achieve Carbone Zero an entity needs to start by reducing GHG emission through renewable enerergy and other measures and then offset the remaining emissions by investing in carbon removal projects such as reforestation, carbon capture etc.
What legally binding commitment has the UK government made on carbon dioxide emissions, and how was it amended in 2019?
Achieve “net zero carbon” by 2050 (2019)
What did the UK government do in response to the Energy Performance of Buildings Directive (EPBD)?
- Amended the energy requirements contained in the Building Regulations (regular inspection of Air colling/heating systems and Energy Performance for new buildings )
- MEES for privately rented properties
- Display Energy Certificates (DECs) in public buildings: Public buildings with a floor area over 250 square meters are required to display a DEC,
can you tell me more about MEES and commercial properties? when was this introduced?
Minimum Energy Efficiency Standards (MEES) requires privately rented non-domestic properties in England and Wales to have a minimum Energy Performance Certificate (EPC) rating of E, unless the property qualifies for an exemption.
This regulation was introduced on April 1, 2018, and applies to all existing tenancies from April 1, 2023.
What is EPC?
The EPC rating is a measure of a building’s energy efficiency, with A being the most efficient and G being the least efficient.
What types of improvements can be done to a property for improrving an EPC?
could include measures such as installing insulation, upgrading lighting and heating systems, or improving air tightness.
What are the exemption that can allow landlord to fall outside the MEES regs?
Last for 5 years:
- when the improvments costs do not meet a 7-year payback (require 3 quotes)
- when the property devalue of 5% or more if improvments are implemented
- when a landlord who spends the full £3,500 on a property is unable to bring the rating up to E
Permanent:
- Where the tenancy is less than 6 months with no security of tenure
- Where the tenancy is for more than 99 years
- Industrial units or workshops with a low energy demand (e.g. no heating or cooling)
- If a building does not need an EPC
- Places of worship
What are the penalties for non-compliance with MEES (+- 3 months, %/max. penalty)?
- Breach has lasted less than 3 months – up to £5,000 or (if greater) 10% of the Rateable Value with a maximum penalty of £50,000
- Where a breach has lasted more than 3 months – up to £10,000 or (if greater) 20% of the Rateable Value with a maximum penalty of £150,000
