Sustainability - Summary of Experience Flashcards
Which buildings require an EPC?
All buildings over 50sqm
What is sustainability?
Meeting needs of today without compromising needs of future
What is your firms environmental policy?
- Net zero carbon in managed props by 2030
- Minimised energy + water use
- Promote reusable material
What is the RICS guidance on sustainability?
RICS Professional Standard: Sustainability and commercial property valuation 3rd edition (2021)
RICS sustainability report (2023)
Where do MEES apply?
England and Wales
What is the triple bottom line?
sustainability framework focusing on people, planet and profit - to have strong impact on world but also benefitting financially
What is the purpose of an EPC?
Provides prospective buyers/tenants information on energy efficiency and env impact of property
- Include improvement recommendations
What is the paris agreement?
Signed 22/04/2016
Legally binding climate change treaty that sought to limit global warming to 2 degrees
Who is exempt from EPC?
- Listed buildings / buildings in conservation areas where compliance would alter character/appearance
- Temp buildings (under 2 years)
- Buildings to be demolished
- Places of worship
- Leases of shorter than 6 months or longer than 99 years
What are the goals under the climate change act 2008. Have there been any updates to this since?
UK Framework for cutting emissions - legally binding
- To be net zero by 2050
- 80% carbon reduction by 2030 - 1990 levels
New 2019 Climate Change Act update
- Must be 100% lower carbon than 1990 baseline (was 80% in original 2008 act)
What are the benefits of using EVORA for sustainability reporting?
- Integrate sustainability into PM
- Increased sustainability awareness
- Assists in improving sustainability within props
What is BREEAM?
Environmental assessment method and rating system for buildings and large-scale developments
- Aims to assess, improve and certify the sustainability of buildings based on their environmental, social, and economic impacts
Advantages of BREEAM?
- Increased asset value - 20% premium on prices
- Reduced operating costs
What does the NPPF say about sustainable development?
Provides framework so locally prepared plans can provide sufficient housing toward sustainable development
What do you think is the future of sustainability within property?
- Sustainable building standard proliferation - Intertwining with the use of smart building systems
- Collaboration between landlords and tenants
- Smart cities - collaborations between building types based on their use etc
What is the Kyoto protocol?
1997 target (effective 2005) linked to UN framework on convention on climate change that committed parties to binding emissions reduction targets
- 5% reduction from 1990 levels
How would you find an EPC?
Non-domestic option on Gov. site
How can people be more sustainable?
- Reduce, reuse, recycle
- Travel smart
- Limit plastic consumption
What is the energy savings opportunity scheme?
Mandatory energy saving scheme for large businesses, amended in 2023
- These businesses conduct energy audits and measure consumption
- 4 yearly energy assessments
- Reported to environment agency
How can carbon reductions and energy efficiency savings be made in buildings
design, construction, use, refurbishment - Across all stages of its life
What is the renewable heat incentive?
UK Gov scheme to encourage uptake of renewable heat tech amongst householders (financial incentives)
How can you be more sustainable (at work and home)?
- Turn off plugs (screens)
- Minimise shower time
- Recycle
How is RICS committed to sustainability?
Annual Sustainability Report 2023
- Need for suitable strategies to meet net zero
- Global benchmark for climate and climate sustainability practice
- High costs and return on an investment barriers for sustainability
How does BREEAM work?
Assesses buildings based on a range of criteria:
- Energy
- Health + Wellbeing
- Management
- Pollution
- Land use
- Materials
- Water
- Waste
How does improving the EPC of the units at Croxley Park ensure that the letting ability of these units is improved?
- Energy compliance
- Reducing operating costs for LL and tenant
- Increased environmental value
- Attracting high quality tenants - bigger companies have more energy reporting requirements
Can you talk me through what IBOS is and its success?
Smart building system
- Enables automation and optimisation of buildings operations
- Enhanced occupier and maintenance interfaces delivered through mobile app
- Data sharing and analytics to spot energy use trends
When can a MEES exemption be applied for?
- High cost - if cheapest improvements more than £3,500 (Domestic property only)
- All improvements made and still an E
- Devaluation - recommended improvement to reduce market value
- 7 year payback - Energy improvement more expensive than energy savings over 7 year period
Lasts for 5 years
What is ESG?
Environmental, Social governance
- Criteria establishing framework for assessing impact of a companys sustainability and ethical practices on its financial performance and operations
What is the UK’s current target for sustainability?
Net zero by 2050
What is a display energy certificate (DEC)?
Show energy performance of public buildings. £500 fine if not displayed (Rating A-G)
- Must have total floor area of over 250sqm
- Last 1 year for buildings over 1k sqm
- Last 10 years for buildings over 250sqm
What is CSR?
Corporate social responsibility - Helps a company be socially accountable to itself, its stakeholders and the public
How does the Brundtland Report relate to sustainability within property?
- Balances both present and future needs - especially the case for housing and provision of public facilities
- Resource efficiency - Reduced use of energy and water and careful management of these
long-term thinking of property lifecycle - Not an asset that is just thrown away after X amount of years
How is ESG measured?
