Sustainability

Question 1

What is the definition of sustainability?

Answer 1

United Nations definitions:

“meeting the needs of the present without compromising the ability of future generations to meet their own needs”

Question 2

What were the findings of the RICS sustainability report 2023

Answer 2

• 4600 professionals were asked of their views on keys issues relating to sustain
  ability.
• findings confirmed that nearly 50% of respondents report a rise in occupier and investor demand for climate adjusted real estate.
• findings confirmed that the industry is well educated on sustainability matters but appetite to invest is low due cost and ROI.
• 94% respondents believe sustainability increases rental and capital values.

Question 3

Does RICS have any guidance on sustainabiity?

Answer 3

RICS Professional Standard: Sustainability and ESG
in commercial property
valuation and strategic advice 2021

RICS Professional Standard: Environmental risks and global real estate 2018.

Question 4

What are the UK’s net zero carbon targets?

Answer 4

• achieve net zero by 2050
• interim target of reduce carbon emissions by 78% by 2030.

Question 5

When is an EPC certificate required?

Answer 5

• required for all commercial buildings over 50 sq m.
• when newly built, sold, or let for more than 6 months.

Question 6

What type of properties do not require an EPC certificate?

Answer 6

• religious buildings
• buildings due to be demolished.
• listed buildings

Question 7

what are the EPC requirements for marketing?

Answer 7

• EPC must be commissioned within 7 days of marketing.
• Agents are responsible for procuring EPCs

Question 8

How long is an EPC valid for?

Answer 8

10 years unless building has been altered.

Question 9

What are the MEES?

Answer 9

• minimum EPC rating of E for a property to be let. (all existing leases from 1 april 2023).

Question 10

What are the exemptions to MEES?

Answer 10

• if building does not require an EPC
• tenancies less than 6 months with no security of tenure
• tenancies longer than 99 years
• where improvements would devalue property more that 5%
• when it is not financially viable

Question 11

What are the consequence of non-compliance with MEES ?

Answer 11

• policed by MEES
• if breach < 3 months - the higher of £5k or 10% of RV (max 50k)
• if breach is > 3 months - the higher of £10k or 20% of RV (£150k)

Question 12

What is BREEAM?

Answer 12

• stands for Building Research Establishment Environmental Assessment Method.
• a voluntary environmental assessment tool for new and refurbished buildings.
• assessed based on environmental categories: energy consumption, waste management, water use, transport links, health and well being.

Ratings range from Pass - Outstanding.

Question 13

What is NABERS?

Answer 13

• A sustainability tool used to rate and compare buildings.
• Based on building efficiency and provides a rating of 1 - 6 stars
• rating is based on metrics related to Energy, Water, Waste. indoor environment.

Question 14

What are green clauses or green leases?

Answer 14

• typically are clauses that obligate both landlords to occupy a space in a sustainable way.
• typical clauses ensure LL & T share information about the use of energy, water and waste arising in a building.

Question 15

Where can you go to find information about sustainable occupation of buildings?

Answer 15

The Better Buildings Partnership

• has a green lease toolkit for best practice on green clauses.
• other useful tool kits for LL and T on sustainable occupation.

Question 16

What are the goverment proposed changes for MEES?

Answer 16

• MEES threshold rising from E - C by 2027.
• further rising to B by 2030.

Question 17

What is GRESB? and how does it work

Answer 17

Global Real Estate Sustainability Benchmark

It measures data inputs relating to:

• energy
• waste
• water
• management
• leadership

Portfolio is given a GRESB score which can be used to compare scores against other funds around the world.

Best score you can get is a GRESB gold star.

Question 18

What is ESG?

Answer 18

ESG – short for Environmental, Social and Governance – is a set of standards measuring a business’s impact on society, the environment, and how transparent and accountable it is.