Sustainability Flashcards
What is the penalty for failing to have an EPC?
12.5% of rateable value or £500 to £5000
What is the penalty for failing to have the minimum required EPC rating for
1) less than three months
2) more than three months
1) 10% of rateable value or £5000 to £50,000
2) 20% of rateable value or £10,000 to £150,000
When did the government announce a consultation on EPCs?
December 2024
How many key EPC provisions are there?
Five
What are two examples of the key provisions for EPCs
Provides calculation methodology for energy performance of all buildings
Requires inspection of boilers and air-conditioning systems
What does BREEAM stand for?
Building
Research
Establishment
Environmental
Assessment
Method
What is the fundamental rule with sustainability and valuations?
Valuers should reflect the market, not lead the market
Therefore, only make adjustments if there is evidence
How do we deal with the risk score in JLL valuations?
It may be relevant as an adjustment if there is evidence for this
If no evidence for adjustments, it should still be commented on in the report as something to look at in the future, even if not applicable on the valuation date
When was the EPC assessment methodology last changed?
What does it value more significantly now?
It was last changed in 2022
It is favours electrified buildings, more significantly
What is the primary heating components of 60 Great Marlborough Street?
Natural gas
How could ESG impact rent and cap rates?
Rental premiums/discounts
Caprate adjustments for liquidity (ie could the asset easily be sold)
What is the UN definition of sustainability?
Meeting the needs of the present without compromising the needs of the future
When was the latest IVS guidance and what did it say about the value of an asset?
2024
It said ESG should be considered in determining value
What are three ways in which the latest IVS guidance was incorporated into the Red Book
1) ToE must address ESG
2) Valuers must seek ESG data
3) if ESG does not impact the valuation, this must be stated and justified
What does TCFD stand for and why is it relevant to large companies?
Task force for climate related financial disclosures
Large companies must report in line with a TCFD recommendations
What is introduced biodiversity net gain requirements and what were they?
Environmental Bill (2023)
10% BNG for new developments
What does CRREM provide?
Decarbonisation pathways for commercial and residential real estate
