USING THE TOOLKIT
The toolkit enables stakeholders, from a range of starting points on their sustainability journey, to take action today. The guidance in this toolkit is leading, but non-prescriptive, helping owners and occupiers to find the solutions which work for them.
The starting point for the toolkit has been multi-let offices, but clauses can be used (or adapted for use) across a wide range of asset types - over time the BBP will increase sector-specific guidance as common and best practice emerges and examples of successful clauses can be signposted.
Guidance in the toolkit is also dynamic and will be regularly reviewed and updated by the BBP Green Lease Working Group, if you have any questions, suggestions or insights from your experience please do not hesitate to contact us at greenlease@betterbuildingspartnership.co.uk
What's in the Toolkit
The toolkit has been developed so that it can be accessed in a variety of ways by different stakeholders, from investors and analysts keen to understand what should be in a green lease, to lawyers drafting clauses and leasing teams negotiating terms. It includes the following sections:
What's in the Toolkit
ABOUT GREEN LEASES
This is an introductory section providing background information for a wide range of stakeholders on green leasing including:
- Why does the commercial property industry need green leases?
- What is a Green Lease?
- The Leasing Cycle
- Green Leases – a shared opportunity, not a split incentive
- The benefits of Green Leases
Access the About Green Leases Section here.
GREEN LEASE CLAUSES
This section is the backbone of the toolkit and is focused on stakeholders involved in the negotiation of lease terms. It includes:
- Statements of Intent – an overview of what each clause is designed to achieve, providing flexibility for the owner and occupier to draft the specific wording of the clauses appropriately, but with a shared understanding of the intent behind them.
- Legal Clauses – providing the specific wording that can be incorporated within the lease these can be copied and utilized directly or amended whilst seeking to maintain the ‘intent’ behind each clause. The structure takes into account the Model Commercial Lease Framework, making the leases easy to integrate into standard leasing practice. For some clauses there are light, medium and dark green options, enabling owners and occupiers to reflect their sustainability ambitions in both general terms and specific to the asset for which the lease is being negotiated.
- Drafting Notes – providing guidance and notes on drafting the clauses, highlighting where the drafting may need to be adapted for specific circumstances, types of lease or assets.
- Shades of green:
- When it comes to green leases, no one size fits all, which is why a “shades of green” approach has been included in the legal drafting sections of this toolkit. Where the clause lends itself to a range of basic or more stretching options, users of the toolkit have the option to select between light, medium and dark green clauses depending on the maturity of both parties’ (owner and occupier) sustainability commitments. This enables users to find a practical entry point which suits them and to understand how they can accelerate their sustainability work and eventually drive towards transformation.
Access the Green Lease Clauses Section here.
GREEN LEASE ESSENTIALS
This section of the toolkit indicates the 10 key theme areas that the BBP considers to be the foundations of a green lease and would expect to see covered for a new lease or a lease renewal to be credibly defined as ‘green’. This section is especially useful for:
- Owners/occupiers starting on their green leasing journey to ensure that they are incorporating the basic areas required for a lease to be considered ‘green’.
- Owners/occupiers who already have green leases and are keen to understand whether these are consistent with the Green Lease Essentials.
- Investors and analysts seeking to understand whether organisations claiming to utilize green leases have covered these core areas in their clauses.
Access the Green Lease Essentials Section here.
HEADS OF TERMS
This section provides guidance on how to consider green leases in Heads of Terms discussions presenting three options.
Access the Heads of Terms Section here.
OWNER-OCCUPIER ENGAGEMENT
Acknowledging that leases are only one part of successful relationships, this section of the toolkit puts the green lease in the context of wider owner-occupier engagement:
- Linking to the work for the BBP’s Owner and Occupier Forum
- 10 top tips for engagement
Access the Owner Occupier Engagement Section here.
USEFUL RESOURCES
This section includes a range of useful resources on green leasing for you to download. This includes both UK and international best practice.
Access the Useful Resources Section here.
TOOLKIT GOVERNANCE
This section of the toolkit provides:
- Background to the BBP Green Lease Toolkit
- Governance
- Acknowledgements
Access the Toolkit Governance Section here.
TOOLKIT FEEDBACK
This section provides stakeholders with the opportunity to provide the BBP with feedback on the toolkit including the wording of specific clauses, experience of implementing the toolkit, suggestions for future development and potential case studies for inclusion.
