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ARTICLE · 07 AUGUST 2024

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Is It Easy Being Green…in Property Law?

Stephens Scown
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Inclusion of sustainability and green clauses in commercial property documentation is increasingly common, driven by environmental impact reduction and economic benefits. These clauses enhance energy efficiency, resource conservation, and regulatory compliance while boosting property value and marketability, despite initial cost challenges.

United KingdomEnvironment
Aimee Barrable
Aimee Barrable

Although not a new concept, the inclusion of sustainability and green clauses in commercial property documentation – such as the green lease provisions developed by the Better Buildings Partnership – is becoming more common as the sector seeks to reduce its impact on the planet.

What is a green clause?

There are no set rules as to what constitutes a green clause but they generally embody key concepts such as:

  • Energy Performance: Requirements relating to Energy Performance Certificate ratings, installation of energy-efficient systems, collection of data and use of renewable energy sources.
  • Sustainable Materials: Specifications for the use of recycled or sustainable materials in construction and renovation including in tenant's alterations, for example.

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