Sustainability Flashcards
What is sustainability?
Meeting the environmental needs of the present without compromising the ability of future generations to meet their own needs
How can people / businesses be more sustainable?
Reduce, reuse, recycle - eg switching off lights, using the correct waste bins
Travel smarter - avoid aeroplanes
Limit plastic consumption - has huge impact on environment
What does Global Professional Guidance Note Sustainability and Commercial Property Valuation state?
Valuers must be fully aware of ways sustainability may impact on levels of value they report
EG impact of climate change on location, physical characteristics of building, attitudes of investors and occupiers eg high BREEAM scores
These factors all impact market rent, market value, investment value and fair value
What are building regulations Act 2010?
A set of regulations and standards that all new buildings must be built to:
Structure, fire safety, ventillation, drainage and waste disposal, conservation of fuel and power, electrical safety etc. Building
What are some examples of works that would need building control sign off under the building regulations Act 2010?
Replace fuse boxes and connected electrics
install a bathroom that will involve plumbing
change electrics near a bath or shower
put in a fixed air-conditioning system
replace windows and doors
replace roof coverings on pitched and flat roofs
install or replace a heating system
add extra radiators to a heating system
What does The Energy Act 2023 set out?
Unlawful to let properties with EPC of F or G from April 2018
Unlawful to continue to let a property with a rating of F or G from April 2023
Are there any exemptions to MEES (Where an EPC is required)?
If the landlord has undertaken all of the improvements detailed on the recommendation report and the EPC still has a rating of F or G then they can apply for an exemption by showing evidence of this.
Short leases under 6 months (with no right to renewal) or over 99 years are exempt from MEES regulations.
Experts provide written advice that improvement would devalue property by 5% or more or works could damage property
Consent to undertake works is refused by third party EG Local Authority or current tenant
Exemptions last FIVE years and need to be logged on PRS Register created by Government if cheapest improvement is £3,500 + (high cost)
What is an EPC?
Energy Performance Certificate
Provides prospective buyers/tenants information on energy efficiency and environmental impact of property
Include improvement recommendations
Why does promoting sustainability/ EPC’s impact PMs?
Our job is to maintain or increase value of assets, so PM needs to advise LL to spend money upgrading property to good EPC rating so they are lettable / sellable - Also complying with statutes and avoiding fines/client embarrassment
What is the RICS guidance on sustainability?
RICS Sustainability and commercial property valuation 3rd edition (2021) - Guidance note
RICS sustainability report (2023)
Where do MEES apply?
England and Wales
What is the triple bottom line?
sustainability framework focusing on people, planet and profit - to have strong impact on world but also benefitting financially
What does EPC show?
Current rating
Guidance on how to improve (In recommendation report)
What works of improvement can be carried out
What EPC could be if works were carried out
Property in question
Date undertaken
Expiry date
Name & company of assessor
What buildings are exempt from EPC requirements?
Temporary buildings (to be used for two years or less)
Places of worship
Some industrial sites or workshops
Detached buildings with a floor space of 50 metres or less
Buildings that are due to be demolished
Residential properties occupied for less than 4 months a year
What is the penalty for not complying with MEES when should be?
£5,000 - (capped at) £50,000 ( or 10% of RV) if the breach has been going on for less than 3 months
£10,000 - (capped at) £150,000 ( or 20% of RV) if the breach has continued for more than 3 months
What are the implications for LLs of poor EPC ratings?
Some properties will be illegal to let unless they are upgraded
Valuations will be affected and marketability will be diminished
Rent reviews could be affected
Implications for dilapidations may come about
What did Climate Change Act 2008 set?
UK Framework for cutting emissions - legally binding
- To be net zero by 2050
- 80% carbon reduction by 2030
New 2019 Climate Change Act update
- Must be 100% lower carbon than 1990 baseline (was 80% in original 2008 act)
What is your firms environmental policy?
Net zero carbon in managed props by 2030
Minimised energy + water use
Promote reusable material
What is the paris agreement?
Signed 22/04/2016
Legally binding climate change treaty that sought to limit global warming to 2 degrees
What is BREEAM?
Building Research Establishment Environmental Assessment Method
Environmental assessment method and rating system for buildings and large-scale developments
Aims to assess, improve and certify the sustainability of buildings based on their environmental, social, and economic impacts
Used in over 50 countries
How does BREEAM work?
Undertaken by independent licensed assessors, and evaluates 10 categories:
- Management
- Health & Well being
- Energy
- Transport
- Water
- Materials
- Waste
- Land use and ecology
- Pollution
- Innovation
What are advantages of BREEAM?
Increases asset value, reduces operating costs and good for marketing! Is used in over 50 countries so also popular for international investors
BREEAM rated buildings can achieve a 20% premium on rented/sales prices according to a report published by JLL.
