Sustainability Flashcards
What impact can property have on the environment?
Built environment accounts for nearly 40% of emissions globally
How does sustainability relate to real estate?
Built environment is one of the main contributors to greenhouse gas emissions
What is sustainability?
Meeting needs of present without comprising ability of future generations to meet their own needs (Bruntland report)
What is sustainable development?
Development that meets needs of present without comprising ability of future generations to meet their own needs
What are the key concepts of sustainable development?
Needs – meeting humans’ needs, particularly poorer people
Limitations – restrictions on environment’s ability to meet needs by technology + how society is organised
How are you sustainable in your day-to-day activities
Lift share where possible
Use public transport when travelling to office
Use electronic files + cloud storage to minimise use of paper files
Use energy efficient light bulbs + turn lights off when not in use
How is your office sustainable?
Office is paperless – we use digital documents
Office has energy efficient lighting with automatic sensors
Have a recycling programme
Employees are encouraged to use public transport – no car park
Name some ways you can make a building more sustainable?
- Replace lighting with LED lights with automatic sensors
- Improve water usage by installing water efficient taps, toilets + showers
- Upgrade old services with more energy efficient devices, e.g. heating + cooling
systems - Upgrade existing insulation
- Implement green leases
- Consider longer term solutions, e.g. solar panels + rainwater harvesting
What does the NPPF say about sustainable development?
Promotes sustainable development with a presumption in favour of it
What are the triple bottom line principles?
Economic
Social
Environmental
What is ESG?
Environmental, Social, Governance
Provides criteria that businesses can use to measure sustainability impact
What importance do the UN have on sustainability?
Play crucial role in promoting sustainability globally
UN developed 17 SDGs as part of 2030 Agenda for Sustainable Development – goals address global challenges, e.g. poverty, climate change, inequality, environmental degradation + justice
What is the 2030 Agenda for Sustainable Development?
Adopted by 193 UN members at UN Sustainable Development Summit in 2015
Provides shared blueprint for the world we want to see by 2030
Centred around 17 Sustainable Development Goals
How many UN Sustainable Development Goals are there?
17
What is the target achievement date for the SDGs?
2030
Can you tell me about any Climate Change Conventions or Protocols you are aware of + the targets it set?
Kyoto Protocol 1997
Target for 37 countries to reduce emissions by average 5% below 1990 for period 2008-2012
When did the UN introduce the first convention on climate change?
1992
What is the Kyoto Protocol and when was it agreed?
1997 – target for 37 countries to reduce emissions by average 5% below 1990 for period 2008-2012
What did the UK agree to as part of the Kyoto protocol?
12.5% reduction in greenhouse gas emissions
Was the Kyoto protocol successful?
Emissions overall reduced by 10% but not enough to offset increasing emissions from other industrialising countries so total global emissions grew
What happened after 2012 (Kyoto protocol)?
Second Kyoto commitment period 2013-2020 - fewer countries signed up, although UK and EU are
What is the latest agreement on climate change?
Paris Agreement 2015
What is the Paris Agreement?
Legally binding international treaty that aims to limit global warming/address impacts of climate change
AIM – To hold increase in global average temperatures to 2 degrees c below pre-industrial levels and pursue efforts to limit warming to 1.5 degrees c
What are the 2020/2030/2050 EU targets?
- 2020 – reduce emissions by 20% compared to 1990 levels
- 2030 – reduce emissions by at least 55% compared to 1990 levels
- 2040 – reduce emissions by 90% compared to 1990 levels
- 2050 – achieve net zero emissions
What are the UK current climate change targets?
Achieve net zero by 2050
68% reduction in emissions by 2030 against 1990 levels
Tell me about COP29
Conference of the Parties
29th annual summit
RICS participated in COP29
Agreed new climate finance goal – new target to mobilise $300 billion annually by 2025 to support developing countries in reducing emissions. Countries also reviewed progress towards Paris Agreement goals, highlighting areas needing more action
What UK legislation was enacted as a result of the Paris Agreement?
Climate Change Act 2008
What is the Climate Change Act 2008?
UK law that established legally binding targets to reduce greenhouse gas emissions
AIM – Originally to reduce greenhouse gas emissions by at least 80% of 1990 levels by 2050, but now the commitment is to be ‘carbon neutral’ by 2050
How will the Climate Change Act 2008 be pursued?
Legally binding carbon budgets (cap on greenhouse gases emitted in UK over 5-year period), set at least 12 years in advance to allow for preparation
What are carbon budgets?
Cap on greenhouse gases emitted in UK over 5-year period
What is carbon offsetting?
What is the Environmental Protection Act 2021?
