Sustainability Flashcards
What is sustainability?
Meeting the needs of today, without compromising the needs of future generations to meet their own needs
What is sustainable development?
Development which meets the needs of today, without compromising the needs of future generations to meet their own needs
What is the triple bottom line?
Economic social and environmental for business focus
How can I be more sustainable?
- Travel less / smarter
- Consume less - reduce reuse recycle
Limit plastic consumption
Why is sustainability important for property?
- Responsible for 35% worldwide energy usage
- 40% CO2 emissions
- 2/3 global building will still be here in 2040
Is their RICS guidance on sustainability?
Sustainability and ESG in Commercial Property Valuation and Strategic Advice 2021
RICS Global Professional Guidance Note Sustainably & Commercial Property Valuation 2017
RICS Enviro Risks and Global Real Estate 2018
RICS Sustainability Report 2022
Can you tell me how the RICS is committed to sustainability?
Annual Sustainability Report 2022
- Highlight need for suitability strategies to meet net zero
- Global benchmark for climate, climate sustainability practice
What is a limitation of sustainability?
Often costs more than less sustainable alternative
What is economic sustainability?
Efficient use of resources wile ensuring property meets required standards while ensuring value for money
What is social sustainability?
Development that responds to the needs of wider community and brings social value
What is environmental sustainability?
Prevention of harm to the environment, minimising waste production and resource/energy consumption
What are the key areas required for sustainability action?
Physical characteristics of buildings
Impact on affected locations
Legislation
Increase attitudes and awareness
What key property valuation issues can sustainability affect?
- Market Rent
- Market Value
- Investment Value
- Fair Value
What is key legislation of sustainability?
Environmental Protection Act (1990)
Environmental Act (1995)
Energy Act (2011)
Climate Change Act (2008)
What are building regulations?
Set of minimum regulations and standards that all new buildings must be built to
A - S e.g. fire safety B
What is the NPPF?
National Planning Policy Framework
Presumption in favour of sustainable development
What is the Energy Act (2011)?
Introduced Energy Efficiency Regulations (2015)
- MEES
- Unlawful to let properties with EPC less than E from 1st April 2018
What is the Climate Change Act (2008)
Long term UK framework for cutting carbon emissions
- Require UK to achieve net zero by 2050
- Also an interim target of 78% reduction in emissions by 2030
What are carbon budgets?
5 yearly carbon budgets set by UK gov
Restrict amount of greenhouse gas UK can emit in a 5 year period
What is the Green Industrial Revolution
UK gov 10 point plan for sustainability
- £12bn investment and 25000 jobs ion areas such as transport infrastructure and energy efficiency
What is the Building Better Partnership (BPP)?
Commitment from leading property funds and REITs to achieve net zero
How can carbon reductions and energy efficiency savings be made in buildings?
- Design - construction use and refurb
- Construction - materials and building design
- Use - retrofit energy efficient measures and renewables
- Refurbishment
What is the UK Green Building Council Framework?
Ways to meet net zero target
- Establish net zero carbon scope
- Reduce construction impact
- Reduce operational energy use
- Increase renewable energy supply
- Offset any remaining supply
What are key climate change conventions and frameworks?
- UN Convention on Framework on Climate Change
- Kyoto Protocol
- Paris Agreement
- COP 26
- Climate Change Act
What is the Kyoto Protocol?
International agreement linked to the UN Framework on Convention on Climate Change
- Commit parties to binding emission reduction targets
What is the Paris Agreement?
Legally binding climate change treaty
Framework to avoid dangerous climate change by limiting global warming to 2 degrees
What is the Climate Change Act?
UK Framework for cutting emissions - legally binding
- Net zero by 2050
- 78% reduction by 2030
What was COP 26 and what were the outcomes?
UN Climate Change Conference Held in 2021
Outcomes:
- $130tn private investment in net zero
- All UK firms must provide net zero plan by 2023
- Strengthen Paris Agreement Targets
What are the 2020/30/50 EU targets?
- Reduce emissions by 37% by 2020 on 1990 levels
- Reduce emissions by 57% by 2030 on 1990 levels
- Reduce emissions by 80% by 2050 on 1990 levels
What is a renewable heat incentive?
UK gov scheme to encourage uptake of renewable tech amongst households communities and businesses - financial incentives
How do buildings impact on the environment?
Poorly designed buildings use increased energy, poor waste management etc
- Globally - 40% emissions, 35% energy use
What are examples of sustainable design features?
Good Insulation
Sustainable materials
Use of natural resources
Renewable tech - solar pv, ASHP
Green roofs
What is the energy performance buildings directive?
EU Legislation on increasing energy performance
Requirements:
- better standards of energy conservation for new refurbs
- establish methodology for energy performance
- min requirements for energy performance
- energy certification for all leasing/sale
- mandatory inspection of air-con and boilers
What are renewable energy options?
- Wind
- Solar
- Hydro
What is BREEAM?
Building Research Establishment Environmental Assessment Method
- Scheme for providing certification on a buildings sustainability performance
When was BREEAM established?