What does the NPPF say about sustainable development?
National Planning Policy Framework - Provides framework so locally prepared plans can provide sufficient housing toward sustainable development
What do you think is the future of sustainability within property?
Sustainable building standard proliferation - Intertwining with the use of smart building systems
Collaboration between landlords and tenants
Smart cities - collaborations between building types based on their use etc
What is the Kyoto protocol?
1992 target linked to UN framework on convention on climate change that committed parties to binding emissions reduction targets
What is the energy savings opportunity scheme?
ESOS - Large businesses energy usage of their buildings is audited very 4 years
How can carbon reductions and energy efficiency savings be made in buildings?
design, construction, use, refurbishment - Across all stages of its life
EG - implementing solar panels, gray water storage, LED’s, Air source/ground source heat pump
What is the renewable heat incentive?
UK Gov scheme to encourage uptake of renewable heat tech amongst householders (financial incentives)
How is RICS committed to sustainability?
Annual Sustainability Report 2023
- Need for suitable strategies to meet net zero
- Global benchmark for climate and climate sustainability practice
Can you talk me through what IBOS is and its success?
Smart building system
- Enables automation and optimisation of buildings operations by connecting to the existing BMS system
- Enhanced occupier and maintenance interfaces delivered through mobile app
- Data sharing and analytics to spot energy use trends eg when plant is running v when it should be running
What is ESG?
Environmental, Social governance
Criteria establishing framework for assessing impact of a companys sustainability and ethical practices on its financial performance and operations
What is a display energy certificate?
Show energy performance of public buildings larger than 250 square meters. £500 fine if not displayed
What is CSR?
Corporate social responsibility - Helps a company be socially accountable to itself, its stakeholders and the public
How does the Brundtland Report relate to sustainability within property?
Published in 1987 - Balances both present and future needs - especially the case for housing and provision of public facilities
Resource efficiency - Reduced use of energy and water and careful management of these
Long-term thinking of property lifecycle - Not an asset that is just thrown away after X amount of years
How is ESG measured?
BREEAM, LEED, MEES
What is LEED?
Leadership in Energy and Environmental Design - An international Green building certification.
LEED provides third-party verification that a particular building or complex was designed and constructed keeping in mind the following parameters:
Maximum energy savings
Efficient use of water
Reduced greenhouse gas emissions
Healthier indoor air quality
Increased use of recycled materials
Optimum utilization of resources and sensitivity to
their impacts
Reduced maintenance and operation costs
What is the difference between LEED & BREEAM?
The technical requirements for LEED and BREEAM are very similar but the processes are different.
LEED involves a group of experts that are involved in the project from the start and so the required legwork.
BREEAM involves one advisor who is sent the required documents at prior to the Design stage and the Implementation stage. If they are satisfied, they will send this off to be audited.
BREEAM is based on quantitative standards whereas LEED is based percentages with LEED having stricter mandatory compliance.
What is a climate change levy?
Tax charged on energy businesses use
What did the 2015 Infrastructure Act say about climate change?
Facilitated development of renewable energy projects
Environmental protections on fracking - Shouldn’t compromise UK ability to meet climate change targets
What is a green lease?
Form of lease including clauses related to buildings environmental performance
What is a carbon budget?
5 yearly carbon budgets set by UK Gov - Restricting amount of GHG UK can emit over 5 year period
Who pays for contamination?
Polluter pays - Developer liable if no specific polluter
What is a heat network?
Supply heat from central source to consumers via network of underground pipes carrying hot water
What is net zero?
Balance between greenhouse gas used and greenhouse gas removed from atmosphere
Who do heat network regulations 2015 apply to
Any ‘heat supplier’
This could be a Landlord if there is communal heating IE
There is distribution of thermal energy (heat, steam, hot water, chilled liquids)
Thermal energy is used to provide hot water, heating or cooling
Building is occupied by more than one customer
Landlord apportions the bills
What is an SKA rating?
RICS environmental assessment standard measuring the sustainability of building fit-outs
- Gold, silver, bronze
When do you need to show an EPC?
When building is constructed, sold or rented
What is contamination?
Something made impure by contact with something harmful
Can you give me some examples of sustainable property management?
Green leases
Installation of sustainable features e.g. pv panels, green walls, LED’s
Educating tenants - posters or interactive sessions to equip tenants with practical tools
What are the key dates for MEES?
1st April 2023 - Unlawful to let F or G
Whilst not yet ratified by law it is though that in the future:
1st April 2030 - EPC must be a C or above
Can you take me through the 2023 MEES regulation changes?
Extended to existing tenancies of most commercial properties
Requirement that rented listed and buildings in conservation areas to have an EPC
Introduced property compliance and exemptions database - Operated by a third party
When was BREEAM established?