BREEAM, LEED, MEES
What is a climate change levy?
Tax charged on energy businesses use
What are the penalties for not complying with MEES?
Fines for non-compliance
- Less than 3 months (Cannot exceed greater of £5k or 10% of RV up to £50k cap)
- More than 3 months (Cannot exceed greater of £10k or 20% of RV up to £150k cap)
What did the 2015 Infrastructure Act say about climate change?
- Facilitated development of renewable energy projects - e.g. cycling. walking investment strategies and renewable heat incentives
- More rights for fracking under the land without notifying owners
What is LEED?
Leadership in Energy and Environmental Design
- Framework for health design and efficient buildings
What is a green lease?
Form of lease including clauses related to buildings env performance - Not binding but dark and light clauses
What are the penalties for not having an EPC?
What is a carbon budget?
5 yearly carbon budgets set by UK Gov - Restricting amount of GHG UK can emit over 5 year period
Who pays for contamination?
Polluter pays - Developer liable if no specific polluter
How long is an EPC valid for?
10 years from date of issue
What is included in an EPC?
- Energy efficiency rating
- Env impact (co2 rating)
- Esimated energy costs
- Recommendations
Can you tell me something you recommended off the back of EVORA reporting?
- Recommended clients to reduce plant running times based off low occupation during late 2022 and slow return to the office
What is a heat network?
Supply heat from central source to consumers via network of underground pipes carrying hot water
What is the energy act 2011
- Introduced 2015 MES
- Unlawful to let props less than an E - 1st April 2018
What is net zero?
Balance between greenhouse gas used and greenhouse gas removed from atmosphere
Explain your understanding of COP26?
2021 UN climate change conferences
- Private investment towards net zero
- All UK firms to provide net zero plan by 2023
- Provided strong framework for how paris goals will be met
Can you give me some renewable energy options?
- Wind power
- Solar power
- Hydropower
Who do heat networks apply to?
Public buildings, shops, offices, homes etc
What are the limitations of sustainability?
Cost, sustainability alternative (fossil fuel)
What is an SKA rating?
RICS environmental assessment standard measuring the sustainability of building fit-outs
- Gold, silver, bronze
How does an EPC impact value?
Better EPC (A - B)
- Energy cost savings
- Marketability - Especially to larger companies who have environmental goals and have requirements as part of energy savings opportunity scheme
What is an EPC?
Measure of a buildings energy efficiency/performance
How can buildings impact the environment?
Poorly designed and built buildings increase energy use
- 40% of global emissions from built env
When do you need to show an EPC?
When building is constructed, sold or rented
What is contamination?
Something made impure by contact with something harmful
Can you give me some examples of sustainable property management?
- Green leases
- Installation of sustainable features e.g. pv panels, green walls
- Educating tenants - posters or interactive sessions to equip tenants with practical tools
What are the key dates for MEES?
1st April 2023 - Unlawful to let F or G
1st April 2027 - Unlawful to let D
1st April 2030 - Unlawful to let C
When did MEES first come into effect?
1st April 2018
What did the 1987 Brundtland Report say about sustainability?
Said poverty in South and non-sustainable patterns of consumption in North have caused critical global env problems
How do MEES impact your role as a PM?
Not so much PMS but our clients
- Landlords to incur costs by making improvements as EPC regulations
- Landlord potentially incurring fines if non compliance
Can you talk me through strategies that have been implemented to improve energy ratings within properties under your management?
Croxley Park
- Changed from gas to electricity heating system - C to B rating
- Guided by independent energy consultant - phase out of gas
Which buildings are exempt from requiring an EPC?
- Places of worship
- Temporary props (under 2 years)
- Detached buildings - Under 50sqm
- Buildings due to be demolished - need planning
When can a landlord let a building with an EPC F or G?
If registered on the PRS exemptions register
- Lease of less than 6 months or over 99 years
- If all improvements made but still below an E
- If something prevents landlord carrying out improvements e.g. local authority
- If it can be shown improvement works will decrease value of property by over 5%
Have you procured an EPC?
Yes - Foundry Lane I instructed an EPC assessor to attend site. Gave tenant prior notice etc and assessor collected relevant data and used standardized software to produce EPC
What happened to the code for sustainable homes?
It was withdrew in 2015 - Some of these standards were incorporating into binding building regulations
Can you take me through the 2023 MEES regulation changes?
- Extended to existing tenancies of most commercial properties
- Requirement that rented listed and buildings in conservation areas to have an EPC
- Introduced property compliance and exemptions database - Operated by a third party
Define sustainable property management?
Management using sustainable building initiatives e.g. use of green leases, building management systems, design features, educating tenants
When was BREEAM established?
1990
How will the UK meet its current sustainability target?
Roll out of key low carbon technology, tree planting, renewable energy generation
What is the NPPF?
National Planning Policy Framework - latest December 2023 (Sets out gov land use planning policies)
Can you give me an example of a good sustainable design feature?
- Insulation
- Good use of natural light
- PV Panel
- Green roofs
What did Rishi Sunak announce in September 2023 regarding the UK’s Net Zero target?