UK legislation aimed at improving environmental protection post-Brexit
Act sets legally binding targets to improve air + water quality, measures to enhance biodiversity, increase recycling rates + improve resource efficiency
What is ESOS?
Energy Savings Opportunity Scheme
Mandatory for large companies
Requires energy audits for buildings, industrial processes + transport
Must measure total energy consumption, identify cost-effective energy efficiency measures, and report compliance to the Environment Agency
Did the Infrastructure Act 2015 introduce any climate change initiatives?
Introduced rights for fracking + energy exploitation to meet carbon budgets
What is the renewable heat incentive and under what act was it introduced?
UK government scheme designed to encourage use of renewable heat technology
Provides financial incentives to households + businesses
Introduced under Energy Act 2008
What do you understand by the term Net Zero?
Refers to balance between amount of greenhouse gases emitted into atmosphere + amount removed from it
To achieve net zero means that there is no net increase in atmospheric greenhouse gas emissions
What is an EPC?
Energy Performance Certificate
Document providing information about energy efficiency of a building or property
What is the purpose of EPCs?
Used to assess energy efficiency of buildings + provide recommendations for improving energy efficiency
What buildings require an EPC?
Residential properties – when built, sold or let
Commercial properties – when built, sold or let
Public buildings – buildings over 250 sqm that are frequently visited by public must display an EPC
Where would you find an EPC?
Government website
What legislation led to the introduction of EPCs?
EU Energy Performance of Buildings Directive and UK Energy Performance of Buildings Regulations
When is an EPC required?
When a building is built, sold or rented
What does an EPC include?
Energy rating (A-G)
Energy use
Typical energy costs
Recommendations about how to reduce consumption
Can you charge prospective tenants or buyers for a copy of an EPC?
No
When must you display an EPC?
Commercial premises >500 sq m frequently visited by the public
How long is an EPC valid for?
10 years
When is an EPC not required?
- Place of worship
- Temporary buildings (<2 years)
- Standalone building with total useful floor space <50 sq m
- Industrial sites, workshops + agricultural buildings with low energy use
- Some buildings due to be demolished
- Holiday accommodation rented out for less than 4 months per year or let under a
licence to occupy - Listed buildings
- Residential buildings used less than 4 months per year
Where would you source an EPC from that already exists?
Public register
Ask the seller/lessor
What are the penalties for not having a valid EPC?
£200 fine for non-display of EPC information on marketing material (residential)
Failure to provide to a prospective buyer/tenant – fine of 12.5% of rateable value of building (minimum of £500 + maximum of £5,000) (commercial)
How is an EPC calculated?
Assessor looks at property + scores variety of factors based on condition + potential for heat loss
How can an EPC impact upon value or use of a building?
Buildings with higher EPC ratings are more attractive to buyers + tenants – likely to increase market value
Properties with higher EPC ratings can command higher rents – tenants willing to pay more for energy-efficient buildings due to potential saving costs
Buildings with poor EPC ratings have higher operational costs to inefficient energy use
What is a DEC?
Display Energy Certificate
Show energy use + carbon emissions of public buildings over 250 sqm
Rated A to G with an advisory report
What must accompany a DEC?
An advisory report
What are the penalties for not having a DEC?
£500 for not displaying DEC
£1000 for not having a valid advisory report
When do you need a DEC?
Public buildings over 250 sq m occupied by public authority and frequently visited by public
How long is a DEC valid for?
10 years (250-1000 sqm) or 1 year (over 1000 sqm)
Advisory report is valid for 7 years
What are MEES and what does it stand for?
Minimum Energy Efficiency Standards
Set of rules requiring landlords to maintain a minimum energy efficiency level for their properties
What are the implications of MEES?
Domestic property – requires minimum EPC E rating to let property on a new lease from 1 April 2018. From 1 April 2020, requirement applies to existing leases, including lease renewals + extensions
Non-domestic property – requires minimum EPC E rating to let property on a new lease from 1 April 2018. From 1 April 2023, requirement applies to all non-domestic properties, regardless of lease changes
What is the minimum EPC rating for letting residential property?
E
Regulation has been in place since 1 April 2020
What changes are the government considering regarding MEES?
Domestic – government is considering raising the minimum standard to EPC rating C by 2030
Non-domestic – minimum standard expected to rise to EPC band D by 2025, EPC band C by 2027, and EPC band B by 2030
Do any buildings fall outside the scope of MEES?
EPC not required, e.g. place of worship, low energy demand industrial sites or workshops, non-residential agricultural buildings
Tenancy under 6 months with no security of tenure
Tenancy over 99 years
Certain residential leases, e.g. second homes + landlords, e.g. public sector + social
Are there any exemptions from MEES?
