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RICS APC - P&D Pathway > Sustainability > Flashcards

Sustainability Flashcards

1
Q

What guidance is there from RICS on Sustainability?

A

The RICS Professional Standard – Sustainability and ESG in commercial property valuation and strategic advice (2021).
This looks at how Sustainability and ESG will and does affect property valuation and how it is very important to take into consideration.

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2
Q

What is sustainability?

A

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs’

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3
Q

What is ESG?

A

Environmental, Social and Governance

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4
Q

How is ESG measured?

A

There are a wide range of rating systems measuring the sustainability and ESG credentials of a property – some include:
- BREEAM
- Leadership in Energy and Environmental Design (LEED)
- Minimum Energy Efficiency Design (MEES)

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5
Q

How is ESG reflected in property valuation?

A

The RICS Professional Standard – Sustainability and ESG in commercial property valuation and strategic advice (2021) aims to tackle the challenge of how ESG is reflected in valuations.

This sits alongside the updated 2021 RED Book – which includes amendments relating to ESG and sustainability factors in valuation.

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6
Q

What is NET ZERO?

A

Net Zero refers to the balance between the amount of greenhouse gas (GHG) that’s produced and the amount that’s removed from the atmosphere.

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7
Q

Why is Net Zero so important?

A

Emissions released by human action are taking catastrophic toll on our planet and propelling us further into an irreversible climate crisis.

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8
Q

Why is Global Warming so dangerous?

A

Evidence shows that our planet has been getting hotter, with global average temperatures now 1.2°C higher than in the pre-industrial era.

Global temperatures are on track to increase by as much as 2.7°C by 2100 based on current policies worldwide, which could render parts of the planet uninhabitable.

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9
Q

What are the causes of Climate Change?

A

Some of the main causes of Climate Change are:

  • Burning fossil fuels – coil, oil, gat etc.
  • Deforestation
  • Fertilisers
  • Increasing livestock farming
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10
Q

Is NET ZERO and Carbon Neutral the same?

A

No. Although ‘net zero’ and ‘carbon neutral’ are often referred to interchangeably, and both result in CO2 being removed from the environment, the two terms are not the same.

Carbon Neutral is where businesses are taking steps to remove the equivalent amount of CO2 to what’s emitted through activities access their supply chains, by investing in ‘CARBON SINKS’ that absorb CO2.

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11
Q

What are examples of Carbon Sinks / carbon offsetting?

A
  • Reforestation – planting trees
  • Building renewable energy
  • Waste and landfill management
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12
Q

What is Sustainable Development?

A

Sustainable development requires an integrated approach that takes into consideration environmental concerns along with economic development.

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13
Q

What Section of the NPPF is sustainable development?

A

Section 2 of the NPPF

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14
Q

When are EPCs required?

A

EPCs are needed whenever a property is:
- Built
- Sold
- Rented

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15
Q

What does an EPC contain?

A
  • Information about a property’s energy use and typical energy costs.
  • Recommendations abouts how to reduce energy’s use and save money.

An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years.

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16
Q

What is included on the front page of an EPC certificate?

A
  • Property Address
  • Property Type
  • Floor Area
  • Reference Number
  • Energy Performance Rating
  • Bench Marking Information
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17
Q

How Long is an EPC valid for?

A

10 years – unless the building is altered (if so, a new EPC is required)

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18
Q

What’s the scale for EPCs?

A

Letters A-G (Green to Red)

0-100 on pointing score

The building is assessed on a scale from A (most efficient) to G (least efficient).

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19
Q

How do you measure EPC – EPC rating is based on?

A

How much energy your property uses per SQM and how much it loses through poor insultation.

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20
Q

Where do you find an EPC register?

A

On the EPC register from GOV.uk.

There is a domestic and non-domestic register.

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21
Q

Under what circumstances might you not need an EPC?

A
  • Religious buildings / Places of Worship
  • Temporary buildings that will be used for less than 2 years.
  • Buildings that are due to be demolished
  • Stand-alone buildings with total useful floor space of less than 50 sqm metres.
  • Listed (only if it doesn’t change their character)
  • Residential buildings intended to be used less than 4 months a year
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22
Q

What are the requirements in relation to EPCs when marketing a property?