- Delayed ban on sale of diesel and petrol cars to 2035 from 2030
- Also pushed back on sale ban of fossil fuel boilers to 2035 from 2025
What is the Brundtland Report
1987 UN Report - Our Common Future
- Defined sustainable development and three pillars: Environ, economy, social
- Examined key environmental issues the world faced
- Raise an understanding and commitment
What is GRESB?
Global Real Estate Sustainability Benchmark - Established framework for monitoring ESG performance
- Score represented out of 100
What’s the penalty for letting a property with no EPC?
Depends on the situation but can be up to £5k
What is in the 2023 Energy Act?
- Offshore wind power
- Increased competition amongst utility suppliers
- Focus on carbon capture/storage
- Will need further secondary legisltation to see effects of this
- Overall aim to help UK reach NZ by 2050
Are MEES exemptions transferrable?
No not on a property sale
What is a REGO?
Renewable Energy Guarantees of Origin
- Provides transparency to consumers regarding the proportion of electricity that suppliers source from renewable electricity
What does BREEAM stand for?
Building Research Establishment Environmental Assessment Method
What do you know about the RICS Professional Standard: Whole Life Carbon Assessment for the Built Environment, 2nd ed 2023?
It is seeking to harmonise the global approach to whole life carbon assessments and decarbonise the environment by providing two new guides
What are the three scopes of carbon emissions?
Scope 1 - Emissions from sources your organisation owns/controls
Scope 2 - Emissions company causes indirectly (e.g. energy purchased and used)
Scope 3 - Emissions not produced or made from assets owned by business but down value chain)
What is the G in ESG?
Stands for governance and how a company manages its business in a responsible way (certain policies towards social and environmental benefit)
What is BNG?
Biodiversity Net Gain (Must be 10% increase in the previous biodiversity on the land)
- To be maintained for at least 30 years after development
What is the law relating to BNG?
Became law under the Town and Country Planning Act 1990, February 2024 update
What is required under heat network regulations?
Operators of heat networks must submit notifications for the heat networks they operate and install metering devices on those networks
What are the heat network regulations?
The Heat Network (Metering and Billing) Regulations 2014 - Seek to drive energy efficiency and reduce carbon emissions from heating through installation of metering devices and billing based on consumption
What are the pillars of sustainability?
Environmental - protecting the environment for the future whilst protecting
Social - focus on wellbeing of people and communities
Economic - Focuses on equity between economic growth, resource efficiency, and social equity
What is COP 28?
UN Conference of Parties (COP) on climate change
- First global stocktake of Paris Agreement goals
- Showed we not meeting targets
- Govts must accelerate away from fossil fuels
What is the Environmental Protection Act 1990?
- Increased control on pollution from industrial and waste management
- Waste must be stored in such a way that it does not pollute or cause harm
What is streamlined energy and carbon reporting (SECR)?
- Replaced Carbon Reduction Commitment (CRC) in 2019
- Measures companies overall greenhouse gas emissions/carbon footprint
- Report to Companies House
What is CRREM?
Carbon Risk Real Estate Monitor
- Risk Assessment tool for decarbonisation of real estate
- Benchmarking tool to contribute to energy efficiency investments
Is there any RICS documents relating to intelligent buildings?
RICS Practice Information: International Building Operation Standard, 1st Ed, Feb 2022
- Seeks to support buildings to be more compliant, functional, economic, sustainable and better performing
- Allows for the measurement of building performance across a range of categories - Use of raw and real-time data
What are the 5 pillars of RICS IBOS?
Compliance - with legislation, best practice (C02 level)
Economics - Costs, maintenance records
Functionality - occupancy levels, failure incidence
Sustainability - kwh energy consumed, waste disposal, water consumption
Performance - well-being, user experience,
What sustainability element did the new Labour budget bring in?
Funding for the new company ‘Great British Energy’
- Publicly owned company
- Budget of £125m in 2025-2026 alongside initial capitalisation of £8.3bn announced early 2024
What is the Fitwell scheme?
A certification scheme for buildings that promote healthy and sustainable design, construction and operation
- Focus on health centric areas
- Occupant food, safety, physical health, productivity, reduced absenteeism
What are the levels of BREEAM?
Acceptable to pass
Good
Very Good
Excellent to outstanding
How did you assess the potential increase in value at Croxley Park when the rating improved from a D to a B?
I would use the comparable method to assess the price of properties with similar characteristics at D and B ratings to asses this.
What is outlined in RICS Professional Standard: Sustainability and ESG in commercial property valuation and strategic advice (Dec 21, Effective Jan 22)?
- Addresses the role of the valuer
- Highlights VPGA 8 (Valuation of real property interests) – Valuers should assess sustainability features on the properties value
- Advice to valuers on reporting on ESG/Sustainability within valuation, should be able to justify. (purpose, basis, approach)
Do you know of any new meetings regarding sustainability and environmental goals this week?
Yes. COP29
- There is a focus on this finance and capitalising on poorer countries poor environmental sustainability and mitigation of GHGs
- UK 81% emissions reduction target by 2035
- UN secretary said 2024 had been masterclass in climate destruction
