Sustainability Flashcards

1
Q

RICS commitment to sustainability

(5)

A
  • RICS Global Compact published - ‘Advancing responsible business in land, construction, real estate use and investment’ 2018. How organisations can identify and address impact of their activities and decision making throughout the construction process.
  • Evidenced based research - ‘sustainability rises up the agenda in UK FM sector’ 2021
  • Rules of conduct: e.g. Rules 3.10 encourage sustainable solutions when advising clients
  • Red Book Global - VPGA2 - consider esg when valuing - consult experts
  • Guidance Note: ‘Sustainability and ESG guidance in commercial property, valuation and strategic advice’ 2021
  • Certification - e.g. RICS SKA system for the fit-out of commercial premises (gold, silver, bronze)
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2
Q

Climate Change Act 2008

A

amended in 2019 to allow the UK to commit to ‘net zero’ carbon by 2050

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3
Q

Biodiversity Net Gain

A

Biodiversity net gain (BNG) is a way to contribute to the recovery of nature while developing land. It is making sure the habitat for wildlife is in a better state than it was before development.

Already in place but 10% biodiversity net gain (BNG) will become mandatory when Part 6 of the Environment Act 2021 comes into force in November 2023.

Already in place but 10% biodiversity net gain (BNG) will become mandatory when Part 6 of the Environment Act 2021 comes into force in November 2023.

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4
Q

November 2020

A

The UK government announced a 10-point plan for a ‘green industrial revolution’
- green finance
- greener buildings
- greener public transport

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5
Q

ESG - what does it stand for?

A

Environmental Social Governance

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6
Q

ESG - what is it?

A

It is a set of criteria that investors and companies use to evaluate a company’s sustainability and societal impact.
- Environment = company’s impact on the environment (carbon footprint, waste management and energy efficiency)
- Social = company’s impact on society (employee relations, D&I and community impact)
- Governance = how the company is managed (ethics, board composition, decision making)

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7
Q

MEES - 1 April 2018

A

All com and resi buildings with new leases - minimum of E

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8
Q

MEES - 1 April 2020

A

All resi buildings with existing and new leases - minimum of E

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9
Q

MEES - 1 April 2023

A

All com buildings with new and existing leases minimum of E (registered by 1/4/2025)

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10
Q

MEES Exemptions
(6)

A
  • If building is exempt from needing an EPC (e.g. place of worship)
  • if it has minimum energy usage e.g. a shed with no heating etc
  • Lease less than 6 months or longer than 99 years
  • When improvement to an E is not possible within the ‘7-year payback’ time. 3 quotes have to be obtained from energy assessors.
  • When it can be proven that improvements could devalue the property by 5%
  • When 3rd party consent from a tenant/landlord/planning authority is refused.
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11
Q

EPC what is it/what does it measure?

A

Energy Performance Certificate
Provides information on energy efficiency of a building. Help to make informed decisions about energy efficient buildings and encourages uptake of them.

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12
Q

EPC Exemptions

A
  • Places of worship
  • If listed/in conservation area and improvements would alter the character
  • Buildings of less than 50 sq m in size
  • Buildings with no heating
  • Buildings due to be demolished
  • Residential buildings occupied for less than 4 months of the year
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13
Q

EPC penalties for non compliance

A

Resi = £200
Commercial = 12.5% of RV (minimum of £500 and max of £5,000)

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14
Q

MEES Penalties (comm)

A

Breach less than 3 months = 10% of RV or £5,000 (max fine £50,000)
Breach more than 3 months = 20% RV or £10,000 (max fine £150,000)

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15
Q

MEES penalties police by…

A

Local Authority

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16
Q

Resi MEES penalties

A

less than 3 months - £2,000
more than 3 months - £4,000

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17
Q

2027

A

C

18
Q

2030

A

B

19
Q

Other potential changes…

A
  • All let properties will fall in the scope of MEES
  • Listed buildings need an EPC
  • 2025 register MEES on new database
  • then register again in 2028 and 2030 to comply with new minimum standards
20
Q

BBP

A

Better Buildings Partnership
- A number of UK property funds and REITS have publicly committed to achieving net zero carbon by 2050 under the BBP

21
Q

UKGBC Framework
(5 - ranked)

A
  1. ESTABLISH NET ZERO CARBON SCOPE - across the whole life of the building (from construction through to demolition)
  2. REDUCE CONSTRUCTION IMPACTS - developers need to consider materials and design
  3. REDUCE OPERATIONAL ENERGY USE - LL need to consider how best to retrofit efficiency measures (e.g. led lights, smart controls)
  4. INCREASED RENEWABLE ENERGY SUPPLY - on and off site, work out how to implement these in designs
  5. OFFSET ANY REMAINING CARBON - last resort (e.g. planting trees)
22
Q

Why are EPCs updated

A

To meet the governments targets of ‘carbon budget’ which is updated every 5 years under the climate change act

23
Q

Building Regulations and Codes

A

UK government updates this, it contains info on MEES and regulations which address the certification of buildings.

