Saving The Planet, One Clause At A Time

Environmental clauses are gradually being incorporated into leases ("green leases"). Leases are no longer just instruments of enjoyment: they are becoming tools for environmental management. It is important that the legal drafting of such clauses is precise, clear and precautionary.

The emergence of green leases

The concept of a “green lease” is commonly used to describe a lease containing a set of clauses imposing obligations on the landlord and/or the tenant aimed at managing and reducing the environmental impact of a building.

The environmental performance of buildings is no longer solely a matter of design, materials or certification. Driven by the combined effect of ESG requirements applicable to investors, sustainable finance constraints and growing expectations of tenants, environmental clauses (or green lease clauses) are gradually becoming standard in commercial leases.