If building doesn’t need EPC, e.g. place of worship
Tenancy under 6 months or over 99 years
When not feasible to improve EPC to E or above despite all improvements being made with a payback of 7 years or less
If improvements would devalue property by more than 5%
Certain residential leases, e.g. second homes + landlords, e.g. public sector + social
How are MEES exceptions registered + how often do they need to be renewed?
Pre-registered on Local Authority Private Rented Sector Exemptions Register
Renewed every 5 years
What are the penalties for non-compliance with the MEES for residential properties
Breach less than 3 months – £2,000
Breach more than 3 months – £4,000
What are the penalties for non-compliance with the MEES for commercial properties
Breach less than 3 months – up to £5,000 or 10% of RV, max £50,000
Breach more than 3 months – up to £10,000 or 20% rateable value, max £150,000
How does MEES impact your role?
The property management team cannot let residential properties out with an EPC rating below an E
When carrying out external maintenance inspections, I make every effort to consider property’s EPC rating when proposing works to it
On your inspections, what improvable features would you be looking for and how do these relate to different property types/ages?
If windows + doors are timber, I would look to replace these with UPVC
If changing the windows + doors to UPVC do not fit in with the character of the building, I instead ask the property manager to consider other internal improvements instead
How do you assess a building’s sustainability characteristics?
Refer to its EPC rating + get specialist advice
Can you give me an example of an environmental assessment method for buildings?
BREEAM (Buildings Research Establishment Environmental Assessment Method) – voluntary scheme of environmental impact for non-domestic buildings, refurbishment + in use. Ratings – Pass, Good, Very Good, Excellent, Outstanding (depending on the level of sustainability achieved)
Can you give me an example of an environmental assessment method for residential properties?
Home Quality Mark (HQM) – developed by BRE. Certification assesses overall quality, sustainability + performance of new homes
Name examples of Government policies on energy efficiency for buildings?
EPCs – requirements for buildings to have an EPC when built, let or sold
MEES – regulations that set minimum energy efficiency standards for rental properties
What does BREEAM stand for?
Building Research Establishment Environmental Assessment Method
What is BREEAM?
Voluntary scheme of environmental impact for non-domestic buildings, refurbishment and in-use
What part of the Building Regulations relate to conservation of power and fuel?
L
What Building Regulation relates to energy efficiency?
L
What is ESOS?
Energy Savings Opportunity Scheme
UK government programme that requires large organisations to audit energy use every 4 years
What is the CRC?
Carbon Reduction Commitment
Scrapped following Government’s Business Energy Taxation Review (2015) – replaced by CCL in 2019
What is the CCL?
Climate Change Levy
Tax on energy for non-domestic users in UK – encourages energy efficiency
Charged by energy providers
Renewable energy sources are exempt from CCL
What is CSR?
Corporate Social Responsibility
Takes into account social, environmental + economic aspects to make businesses accountable for actions
What is the SECR regime?
Streamlined Energy + Carbon Reporting
UK government policy implemented on 1 April 2019
Requires organisations to disclose energy use + carbon emissions in annual reports – encourages energy efficiency + helps reduce carbon emissions
Who does the SECR regime apply to?
Large companies + large limited liability partnerships (LLPs) in UK
To be considered large – company must have turnover of £36 million or more, a balance sheet total of £18 million or more, or 250 employees or more
Are there any exceptions to the SECR regime?
Low Energy Users (must declare themselves as low energy users in annual reports
Public interest entities, e.g. charities + non-for-profit organisations
What is an EMS?
Environmental Management System, e.g. ISO 14001:2015 – standards to management environmental responsibilities
What is BNG?
Biodiversity Net Gain
Principle where new developments must leave natural environment in better state than before
All new building projects will have to improve biodiversity of site by a minimum of 10% (mandatory from Feb 2024)
What guidance do RICS provide on sustainability and property valuation?
Sustainability and ESG in commercial property valuation and strategic advice (reissued as a professional standard in 2023 but previously published in 2021 as a guidance note)
Should valuers reflect sustainability characteristics in valuations?
Yes – to extent that informed and well-advised purchaser would account for them
What method could you use to compare a sustainable v non-sustainable building in a valuation?
DCF
What is a green lease?
Agreement where both landlord + tenant follow environmentally friendly practices to achieve sustainability goals
What is a memorandum of understanding?
Way of agreeing shared goals/benefits, who pays and who benefits in relation to sustainability clauses
What are SUDS?