1990
- 550,000 buildings certified and 2 million registered for certification
What are some BREEAM assessment categories?
- Management
- Health and well-being
- Energy
- Waste
- Water
- Pollution
- Transport
- Innovation
- Materials
How is BREEAM assessed?
By an accredited assessor at key stages of the property lifecycle from design, construction and operation - credit given to each category, giving an overall score
What are the BREEAM rating thresholds?
- Unclassified
- Good
- Very good
- Excellent
- Outstanding
What are the benefits of BREEAM?
- Raise awareness of owners, occupiers and designers of sustainable approaches
- Drive innovation
- Impact on sites
- increase value
- better operating costs
- social responsibility for clients
What are the drawbacks of BREEAM?
- Complex weighting system
- Costly to comply
- Some credits are incidental i.e. prominence to a train station
How would you explain BREEAM to a client?
- Increased capital and rental value
- Improve operating costs
- Improve marketability
What premium can BREEAM provide?
- 21% increase capital value and 18% increase on rents
Is BREEAM recommended?
Yes - 88% think it is a good thing and 96% would use it again
What cost premium does BREEAM come at?
- Depends on target
- Moving from excellent to outstanding usually comes at 10% premium
What is an EPC?
Energy Performance Certificate
- Shows rating of a buildings energy efficiency from A-G
- Provides recommendation on how to improve efficiency
When is an EPC required?
All commercial buildings over 50 sq m
When a building is let, built, sold or refurbished
Also required for subletting/assignment
What buildings are except from an EPC?
- Leases under 6 months or over 99 years
- Listed buildings
- Buildings with no heating
- Religious buildings and listed buildings
- Temporary buildings
- Buildings to be demolished/redeveloped
How long does an EPC last?
10 years - unless building being altered, then a new one required
Where are EPCs held?
EPC Register - Gov website
When do you need to display an EPC certificate?
- Floor area above 500m
- Frequently visited by the public
What is included in an EPC?
- Address
- Certificate Number
- Rating
- Rating Table
- Area
- Recommendations for improvement
- Estimation of energy running costs
What are penalties for not having an EPC?
- Residential - £200 fine
- Commercial - 12.5% RV of the building (max)
What are MEES?
Minimum Energy Efficiency Standards
- Introduced by the Energy Efficiency Regulations (2015)
What are the requirements under MEES?
- 01 April 2018 - min EPC rating of an E to let a new building, or renew lease
- 01 April 2023 - LL cant continue to let a building with an EPC below an E
- 01 April 2027 - Min EPC of a C
- 01 April 2030 - Min EPC of a B
What are MEES exceptions?
- Buildings with EPC exemptions
- Buildings with no heating/cooling
- Tenancies less than 6 months or more than 99 years
- Not feasible to improve an EPC above E - high cost (no payback in 7 years)
- Proven that improvements would reduce value by 5%
- When 3rd parties refuse consent
- All cost effective improvements carried out
How long do MEES exemptions last?
5 years
- must be logged on a centralised register
What are penalties for non-compliance with MEES?
- Providing an incorrect, misleading info - £5k fine
- Renting a non-compliant property for less than 3 months - 10% RV (min £5k, max £50k)
- Renting a non-compliant building for more than 3 months - 20% RV (min £10k, max £150k)
What is a sustainability checklist?
Way to ensure development project proceeds in accordance with community sustainability values
Encourage development and buildings that support and enhance community sustainability objectives
What are the impacts of MEES on landlords?
- Makes properties illegal to let unless upgraded - 20% commercial stock F/G
- Valuation and marketability affected
- Rent review affected
- Implications on dilapidations assessments
What is ESOS?
Energy Saving Opportunity Scheme
- Energy Assessment Scheme for large orgs in the UK, with over 250 staff, £50m turnover and balance sheet of over £43m
- Requirements:
- Measure all energy consumption
- Conduct energy audit
- Report compliance to Enviro Agency
What can be done to improve sustainability?
- Use less - waste management
- Just in time deliveries
- Sustainable transport
- Innovation
- Reduce energy consumption
What is a waste management plan?
Outline of how materials can be managed efficiently and how waste can be disposed of legally
- Reduce, reuse, recycle
What is the main legislation for sustainability?
- Enviro Act and Enviro Protection Act
- COSHH
- Building Regulations
- BREEAM
- Energy and Climate Change Act
What is a display energy certificate?
DEC
- Details on how public bodies use energy in buildings
- Required for buildings over 250sqm
- Accompanied by a advisory report on how to improve efficiency
What are the penalties for not having a DEC?
- £500 fine for not displaying
- £1k fine for not having one
What is corporate social responsibility?
- Self regulating business model helping organisations be socially accountable
- Encourage company to act in ways which enhances society and environment
What is the Brundtland Report?
UN Report - Our Common Future
- Defined sustainable development and the three pillars of Enviro, Economy, and Social
- Examine key enviro issues, strengthen international cooperation and raise understanding and commitment
What is biodiversity?
- The different kinds of life found in one area
- Volume of life and how species interact with others
What is a biodiversity survey?
