Sustainability - Summary of Experience Flashcards
Is there any RICS guidance on Sustainability?
- Sustainability and ESG in Commercial Property Valuation and Strategic Advice, 2021
- RICS Environmental Risks and Global Real Estate
Explain your understanding of the RICS guidance note on Sustainability and Commercial Property valuation
Good practice advice supporting everyday commercial valuation practice and its interface with ESG and sustainability
What is ESG?
Environmental Social Governance
-> Standards for behaviour
What is CSR?
Corporate Social Responsibility
-> Self-regulating business model that helps a company be held socially accountable to itself, its stakeholders and the public
- Adopts other goals such charity
What are the key dates for MEES?
- 1st APril 2018 - Landlord cannot let or renew a lease with EPC below E
- 1st April 2023 - Landlord cannot continue letting a building with EPC below E
- 1st April 2027 - Minimum EPC C required
- 1st APril 2030 - Minimum EPC B required
Where are the minimum energy efficiency standards set out?
The energy efficiency regulations 2015
WHat are the penalties for MEES non-compliance?
- Incorrect / misleading info -> £5,000
- Renting non-compliance property less than 3 monthths - 10% of RV (min £5k and max £10k)
- Renting non-compliance property more than 3 months - 20% of RV (min £10k and max £150k)
What is an EPC?
Energy Performance Certificate
What are the penalties for not having an EPC?
Dwelling - £200
Non-dwelling - 12% RV (min £500, max £5,000)
What is your firms sustainability policy?
- Turn computers off at night
- Motion activated lights
- Printing set to black and white and double sided
- Recycling
- Cycle to work scheme
- Electric cars encouraged
What is the governments policy on energy efficiency of non-domestic buildings
Set out in Energy Efficiency Regulations 2015 -> MEES
Net zero Carbon by 2050
What is the Energy Act?
Energy Act 2011
- Change in the provision of energy efficiency measures to homes and businesses and makes improvements to enable and secure low carbon energy supplies and fiar competition in the energy markets
How does MEES impact your role?
Required to understand Landlord responsibility with regards to energy performance
Alterations -> reasonable to reject if negatively affecting MEES
What falls outside of MEES?
EPC’s required for all buildings over 50sq m apart from:
- Tenancies over 99 years
- Tenancies under 6 months
- Listed buildings
- Buildings with no heating
- Religious buildings
- Temporary buildings
- Buildings due to be demolished / redeveloped
What falls outside of MEES?
EPC’s required for all buildings over 50sq m apart from:
- Tenancies over 99 years
- Tenancies under 6 months
- Listed buildings
- Buildings with no heating
- Religious buildings
- Temporary buildings
- Buildings due to be demolished / redeveloped
When can you apply for MEES exemption?
- high cost -> no payback within 7 years
- All cost effective improvements have been carried out
- Third party consent is refused
- Devaluation in property more than 5%
Exemptions last for 5 years and need to be lodged on a centralised register
Have you had to procure and EPC?
Unit FA - The Paddocks
EPC of F -> requried improvements. Landlord cost to install new lgihts and instruct new EPC
Rating of E achieved
What buildings require an EPC?
All buildings over 50 sq m that uses energy to condition the indoor climate
When is an EPC required?
Always - namely when let, sold or newly refurbished
-> over 50 sq m
How long does an EPC last?
10 years
When do you need to display an EPC?
- Total floor area over 250 sq m
- Frequently visited by the public
What is included in an EPC?
- Address
- Certificate number
- Rating
- Rating table
- Area
- Recommendations
- Estimation of energy running costs
How does an EPC impact upon value?
- Higher EPC usually equals higher rent achievable, especially with BREEAM -> this increases value
- Low EPC will mean the property requires work and is not energy efficient. Potentially cannoy let under MEES -> lower rent and value
What is your firms environmental policy?
- net zero carbon by 2030 in own directly managed operations
- Minimise energy, water and waste consumed wherever possible
- Promote usage of re-useable materials
- Identify and comply with legal requirements
- Move away from petrl and diesal cars and seek to reduce journeys made
What is your firms environmental policy?
- net zero carbon by 2030 in own directly managed operations
- Minimise energy, water and waste consumed wherever possible
- Promote usage of re-useable materials
- Identify and comply with legal requirements
- Move away from petrl and diesal cars and seek to reduce journeys made