1990
Can you give me an example of a good sustainable design feature?
Insulation
Good use of natural light
PV Panel
Green roofs
What is GRESB?
Global Real Estate Sustainability Benchmark - Established framework for monitoring ESG performance
If Landlord is heat supplier, what must they do?
Notify the Office for Product Safety and Standards (OPSS) and provide information including:
Location of communal heating, estimated capacity, how many dwellings are being supplied etc
This must be done every 4 years
There is a template available for providing information
What is the proposed legislation expected to change in terms of EPC’s in the future?
Labour are expected to announce that all EPC’s in the U.K must be a C rating or above from 2030 onwards.
What is the penalty for not having an EPC when you should?
£200 per property or up to a £5,000 fine for landlords for landlords with large properties eg shopping centre
What are Scope Emissions 1,2 & 3
Scope 1 emissions
Scope 1 covers emissions from sources that an organisation owns or controls directly – for example from burning fuel in our fleet of vehicles (if they’re not electrically-powered).
Scope 2 emissions
Scope 2 are emissions that a company causes indirectly and come from where the energy it purchases and uses is produced. For example, the emissions caused when generating the electricity that we use in our buildings would fall into this category.
Scope 3 emissions
Scope 3 encompasses emissions that are not produced by the company itself and are not the result of activities from assets owned or controlled by them, but by those that it’s indirectly responsible for up and down its value chain. An example of this is when we buy, use and dispose of products from suppliers. Scope 3 emissions include all sources not within the scope 1 and 2 boundaries.
Why is it so important to account for an environmental surveyor on a residual valuation?
It’s an additional cost to ensure that you comply with the Biodiversity Net Gain regulations implemented by the National Policy Planning Framework
What piece of legislation has introduced biodiversity net gain for new developments?
Amendments to the Town and County Planning Act 1990
What are some of the key Biodiversity Net Gain requirements for new developments?
- Must achieve a 10% minimum increase in biodiversity net gain
- The biodiversity net gain must be maintained on site for 30 years following the development
How is biodiversity net gain measured?
- Prior to development, environmental surveyor will use the biodiversity metric which takes into account the size, quality, location and type of habitats existing on the land.
- Once the development is finished, this same process must be repeated to show the 10% increase and how it will be managed moving forwards
What developments are excluded from Biodiversity Net Gain Requirements
- Any developments who had put in planning applications prior to February 2024
- Small developments that do not impact priority habitats
- self build and householder applications
- Urgent crown projects and HS2
What can developers do if they can’t achieve the required biodiversity net gain on site?
- Offset all or some of the BNG increase by undertaking this at another site
- Purchasing statutory biodiversity credits
When do the amendments to the Town and Country Planning Act 1990 come into effect?
- April 2024 for smaller developments
- November 2025 for nationally significant developments
What classifies a ‘small development’ under the amendments to the Town and Country Planning Act 1990?
-Residential development where the number of dwellings is between 1 and 9 on a site of an area 1 hectare or less
-commercial development where floor space created is less than 1,000 square metres or total site area is less than 1 hectare
-development that is not the winning and working of minerals or the use of land for mineral-working deposits
-development that is not waste development
Does a ‘small development’ have to use the same system as a large development under the amendments to the Town and Country Planning Act 1990?
Small developments can use the Small Sites Metric which is not as complicated and requires less work
What is the purpose of Heat Network Regulations?
Ensuring efficiency and reducing carbon emissions through the use of metering and billing only based on consumption and not say by the apportionment of the tenant
What are the issues with Biodiversity Net Gain?
-Costly to measure.
-Depends on your ideological perspective but you could argue that it holds up progression in the UK.
-The option to offset might mean that developers completely disregard biodiversity at their own sites.
-Biodiversity offset schemes need to be carried out with the support of professionals or could end up as greenwashed sites which actually harm ecosystems.
Can you explain your understanding of Part L of the Building Regulations Act 2010?
Required for new buildings and redevelopments - mandates that new energy efficient equipment should be installed where possible eg new boilers
Can you explain your understanding of Part M of the Building Regulations Act 2010?
Any redevelopment, significant alterations or newly built properties must have a DDA to be accessible in accordance with the 2010 Equality Act.
What did the UK Climate Change Act 2008 do?
80% reduction in carbon emissions on 1990 levels. UK target is now to be carbon neutral by 2050.
What did the Infrastructure Act 2015 say about climate change?
Provided Renewable Heat Incentives, off-site carbon abatement measures and cycling and walking investment strategies
What did Rishi Sunak announce in September 2023 regarding the UK’s
Net Zero target?
Pushed it back to 2050 and also pushed back the banning of diesel and petrol cars to 2035.
