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Does your commercial property tenancy meet net zero?


The United Nations Intergovernmental Panel on Climate Change (IPCC) recently published a report warning of devastating consequences to the world if climate warming is not kept limited to 1.5 °C. The report advises that, in order to maintain this 1.5 °C warming, emissions must be reduced by 45% by the year 2030, with net zero being reached by the year 2050. Net zero means reaching a point whereby there is no net impact on the climate from the use of greenhouse gas emissions.

Working towards net zero will require businesses to consider the scope of their emissions, which fall broadly within 2 categories, direct and indirect. Direct emissions are those which the business has immediate control over, for example, its company vehicles. Indirect emissions include (but are not limited to) factors such as the emissions from goods and services one business buys from another, travel and premises that a business rents.

The Chancery Lane Project is a project whereby legal professionals work together with the aim of creating net zero clauses to be added to legal documents to support businesses in working toward reducing emissions and working towards net zero. The Real Estate team at Clarke & Son are supportive of this project and advising our clients on how climate clauses can be used our documents for the benefit of the client.

Specifically in relation to commercially leased properties, matters which a landlord and/or tenant may want to consider when agreeing or renewing a business tenancy are:

  • Means of reducing emissions arising from the repair and alterations provisions in a lease by the parties agreeing to avoid unnecessary waste and the purchase of new materials (and the greenhouse gases that these produce), and by agreeing to use recycled, reclaimed or reused materials or, where this is not possible, to use materials that are sustainably sourced.


  • Landlords and tenants collaborating in relation to a tenant carrying out environmental improvements to leased land and buildings.


If you would like to discuss how you can make your business tenancy greener (whether you are a landlord or a tenant), please contact Miriam Carr via email: mail@clarkeandson.co.uk or call at 01256 320555.

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