Sustainability

Question 1

What is a BREEAM rating?

Question 2

What is the proposed EPC regulation?

Question 3

What is RICS commitment to sustainability?

Answer 3

• RICS Sustainability Report 2022 – green buildings, climate risk assessments on built assets, using digital tools for sustainable analysis, carbon measurement tools.
• ‘RICS Value the Planet’ campaign – help the profession implement UN Sustainable Development Goals.
• RICS published ‘Levelling Up and Sustainable Placemaking’ report (2022), calling on government Levelling Up and Regeneration Bill to address housing shortage, align with UN Sustainable Development Goals.
• ‘RICS Responsible Business Framework’ published in 2021 – encourages sustainable solutions,

Question 4

What is Sustainability?

Answer 4

Meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is composed of three pillars: economic, environmental and social – also recognised in the sector as profits, planet and people.

Question 5

What RICS documentation concerns sustainability?

Answer 5

• RICS and UN Global Compact published ‘Advancing Responsible Business in Land, Construction, Real Estate Use and Investment’ (2018).
• Rules of Conduct 2021 (3.10)
• Red Book (VPGA 8)
• Guidance Note ‘Sustainability and ESG Guidance in Commercial Property Valuation and Strategic Advice’ – 3rd edn 2021.
• RICS Guidance Note on ‘Environmental Risks and Global real estate’ (2018)

Question 6

What is Net Zero?

Answer 6

• Balance between the amount of greenhouse gas (GHG) that’s produced and the amount that’s removed from the atmosphere. It can be achieved through a combination of emission reduction and emission removal.

Question 7

How can energy efficiency be improved through design, construction, use of building?

Answer 7

• LED lights – energy efficient light emitting diode (LED) are low carbon.
• Installing heat pumps – replace less efficient boilers.
• Smart technology – sensors on heating or lighting to enhance capacity.
• Green roofs – aid water run-off, lower a building cooling/heating demand.
• Double glazing – reduce heat loss
• Insulation – cavity wall insulation.

Question 8

What is retrofitting?

Answer 8

• Retrofitting is the process of modifying something after it has been manufactured. Retrofitting a building involves changing its systems or structure after its initial construction and occupation.

Question 9

How can carbon be reduced in design, construction and use of buildings?

Answer 9

• Re-use of materials
• Low-carbon concrete – ECOPact low-carbon concrete (it is very expensive)
• Restructure rather than demolition
• Aspect of building to take advantage of solar gain.

Question 10

What is EPC?

Answer 10

• Energy Performance Certificates (EPC).
• It calculates the energy performance of a building, it is the minimum requirement of energy, it has an energy certification, promotes high energy conservation for buildings.

Question 11

How long is EPC valid?

Answer 11

• 10 years – unless building is altered. If so, new EPC is required.

Question 12

What are EPC requirements for marketing properties?

Answer 12

• Must be commissioned within 7 days of commencement of marketing (28-day limit for procurement).
• Agents responsible for procuring EPCs
• Only actual energy rating is required to be displayed on advertisement, where space allows, graph should also be shown.
• Marketing material must have link to front page of EPC.

Question 13

What information is on the front page of EPC certificate?

Answer 13

• Address of property and floor area
• EPC Certificate reference number
• Technical info on property energy provision
• Estimation of energy running costs
• Energy rating from A+ to G
• Benchmarking Info

Question 14

What is MEES?

Answer 14

• Minimum Energy Efficiency Standards (2015) – it is energy efficiency regulations that require a minimum EPC rating of E to let building from 1st April 2018 onwards. i.e. cannot let if F or G rating.
  o New leases from 1 April 2018 – commercial and resi
  o All existing leases from 1 April 2023 for commercial (2020 for resi)

Question 15

What is BREEAM?

Answer 15

• British Research Establishment Environmental Assessment Method.
• Tool to measure new and refurbished buildings.
• 9 environmental weightings of energy consumption, water, transport, waste, health and wellbeing. It is a DESIGN based energy rating (unlike NABRES which is actual energy use)
• BREEAM ratings, pass, good, v good, excellent, outstanding.

Question 16

What is WELL standard?

Answer 16

• WELL does not stand for anything.
• It measures and certifies features to promote occupant wellbeing such as air, water, nourishment, light, fitness, comfort and mind.

Question 17

MEES dates?

