Green Lease Clauses

Theme area Draft statement of intent by theme area

Cooperation The Lease contains a co-operation provision which sets out the shared aim of the
parties to improve the Environmental Performance [and Social Impact] of the
Premises and the Building and their agreement to cooperate to achieve this.
(Note: Environmental Performance extended to include biodiversity and
resilience).

Building The Lease contains provision for the parties to communicate on adequacy of data
Management/ sharing re the Environmental Performance, travel plans [and Social Impact] and
Sustainability for discussion on environmental sustainability [and Social Impact] issues.
Group

Sustainable Use The Lease contains a provision aimed at behavioural change. The Landlord and
the Tenant will not operate the Premises or the Building so as to increase energy
and water consumption above reasonable levels and will use reasonable
endeavours to minimize energy and water consumption (with all permitted
uses/intensification of use and ambient conditions protected and works not
required) and will operate equipment properly so as to maintain the
Environmental Performance of the Premises and the Building.
Data sharing and The Lease contains a provision which a) ensures L and T regularly and
metering transparently share data regarding at least the use of energy, water and waste
within the Premises and the Building (including the common parts) and where
agreed other Environmental Performance [and Social Impact] data with
confidentiality obligations re all data and tenant consent to access for landlord to
its relevant data direct from tenant‘s supplier and
b) ensures that an individual meter/submeter/AMR can be installed in the
Premises to capture energy and water usage and c) ensures proper use of any
smart building technology

Landlord rights to The Lease contains provisions to avoid paralysis of the Environmental
do work Performance/EPC rating of the Premises and the Building during leases (and these
(extending) may affect the tenant consent MEES Exemption) as follows:
 The Landlord to have some right to carry out improvement works to the
demised premises if this is possible without material adverse impact on the
tenant’s occupation;
 Support (but no drafting) for a cost contribution from the Tenant to the
extent of resulting savings;
 Landlord not to be liable for interruption to services caused by works to
common parts/equipment due to works to improve Environmental
Performance/EPC rating but L to use reasonable endeavours to minimise any
disruption/interference.

Tenant's The Lease contains provisions restricting Tenant alterations which adversely
alterations affect the Environmental Performance, EPC rating or other environmental rating
of the Building or the Premises.
The Lease includes provisions giving the Tenant the right to do alterations which
improve the Environmental Performance, EPC or other environmental rating, with
L's consent not to be unreasonably withheld.
 EPCs The Lease contains provisions which govern when, and the process by which, an
EPC is obtained by a Tenant, giving the Landlord some control over this so as to
ensure high quality EPCs are commissioned.

Waste (Landlord The Lease contains provisions the objective of which is to require landlords and
and Tenant) tenants to minimise the amount of waste generated from all activities in the
Premises and the Building that is sent to landfill and maximise the amount that is
recovered, reused, reprocessed or recycled.

Re-instatement The Lease contains provisions that the L will give notice to the Tenant of any
(yield up) alterations it does not require reinstatement of and should have regard to adverse
impacts on Environmental Performance (disregarding Waste) of reinstatement
unless reinstatement required for use/re-letting post Lease.
Where reinstatement is required, the objective is to reduce the amount of waste
generated on yield up, minimise the amount that is sent to landfill and maximise
the amount that is reused, repurposed, reprocessed or recycled including through
shared agreement to achieve re-use, waste policies and recycling targets.

Renewable energy The Lease contains a provision which promotes the procurement of renewable
electricity for the Premises and the Building with options for higher quality green
tariffs and allowing the parties to prioritise on-site renewables and encourage off-
site additionality, which either the landlord and/or the tenant can adopt, depending
on practicality and cost.
s

Suggested minimum L = Light

M= Medium D= Dark

L: Simple agreement to cooperate in good faith/without legal

obligation to improve Environmental Performance [and Social
Impact].
M: Stronger obligation to cooperate (without unreasonable
economic burden or contrary to business interests) plus mutual
obligation to consider each other's proposals.
D: Obligation to cooperate with view to achieving [x]% pa
reduction in GHG emissions, cooperate in good faith/without
legal obligation to implement strategies and mutual obligation to
consider and respond to each other's proposals.

