Manchester has set a target of achieving net zero by 2038 – 12 years ahead of the Government's target for the rest of the UK.
Reducing the carbon footprint of new builds and existing commercial properties will prove key to achieving this goal.
By "green proofing" a commercial property, either by building new buildings, or retrofitting existing buildings, to be more energy efficient, businesses may achieve cost-saving efficiencies on utility bills and foster a better reputation.
In this article, we explore how landlords and tenants may collaborate when looking green proofing commercial property and the practical measures businesses may take to leverage technology to reduce a property's carbon footprint.
What is a green lease?
Green leases are commercial leases that incorporate sustainability practices into the terms and conditions by placing obligations on landlords and tenants to minimise carbon emissions from property development, operation and occupation.
Green leases are becoming increasingly popular in the commercial real estate industry, and broadly speaking, there are three main forms: light green, medium green, and dark green.
Light green leasesA light green lease includes sustainability clauses that encourage tenants to be more environmentally responsible – the provisions are usually non-enforceable and therefore have no teeth.
Such clauses cover a wide range of behaviour, from energy efficiency, waste reduction to water conservation.
The objective is to create a collaborative partnership between landlords and tenants that supports sustainability efforts and reduces the overall environmental impact of a building or occupying the building.
Medium green leases
Medium green leases impose sustainability obligations that are ordinarily legally binding but are not intended to be onerous or financially burdensome.
Medium green leases are appropriate where the parties have set sustainability targets and wish to commit to sustainable practices.
Dark green leases
Dark green leases impose much more responsibility on the parties, and the terms are ordinarily legally binding.
Whilst landlords and tenants can both benefit from improving the environmental performance of a building - tenants may be reluctant to take on any additional responsibilities, which will result in additional costs to them.
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