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Climate Contract Playbook Edition 3

181

This clause will: • help tenants to carry out environmental improvements knowing that landlords need to act reasonably in allowing these; • lead to better and more efficient use of land and buildings (e.g. empty roof space being used for renewables or as green space; shared areas being used for recycling etc.); • lead to a more collaborative landlord/tenant relationship and improve the environmental performance of both parties as well as the environmental impact of buildings and shared areas.

Impact

1. Law Firms 2. The Law Society 3. Insurers

4. Council of Mortgage Lenders 5. Legal Know How Providers 6. Property Standardisation Group (Scotland) 7. British Property Federation (BPF) 8. Royal Institute of Chartered Surveyors (RICS) 9. The BBP 10. RIBA

Stakeholders

This wording is intended to be used as riders by a tenant and as suggested amendments to a lease.

Application

Defined terms such as Premises, Estate, Building or End Date can be tailored to the draft lease being used. The definition of Environmental Performance follows the definition in the Model Commercial Lease 106 .

Drafters should consider the potential impact of this wording on user provisions.

Examples of where this clause could apply: • the tenants in a city centre office building getting permission from their landlord to use the roof space as a herb garden and for bee hives; and/or • using common areas for the installation of bike racks (encouraging people to cycle to work and use cars less). On internal leases of part of multi-let buildings, tenants are more likely to want to influence the Landlord’s service charge practices and any works to the building to achieve environmental objectives. With that in mind, tenants could also consider including a clause enabling their environmental recommendations relating to services etc. to be made to the management company/landlord by way of a tenant representative/consultative body that would give non-binding recommendations on behalf of itself and potentially other tenants at the building.

Notes for users

106 See https://modelcommerciallease.co.uk/.

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