FAQ Sustainability paragraph 2.0

All questions and answers about the sustainability paragraph 2.0, compiled by ING, ABN AMRO and Rabobank.

Download PDF – version July 2024

General

1. Is DuPa 2.0 required for a valuation for which the order was placed before 17-2-2024?

No, DuPa 2.0 is mandatory for valuations with an assignment date of 17-2-2024 or later. Valuations after this date must be submitted including DuPa 2.0.

2. Is DuPa 2.0 mandatory for MTUs?

Yes, DuPa 2.0 is also a mandatory component for MTUs.

3. Is DuPa 2.0 mandatory for valuations of agricultural real estate?

DuPa 2.0 is not yet mandatory for agricultural real estate. However, it is expected that agricultural valuation reports in the field of sustainability will at least contain the following: * (Estimate of) energy label of the company home; * C&E risks (climate and environmental risks); * Attention to realized and yet to be realized sustainability of the object; * To the extent possible, the impact of all measures on the market value.

4. What footage (VVO or BVO) is used in DuPa 2.0?

Calculations relating to DuPa 2.0 are generally based on the gross floor area (GFA).

5. How should mixed use be taken into account in sustainability calculations?

In the case of mixed use, the valuation must take into account the “main” use.

6. Should the ESG data be provided/supplied by an external party or can the appraiser assess/judge this himself?

No, valuation partners are not required to purchase ESG data and may also facilitate this internally. The final output in the valuation report must always be verified and found plausible by the valuer.

7. What actions should be taken if the requested sustainability information is not provided by the owner?

In situations where the provision of sustainability information stagnates, the appraiser must make this known to the client. In these situations, the client will request the owner, with the help of the front office, to provide the necessary information (as well as possible).

8. Should a valuation report for a large-scale industrial estate, consisting of various separate buildings, contain a DuPa 2.0 for each component or is one DuPa 2.0 per valuation report sufficient?

One DuPa 2.0 must be included per valuation report, which is completed on the basis of the properties of the appraised buildings.

9 How should DuPa 2.0 be handled in the case of special or specific valuations such as unmanned petrol stations, car washes, religious buildings, etc.?

In these specific cases it will not be possible to fill in all fields of DuPa 2.0, but a very large part of them. It is requested to fill in DuPa 2.0 as much as possible and always include it as part of the valuation reports.

Energy label

10. If an energy label is missing, is a property owner obliged to provide one (drawn up by a recognised company) so that the appraiser knows whether the property has an energy label A or better?

No, with the help of one of the four suppliers (Blue Module, CFP, Innax and Stainable) an estimate can be made of the current sustainability level or energy label.

11. Should the valuation report state the current energy label or the energy label after sustainability to energy label A?

Valuation reports should always state the current energy label. If no label is known, this should be stated in the report. So no calculated or expected energy label. These should be explained separately in the sustainability paragraph.

12. Can a new-build complex (built in 2023) with an energy label C be assumed to have a current energy label A in accordance with the available information, since new-build properties must be built BENG as of 1 January 2021?

In such cases, it is advisable to clearly and fully state in the report why the appraiser believes that the complex has an energy label A or better and therefore the MW after sustainability to energy label A is not included/applicable, substantiated with relevant property information or correspondence with the owner.

Market value with a special starting point based on a realized sustainability to energy label A

13. What is the definition of the market value with a special starting point (label A)?

The market value with a special starting point based on achieved sustainability to energy label A.

14. Is the market value in the current condition/as is or the market value with a special starting point based on a realized sustainability to energy label A the “main” market value in the valuation report?

The market value in current state/as is must be included in the valuation report as the “main” market value, so that all relevant core data and parameters are based on this value. The market value with special starting point for energy label A must be included in the sustainability paragraph. There is a field here where the market value with special starting point can be filled in, as well as a text field where the appraiser can provide some explanation about the creation of this market value.

15. Where should the market value with a special starting point based on a realised sustainability to energy label A be included in the valuation report?

The market value with a special starting point based on a realised sustainability to energy label A must be added to the valuation report in the sustainability paragraph.

16. Should the market value with a special starting point based on a realised sustainability to energy label A be corrected with the sustainability costs? Or should these be included separately and does the market value with a special starting point to energy label A concern the value after realisation?

The market value with special starting point based on a realized sustainability to energy label A concerns the market value when the sustainability to energy label A has actually been realized. The sustainability costs are included separately in the report and are not reduced from the market value with the special starting point.

17. Does the market value with a special starting point based on a realised sustainability to energy label A also apply to buildings that do not have a label obligation?

DuPa 2.0 applies to all valuation reports from 17-2-2024 or later, regardless of asset type or label obligation (e.g. monuments). This also applies to the market value with a special starting point with sustainability to label A. If, in the valuer’s opinion, it is not possible/relevant to issue this market value with a special starting point, this must be clearly stated in the report (with substantiation).

18. If part of a building has energy label A and the other part has a worse label (one valuation), should the market value with a special starting point based on a realised sustainability to energy label A also take into account the part that has energy label A?

Yes, the market value with special starting point based on a realized sustainability to energy label A is about the entire building (all objects within the relevant valuation). So the value after sustainability includes the entire complex with an energy label A (or better).

19. How should the special starting point be dealt with, assuming that sustainability has been achieved to energy label A, if a commercial space does not yet have an energy label (or if it is, for example, a monument)?

In the event that (part of) the real estate does not yet have an energy label, we request an estimate of the current energy label. This can be done with the help of one of the four suppliers (Blue Module, CFP, Innax and Stainable). If this shows that the estimate is that the current energy label is not label A or better, then a market value with a special starting point based on a realized sustainability to energy label A must also be issued.

20. This is a company building with office space (built in 1920) with non-insulated facades and single glazing. Furthermore, no sustainability measures have been taken previously. Sustainability to label A is not economically realistic (and perhaps not actually possible). How should the market value be dealt with here with a special starting point based on a realised sustainability to energy label A?

In some cases it will not be possible or realistic to issue a market value with a special starting point (taking into account a realized sustainability to energy label A). If that is the case, it is requested to state this as completely as possible in the report. In this way it is immediately clear why there is a deviation from the (regular) conditions in accordance with the assignment letter.

21. How to deal with the market value with a special starting point based on a realised sustainability to energy label A for recreational companies when this is not relevant?

The principle of ‘comply or explain’ also applies here. So basically the special starting point is based on sustainability to energy label A and if there is a deviation from this, this must be explained or substantiated in the valuation report