Sustainability L1 Flashcards
(22 cards)
What is the RICS practice statement on sustainability?
Sustainability and ESG in commercial property valuation and strategic advice, 3rd Edition (effective January 2022) (reissued as a PS from GN in 2023). ( Please note this document is being updated currently)
What does the Sustainability and ESG in commercial property valuation and strategic advice, 3rd Edition, professional standard say?
Good practice advice supporting commercial valuation
Focuses on reporting sustainability and ESG requirements in professional valuation advice.
Alignment of ESG and sustainability considerations with the core mechanics of valuation (purpose, basis, approach)
Is “Sustainability and ESG in commercial property valuation and strategic advice, 3rd Edition” a guidance note or Profesional standard?
Professional standard
What is MEES?
Minimum Energy Efficiency Standards
As of April 1, 2023, extended the requirement for landlords to maintain a minimum Energy Performance Certificate (EPC) rating of E or above to all non-domestic properties, regardless of whether the lease was new or pre-existing.
What is the minimum energy efficient level in the UK, to meet MEES?
From April 2020, most rented homes must have an Energy Performance Certificate with a rating of A to E unless the property is exempt.
What is ESG?
Environmental, Social, Governance
How is ESG incorporated into the updated red? book?
ESG is built into valuation guidance in terms of engagement inspections recording and reporting
What is sustainable construction?
Construction techniques an methods which consider the environmental impact.
Examples include: Using recyclable and renewable materials in building projects and minimizing energy consumption waste
What does a sustainable building look like?
Constructing buildings with a neutral design which blends with surroundings
What renewable technologies do you know of?
Wind power, solar, hydroelectric
What are recyclable materials?
Materials which can be recovered and remanufactured into new products for example plastic metal cardboard paper glass and textile
What are three pillars of sustainability?
Environment
Social responsibility
The economy
What are MEES?
Minimum energy efficiency standards
regulations, implemented by the government, set a minimum energy efficiency level for domestic private rented properties. Stipulate private rented properties must be minimum E.
Are there any MEES exemptions?
If alarm believes they cannot improve a property to a higher standard than an EPC rating of F or G they can apply for an exemption.
What is sustainability?
Ability to maintain our needs now without compromising our needs for the future
What legislation and guidelines are their for sustainability?
The Environment Act 2021. Became a law to act as a new framework for environmental protection
Sustainability and ESG
in commercial property
valuation and strategic
advice
Global
3rd edition, December 2021
Effective from 31 January 2022
What is achieving net zero? and are there any updates on this?
Achieving Net Zero Implies cutting the emission of greenhouse gasses as close to 0 as possible as per the Paris agreement missions are to be reduced by 45% / 2030 and reach zero by 2050. Climate Change Committee suggest that the UK is not currently on track to meet its emissions reduction targets for 2030
What are current EPC rules?
Energy performance certificate shows how energy efficient a property is current government regulations require all rental properties to have an APC rating of E or higher, before it’s let to tenants.
The government had previously proposed a minimum EPC rating of C for new tenancies by 2025 and existing tenancies by 2028.
What is BREEAM?
Building research establishment environmental assessment method:
We need to ensure that buildings are compliant with sustainable construction operation and design
What is the Climate Change Levy (CCL)?
A tax on energy delivered to non domestic energy consumers in the UK
