RICS publishes first official guidance on carbon management

With tenant demand growing for energy efficient property and the introduction of Commercial EPCs, RICS has published professional guidance into the carbon management of real estate.

"Carbon Management of Real Estate – A guide to best practice" provides professional advice and standards to all chartered surveyors when advising their clients or employers on developing organisational carbon management strategies.

Along with identifying key legislative changes, the guidance note identifies best-practice initiatives for those businesses looking to build on their environmental credentials whilst also improving their financial bottom line.

Key areas of focus include:

• baseline or benchmark assessment (carbon footprinting)
• carbon emission reduction techniques
• taxes and incentives
• forecasting an organisation’s future carbon footprint
• financial and carbon emissions appraisals

The financial case for greater energy efficient property in the UK is growing with CBI / GVA Grimley’s recent Corporate Real Estate Survey reporting that on balance 61% of companies would pay more rent for a ‘green’ building although only 81% of these would pay marginally more.

In addition, two studies carried out on the US market by the New Building Institute (NBI) and CoStar indicate that buildings with high LEED or Energy Star ratings perform better in terms of energy use and have been commanding higher rents and improved occupancy.

RICS spokesperson Ann Hayward said: "This timely guidance will be of great assistance to all chartered surveyors who are consultants, whether internal or external, when advising businesses on the carbon management of their real estate.

"It can prove invaluable to have a full understanding of the business case to manage and reduce carbon emissions and this document both outlines how to prepare the business case and signposts the reader to further information."