Biodiversity Action Plan
- Identify, map and evaluate biodiversity resource of a site and provide enhancement opportunities
When have you commissioned an EPC?
Unit 43 Dixon Business Centre - F Rating
- Procured a new EPC and subsequent improvement required to meet MEES
- Installed energy efficient lighting and achieved a D - unit now lettable
What recommendations have you seen in an EPC recommendation report?
- Improve internal/external insulation
- Low energy lighting
- Heating controls
- Remove gas boiler
- PV installation
What is a sustainability audit?
Report which is intended to:
- Establish an assets performance on Energy, Waste, Water and Health and Well-Being
- Identify Saving Opportunities
- Align with GRESB
- Provide route for compliance with ESOS
Talk me through your sustainability audit of 60-62 Clifton Road?
- Instructed audit to be completed following recent purchase by my client, to detail assets ESG performance
- Report provided an overview of the assets performance in consumption, energy use, water use, well-being etc
- Provided long and short term enhancement measures - LED lighting, occupancy sensors etc
- Provide recommendation to my client and instructed improvement works to improve efficiency
What sustainability policies do Workman have?
- Turn computers off at night
- Occupancy sensors on lights
- Recycling
- Staff training
- CSR - charity days etc
What is your understanding of RICS Guidance note on Sustainability and Commercial Property Valuation?
Provides good practice supporting everyday commercial valuation practices and its interface with ESG
What is LEED?
Leadership in Energy and Environmental Design
- Widely used green building rating scheme
- Framework to create healthy efficient and cost saving green buildings
What is the levy on climate change?
Tax charged on energy used by businesses
What building regs relate to energy efficiency?
Part L
- Solar panels
- Internal lights
- Loft insulation
- Radiators
What was CRC?
Carbon Reduction Commitment Scheme - mandatory emissions trading scheme
- Abolished in 2019
- Replaced by Climate Change Levy
What is SECR?
Streamlined Energy and Carbon Reporting
- Companies must report on energy use and emissions in companies house year end reporting
Who qualifies for SECR?
- Companies on Stock Exchange
- Companies with 250 + employees
- Companies who turnover £36bn or have balance sheet over £18bn
Who is except from SECR?
- Public sector
- Charities
- Companies who dont file on companies house
What are penalties for non-compliance with SECR?
Fines - £150 - £7500
What is an environmental management system?
Framework helping orgs achieve goals through review, evaluation and improvement of enviro performance
E.g. ISO 14001 - international agreed standard
What are benefits of an enviro management system?
- Help achieve enviro goals
- See improvement
- Enhance compliance
- Improve public image
What is your understanding on Heat Network (Billing and Metering) Regs 2014?
- Relate to provision of communal heating system in multi-occupied schemes
- Final customers must be provided with accurate meter reads/bill info and competitively priced individual meters
What is your firms enviro policy?
- Net zero carbon by 2030 in managed properties
- Minimise energy water and waste
- Promote use of reusable materials
- Move away from petrol//diesel fleet
What is the RICS SKA rating scheme?
Standard measuring buildings fit out sustainability
- Gold, silver, bronze
What is a WELL building standards?
Standard for buidlings in respect to spaces that optimise health and wellbeing for occupiers
e.g. assessment criteria
- air
- water
- light
What does biodiversity net gain relate to?
- Contribute to recovery of nature in development project
- Leave enviro in better state than before
- Compulsory for new development from Nov 2023
What are some UK targets for sustainability?
- Net zero 2050
- 40gigawatt offshore wind by 2030
- End sales of petrol/diesel cars by 2030
- No gas boilers by 2035
How will MEES affect your role?
- Must undersatand LL requirements
- Ensure EPCs are tracked and improved where required
- ALterations - assess impact on EPC - reject if negative
How are you looking to improve sustainability in performence of building?
- Reduce energy use
- Improve waste management
- Imrpove well being
- Encourage new transport - EV charging, bike sheds
What is ESG?
Environmental Social and Governance - standards of behaviour - framework assessing sustainability and ethical practices of a company
What does the Enviro Act (1995) do?
Create agencies and set standards for enviro management
What does the enviro protection act (1990) do?
Improve control of pollution arising from industry
What is net zero ?
Balance between greenhouse gas emissions produced and amount removed by the atmosphere
What is a green roof?
Living roof with vegatation and growing medium planted over a waterprooof membrane - imporves drainage, air quality, wildlife etc
How is ESG measured in property?
BREEAM
GRESB
MEES
What are GSHP and ASHP
Gorund and Air source heat pump
- harness natural heat from ground or air and pumped through pipes - sustainable
What is a green lease?
Standard form lease with additional clauses which require management and improvement of environmental performance of building by owner and occupier - legally binding
What are examples of sustainable construction practices?
- Resusable materials
- Design and use of natural light
- Efficient management and monitoring
What is GRESB?
Global Real Estate Sustainability Benchmark - established framework for monitoring ESG performance
How do you ensure EPC valid and up to date?
Tracker - updated manually when new EPC logged
- Receive updates when EPC due or is low
- EPC validated on gov EPC register
