Sustainability Flashcards
What is The Climate Act 2008?
The Act was amended in 2019 to require the UK to achieve ‘net zero carbon’ by 2050. An interim target of reducing emissions by 78% by 2030 was subsequently introduced.
What does Net Zero Carbon mean?
Net Zero Carbon refers to the state where greenhouse gas emissions are balanced by the amount of these gases removed from the atmosphere.
Net Zero means actively offsetting any remaining emissions by removing an equivalent amount of greenhouse gases. Natural processes include tree planting and peatland restoration, with technological solutions including carbon capture.
What is meant by Net Zero Scopes 1, 2, and 3?
Scopes 1-3 are a way of categorising the different kinds of carbon emissions a company creates in its own operations, and its wider value chain.
Scope One:
Green House Gas (GHG) emissions that a company directly makes e.g., running its boilers and vehicles.
Scope Two:
Emissions made indirectly e.g., electricity of energy a company buys for heating / cooling its buildings.
Scope Three:
All emissions that the organisation is indirectly responsible for up and down its value chain (accounts for 70%+ of a businesses carbon footprint) e.g., from buying products from its suppliers, and from it products when customers use them, or for an organisation than manufactures products, there will be significant carbon emissions from the extraction, manufacture and processing of raw materials,
How can the UK achieve its target of net zero carbon by 2050?
The UK Green Building Council (UKGBC) has a framework to address this:
1. Establish Net Zero Carbon Scope - across the whole life of buildings (think Scopes 1-3)
2. Reduce Carbon Impacts - Changing building materials and designs
3. Reduce Operational Energy Use - Retrofit efficiency measures.
4. Increase Renewable Energy Supply - On and off site.
5. Offset Any Remaining Carbon - Deal with residual emissions that cant be eliminated.
What are Energy Performance Certificates (EPCs) and when is an EPC required in England and Wales?
EPCs are essential documents that provide information about the energy efficiency of buildings. They serve as a tool to analyse and promote energy efficiency improvements in buildings.
Rules:
- EPCs are required for all commercial buildings with a floor area of 50sqm+.
- When its newly built, sold, or let for 6+ months
- When its newly refurbished and heating / cooling services are altered and/or the building is subject to Building Regulations for construction.
- Sale or lease of resi buildings and refurbishment schemes are included.
- EPCs required for sub-letting or assignment of a lease.
What properties do not need an EPC?
Listed buildings
Buildings with no heating
Religious buildings
Temporary buildings
Buildings due to be demolished / redeveloped
Residential units not occupied more than 4 months a year.
Commercial buildings smaller than 50 sqm.
What is sustainability?
Sustainability is the capacity to maintain or improve the state and availability of desirable materials or conditions over the long term.
Sustainable development is ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’.
Why does sustainability matter, and why is it important from a commercial standpoint?
Sustainability matters to provide:
1. Environment Resilience - against climate change & promote biodiversity.
2. Economic Stability - resource efficiency & innovation.
3. Social Equity - equitable access, health and wellbeing.
4. Long-term vision - Legacy and resilience.
Why is it important commercially?
1. Long-term success & future-proofing assets.
2. Industry standards.
3. Stakeholder prioritising - growing consumer demand for sustainable products & services.
4. Regulatory compliance - businesses need to adapt to avoid penalties and maintain market position.
What has the Scottish Government recently proposed concerning reforming their EPC regime?
- Higher standards of energy conservation for new & refurbished buildings
- Establishing a calculation methodology for energy performance of all buildings
- Min. requirements for the energy performance of all building.
- Energy certification for all buildings when built, modified in certain cases, or when leased / sold.
- Mandatory inspection of boilers and aircon systems.
What are the EPC requirements for marketing?
- Must be commissioned within 7 days of the commencement of marketing (28 day limit for procurement)
- Agents are responsible for procuring EPCs
- Only the actual energy rating is required to be displayed on property/ads - where space allows, graphs should be included.
- All online marketing material must have a link to the EPC to show the front page of the EPC, including:
1. Address of property & floor area
2. EPC certificate reference number
3. Technical info on the property’s energy provision
4. Estimation of energy running costs
5. An energy performance rating
6. Benchmarking info - EPCs are valid for 10 years unless the building is altered. If so, a new EPC is required for marketing.
What are the penalties for not complying with the EPC regulations?
Local Authorities’ Trading Standards teams enforce the regulations.
