Green Leases: The environmental crisis presents an ever-growing threat to life on Earth. According to Carbon Trust, commercial buildings make up 18% of the UK’s carbon emissions. Consequently, the government has started to take legislative measures to reduce this. New government policies mean those involved in the management of a commercially used building must take action to ensure they make their building more environmentally sustainable.
The government is making landlords and developers focus more on the way they use energy within a building. They want to ensure that they are using energy efficiently throughout a building. One of the ways that this can be achieved is by using a Green Lease.
What is a Green Lease?
A Green Lease is a Lease that includes clauses that give the owner of the building additional responsibilities that ensure the building will be occupied in a sustainable and environmentally friendly way. Green Lease clauses span from light to dark green. Each end of the colour spectrum indicates lighter or heavier responsibilities for the parties that manage the building to adhere to. For example, a dark green lease may impose more important environmental rating targets that landlords must meet.
Why should green leases be used?
Green leases can simultaneously cut down outgoing costs and improve energy efficiency. In addition, using a green lease means that the building and therefore company automatically complies with Corporate Social Responsibility (CSR) policies. Not to mention, making a building more environmentally friendly has been proven to substantially improve employee wellbeing.
Can an existing lease be made green?
If a building already has an existing lease, it can be made into a green one. In this situation, the landlord and the developer, and any other relevant third party can sign a Memorandum of Understanding (MoU). This document is a written agreement that outlines how a building will be operated in an environmentally sustainable nature by both parties. It also sets out how both parties will continue to improve the building’s environmental performance in the future.
Overall, the implementation of green leases on a building will not only benefit those involved internally but externally and will take a small step toward a better future for the environment.
To learn more about Green Leases, or to turn your Lease green speak to Nick Attwell on 01473 229 200.