Sustainability

Question 1

What is the UK’s NZC target ?

Answer 1

Achieve NZC by 2050 (this was enshrined in law in 2019, when the 2008 Climate Act was amended)

Question 2

What is a carbon budget?

Answer 2

A cap on the amount of greenhouse gases a country can emit over a five year period. This forms part of the legal framework used to work towards NZC in line with the 2008 Climate Act

Question 3

What interim sustainability targets did the UK govt. introduce in 2021?

Answer 3

Reduce carbon emissions by 78% by 2035
Decarbonise the electricity grid

Question 4

What is sustainability?

Answer 4

Sustainability is meeting the needs of the present without compromising the needs of the future

Question 5

How is your company contributing to the UK’s sustainability targets?

Answer 5

It is a signatory of the Better Building Partnership’s Climate Commitment.
The signatories have over £400bn of real estate AUM and have to publish a net zero pathway upon signing. They also have to disclose annual progress against this pathway and the energy performance of their assets, where they have permission to do so.
The commitment aims to deliver NZC buildings by 2050

Question 6

Are you aware of any bodies in the UK working towards improving sustainability in the built environment?

Answer 6

UK Green Building Council (member-led body focused on transforming the way the built environment is planned, designed, constructed, maintained, repurposed and operated

Question 7

What are the five actions set out in the UK GBC’s framework for addressing sustainability?

Answer 7

1. Establish NZC scope for whole life cycle of building
2. Reduce construction impact (i.e. developers must consider which materials they use
3. Reduce operational energy use
4. Increase renewable energy supply (i.e. PV panels)
5. Offset any remaining carbon

Question 8

When are EPCs currently required for commercial property in the UK?

Answer 8

Required for all commercial property in the UK with a useful floor area > 50m2 when:
The building is newly developed/sold/let for a term greater than 6 months and less than 99 years (includes sub-lettings/assignments)
Any of the heating/AC/ventilation services are altered as a result of a refurb

Question 9

When a commercial building be exempt from having an EPC certificate?

Answer 9

Has a useful floor area of < 50m2/temporary building/religious building/due to be redeveloped or demolished/has no heating

Question 10

What are the current MEES requirements in England and Wales?

Answer 10

As of 2018, all new commercial property has to have a minimum E rating in order to be let. As of 2023, this has applied to all existing leases too.

Question 11

What are some of the exemptions for MEES?

Answer 11

If the building does not require an EPC (e.g. place of worship)
The landlord/tenant/planning authority refuses to give consent for the necessary improvement works
When it is not possible to get a minimum E despite having made all improvement works with a payback period of 7 years of less
When it is proven that making the necessary improvement works would devalue the property by more than 5%

Question 12

Who polices non compliance with MEES?

Answer 12

The relevant Local Authority

Question 13

What are the penalties for non-compliance with MEES?

Answer 13

Breach of less than 3 months: greater of £5k or 10% of RV (up to £50k)
More than 3 months: greater of £10k or 20% of RV (up to £150k)

Question 14

For how long is an EPC valid?

Answer 14

10 years unless the building is altered during this period

Question 15

What is contained on an EPC?

Answer 15

The address and floor areas
EPC reference number
Energy performance rating from an A+ to a G
Technical information on the property’s energy provision
Estimation of energy running costs

Question 16

What are the EPC requirements when marketing a commercial property?

Answer 16

The energy performance rating must be featured on marketing materials
Any online marketing materials must include a link to the EPC

Question 17

What are the penalties for non-display of EPC information on marketing materials?

Answer 17

Fine of 12.5% of property’s RV (min £500; max £5,000)
This is policed by the relevant local authority’s Trading Standards team

Question 18

What is the latest status on potential changes to MEES ?

Answer 18

It was announced in 2023 that plans to raise MEES to C for new tenancies by 2024 and for all tenancies by 2027 were shelved.
Currently, there is a proposal to make all new tenancies a B by 2030, but there are no further details on the govt.’s plan for implementation

Question 19

/Who does the Energy Savings Opportunity Scheme (ESOS) apply to>

Answer 19

Large UK businesses with over 250 employees/annual turnover over £44m/ balance sheet assets of over £38m
The ESOS audit is designed to identify tailored and cost-effective measures to allow participating businesses to save energy and achieve carbon and cost savings. The audit costs are estimated to be significantly outweighed by the savings from implementing the recommendations.

Question 20

What are the requirements of the ESOS?

Answer 20

1. Measure energy consumption of buildings, transport and industrial activities on a 4-yearly basis
2. Conduct energy audits to identify cost-effective energy efficiency measures that can be adopted
3. Report compliance to the Environmental Agency

Question 21

What is embodied carbon?

Answer 21

The CO2 emissions associated with the construction processes and materials used in the construction of a building

Question 22

How can you reduce embodied carbon in real estate construction?

Answer 22

Using more resilient materials which will last longer and are often produced via a more efficient construction process - e.g mass timber (Bywater Properties); construction of Paradise SE11 (Vauxhall) produced 59% less CO2 than current best practice in construction
Sourcing building materials locally
Re-using building materials where possible

Question 23

What do the Heat Network (Billing and Metering) Regulations 2014 set out?

Answer 23

They cover the provision of communal heating systems in multi-let commercial buildings and set out that the final consumer must receive accurate bill information and meter readings and competitive pricing

Question 24

What is the Climate Change Levy (CCL)?

Answer 24

A tax on energy delivered to non-domestic users in the UK.
Renewable energies are exempt.
Currently generates c. £1.9bn in tax p.a.

Question 25

What are Display Energy Certificates?

Answer 25

They state the operational energy usage of public buildings > 250m2
The govt. previously consulted in implementing a similar scheme for large commercial buildings, however this has since been shelved.
However, the Better Buildings Partnership is attempting to get more institutional investors to sign up to voluntary disclosure of energy performance data.

Question 26

What is Biodiversity Net Gain?

Answer 26

The improvement or creation of natural habitats during the construction process.
As of 2024, all developments must attain at least 10% BNG (either on or off-site), as measured by a Statutory Biodiversity Metric

Question 27

What are the risks posed to landlords by potential changes to MEES regulations?

Answer 27

The potential risk that they may not be able to let some of their buildings in the future. Many landlords are therefore investing in improvements now to mitigate future leasing risk (talk about our portfolios)

Question 28

What is BREEAM and what are some of the main categories it measures?

Answer 28

Building Research Establishment Environmental Assessment Method
It measures buildings across nine categories, including energy consumption, water use, transport links and health and well-being, producing a rating from Pass to Outstanding

Question 29

Are you aware of any RICS guidance on the incorporation of health and well-being in the design of buildings

Answer 29

RICS Practice Information: Design, Delivery and Management of Healthy Buildings - a Practical Guide (2023) - sets out how health & well-being can be prioritised at each of these stages of a building’s lifecycle.

Question 30

What are examples of clauses in the BBP’s green lease toolkit?

Answer 30

Some of the key areas relate to data sharing, increasing the landlord’s rights to undertake EPC improvement works and the recycling of waste