Answer 17

The Minimum Energy Efficiency Standards (MEES) for privately rented homes are expected to increase to a D rating by 2025 and a C rating by 2030. The government is consulting on bringing these dates forward.

Question 18

What exemptions of MEES are available?

Answer 18

High cost exemption
All improvements made exemption
Wall insulation exemption
Consent exemption
Devaluation exemption
New Landlord exemption

Question 19

2025 MEES ratings

Answer 19

From December 2025, all new tenancies will need to have an EPC rating of “C”.

From 2028, all existing privately rented properties should have an EPC rating of “C” or above.

Question 20

What is the importance of balancing economic and social policies with environmental objectives?

Answer 20

Because sustainability is an interconnected multifaceted issue that requires social and economic progress to link with environmental objectives e.g. an obvious way to cut energy would be to ban electricity use, but this has obvious implications in the social and economic sphere that need to be considered

Question 21

What is ESG?

Answer 21

Environmental, social governance
Related to the above

Question 22

How do MEES impact your day to day work?

Answer 22

• Prevent the letting of lower than EPC E properties
• Impact advice given
• Impact values and pricing
• Impacts future-planning

Question 23

What are non-compliance penalties for MEES?

Answer 23

• Residential is £2k and £4k caps

Question 24

Who is responsible for EPCs?

Answer 24

• Landlord if vacant
• Tenant if occupied
• If marketing – agent must get

Question 25

What are some current issues in sustainability?

Answer 25

• Embodied carbon in building materials
• Use of renewable energy (particular uptick due to Ukraine crisis and reliance on Russian oil)
• Increasing incorporation of wellbeing and health with wider carbon issues e.g. WELL building standards

Question 26

What is sustainability?

Answer 26

The avoidance of the depletion of natural resources

Question 27

What is a sustainable development?

Answer 27

Meeting the needs of today without negatively impact the future needs

Question 28

Biodiversity Net Gain

Answer 28

• BNG is a way of creating and improving natural habits to deliver a measurable positive impact (net gain) on biodiversity through the development process or through land management
• It is a policy response to the significant decline in biodiversity in recent decades
• From 12 Feb 2024 it will be compulsory for all new developments to provide at least 10% BNG secured for at least 30 years, either through on-site or off-site measures, save for certain exemptions
• A statutory biodiversity metric will be used to calculate the BNG delivered

Question 29

Climate Change Levy

Answer 29

• This is a tax on energy derived from non-domestic users in the UK. It was introduced as an incentive to increase energy efficiency within businesses and so to reduce carbon emissions
• Consumers are charged by their energy providers who forward the c£1.9bn pa to the UK Treasury
• Energy generated from renewable sources is exempt from CCL

Question 30

Green leases

Answer 30

• Green leases (lettings and renewals) -landlords are keen to reduce carbon and achieve net zero goals.
• Measured in properties by EPC or NABERS (newer rating in commercial buildings that measures and rates the actual energy use of the building) and so are including ‘green’ terms within a new lease to covenant with the tenant to maintain/ improve their rating.

Question 31

Why do you feel sustainability is important to you as a surveyor and to the profession generally?

Answer 31

The earth’s capacity is finite. Unsustainable land use practices, buildings and construction coupled with an ever-growing population are responsible for the depletion of natural resources and loss of biodiversity and habitat.
At global, national and local levels, RICS and its members are committed to creating and maintaining a healthy environment, not only for today but also for future generations, by adhering to the following principles:
* protection of the environment through the preservation of natural capital
* promotion of social equity by ensuring access to services for the benefit of all and
* support of a healthy local economy, including high levels of employment.

Question 32

What does sustainability mean to you?

Answer 32

Meeting the needs of today without prejudicing the need of the future in environmental, economic and social terms. Ie I agree with the Brundtland Report definition.

Question 33

What is the RICS guidance?

Answer 33

Sustainability and ESG in commercial property valuation and strategic advice Global guidance note 2021

Question 34

• What is the difference between sustainability and ESG

Answer 34

Sustainability
A holistic approach to long-term value creation that considers the environment, society, and economy. It aims to reduce negative environmental impacts and ensure that business practices don’t harm future generations.
ESG
A framework that measures a company’s performance in three areas: environmental, social, and governance. It’s used by investors and other stakeholders to assess a company’s impact and risk.