Sustainability Flashcards
How is the RICS involved?
- RICS Sustsinability Report is published every year which provides a global benchmark for issues of climate, carbon and sustaibaility practise. 50% of respondent’s reported a rise in occupier and investor demand for climate adapted real estate.
- RICS has updated the Whole Life Carbon Assessment which took effect from 1st July 2024. The key updates include:
– Aligned with International Cost Management Standards and the Built Environment carbon Database to provide a consistent output of cost and carbon reporting and benchmarking
– Sets a standard approach for assessing whole life carbon across the entire asset life cycle, so it can be undertaken across all sectors and asset types
– Industry agreed definitions for carbon terminology
– Mandatory requirement to calculate and report a contingency allowance
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)
Commercial Accreditation
- RICS SKA (commercial fit out)
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?
- Net Zero Carbon by 2025 in Scopes 1 & 2
- Absolute Zero Carbon by 20240 in Scopes 1, 2 & 3
- A$250 million of measured social value by 2025
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 500sqm must achieve a minimum E which could rise to C in 2027
- 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 must achieve a minimum E which could rise to C in 2025
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):
As of April 2023 you cannot let a building of EPC F or G
Updated for 2030 has to be B, 2027 C - for Commercial buildings
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)
Biodiversity Net Gain?
- Creating and improving natural habitats and deliver measurable positive impact through the development process
- From Feb 2024 it is compulsory for all new developments to provide at least 10% BNG for 30 years, either through on or off site measures
- Statutory Biodiversity Metric will be used to calculate BNG delivered
What is BREEAM?
Building Research Establishment Environmental Assessment Method
- Voluntary
- New, refurbished or operational buildings
- 9 categories (energy consumption, water use, transport links, waste management, health & wellbeing)
NABERS
Australia and UK
WELL
- International
- Health and mental wellbeing
Guidance?
RICS Practise Information: The design, delivery and management of healthy buildings: a practical guide (2023)
- Existing and new buildings
- How healthy buildings impact our health in relation to design, construction, sound, light, water and air quality, building technology and management
- Role of health and wellbeing in ESG and how it should be considered
Other current issues?
- Green leases seek to ensure landlords and tenants share information about the use of energy, water and waste arising in a building (BBP has a toolkit)
- RICS SKA Rating scheme aims to be the standard measure of building fit out in relation to sustainability (gold, silver, bronze)
- BBP published various toolkits to provide guidance
- RICS Residential Retrofit Standard (2024)
- Developers using renewable energy, technology (solar, wind, biomass, heat pumps to achieve low carbon emission solution), use of natural daylight for solar gain, energy management and monitoring systems for waste, water, and procurement of goods and services
How long is an EPC valid for?
10 years
When was net zero decided?
Paris Agreement (2015)
What is key legislation relating to Sustainability?
Climate Change Act (2008)
What does the Climate Change Act set out?
Requires UK to achieve net zero carbon by 2050
What is net zero carbon?
Greenhouse gases going into the atmosphere are balanced by the removal out of the atmosphere
What is a WLCA?
- Carbon is a greenhouse gas that traps heat / goes into ocean and changes ph
- WLCA assesses carbon emitted from a building during construction, operation and demolition
- Assess in emissions (embodied, operational, user, circular economy)
What is Urban Greening Factor?
- Planning tool to improve green infrastructure and greening in urban environments
- 0.3 for commercial, 0.4 for resi
- Green roofs, green walls, rain gardens (SUDS), trees, urban forests
Provide an example of how you have contributed to the sustainability of a project you have worked on?
Temporary and Permanent Energy Centre Switch
- Instructed to determine switch point
- Liaised with infrastructure team to understand the capacity of the TEC (3,000 units)
- Engaged with Principal Contractor to understand when they forecast to deliver 3,000 units
- Set indicative date for the switch to ensure the scheme continued to be connected into the EON ectogrid
Why can you not use a PEC all the way through?
The TEC is for Phase 1 which is until 2030, financially and logistically it doesn’t make sense to build the PEC yet as it is on the opposite site and would have to dig up half of the site
Provide another example of when you have contributed to the sustainability of a project you have worked on?
Auto-irrigation
- Undertook options analysis for the integration of auto-irrigation into the green roof of a plot
- Liaised with internal sustainability expert who advised key opportunity is that it is more reliable than Estate ManCo, which maintains the success of the green roof in periods of drought and supports BNG
- I was also advised that the risks include the cost to install and maintain, and unsustainability from a water usage perspective
- I deemed it fitting to install it
Despite the risks, why did you think it was suitable to add it?
- Weather events are getting more extreme with summers getting hotter and dryer so we need measures in place
- Silvertown is 10% BNG and there is no scope to slip
Provide an example of where you have advised on a sustainability matter related to planning legislation?
BNG
- How BNG of 10% would still be achievable if trees removed
- Liaised with arboricultural consultant to understand the location, impact of retaining, rationale for removing, and solutions to ensure any shortfall in BNG was compensated for
- Advised client that if retained, roots would impeach on location of future plots, reduce their GEA, compromise the viability of the scheme
- ADVISED any shortfall would be compensated for by replacing new trees and shrubs to retain BNG of +10% in line with their Sustainability Statement and Planning Commitment
What is the legislation around BNG?
Town and Country Planning Act (1990) stipulates that of Feb 2024, all developments must deliver BNG of 10%
What is the Sustainability Strategy
Holistic: 15-minute to promote walking, inclusive, accessible community infrastructure, net zero carbon IN USE, minimise water use and maximise sustainable urban drainage, resilience to climate change including flooding and overheating
- Non-domestic spaces will be assessed against BREEAM New Construction and strive for ‘Excellent’
- Refurbished spaces will be assessed against BREEAM Refurbishment and Fit Out and strive for ‘Excellent’
How is the RICS improving sustainability?
- Publishing reports
- Promoting policy reform
- Developing standards
- Working with the UN to promote the SDGs
- Creation of carbon database (ICM3 - International Cost Management Standard, working with 49 other bodies to develop the database that will be the main source of carbon estimating and benchmarking in the UK)
Provide another example of when you have provided advice related to sustainability?
Photovoltaic System
- Instructed to advise client whether PV panels should be incorporated into the design of the townhouses
- Reviewed the Energy Strategy to establish they are encouraged
- ADVISED they should be used
- Liaised with internal sustainability expert to undertake analysis of opportunities and risks of the PV panel options
- ADVISED option (a) no battery was preferred
What were the two options for PV panels?
Option (a) PV panels (no battery)
Option (b) PV panels
What were the opportunities and risks of each option?
Option (a) panels (no battery)
- Operational carbon saving
- Installation costs
- Embodied carbon end of life scenario
Option (b) panels (battery)
- Operational carbon saving
- Operational cost saving
- Higher installation cost
- Consideration of end of life scenario
Why was option (a) better?
- Lower installation cost
- Connected into ectogrid which acts as battery
What is BNG?
Development will result in more or better quality natural habitat than there was before development
How is the RICS helping?
Attended Buildings & Climate Forum in Paris in March 2024
- Gained endorsement for 2nd WLCA Standard
Annual Sustainability Report
- Biggest challenge is cost and return on investment, but appetite is there
- 50% of respondent’s reported a rise in occupier and investor demand for climate adapted real estate.
What are EPC requirements for commercial buildings?
- EPC E
- Over 50 sqm
- Newly built / sold / leased 6+ months / newly refurbished / AC or ventilation is altered
- Could rise to C in 2027
