When most people look at an Energy Performance Certificate (EPC), their attention goes straight to the energy efficiency rating — the A to G scale that reflects energy consumption. But right below that is another powerful metric that’s often overlooked: the Environmental Impact Rating.

This rating, which also uses an A–G band, tells a deeper story about your home’s carbon emissions — and it can be just as important for future regulations, mortgage approvals, and even property value.

Let’s decode what the Environmental Impact Rating actually measures, how it’s calculated, and why it matters more than ever in today’s carbon-conscious property market.


🌍 What Is the EPC Environmental Impact Rating?

Also known as the CO₂ emissions rating, this score measures your property’s carbon dioxide output per year based on typical usage.

  • Expressed as a number (1–100+) and a letter grade (A to G)

  • Based on the amount of carbon emitted in tonnes per year

  • Higher scores (A/B) = lower environmental impact

🔍 It’s not just about efficiency — it’s about your home’s contribution to climate change.


📉 What Does It Actually Measure?

The Environmental Impact Rating is based on:

  • Heating fuel type (gas, oil, electricity, biomass)

  • Efficiency of heating/hot water systems

  • Building fabric heat loss (e.g., wall/roof/window insulation)

  • Lighting energy demand

But instead of focusing on costs, this rating reflects your home’s greenhouse gas emissions — primarily carbon dioxide.


🧮 How Is It Calculated?

Assessors use SAP (Standard Assessment Procedure) or RdSAP software to model:

  • Estimated CO₂ output in kg/year

  • Per m² performance

  • Heating, lighting, and hot water emissions

They then convert this into:

  • A numerical Environmental Impact score (1–100+)

  • An A–G band (A = best, G = worst)

Rating BandScore RangeCO₂ Emissions (indicative)
A92–100+Very low (green technologies)
B81–91Low carbon footprint
C69–80Above average
D55–68Moderate
E39–54High
F21–38Very high
G1–20Extremely high

🔥 Why Is It Different from the Energy Efficiency Rating?

Energy Efficiency RatingEnvironmental Impact Rating
Focuses on running costsFocuses on carbon emissions
Favourable to cheap fuelsPenalises carbon-heavy fuels
Used for MEES complianceUsed for sustainability reporting
May rate oil/gas homes wellPenalises high-emission systems

⚠️ A home with cheap gas heating may get a decent Energy Rating — but a low Environmental Impact score due to carbon output.


🏡 Real-World Examples

🏠 Property A – 1950s semi-detached with gas heating

  • Energy Rating: C

  • Environmental Impact Rating: E

  • Why? Cheap fuel, but high carbon emissions

🏡 Property B – New build with air-source heat pump and solar panels

  • Energy Rating: B

  • Environmental Impact Rating: A

  • Why? Low-emission, renewable systems


💼 Why the Environmental Impact Rating Matters

✅ 1. Net-Zero Goals and Green Regulation

As the UK moves toward net-zero carbon homes, this rating may be used for:

  • Future property compliance

  • Green finance incentives

  • Planning and building standards

✅ 2. Green Mortgages and Loans

Lenders and insurers are increasingly looking at environmental impact ratings when offering:

  • Lower rates

  • Eco-loans for retrofitting

  • Climate-risk adjusted valuations

✅ 3. Future-Proofing Your Property

A high-impact rating (F or G) could affect:

  • Resale value

  • Letting potential

  • Regulatory penalties for landlords


🛠 How to Improve Your Environmental Impact Rating

ImprovementImpact on Score
Upgrade to a low-carbon heating systemMajor boost (e.g., heat pumps)
Insulate lofts, walls, and floorsReduces heating demand
Install solar panelsOffsets electrical usage
Switch to LED lightingLowers electricity consumption
Add smart heating controlsImproves overall efficiency

📸 Document everything: If you’ve installed upgrades, ensure your assessor includes them to avoid default (penalising) assumptions.


📍 EPC Environmental Impact Rating in Legal Context

  • Not currently used for MEES (Minimum Energy Efficiency Standards), but may become relevant in future legislation.

  • Used in Home Reports, green mortgages, and corporate ESG reporting.

  • May be referenced in planning applications or sustainability certifications (e.g., BREEAM, Passivhaus).


✅ Need an EPC That Reflects Your Low-Carbon Improvements?

At EPCrate.co.uk, our trained assessors help you get a fair and accurate Environmental Impact Rating — with advice on boosting your score using smart, cost-effective upgrades.

🌍 Same-day assessments across London
💬 Advice on eco-friendly improvements
📋 Landlord and green buyer-compliant EPCs


Final Thought: Don’t Ignore the Second Scale

The Environmental Impact Rating isn’t just an afterthought — it’s a preview of your property’s climate resilience, regulatory future, and even mortgage favourability. Understanding what it means and how to improve it could save you money — and help the planet.