Today, we'd like to address another important aspect and explore the implementation of ESG in lease agreements. We'll also present several methods for making rental properties more environmentally friendly.
Building operation involves significant energy consumption and carbon dioxide emissions, and an attempt to reduce this consumption can be made through environmentally conscious "Green Leases." These are voluntary agreements that express the intent to cooperate to improve the environmental performance of the building and the leased property.
Already when concluding "Green Lease Agreements", initiatives can be taken to reduce the negative impact of building operation on human health and the natural environment, such as:
- efficient use of energy, water and other resources;
- reducing waste, pollution and environmental degradation;
- creating an environment that promotes the health and well-being of the building or leaseholders and improves their overall productivity;
- using environmentally friendly finishing materials to the greatest extent possible;
- installation of energy-saving lighting;
- providing and encouraging appropriate training for relevant employees, service users, contractors or other stakeholders managing or working in the building;
- developing and promoting alternative and environmentally friendly means of transport, including the use of environmentally friendly means of transport such as bicycles and public transport.
Another solution that can improve the environmental performance of the building and the leased property, which can be included in a Green Lease Agreement, is the creation of a collaboration platform serving as a tool for exchanging information between the parties to the agreement, considering the adequacy and scope of data sharing regarding energy and water consumption, waste generation and disposal, as well as monitoring compliance with environmental regulations. Such a tool can be used to compare the environmental performance of the leased property and the building over an appropriate period agreed upon by the parties to the agreement and to establish strategies or goals for improving the property's environmental performance.
In green lease agreements, the landlord may also expect the tenant to apply specific technical solutions to the lease, such as:
- installation of LED lighting with a specific efficiency;
- the use of solutions that minimize the formation of legionella bacteria of water or air origin;
- selecting taps, urinals, toilets and showers on the lease premises that will ensure lower water consumption than standard solutions;
- ensuring automatic shut-off of the water supply by means of a valve in the immediate vicinity of the sanitary area;
- whenever possible, use ecological finishing materials with EPD environmental declarations.
Obtaining and maintaining compliance with the energy performance certificate is also an important aspect of green leases. This task requires making every effort to avoid making changes to the property's fixtures, equipment, and installations or related to its operation that could potentially adversely affect the leased property's energy efficiency rating. Furthermore, the tenant and landlord should work together to update the energy performance certificate, providing the required documentation and providing the energy performance expert with reasonable access to the leased property.
ESG encompasses not only the environment but also the social aspect. Therefore, when discussing this topic, it's crucial to consider social initiatives in which tenants can engage, if possible. This includes all social and pro-ecological initiatives, such as promoting clothing recycling (for clothing retailers), or recycling electrical goods such as used laptops or batteries (for consumer electronics retailers), as well as participating in initiatives such as campaigns aimed at the local community, promoting environmental protection, health, and well-being.
In summary, there are many ways to implement ESG in lease agreements. Currently, these provisions are voluntary and directional, but they undoubtedly aim to address environmental protection goals by addressing the need to reduce energy consumption and carbon dioxide emissions during building operation.
Legislative Alert: On Thursday, December 5, 2024, the Sejm (lower house of parliament) passed a bill amending the Aviation Law. The amendment aims, among other things, to repeal paragraph 9 of Article 55 of the Aviation Law, which, under current law, requires the adoption of a local zoning plan for areas covered by the airport master plan. The bill has now been referred to the Senate for consideration.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of December 9, 2024
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