A practical guide to green leases

Green leases aren't a new idea. But while the tools to draft them have been around at least a decade, their commercial take up is greater than it has ever been, as many firms find that they offer real opportunities to deliver on ESG policies and demonstrate sustainable values. 

With the climate emergency gathering pace, the pressure is on for the property sector to get its house(s) in order. Contractual relationships are clearly key to concreting environmental ambitions and ESG expectations into real estate and green leases can incorporate provisions that lay the groundwork for genuinely sustainable spaces and practices.

Our team of real estate lawyers have advised several clients - landlords and tenants - on the drafting of their own green leases. To provide further insight and support on this increasingly relevant aspect of real estate, Clare Harman Clark, Senior Counsel – Knowledge in our Real Estate group has written a guide to explain the why and the how of green leasing in the commercial world.

Published in November this year, ‘A Practical Guide to Green Leases for Property Professionals’ provides drafting tips and a broad analysis of the fast-moving legislative context for green lease provisions. It also considers how the likely development of solicitor's duties could demand more from the legal profession’s understanding and advice in this complex field. There is currently no such thing as a market standard green lease, and so the purpose is to help clients and their advisors produce and tailor the best green lease documents for the assets and the commercial goals of the parties. 

The guide was created with the support of various other expert sources in green leasing, including The Chancery Lane Project (TCLP), a collaborative initiative that we have long supported.

To find out more about how Taylor Wessing can support you with green leases or any other ESG-related real estate work in or beyond asset management, including construction and development, financing and investment, please get in touch with Anna Lewington at A.Lewington@taylorwessing.com.

A link to Clare's guide can be found in Law Brief's website, here. Clare also wrote about green leases earlier in the year. To read her article, please click here.