Sustainability Flashcards
Sustainability
meeting the needs of the present without compromising the ability of future generations to meet their own needs
How can people/businesses be more sustainable?
- reduce, reuse recycle
- travel smarter - avoid planes
- limit plastic consumption
What does Global Professional GN Sustainability and Commercial Property Valuation state?
- valuer must be aware of ways sustainability can impact levels of value
- impacts all bases of value
EG climate change on location, physical characteristics of building and increasingly sustainable attitudes of investors and occupiers
Building Regulations
- set of regulations and standards new buildings must be built to in terms of structure, fire safety, electrical safety, ventilation, conservation of fuel and power etc
Energy Act
- Energy Efficiency Regulations 2015 make it unlawful to let properties with EPC F or G from April 2018
- unlawful to continue to let properties with EPC F or G from April 2023
Why does Energy Act impact PMs?
Our job is to maintain or increase asset value, so PM should advise LL to upgrade property to good EPC rating so it is lettable and sellable
Where do MEES apply?
England and Wales
What does EPC show?
- current efficiency rating (A-G)
- guidance on how to improve
- what works could be completed
- what EPC rating could be
Note: valid for 10 years from date of issue
Where does MEES not apply?
- leases of 6 months or less
- leases of 99 years or more
What buildings do not require an EPC?
- listed buildings
- religious buildings
- temporary buildings
- buildings due to be demolished
If there should be EPC, but building does not have one, what is the fine?
12.5% of RV (up to cap of £5,000)
When are Landlords exempt from complying with MEES?
- all improvements already carried out
- consent to do works is refused by T
- expert advice is that works would devalue property by 5% or more
- cheapest improvement is £3,500
- golden rule: independent assessor determines that improvements would not pay for themselves via savings within 7 years
Note: exemptions must be logged on PRS Exemptions Register that Government created
Penalty for not complying with MEES?
- £5,000 - £50,000 (10% RV) for properties with less than 3 month rental
- £10,000 - £150,000 (20% RV) for properties with more than 3 month rental
Also reputation as breaches get published on a public register!
Note: issued by Local Weights and Measures Authorities
Implications of MEES for Landlords?
- properties will be illegal to let unless upgraded
- valuations will be affected and marketability will be diminished
- rent reviews could be impacted
Climate Change Act 2008
Government commitment to cut U.K. CO2 emissions by 80% on 1990 levels by 2050
What is the latest amendment to the Climate Change Act 2008?
- 2019
- amended to achieve Net Zero by 2050
Who do Heat Network Regulations apply to?
- any heat supplier, which could be LL
- communal heating or energy used to provide hot water, heating or cooling, where building is occupied by multiple occupiers and LL apportions bills
If Landlord is heat supplier, what must they do?
- notify Office for Product Safety and Standards (OPSS)
- provide information required every 4 years on the template
EG location of communal heating, estimated capacity, how many dwellings are being supplied etc
Sustainability Checklist
- used to encourage new developments that support community sustainability objectives
- provides local governments with process to meet sustainability and climate change objectives
BREEAM
Building Research Establishment Environmental Assessment Method
- longest established method of assessing, rating and certifying buildings
- used in over 50 countries
How does BREEAM work?
- independent licensed assessor evaluates building based on specification, design, construction and use
- 9 categories (energy, transport, water, waste, pollution, management)
- certification of Pass, Good, Very Good, Excellent and Outstanding (85%+)
- applied to buildings of any type
Advantages of BREEAM?
- increases asset value
- reduces operating costs
- good marketing
- often achieve 20% premium on rental/sale prices
Key global agreements for climate change?
- UN Framework Convention on Climate Change
- Kyoto Protocol
- Paris Agreement
U.K. legislation for tackling climate change?
Climate Change Act 2008
Paris Agreement
- legally binding international treaty adopted at COP 21 in Paris 2015
- aims to limit global warming to below 1.5 degrees Celsius compared to pre-industrial levels
- 5 year cycle of increasingly ambitious climate change action plans carried out by countries
Kyoto Protocol
- committed industrialised countries to limit and reduce greenhouse gases in accordance with individual targets
- aim to reduce emissions by 5% compared to 1990 levels
- in place 2008-2012
Net Zero
Balance where carbon emitted into atmosphere equals carbon removed from atmosphere
Workman procedures for sustainability
- recycling
- no waste to landfill policy
- LED lighting
- turn off screens
What is solar gain and how can it be managed in buildings?