Naming the toolkit
In the process of developing the toolkit, the BBP alongside its steering committee considered whether we should retain the name of the toolkit as the ‘green lease’ toolkit, as it now incorporates wider sustainability issues. Pragmatically, the decision was taken to retain this name due to the wide use of ‘green lease’ terminology within the market and significant industry buy-in to the BBP Toolkit. We will, no doubt, keep this decision under review as the market evolves, but suffice to say we welcome movement towards incorporating all aspects of sustainability (environmental & social) into their leasing processes.
Tell us what you think! Access the Toolkit Feedback Section here.
WHERE ARE YOU ON YOUR GREEN LEASE JOURNEY?
When it comes to green leases, no one size fits all, which is why a “shades of green” approach has been included in the legal drafting sections of this toolkit. Where the clause lends itself to a range of basic or more stretching options, users of the toolkit have the option to select between light, medium and dark green clauses depending on the maturity of both parties’ (owner and occupier) sustainability commitments. This enables users to find a practical entry point which suits them and to understand how they can accelerate their sustainability work and eventually drive towards transformation.
- Gearing up for your Green Lease Journey : Light Green Clauses
- Accelerating your Green Lease journey : Medium Green Clause:
- Driving transformation with your Green Lease journey: Dark Green Clause:
WHO IS THIS TOOLKIT FOR?
OWNERS
The Toolkit provides commercial property owners with appropriate, relevant environmental clauses for incorporation into their standard lease agreements which can sit alongside a lease and be used as a tool to enable an owner to work in partnership with occupiers to improve the sustainability of their buildings.
OCCUPIERS
The Toolkit provides occupiers of commercial space with information about the types of green lease provisions they may find in standard lease agreements or which they may wish to suggest are incorporated by the building owner. It also explains the background and purpose of these clauses. This should help occupiers consider the environmental requirements they may wish to agree or impose when taking new space. It is a useful tool to help occupiers engage with their landlords and articulate the ways in which they would like their building managed to improve its sustainability.
LEASING AGENTS
The Toolkit provides a number of useful resources for leasing agents who are engaging with occupiers throughout the leasing life cycle. In addition to the drafted clauses, it can also be used in Heads of Terms negotiations, to help outline the benefits of green leases to the parties and to support the broader own-occupier relationship.
LEGAL PROFESSIONALS
The Toolkit provides lawyers with drafting for legal clauses that they can utilize, adapting them according to the circumstances and/or at the request of the owner and/or occupier. As the intermediaries in lease negotiations, both leasing agents and lawyers have an important role to play in ensuring that any green lease provisions meet the sustainability aspirations of the parties.
MANAGING AGENTS
The Toolkit provides assistance to Managing Agents who manage a building to which a green lease applies. It explains the rationale behind decisions made between owner and occupier(s) which the Managing Agent may be asked to implement and considerations to be born in mind when delivering services to the building. For further information on the range of services Managing Agents can provide to improve the sustainability of the buildings they manage see the following BBP resources:
INVESTORS & ANALYSTS
The Toolkit provides investors and analysts with general information concerning green leases and an understanding of the different clauses that can be adopted. This will enable investors and analysts to understand and interrogate owners and occupiers commitments to green leases and to assess whether they stand up to external scrutiny in terms of both their scope and ambition.
DISCLAIMER
This Toolkit and the legal clauses within it have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. They are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the clauses will achieve any particular outcome or purpose.
The Toolkit and the clauses do not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and do not contain or amount to legal or financial advice in any way. The clauses are precedents for legal professionals to use, amend and negotiate using their professional skill and judgement and at their own risk.
While care has been taken in the drafting of these clauses, neither the Better Buildings Partnership nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these clauses or any other person. Users should use their own professional judgement in the application of these clauses to any particular circumstance or jurisdiction and should seek independent legal advice.
The Better Buildings Partnership is the owner or the licensee of all intellectual property rights in this Toolkit and the clauses. They are protected by copyright laws and all such rights are reserved unless we have expressly agreed otherwise. You, your business or organisation are permitted to use the clauses for commercial, non-commercial, academic or research use worldwide (including, without limitation, to copy, modify, amalgamate, download, or distribute the clauses), subject to your acceptance of the terms set out in this disclaimer. The clauses may not be published “as is” in unmodified form without attribution to the Better Buildings Partnership.