Sustainable Drainage Systems
Designed to manage surface water runoff – helps reduce flooding, improve water quality + enhance biodiversity
What is RICS SKA?
Environmental assessment method, benchmark + standard for non-domestic fitouts
Helps landlords + tenants measure + improve sustainability of offices
What does RICS SKA assess?
Fit out
When was the Code for Sustainable Homes last updated?
It was abolished in 2014
What does Approved Document S relate to?
Installation and charge point requirements for electric vehicles
What is the RICS sustainability strategy called?
Future Foundations
Aims to create a sustainable, resilient + inclusive built environment by leading on sustainability + attracting diverse talent. Focuses on inspiring members, advancing knowledge + upholding high standards
Can you give me an example of a sustainable design feature?
Solar panels – generates electricity from sunlight, reducing reliance on fossil fuels
Green roofs – reduce stormwater runoff + provide natural insulation
Ground source heat pumps – use ground temperatures to heat + cool buildings, reducing reliance on fossil fuels
Rainwater harvesting – captures + stores rainwater for non-potable uses, reducing demand on municipal water supplies + lowering water bills
What is sustainable procurement?
Process of acquiring goods + services in a way that achieves value for money while also considering environmental, social + economic impacts
Tell me about RICS guidance on Life Cycle Costs, 2016
Provides guidance for assessing + managing costs throughout building’s entire life cycle, from initial construction to eventual demolition, ensuring cost-effective + sustainable decision-making
What does the term, whole life carbon mean?
Total greenhouse gas emissions associated with building or product throughout entire lifecycle, including production, construction, operation + end of life disposal
What opportunities to decarbonise exist in the building life cycle?
Improving energy efficiency – use low-carbon materials, incorporate renewable energy sources + enhance building operations + maintenance
What are Modern Methods of Construction?
Innovative building technique that enhances efficiency + sustainability, e.g. off-site manufacturing, modular construction + prefabrication
How can building conservation relate to sustainability?
By preserving existing structures, reducing need for new construction + minimising resource consumption + waste
What is an EIA and when would one be carried out?
Environmental Impact Assessment – process used to evaluate potential environmental effects of a proposed project before it is carried out, ensuring environmental considerations are integrated into decision-making
Required for major development projects that may have significant environmental impacts
Explain the proposals under the Future Homes Standard and Future Buildings Standard
Future Homes Standard – aims to ensure new homes built from 2025 produce 75-80% less carbon emissions compared to current standards. Aims to meet UK objective of net zero by 2050
Future Buildings Standard – sets out energy efficiency, ventilation + overheating mitigation requirements for non-domestic buildings. Aims to meet UK objective of net zero by 2050
Explain your understanding of the Green Homes Grant
Voucher scheme that provided grants to homeowners + landlords to make energy efficient improvements to homes
Closed in 2021
Explain your understanding of the Green Deal to me
Loan system that allowed homeowners to spread cost of energy-saving improvements over period of 10-25 years
Scheme’s primary goal was to eliminate upfront financial barrier that discourages investment in energy efficiency
Loan was attached to property rather than owner, so if moved, new occupant would have to take over repayments
Government ceased funding in July 2015 due to low uptake
While original Green Deal Scheme has ended, there is the possibility to obtain financing from private providers
What is PAS 2035?
UK standard that provides a framework for the retrofitting of dwellings to improve energy efficiency, covering assessment, design, installation + monitoring
How are RICS working towards the SDGs?
Conduct evidence-based research
Publish annual Sustainability Report (latest November 2024)
Offer training courses through RICS Online Academy – sustainability is a mandatory competency for professionals
Offer certification tools, e.g. SKA rating system for fit out of commercial properties
Offer range of guidance for professionals, e.g. Professional Standards Sustainability + Commercial Valuation 2023, Residential retrofit standard 2024 + Whole life carbon assessment for the built environment, 2024
What do the rules of conduct say in relation to sustainability?
Example behaviour to rule 3 – Members + firms, when advising clients about projects, encourage solutions that are sustainable in that they minimise harm + deliver balanced economic, social + environmental benefits
What RICS guidance relates to sustainability?
Professional Standard Sustainability + ESG in Commercial Property Valuation, 2023 – provides guidance for professionals to deliver valuation advice that incorporates sustainability + ESG factors, ensuring these are consistently + accurate reflected in property valuation
Professional Standard Residential retrofit standard, 2024 – sets out mandatory + recommended requirements to RICS members in delivering retrofit services. Promotes sustainable practices in residential property upgrades
Tell me about the RICS Sustainability Report 2024
What is the RICS Value the Planet campaign?
Campaign that promotes sustainability by encouraging implementation of UN’s SDGs