- increase in temperature due to solar radiation
- limit size of windows or use reflective materials on the glass
When can a Landlord let a building with EPC F or G?
If on PRS Exemptions Register
EG made all improvements, cheapest improvement is £3,500, devalue by 5%
DEC
Display Energy Certificate
- rating A-G on energy efficiency
- A3 in public buildings
- valid 1 year if over 1,000sqm
- valid 10 years if 250-1,000sqm
- fine for not showing one is £500
Examples of sustainable design features
- heat pumps
- LED lighting
- EV charging points
- IBOS
Carbon Budget
- places restriction on amount of greenhouse gas emissions U.K. can emit over 5 year period
- U.K. is first country to set legally binding budgets
Infrastructure Act 2015
- legislation for planning and infrastructure that targets transport, energy provision and significant projects in U.K.
- introduced community rights to purchase shares or interest in large renewable energy projects
Non-Domestic Renewable Heat Incentive Scheme
- government program that provided financial incentives to increase uptake of renewable heat in businesses
- applications closed March 2021
R22 refrigerant
- ozone depleting gas known as hydrochlorofluorocarbon (HCFC)
- banned in U.K. in 2004
- illegal to top up or repair existing systems since 2015
- should use new system or replace with new gas EG R32 (modern equivalent as lower environmental impact)
Green Loan
- financing for projects that contribute to environmental objectives EG improving EPC rating, upgrading to wind or solar power, loan for electric car
Heat Pump
- aim to phase out fossil fuel systems
- air source or ground source
- uses small amount of electricity but no fuel burnt so no greenhouses gases
Note: due to become more popular as Government ban gas boilers in new homes in 2025 under Future Homes Standard
Part L of Building Regulations
- conservation of fuel and power
- changes came into force June 2022 with aim of reducing CO2 emissions by 30% for resi and 27% for commercial
Future EPC aims
EPC C by 2027 and EPC B by 2030
Streamlined Energy and Carbon Reporting (SECR)
- replaced Carbon Reduction Commitment 2019
- quoted companies and ‘large’ unquote companies must report energy consumption and greenhouse gas emissions to Companies House
- count as ‘large’ if 2 of the 3:
1. 250+ employees
2. Turnover of £36m+
3. Balance sheet of £18m+
Net Zero 10 point plan for green Industrial Revolution
- Advancing off shore wind
- Driving growth of low carbon hydrogen
- Delivering new and advanced nuclear power
- Accelerating shift to zero emission vehicles
- Green public transport
- ‘Jet’ Zero and green ships
- Greener buildings
- Investing in carbon capture use and storage
- Protecting natural environment
- Green finance and innovation
LEED
Leadership in Energy and Environmental Design
Rating system used to evaluate environmental performance of building
SKA Rating
RICS owned and led assessment method, and it is the only assessment method for non domestic fit out projects
Gives gold, silver or bronze rating
Combined Heat and Power
Highly efficient process that captures heat that is produced as byproduct of electricity generation process
Corporate Social Responsibility
Company commitment to carry out their business in an ethical manner and taking account of social and environmental impact
When is a LL a ‘heat supplier’?
If all the following apply:
- there is distribution of thermal energy (steam, hot water, or chilled liquids)
- thermal energy is used to provide heating or cooling
- building is occupied by more than one occupier
- landlord bills more than one occupier
(Essentially - there is communal heating)
Memorandum of Understanding
An understanding between two or more parties that is outlined in a formal agreement
Green Lease
Standard lease with additional clauses regarding landlord and tenant sharing energy/water/waste data, plus contractors should recycle and re use materials where possible
Note: Better Buildings Partnership has Green Lease Toolkit with recommendations
Climate Change Levy
Tax on energy delivered to non-domestic property users in U.K.
Aims to increase efficiency and reduce carbon emissions
(Exempt if using a renewable energy source)
Energy Savings Opportunity Scheme
Energy Assessment Scheme that is mandatory for large organisations that meet the criteria (250+ employees, turnover of €50m plus, and balance sheet of €43m plus)
- they must measure total energy consumption, conduct audits and report compliance to Environmental Agency