24
Q

5 key provisions of Building Regulations and Codes

A
  1. higher standards of energy conservation for new and refurbed buildings
  2. establishing a calculation methodology for epcs for all buildings
  3. MEES
  4. EPCS for all buildings when leased and sold
  5. Mandatory inspection of boilers and aircon in buildings
25
Q

EPCs are required for

(4)

A

-All buildings over 50 sq m
- When newly built, sold or let (more than 6months, less than 99 years)
- When newly refurbed and air con/heating etc is altered and/or building is subject to building regs for construction
- EPC is also required for sub-letting or assignment of lease.

26
Q

EPC requirements for marketing
(3)

A
  • Commissioned within 7 days of marketing commencement
  • obtained within 28 days of marketing commencement
  • only actual rating displayed on property and advertisements (graph included when space and link to front page for online marketing)
27
Q

What is on the front page of an EPC certificate?

(6)

A
  1. Address of property and floor area (GIA)
  2. Certificate reference number
  3. technical info on the property’s energy provision (main fuel, emission rate)
  4. estimation of running costs
  5. A+ - G rating
  6. Benchmarking information
28
Q

How long does an EPC certificate last for

A

10 YEARS

29
Q

Scottish Regime (s.63) Regs

A

Action plan created prior to marketing. 3.5 years to improve from date action plan is issued

30
Q

ESOS

A

Energy Saving Opportunity Scheme
- Mandatory for large UK organisations: measure energy consumption, conduct energy audits, report compliance to environment agency.

31
Q

Heat Network Regulations 2014

A

Related to communal heating systems in multi-occupied buildings (comm and resi)
Must be provided with accurate bill info/competitive prices.

32
Q

CRC Energy Efficiency Scheme

A

CARBON REDUCTION COMMITMENT SCHEME
- scrapped in 2015 and replaced by CCL (climate change levy) in 2019

33
Q

CCL

A

CLIMATE CHANGE LEVY
- Tax on energy delivered to non-domestic users –> encourages efficiency
- energy providers charge it and then forward money to HM treasury
- Energy used from renewable sources is exempt

34
Q

DECs

A

DISPLAY ENERGY CERTIFICATES
- Required for public buildings over 250 sq m
- discloses actual energy used and Co2 emitted.
- BBP is trying to encourage voluntary display via a scheme known as NABERS UK

35
Q

BREEAM

A

Building Research Establishment Environmental Assessment Method
- voluntary for nee and refurbed buildings
- judged off 9 environmental weightings (e.g. transport links, waste management, water use, health and wellbeing)

36
Q

Other voluntary ratings

(5)

A

LEED (design based USA)
DGNB (Germany)
HQE (france)
NABERS (UK and Aus)
WELL (international)

37
Q

what is within a green lease?

A

typically seek to ensure LL and T share info on the use of water, energy and waste in a building. BBP has a toolkit , recommending green lease components

38
Q

RICS SKA

A

Rating system aiming to be standard measure of fit-out sustainability in buildings

39
Q

BPP Outline

A
  • Change through collaboration and leadership
  • Improve professional understanding (have a training course on ESG)
  • Stimulate change
40
Q

GBC

A

Green Buildings Council

41
Q

GBC mission

A

To radically improve the sustainability of the built environment, by transforming the way it is planned, designed, constructed, maintained, repurposed and operated.

42
Q

Sustainability and ESG
in commercial property
valuation and strategic
advice 2021 (eff 2022) –> contents

A

‘Valuers should have working knowledge of sustainability and its impacts including on the physical asset, policy and market participants’
- Inspection (VPS2 = observe things that may impact sustainability)
- Reporting (VPS3) = - statement about ESG related to value, property features, opinion of how property features impact value, how they may impact future value.
- VPS5 Valuations methods = explicit vs implicit to value sustainably
- Sustainability characteristics, considerations and risks (cap ex)