Sustainability Flashcards
How is the RICS involved?
RICS & UN Global Compact: Advancing Responsible Business in Land, Construction, Real Estate Use and Investment (2018)
- How organisations can identify and address impact of activities and decision making when commissioning, planning, designing, constructing and operating assets
Research: Sustainability Rises Up The Agenda In The UK Facilities Management Sector (2021)
Key legislation?
- Climate Change Act (2008) amended in (2019) for net zero by 2050
- RICS Rules of Conduct (Rule 3)
- RICS Red Book Global (VPGA 8)
- RICS Professional Standard: Sustainability and ESG Guidance in Commercial Property Valuation and Strategic Advice (2021)
- RICS Professional Standard: Environmental Risks and Global Real Estate (2018)
- RICS SKA (for fit out of commercial premises)
Residential Accreditation
Commercial Accreditation
- RICS SKA (commercial fit out)
How is energy efficiency achieved?
How is carbon reduction achieved?
Net Zero Carbon
Climate Change Act (2008) amended in 2019 for UK to achieve net zero carbon by 2050
Interim target of reducing emissions by 78% by 2030 was introduced
Better Buildings Partnership (BBP)
UK property funds and REITs committed to net zero carbon by 2050 through this
The UKGBC has a framework for this:
1. Establish net zero carbon scope (across construction, use, refurb, demolition)
2. Reduce construction impacts
3. Reduce operational energy use
4. Increase renewable energy supply
5. Offset any remaining carbon
What are Lendlease’s commitments to sustainability?
EPCs:
What is the EPC regime?
1. Higher standards of energy conservation for new and refurbished buildings
2. Calculation methodology for the energy performance of buildings
3. Minimum requirements for the energy performance of all buildings
4. Energy certification for all buildings when built, modified, leased, sold
5. Mandatory inspection of boilers and air conditioning systems
What are the requirements?
- All commercial buildings over 50sqm
- When newly built, sold or let for more than 6 months
- When newly refurbished and heating, AC, ventilation services are altered, or subject to Building Regs for construction
- Residential buildings when leased, sold, refurbished, sub-let
What are the exemptions?
- Listed buildings
- Buildings with no heating
- Religious buildings
- Temporary buildings
- Buildings to demolish / redevelop
- Resi unit not occupied more than 4 months a year
What are the rules for marketing?
- Commissioned within 7 days of marketing (28 day limit)
- Agents responsible
- Energy rating must be displayed (and graph if space)
- Online material must have link to show front page
What must the front page show?
- Address and floor area
- EPC reference number
- Technical info on energy provision
- Estimation of energy running costs
- Energy performance rating from A+ to G
- Benchmarking information
How long valid for?
- 10 years
Penalties?
- Local Authorities Trading Standards enforce
- Residential: £200 fine for non display on marketing
- Commercial: 15.5% of RV or £500-£5000 fine
MEES:
Minimum Energy Efficiency Standards (2015):
Require an EPC Level E:
- New leases from 1st April 2018 (commercial & resi)
- All existing leases from 1st April 2020 (resi) and 2023 (commercial)
- Spend £3,500 on improving energy efficient where an AST was granted since 1st April 2019 if property has F or G rating and the tenant demand improvements
Exemptions:
- Place of worship
- Industrial / workshop with low energy demand
- Tenancy less than 6 months
- Tenancy more than 99 years
- Not feasible (no payback over 7 years despite energy savings, 3 quotes must be obtained)
- If improvements would devalue a property by more than 5%
- Third party consent from tenant, landlord or planning authority is refused
- Some residential leases (company lets, second homes, high/low rents, public second and social landlords)
- Must register exemptions
Non-compliance:
Commercial
- Less than 3 months: up to £5,000 or 10% RV (max £50,000)
- More than 3 months: up to £10,000 or 20% RV (max £150,000)
Residential
- Less than 3 months: up to £2,000
- More than 3 months: up to £4,000
Changes?
- Proposed changes to EPC and MEES whereby EPC Band C for new tenancies by 2024 and other tenancies by 2028 was shelved
- Proposed changes to MEES regulations may change in future to require EPC Band B for all new tenancies from 2030
What are ESOS?
Energy Savings Opportunity Schemes
Mandatory for large UK firms with 250 employees / turnover + £44m / balance sheet + £38m
- Measure total energy consumption across buildings, transport and industrial activities every 4 years
- Conduct energy audits to identify cost-effective energy efficiency recommendations
- Report compliance to the Environment Agency
Heat Network (Billing & Metering) Regulations (2014, 2015, 2020)
- Related to communal heating systems in multi-occupied commercial and residential schemes and to district heating systems
- Customers must be provided with accurate meter readings / bills and competitively priced individual meters
What is the Climate Change Levy?
- Tax on energy delivered to non-domestic users in the UK
- Introduced to increase energy efficiency within businesses and reduce carbon emissions
- Consumers charged by their energy providers who forward £1.9m to UK Treasury
- Energy generated from renewable sources is exempt from CCL
What are Display Energy Certificates?
- Required by assets occupied by public sector and visited by the public, which are over 250 sqm
- Display actual energy used and CO2 emissions - operational energy
- BBP leading an industry initiative to promote voluntary certification and disclosure of office buildings’ operational energy ratings (NABERS UK)