A
  • Must be commissioned within 7 days of beginning the marketing of the property (28 days limit for procurement).
  • Agents are responsible for procuring EPCs
  • Only the letter must be displayed on property and advertisements. Where space allows, the graph should be shown.
  • An online marketing material must have a link to show the front page pf the EPC document.
23
Q

What are the penalties for non-compliance with EPC?

A

Residential - Local Authority will fine you £200 for marketing a residential property without an EPC.

Commercial – Max penalty is equal 12.5% of the Rateable Value of the Property (min of £500 and max £5,000)

24
Q

Who enforces EPC penalties?

A

They are enforced by district councils.

25
Q

What is used similar as an EPC in public buildings?

A

Display Energy Certificate – DEC.

26
Q

On average- what are most energy efficient buildings?

A

Overall, flats and maisonettes were the most energy-efficient property type in both England and Wales

27
Q

What is MEES?

A

MEES is the Minimum Energy Efficiency Standard.

28
Q

Where does MEES come from?

A

The Minimum Energy Efficient Standard (MEES) was introduced in 2015 by the Energy Efficiency Private Rented Property) (England & Wales) Regulation 2015.

29
Q

What are the changes that are happening to private rented property regarding to EPC rating?

A

From 1 April 2018, landlords of buildings within the scope of the MEES Regulations must not renew existing tenancies or grant new tenancies if the building has less than the minimum energy performance certificate (EPC) rating of E – unless the landlord registers an exemption.

30
Q

When do you need to take action to improve your property to EPC E?

A

Since 1 April 2020, landlords can no longer let or continue to let properties covered by the MEES Regulations if they have an EPC rating below E, unless they have a valid exemption in place.

31
Q

What funding improvements can you make to your property for EPC?

A

You will never be required to spend more than £3,500 (including VAT) on energy efficiency improvements.

If you can’t improve your property to EPC E for £3,500 or less, you should make all the improvements that can be made up to that amount, then register an all improvements made exemption.

32
Q

Under what circumstances would you be exempt from MEES?

A
  • Buildings that are not required e.g (places of worship, certain listed buildings, temporary buildings etc)
  • Where tenancy is less than 6 months – with no right of renewal (no security of tenure).
  • Where tenancy is for more than 99 years
  • Buildings where the EPC is over 10 years old or where there is no EPC
33
Q

What are the penalties for non-compliance with MEES for Commercial and Residential property?

A

Up to 3 months

The penalty for renting out a property for a period of fewer than three months in breach of the MEES Regulations will be equivalent to 10% of the property’s rateable value, subject to a minimum penalty of £5,000 and a maximum of £50,000.

After 3 months

After three months, the penalty rises to 20% of the rateable value, with a minimum penalty of £10,000 and a maximum of £150,000.

34
Q

What is the long-term aim of energy performance standards?

A

The Government has committed to look at a long-term trajectory to improve the energy performance standards of privately rented homes in England and Wales, with the aim for as many of them as possible to be upgraded to EPC Band C by 2030.

35
Q

What is BREEAM?

A

BREEAM is The Building Research Establishment Environmental Assessment.

It is a VOLUNTARY SCHEME, although the majority of local authorities in the UK have incorporated the building certification system into their planning process as a mandatory requirement for new buildings.

36
Q

How is BREEAM measured?

A

BREEAM cores are primarily based on credits awarded by the assessor across nine weighted categories.
The nine core categories are:
- Energy
- Health and Well Being
- Materials
- Management
- Land Use & Ecology
- Pollution
- Transport
- Waste
- Water

37
Q

What are the levels of BREEAM / how are BREEAM assessments scored?

A

The 5 levels of BREEAM:
1. Outstanding ( >85%)
2. Excellent ( >70%)
3. Very Good ( >55%)
4. Good ( >45%)
5. Pass (>30%)

38
Q

What are the benefits of BREEAM?