Residential: £200 civil fixed penalty for non-display of EPC information on marketing material.
Commercial: Max. penalty is equal to 12.5% of the RV of the building (min of £500 and max of £5,000 fine)
What are the Minimum Energy Efficiency Standards, 2015 (MEES)?
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 require a minimum EPC rating of Level E to let a building from 1st April 2018 onwards.
Implementation has bee in two stages:
1. New leases from 1st April 2018 (commercial / resi) including lease renewals / extensions
2. All existing leases from 1st April 2023 for commercial properties (2020 for resi).
What are the MEES exemptions?
- If a building does not need an EPC e.g., place of worship.
- Industrial units / workshops with a low energy demand (no heating / cooling)
- Where the tenancy is less than 6 months with no security of tenure.
- Where tenancy is for more than 99 years
- When its not feasible to improve the EPC rating to E or above even when all possible improvements with a payback of 7 years or sooner have been made. 3 quotes required.
- When it can be proven that improvements would devalue a property by more than 5%
- When third-party consent from a tenant, landlord, planning authority for improvements is refused or conditionally cannot be reasonably met by the landlord.
- Certain types of residential lease (second homes, company lets), and landlords (public sector, social landlords)
- Exemptions must be pre-registered on the Local Authority Private Rented Sector Exemptions Register and renewed five yearly.
What are the penalties for non-compliance to MEES?
Policed by the Local Authority.
Penalties for commercial property include:
- Where a breach has lasted less than 3 months - up to £5,000 or (if greater) 10% of Rateable Value with a max. penalty of £50,000.
- Where a breach has lasted more than 3 months - up to £10,000 or (if greater) 20% Rateable Value with a max. penalty of £150,000.
Penalties for residential property include:
- Where a breach has lasted less than 3 months - £2,000
- Where a breach has lasted more than 3 months - £4,000
Resi landlords are required to spend up to £3,500 on improving energy efficiency at properties where an AST was granted on or since 1 April 2019 if properties have an F or G rating and the tenant demands the improvements (unless an exemption applies).
Are you aware of any potential changes to the MEES regime?
The Government previously indicated that the MEES threshold for commercial premises would rise from an E rating to a C rating in 2027, and a B rating by 2030.
In October 2023 the Prime Minister confirmed that the government will not be requiring landlords to improve the energy efficiency of their property to higher standards than those currently required by legislation - a reversal of the MEES policy set out to ratchet min. requirements.
However, with a General Election being held by January 2025, if Labour were to win, there may a reversal of this scrapping, and so landlords are advised to continue to improve their EPC ratings between A-C.
What are the regulations on energy performance for non-domestic buildings in Scotland?
Assessment of Energy Performance of Non-Domestic Buildings (Scotland) Regulations 2016 (S.63 Regs)
- Applies to buildings which have a GIA more than 1,000sqm being offered for sale or rent to a new tenant.
- Buildings constructed under Buildings Regulations prevailing from March 2002 onwards are exempt
- An ‘Action Plan’ must be prepared by an accredited advisor prior to marketing and made available to prospective buyers / tenants.
- Building’s energy and emissions performance must be improved within 3.5 years from date of Action Plan & formally reported in an annual Display Energy Certificate.
- Enforcement by the local authority.
- Fines of £1,000 will be issued for non-compliance.
Scottish Gov. has signalled an intention to review energy efficiency regime for all buildings, potentially to introduce a MEES-style approach.
What is the Energy Savings Opportunity Scheme (ESOS)?
An energy assessment scheme that is mandatory for large UK undertakings and their corporate groups employs 250 or more people, or has an annual turnover in excess of £44m, and an annual balance sheet total in excess of £38m.
They’re required to:
1. Measure total energy consumption across buildings, transport and industrial activities every four years.
2. Conduct energy audits to identify cost-effective energy efficiency recommendations.
3. Report compliance to the Environment Agency.
What is the Climate Change Levy (CCL)?
A tax on energy delivered to non-domestic users in the UK. Introduced as an incentive to increase energy efficiency within businesses and so to reduce carbon emissions.
Consumers are charged by their energy providers who forward the c.£1.9bn per annum to the UK Treasury.
Energy generated from renewable sources is exempt from CCL.
What are Display Energy Certificates?
They are required for public buildings over 250sqm.
They display actual energy used and carbon dioxide emissions (operational energy) which contrasts with the modelling approach taken to producing EPCs.
