EPC delay not the end of the world – EPCs are a blunt instrument in a very large toolbox

As we’ve become more environmentally conscious over the last few years, we’ve also become somewhat obsessed with EPC ratings – from wondering what the rating of our homes and offices are to looking at the different ways to make them more energy efficient.

The news that the government is planning to review timelines for commercial assets to be EPC C or higher – after originally targeting 2027 – is sure to leave some feeling concerned about the progress of the UK’s decarbonisation journey. But we shouldn’t be too pessimistic – there is plenty more we should be doing if we want to address the climate emergency. EPCs were never going to be a fix-all and arguably, the measurement has always been flawed.

EPCs alone not enough

We need to rethink how much importance is placed on EPCs in the journey towards net zero. They are calculated in an abstract way using set values that cannot be changed, providing a snapshot of a building’s energy output at the time of certificate. Changes that can substantially improve a building’s carbon emissions, such as the installation of LED lighting or solar panels, will not necessarily improve the rating. These can help achieve operational carbon zero, but the building might still only achieve EPC C due to the fixed inputs and calculation methodology.

So, you might think by designing to compliance, you’re protecting the planet and making in-roads into your corporate NZC commitments, but your building having a good EPC rating doesn’t mean it is operating at carbon neutral. We need to do more to get to the bottom of decarbonisation.

We need data

Organisations from all sectors have made net-zero, sustainability and decarbonisation commitments, but what is now needed is data-driven, long-term strategies that will not only fulfil these ESG-led commitments, but also raise industry and national benchmarks to create places and spaces fit for generations to come. Many organisations still don’t have adequate data on their assets and where they do, it’s not being used to its full potential. Ultimately, real data is needed to develop a meaningful carbon reduction plan and set the baseline and roadmaps required to decarbonise.

It’s time the property industry leads government, rather than the other way around. We need buildings to be designed to operate to mitigate their overall impact on the environment and to adapt to an ever-changing climate, rather than to meet tick-box style legislation. EPCs are blunt instruments in what is a very large toolbox, and we should recognise their limitations. They are no longer fit for purpose to address the environmental challenges we face today.

Established benchmarks such as BREEAM In-Use, NABERS, Fitwel and ActiveScore all offer stringent approaches to measuring the efficiency and quality of real estate. These help occupiers identify high-performing real estate for their operations, and give investors an opportunity to secure a recognised accreditation that demonstrates the quality of their scheme to prospective tenants who in turn have a range of stakeholders to respond to.

We need to prioritise in-use energy performance to evaluate the energy efficiency of buildings, and a mandatory need to disclose this information is already on the horizon. In-use energy performance is a far more valuable metric, using real-time data to allow asset owners and operators to optimise their buildings and set them on a more realistic and achievable pathway to net zero.

Government action required

Since becoming prime minister, Rishi Sunak has continually watered down the UK’s net zero commitments and there is a consensus that he doesn’t have the answers to our environmental problems. Our next government needs to set out its stall on how it plans to decarbonise industry and help the country tackle climate change.

As we look ahead to what is going to be a highly political charged year, the environment is going to be a topic used as a political football on both sides. The people making their way to polling stations across the country are going to continue be concerned about rising energy costs and with that, energy efficiency. Both the Conservatives and Labour need to make sure they don’t solely focus on short-term wins but also deal with the bigger picture and keep an eye on the action we need to take now to help future generations. It’s important that our next government doesn’t lose sight of that to ensure they remain committed to protecting the planet for the future.