Sustainability - Summary Of Experience

Question 1

Define Sustainable Development ?

Answer 1

Sustainable development is development that meets the needs of the current generation without compromising the ability of future generations to meet their own needs.

Question 2

What are the pillars of sustainable development ?

Answer 2

Environment

Social

Economic

Question 3

What have the RICS done regarding sustainability?

Answer 3

The RICS have placed heavy emphasis on sustainability.

They published ‘Advancing Responsible Business in Land, Construction, Real Estate Use and Investment (2018)

How organisations can identify and address impact of their activities and decision making, includes:

• Evidence Based Research
• Best Practice Requirements
• Best Practice Training

Question 4

What is the principle outcome of the Climate Change Act 2008?

Answer 4

Net Zero Carbon by 2050. Interim target of reducing emissions by 78% by 2030.

Question 5

Does the Energy Efficiency of a Building affect its value?

Answer 5

Yes, investors and occupiers are increasingly conscious about the carbon footprint of the buildings they own and occupy. Property professionals are increasingly conscious of the responsibility the built environment has.

Question 6

What is an Energy Performance Certificate?

Answer 6

Energy Performance Certificates are a rating scheme to summarise the energy efficiency of buildings. The building is given a rating between A-G and will include tips on the most cost effective ways to improve energy performance.

Question 7

Has there been anything in the news regarding EPC /Energy Efficiency?

Answer 7

Rishi Sunak announced that the government would be ‘watering down’ some of the UK’s net zero targets from 2030 to 2035.

Question 8

What are the EPC Requirements for 2027?

Answer 8

Minimum energy performances ratings set to rise to a C rating for new commercial leases in April 2027?.

Question 9

What are some of the issues that need addressing in The UK Green Building Council framework?

Answer 9

1) Establish Net Zero Carbon Scope
2) Reduce Construction Impacts
3) Reduce Operational Energy Use
4) Increase Renewable Energy Supply
5) Offset Any Remaining Carbon.

Question 10

What are the 5 key provisions of an EPC ?

Answer 10

1) Higher standards of energy conservation.
2) Establishing a calculation methodology for the energy performance of all buildings.
3) Minimum requirements for the energy performance of all buildings
4) Energy certification for all buildings when built, modified in certain cases, or when leased / sold.
5) Mandatory inspection of boilers and air conditioning systems in buildings.

Question 11

When are EPCs Required?

Answer 11

When a commercial building over 50m² is;

• Newly built
• Sold / leased
• Leased for longer than 6 months
• Refurbished
• Heating/air conditioning is altered
• Lease is assigned / sub-let.

Question 12

When may an EPC not be needed?

Answer 12

When a building is listed, buildings that have no heating, religious buildings, temporary buildings, buildings due to be demolished.

Question 13

What are the EPC requirements for marketing?

Answer 13

• Must be commissioned within 7 days of the commencement of marketing (28-day limit for procurement)
• Agents are responsible for procuring EPCs.
• Only the actual energy rating is required to be displayed on property / advertisements.
• All online marketing must have a link to the EPC (showing front page)

Question 14

What is included on the front page of an EPC Certificate?

Answer 14

1) Address of property and floor area.
2) EPC certificate reference number.
3) Technical information on the property’s energy provision.
4) Estimation of energy running costs.
5) An energy performance rating from A+ to G.
6) Benchmarking information.

Question 15

How long is an EPC valid for ?

Answer 15

10 years

Question 16

What are the penalties for non-compliance with EPCs on marketing material?

Answer 16

Local authority will fine you £200 for marketing a residential property without an EPC. For commercial the limit is 12.5% of the Rateable Value of the Property (Collared at £500, and Capped at £5,000)

Question 17

What are MEES 2015? And requirements?

Answer 17

Minimum Energy Efficiency Standards (2015) require a minimum EPC rating of Level E to let a building from 1st April 2018 onwards.

Question 18

Can you explain to me some of the exemptions for MEES?

Answer 18

Exemptions include:

• If a building does not need an EPC e.g. place of worship.
• Industrial units or workshops with a low energy demand.
• Where the tenancy is less than 6 months with no security of tenure.
• Where the tenancy is for more than 99 years.
• When it can be proven that improvements would devalue a property by more than 5%.

Question 19

What are the Penalties for Non-Compliance with MEES?

Answer 19

For commercial properties:

• Where a breach has lasted less than 3 months : Up to £5,000 or (if greater) 10% of the Rateable Value with a maximum penalty of £50,000.
• Where a breach has lasted more than 3 months: Up to £10,000 or (if greater) 20% of the Rateable Value with a maximum penalty of £150,000.

For residential properties:

• Where a breach has lasted less than 3 months - £2,000
• Where a breach has lasted more than 3 months - £4,000

Question 20

What are the potential changes to MEES regime?

Answer 20

The government confirmed in late October 2023, in its response to the Committee on Climate Change 2023 Progress Report, that it will not be requiring landlords of domestic properties to improve the energy efficiency of their property to higher standards than those currently required by legislation.

A reversal of the MEES policy set out previously to ratchet minimum standards to a C-rating by 2028.

Question 21

What is the Energy Savings Opportunity Scheme (ESOS)?

Answer 21

An energy assessment scheme that is mandatory for large UK undertakings and their corporate groups employs 250 or more people, or has an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million.

They are required to:

• Measure total energy consumption across buildings, transport and industrial activities every four years.
• Conduct energy audits to identify cost-effective energy efficiency recommendations.
• Report compliance to the Environmental Agency.

Question 22

What is the Heat Network (Billing and Metering) Regulations 2014 (as amended 2015 & 2020)

Answer 22

Relates to the provision of communal heating systems in multi-occupied commercial and residential schemes and to district heating systems.

Final consumers must be provided with accurate meter readings/bill information and competitively priced individual meters.

Question 23

What is the Climate Change Levy (CCL)?

Answer 23

Tax on energy consumption for businesses in the UK. Introduced as an incentive to reduce energy consumption by businesses so reduce carbon dioxide emissions. Charged directly by energy companies who pass it to the Treasury. Worth c. £1.9bn. Renewable energy is exempt for CCL.

Question 24

What does BREEAM stand for ?

Answer 24

BREEAM = “Buildings Research Establishment Environmental Assessment Method.”

Question 25

What are the Five Levels of BREEAM?

Answer 25

There are five levels of BREEAM: Outstanding, Excellent, Very Good, Good, Pass.

Question 26

What are the environmental weightings of BREEAM ?

Answer 26

Energy Consumption

Water Use

Waste Management

Health and Wellbeing

Pollution

Transport Links

Management

Question 27

What are some of the features of a BREEAM building?

Answer 27

BREEAM buildings typically contain more efficient energy solutions such as solar, wind, biomass and heat pumps to achieve low carbon emission achieving a reasonable payback period.

Question 28

What are the benefits of BREEAM ratings?

Answer 28

The benefits of a high rating include

Greater occupier interest (e.g. JLL @ Broadgate)

Improved CSR / ESG

Lower running costs

Increased demand for future sale.

Question 29

What is the WELL Building Standard?

Answer 29

Aims at increasing health and wellbeing through construction and design. Popular with developers.

Question 30

What is a Green Lease?

Answer 30

Green Lease clauses typically seek to ensure landlords and tenants share information about the use of energy, water and waste arising in a building.

The Better Buildings Partnership (BBP) has a Green Lease Toolkit with best practice recommendations.

Question 31

What are the recent changes to EPC’s?

Answer 31

The government had proposed that new tenancies would need an EPC rating of a C by 2025 or 2028 for existing tenancies but these changes have been scrapped and the EPC rules for landlords remain unchanged.