USEFUL RESOURCES
This Toolkit seeks to align with best-in-class advice on green leasing where possible, one example of this is our collaboration with The Chancery Lane Project (TCLP). TCLP publishes a suite of frequently updated, leading ‘dark green’ lease clauses that are aligned with the Paris Agreement goals and which represent best practice. These template clauses can be amended by solicitors according to their clients’ needs and sustainability targets. They are all freely available, like the BBP Green Lease Toolkit. BBP Green Lease Toolkit Legal Working Group members used TCLP's green lease clauses as a starting point for updating - and raising the climate ambition of - several sections of the 2013 Toolkit. Examples include:
- Using TCLP's 'Climate Recitals' to update BBP's Co-operation and Building Management Group clauses.
- Using the stepped, increasingly ambitious options in one of TCLP's renewable energy clauses to write light, medium and dark green renewables provisions for the Toolkit.
- Using TCLP's circular economy alterations clause to update the works and alterations-related clauses in the Toolkit.
TCLP also contributed to the Steering Committee, providing a high level steer on where users are with implementing green lease provisions. Beyond green leases, TCLP publishes clauses addressing other real estate topics - such as construction, supply chains and finance and investment. TCLP publishes clauses covering almost all legal practice areas - and each is given a child's name to remind users of the next generation who will be most impacted by the contracting decisions we make today. You can access TCLP's full range of built environment sector resources here.
Josh Van Den Dries, Project Associate, The Chancery Lane Project: “We are delighted that the BBP Toolkit has integrated climate contracting principles from The Chancery Lane Project's green lease clauses. Owners and occupiers using the clauses will enjoy enhanced protection from climate change transition risks by future-proofing their businesses in line with expected changes to climate policy.”
See the below selection of useful resources on Green Leases. if you have a suggestion or would like to share your own best practice, please feel free to get in touch at: greenlease@betterbuildingspartnership.co.uk
UK:
- NHS England has produced a Green Lease Framework guidance document, developed to help improve the credentials of their leased estate. It has been designed with professional legal support from Bevan Brittan and acknowledges that organizations will be at different stages of their green journey. Read more here.
- The Model Commercial Lease (MCL) suite of documents includes various model lease clauses including sustainability provisions for different asset types including offices, retail, industrial and food and drink. Read more here.
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The Law Society’s guidance on green leases and Minimum Energy Efficiency Standards (MEES) covers commercial properties in England and Wales. Read more here.
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Gateley Legal provides a concise overview of what a green lease is, and provides examples of green lease provisions. Read more here.
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The Chancery Lane Project (TCLP) is a pro bono initiative dedicated to creating and providing free, accessible contractual clauses to help organisations address their climate risks and impacts and to achieve their net zero ambitions. Access their suite of Climate Clauses here.
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This article looks at what a green lease is and where in a lease green clauses can be adopted. Read more here.
International:
- The Better Buildings Partnership Australia provides a Green Leasing Framework on their website here.
- CMS have published a practical approach on green lease clauses in Europe, aiming to develop a uniform European standard for green leases. Read more here.
- The US Green Lease Leaders site offers recommendations for building owners looking to implement green leasing practices across their portfolios in its Green Lease Library. Their website also offers sample lease clauses, case studies, and recorded trainings. Read more here.
- The Institute for Market Transformation’s Retail Green Lease Primer is a two-page document that helps guide retailers and retail owners to improving the efficiency of their facilities. Read more here.
- This Insight article by Dentons Rodyk provides an overview of green leases, including a definition, and minimum standards. Read more here.
Research Papers:
- 'More than a green certificate: Green leases and investment return in commercial real estate’ (2023).
- 'New leasing languages – How green leasing programs can help overcome the split incentive’ (2020), a paper from the Institute for Market Transformation.
- ‘Green leasing in commercial real estate: The drivers and barriers for owners and tenants of sustainable office buildings’ (2018) in the Journal of Corporate Real Estate.
- ‘Advances in green leases and green leasing: Evidence from Sweden, Australia and the UK’ (2017), a conference paper for the European Council for an Energy Efficiency Economy (ECEEE) Summer Study.
- ‘Green leasing in theory and practice: A study focusing on the drivers and barriers for owners and tenants of commercial offices’; a conference paper for the CIB World Building Congress 2016.
- ‘The evolution of green leases: towards inter-organisational environmental governance’ (2016) in the journal Building Research and Information.
- ‘Sustainable Facilities Management and Green Leasing: The Company Strategic Approach’ (2015) in the journal Procedia Economics and Finance.
- ‘Green leases: The landlord and tenant relationship as a driver for sustainability’ (2009), a research study commissioned by the Investment Property Forum Research Programme 2006-2009.
- ‘The greening of commercial leases’ (2008) in the Journal of Property Investment and Finance.
Case Studies:
- JLL’s Green Leasing 2.0 report:
- The need for alignment between owners and occupiers is reinforced in JLL’s report “Green Leasing 2.0 report “Bridging the owner – occupier divide to deliver shared ESG value”. The report highlights the urgent need for the industry to halve emissions and rethink the status quo on leasing and collaboration:
- “The owner-occupier relationship requires a reset, a move to more collaborative relations which necessitate new forms of contract and engagement”
- The need for alignment between owners and occupiers is reinforced in JLL’s report “Green Leasing 2.0 report “Bridging the owner – occupier divide to deliver shared ESG value”. The report highlights the urgent need for the industry to halve emissions and rethink the status quo on leasing and collaboration:
- Their model highlights a new way of working centered around Education, Engagement and shared Equity. These elements are identified as vital “enablers” to driving change and are consistent with the findings of BBP’s own insight report as well as our overall strategic aims.
Media:
- Sustainability concerns see green leases evolve (RICS Modus)
- How Green Leases Help Tenants and Landlords Hit Their Sustainability Targets (CBRE)
- Green leases – to green or not to green? (DAC Beachcroft)
- The ‘Green Lease’ Is The Next Phase Of Built Environment Sustainability (Forbes)
- "Green" Leasing: Landlord and Tenant Perspectives (Pillsbury Law)
- Green leases: what are they and how do you draft them? (The Law Society)
- How can green leases help achieve net zero? (RICS Modus)
- Green Leases – In the ESG context (Deloitte)
Missed anything?
Is there anything we have missed? If you are aware of other resources on green leasing that are not listed above, please do suggest them via email at: greenlease@betterbuildingspartnership.co.uk and we'll review them.