A

Assessment tool – can be relatively to other assessment tools

39
Q

Apart from EPC, MEES and BREEAM – what other sustainability assessments methods are there?

A

Display Energy Certificates – used on public buildings of over 250 sqm

40
Q

How are developers considering more efficient construction solutions?

A
  • Use of renewable materials and technologies such as solar, wind, biomass and air source heat pumps to achieve a low carbon emission solution achieving a reasonable payback period.
  • The building aspect and the use of natural daylight to take advantage of solar gain.
41
Q

What is the Environmental Act 2021?

A

It sets the long-term targets in respect of any matter which relates to:

1) The natural environment

2) People’s enjoyment of the natural environment

42
Q

What is Biodiversity Net Gain?

A

Biodiversity is an approach used to improve a sites biodiversity value.

Once applied, a completed site will have a positive ecological impact, delivering improvements through habitat creation or enhancement after avoiding or mitigating harm.

43
Q

What are the requirements for BNG?

A

The Environmental Act 2021 requires that all development scheme in England deliver a mandatory 10% biodiversity net gain to be maintained for a period of at least 30 years.

Development proposals must – leave biodiversity in a better state than before.
This means that the Act has introduced a minimum 10% biodiversity net gain requirement for all new developments that are subject to the Town and Country Planning Act 1990.

44
Q

What level of Net Gain must you achieve?

A

10% increase - in some cases LPA may ask for higher?

The percentage increase is the total of:

  • The biodiversity within the red line boundary after development compared to the level before development.
  • Biodiversity gains of the site are registered against the development.
45
Q

What are the changes to BNG?

A

From Nov 2023 all new developments in England for 10 or more homes will have to provide a 10% biodiversity net gain.

Important Points:

  • Introduced by the Environmental Act 2021 – mandatory for all planning permissions to deliver 10% net gain.
  • Applicants need to measure the existing the proposed biodiversity values of their sites (value of habitats on site).
  • Applicants need to set a clear plan for the proposed increase and get the plan approved by the LPA.
  • BNG requirement will be phased in between Nov 2023 and April 2024.
46
Q

How is BNG calculated?

A

BNG is calculated using the Defra Biodiversity Metric 4.0.

The biodiversity metric calculates an area’s biodiversity value in units. Biodiversity units are based on:

  • habitat size,
  • quality,
  • type
  • location
47
Q

How long is BNG required for?

A

30 years following the completion of development.

48
Q

Can BNG be provide off-site?

A

Yes, if the LPA agrees this can be through BNG credits or an off-site contribution using nearby land.

49
Q

What sites are exempt from BNG?

A
  • Householder applications
  • Permitted Development
  • Custom build sites
  • Small scale self-build
  • Nationally significant infrastructure projects.
50
Q

Which developments need to show BNG from NOV 2023 for Non – Residential?

A
  • Where the floorspace to be created is less than 1,000 sqm or where the site area is less than 1ha.
51
Q

Which developments need to show BNG from NOV 2023 for Residential?

A
  • From Nov 2023 – 10 or more dwellings.
  • From April 2024 – 9 or fewer units on a site less than 1 ha, or when the number of dwellings is not yet known, on a site area of less than 0.5ha.
52
Q

Why is BNG important when promoting and developing sustainable sites?

A

It will be very important to instruct an Ecologist specialist to determine and evidence a projects BNG using the specified Defra biodiversity metric 4.0 if they want their plans to move through the planning process swiftly.

53
Q

What steps you must take to demonstrate net gain?

A

You must follow these steps to comply with BNG on your site:

  • calculate the biodiversity value before and after development using the biodiversity metric.
  • create a BNG plan - a document that explains how a project follows the mitigation hierarchy and achieves BNG. You can use the template provided by the Government.
  • submit your metric and biodiversity plan
  • deliver the agreed habitat improvements to the required standard for a minimum of 30 years. Onsite delivery will be secured through planning conditions. Landowners will be legally responsible for offsite provision.

RICS APC - P&D Pathway (15 decks)

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