L: No process for communication specified and parties free to

choose. Discussion to include adequacy of data sharing, reviewing
and agreeing targets and strategies re Environmental Performance
and Travel Plans [and Social Impact].
M: Landlord's option to set up forum for communication on the
above with provision for attendance at the forum.
D: Landlord must establish forum with at least 1/4ly meetings
with the same remit as in the medium clause plus to agree
strategies to achieve an
[x] % pa reduction in GHG emissions .

L: L and T not to operate the Premises/ the Building in way which

increases energy/water consumption and use reasonable
endeavours to minimise such consumption (with protection for
lawful uses, intensification of use, ambient conditions and clarity
that this does not require work to be carried out) and L and T to
operate equipment properly to maintain Environmental
Performance.
L: Both parties to share energy, water and waste data at specified
intervals and other Environmental Performance [Social
Impact]data as agreed, data to be anonymised where used by
either party and confidentiality obligations included.
Where reasonably practicable L [ at its cost] to install meters
(smart meters if practicable with T having access to the Premises
data).
to measure use of utilities by Premises provided not adverse effect
on T’s use and occupation.
Where Landlord in breach or not practicable for L to install T can
install meters in Premises (where practicable smart meters) with
protections for L T's consent to utility provider supplying smart
meter data to L direct.
There is only one version of this clause given the importance of
data sharing and metering.
Additional provision: If Smart Building Tech installed T to
comply with any Digital Protocol Policy of L and not do anything
which adversely affects efficient operation of Smart Building
Tech.

L: L's right to carry out works to the Premises to improve the

Environmental Performance or EPC rating where T consents (not
to be unreasonably withheld). L's right to do improvement works
to common parts/systems despite interruption to services.
M: As in Light but in the case of work to the Premises L’s right is
subject only to T (acting reasonably) agreeing the works will
improve Environmental Performance.
D: As in Light but no consent or agreement of T required for
works to the Premises.

L: No adverse T's alterations without L's consent not to be

unreasonably withheld.
T can, with L’s consent not to be unreasonably withheld, do
alterations which improve Environmental Performance, EPC or
other environmental rating (save structural alterations/ alterations
which adversely affect plant and equipment)
M: Absolute prohibition on adverse T's alterations.
T can, with L’s consent not to be unreasonably withheld, do
alterations which improve Environmental Performance, EPC or
other environmental rating (save structural alterations/ alterations
which adversely affect plant and equipment)
L: T only to seek an EPC of the Premises where statute requires
and to cooperate with L to allow L to obtain EPC or use an
assessor approved by the Landlord and both parties to provide
EPC details to the other.
T not to commission EPC for the Building.
T not to do/permit anything which may adversely affect the EPC.
There is only one version of this clause given the importance of
protecting the EPC.

L: mutual obligation to use reasonable endeavours to minimise

waste to landfill from works, to recover as much waste as
reasonable practicable and for L to provide and T to use a waste
segregation system.
M: as in Light with all reasonable endeavours plus to share data re
waste and to reduce waste to landfill and deal with waste as per
any Waste Materials Policy for Building.
D: as in medium plus L to have Waste Policy and mutual
obligation to use reasonable endeavours to achieve a Recovery
Target (to be defined by parties).

L: a) L to give notice [3]months pre expiry of any reinstatement

which is not required and to have due regard to adverse impact
on Environmental Performance (disregarding Waste)unless
reinstatement required by L in view of post lease intentions, and
b) when reinstating T to use reasonable endeavours to minimise
waste to landfill and to salvage as much as reasonably practicable.
M: as in Light plus to share waste data with L and comply with
any Building Waste Policy:
D: As in Medium plus by 6 months pre-expiry use reasonable
endeavours to agree a Waste Recovery Plan and L to maintain a
Waste Policy and T to achieve a Salvage Target (to be defined in
the Lease).

L: Where T procures electricity to procure renewable electricity

(any green tariff) for the Premises if available at commercially
reasonable rates. L to do same for common parts/Building or
where it procures for the Premises also for the Premises.
M: L and T to procure 100% renewable electricity (i.e. from
naturally replenishing non- fossil fuel resources – a high quality
green tariff) for the common parts /Building and the Premises (re
the Premises dependent on who procures) and provide evidence to
the other on the source of energy.
D: L and T (dependent on who is responsible for such
procurement) to procure 100% renewable electricity using
renewable energy from on-site generation, or if not practical or if
cost prohibitive, from a PPA, or if not practical or if cost
prohibitive, from a high quality green tariff and provide evidence
of the source of the energy.